Bob F. R&H Agri- · McDermott Will & Emery LLP 500 North Capitol Street, NW Washington, District of Columbia 20001 T: 202.756.8000 F: 202.756.8087 * Attorney of Record for Plaintiffs

IN THE UNITED STATES COURT OF FEDERAL CLAIMS

Bruce Ciapessoni, Elisa Ciapessoni, Bob F. Hansen, Hansen Enterprises, R&H Agri-Enterprises, Eldora Rossi, Rossi & Ciapessoni Farms, and Rossi & Rossi, on behalf of themselves and all others similarly situated, Plaintiffs, v. The United States of America, Defendant.

Case 1:15-cv-00938-TCW Hon. Margaret M. Sweeney

APPENDIX TO PLAINTIFFS’ OPPOSITION TO THE GOVERNMENT’S MOTION TO DISMISS, OR IN THE ALTERNATIVE, MOTION FOR

SUMMARY JUDGMENT

Christopher M. Murphy+ ([email protected]) McDermott Will & Emery LLP 227 W. Monroe Street Chicago, IL 60606 T: 312.372.2000 F: 312.984.7700

M. Miller Baker* ([email protected]) Edward M. Ruckert+ ([email protected]) McDermott Will & Emery LLP 500 North Capitol Street, NW Washington, District of Columbia 20001 T: 202.756.8000 F: 202.756.8087

* Attorney of Record for Plaintiffs + Of Counsel to Plaintiffs

Case 1:15-cv-00938-MMS Document 45-1 Filed 05/02/16 Page 1 of 155

INDEX TO APPENDIX

Crop Year Documents

2009–2010:

Raisins Produced from Grapes Grown in California; Final Free and Reserve Percentages for 2009-10 Crop Natural (Sun-Dried) Seedless Raisins, 75 Fed. Reg. 20,897 (April 22, 2010) ........................................................................................................ App. 1

Raisins Produced from Grapes Grown in California; Final Free and Reserve Percentages for 2009-10 Crop Natural (Sun-Dried) Seedless Raisins, 75 Fed. Reg. 35,959 (June 24, 2010).......................................................................................................... App. 6

Statement of Raisin Administrative Committee of 2009–2010 Natural Seedless Reserve Pool dated January 26, 2015 (2009 – 2010 Reserve Pool) ..................................... App. 10

2008–2009:

Raisins Produced from Grapes Grown in California; Final Free and Reserve Percentages for 2008-09 Crop Natural (Sun-Dried) Seedless Raisins, 74 Fed. Reg. 9951 (March 9, 2009) ...................................................................................................... App. 11

Raisins Produced from Grapes Grown in California; Final Free and Reserve Percentages for 2008-09 Crop Natural (Sun-Dried) Seedless Raisins, 74 Fed. Reg. 44,269 (August 28, 2009) ................................................................................................... App. 17

Letter, dated January 31, 2013, from Gary Schulz, President/General Manager, Raisin Administrative Committee to All 2008-09 Natural Seedless Growers (2008–2009 Reserve Pool) .......................................................................................................... App. 22

2007–2008:

Raisins Produced from Grapes Grown in California; Final Free and Reserve Percentages for 2007–08 Crop Natural (Sun-Dried) Seedless Raisins, 73 Fed. Reg. 9005 (February 19, 2008) ................................................................................................ App. 24

Raisins Produced from Grapes Grown in California; Final Free and Reserve Percentages for 2007-08 Crop Natural (Sun-Dried) Seedless Raisins, 73 Fed. Reg. 38,307 (July 7, 2008) .......................................................................................................... App. 30

Excerpts of Minutes of the Meeting of the Raisin Administrative Committee, dated January 6, 2011 (2007–2008 Reserve Pool) ........................................................... App. 35

Letter, dated April 1, 2011, from Gary Schulz, President/General Manager, Raisin Administrative Committee to All 2007-08 Natural Seedless Raisin Growers (2007–2008 Reserve Pool) ..................................................................................... App. 38


ii

2006–2007:

Raisins Produced from Grapes Grown in California; Final Free and Reserve Percentages for 2006-07 Crop Natural (Sun-Dried) Seedless Raisins, 72 Fed. Reg. 17,362 (April 9, 2007) ........................................................................................................ App. 40

Raisins Produced from Grapes Grown in California; Final Free and Reserve Percentages for 2006-07 Crop Natural (Sun-Dried) Seedless Raisins, 72 Fed. Reg. 59,153 (October 19, 2007) .................................................................................................. App. 46

Letter, dated February 19, 2009, from Gary Schulz, President/General Manager, Raisin Administrative Committee to All 2006-07 Natural Seedless Growers (2006–2007 Reserve Pool) .......................................................................................................... App. 51

2005–2006:

Raisins Produced from Grapes Grown in California; Final Free and Reserve Percentages for 2005-06 Crop Natural (Sun-Dried) Seedless Raisins, 71 Fed. Reg. 29,567 (May 23, 2006)........................................................................................................ App. 53

Raisins Produced from Grapes Grown in California; Final Free and Reserve Percentages for 2005-06 Crop Natural (Sun-Dried) Seedless Raisins, 72 Fed. Reg. 2173 (January 18, 2007) .................................................................................................. App. 58

Letter, dated February 19, 2009, from Gary Schulz, President/General Manager, Raisin Administrative Committee to All 2005-06 Crop Natural Seedless Growers (2005–2006 Reserve Pool) ................................................................................................. App. 63

2003–2004:

Raisins Produced from Grapes Grown in California; Final Free and Reserve Percentages for 2003-04 Crop Natural (Sun-Dried) Seedless Raisins, 69 Fed. Reg. 21,695 (April 22, 2004) ...................................................................................................... App. 65

Raisins Produced from Grapes Grown in California; Final Free and Reserve Percentages for 2003-04 Crop Natural (Sun-Dried) Seedless Raisins, 69 Fed. Reg. 50,289 (August 16, 2004) ................................................................................................... App. 70

Letter, dated June 23, 2008, from Raisin Administrative Committee to All 2003-04 Natural Seedless Growers (2003–2004 Reserve Pool) ........................................... App. 75

2002–2003:

Raisins Produced from Grapes Grown in California; Final Free and Reserve Percentages for 2002-03 Crop Natural (Sun-Dried) Seedless and Zante Currant Raisins, 68 Fed. Reg. 15,926 (April 2, 2003) ...................................................................... App. 77


iii

Raisins Produced from Grapes Grown in California; Final Free and Reserve Percentages for 2002-03 Crop Natural (Sun-Dried) Seedless and Zante Currant Raisins, 68 Fed. Reg. 41,686 (July 15, 2003) ........................................................................... App. 84

Excerpts of Minutes of the Meeting of the Raisin Administrative Committee, dated April 12, 2007 (2002–2003 Reserve Pool) ....................................................................... App. 90

Statement of Disposition and Grower Equity 2002 – 2003 Natural Seedless Reserve Pool (2002-2003 Reserve Pool) ...................................................................................... App. 93

2001–2002:

Raisins Produced from Grapes Grown in California; Final Free and Reserve Percentages for 2001-02 Crop Natural (Sun-Dried) Seedless and Other Raisins, 67 Fed. Reg. 15,707 (April 3, 2002) ........................................................................................... App. 94

Raisins Produced from Grapes Grown in California; Final Free and Reserve Percentages for 2001-02 Crop Natural (Sun-Dried) Seedless and Other Raisins, 67 Fed. Reg. 47,439 (July 19, 2002) ........................................................................................... App. 99

Excerpts of Minutes of the Meeting of the Raisin Administrative Committee, dated November 25, 2003 (2001–2002 Reserve Pool) ................................................... App. 104

Statement of Disposition and Grower Equity 2001 – 2002 Natural Seedless Reserve Pool dated December 8, 2003 (2001–2002 Reserve Pool) ............................................ App. 107

2000–2001:

Raisins Produced from Grapes Grown in California; Final Free and Reserve Percentages for 2000-01 Crop Natural (Sun-Dried) Seedless and Zante Currant Raisins, 66 Fed. Reg. 39,623 (August 1, 2001) ...................................................................... App. 108

Raisins Produced from Grapes Grown in California; Final Free and Reserve Percentages for 2000-01 Crop Natural (Sun-Dried) Seedless and Zante Currant Raisins, 66 Fed. Reg. 53,945 (October 25, 2001) ................................................................... App. 114

Excerpts of Minutes of the Meeting of the Raisin Administrative Committee, dated March 27, 2003 (Corrected April 23, 2003) (2000–2001 Reserve Pool) ............. App. 120

Statement of Disposition and Grower Equity 2000 – 2001 Natural Seedless Reserve Pool dated March 27, 2003 (2000–2001 Reserve Pool) ................................................ App. 122

Excerpts of Minutes of the Meeting of the Raisin Administrative Committee, dated April 23, 2003 (2000–2001 Reserve Pool) ..................................................................... App. 123

1999–2000:

Raisins Produced from Grapes Grown in California; Final Free and Reserve Percentages for 1999-2000 Crop Natural (Sun-Dried) Seedless and Zante Currant Raisins, 65 Fed. Reg. 18,871 (April 10, 2000) ....................................................................... App. 125


iv

Raisins Produced from Grapes Grown in California; Final Free and Reserve Percentages for 1999-2000 Crop Natural (Sun-Dried) Seedless and Zante Currant Raisins, 65 Fed. Reg. 40,975 (July 3, 2000) ........................................................................... App. 130

Minutes of the Meeting of the Raisin Administrative Committee, dated November 13, 2001 (1999–2000 Reserve Pool) ........................................................................... App. 135

Financial Report 1999-2000 Natural Seedless Reserve Pool (1999–2000 Reserve Pool) .................................................................................... App. 143

Other Documents

Declaration of Richard K. Stark........................................................................................ App. 144

Raisin Administrative Committee, Marketing Policy and Industry Statistics 26-27 (2009) ....................................... App. 147


This section of the FEDERAL REGISTERcontains regulatory documents having generalapplicability and legal effect, most of whichare keyed to and codified in the Code ofFederal Regulations, which is published under50 titles pursuant to 44 U.S.C. 1510.

The Code of Federal Regulations is sold bythe Superintendent of Documents. Prices ofnew books are listed in the first FEDERALREGISTER issue of each week.

Rules and Regulations Federal Register

20897

Vol. 75, No. 77

Thursday, April 22, 2010

DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 989

[Doc. No. AMS–FV–09–0075 and FV10–989– 1 IFR]

Raisins Produced From Grapes Grown in California; Final Free and Reserve Percentages for 2009–10 Crop Natural (Sun-Dried) Seedless Raisins

AGENCY: Agricultural Marketing Service, USDA. ACTION: Interim rule with request for comments.

SUMMARY: This rule establishes final volume regulation percentages for 2009– 10 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 April 23, 2010. The volume regulation percentages apply to acquisitions of NS raisins from the 2009–10 crop until the reserve raisins from that crop are disposed of under the marketing order. Comments received by May 24, 2010, 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 document 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. All comments submitted in response to this rule will be included in the record and will be made available to the public. Please be advised that the identity of the individuals or entities submitting the comments will be made public on the Internet at the address provided above. FOR FURTHER INFORMATION CONTACT: Terry Vawter, Senior 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].

Small businesses may request information on complying with this regulation by contacting Antoinette Carter, 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 2009–10 crop year, which began August 1, 2009, and ends July 31, 2010.

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 the 2009–10 crop for 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 6, 2009.

Computation of Trade Demand

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 § 989.54(a) of the order, the committee met on August 13, 2009, 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

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20898 Federal Register / Vol. 75, No. 77 / Thursday, April 22, 2010 / Rules and Regulations

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 carry-in on August 1 of the current crop year, and adding the desirable carryout at the end of that crop year. As specified in § 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 2009–10 trade demand for NS raisins at 234,769 tons as shown below.

COMPUTED TRADE DEMAND CALCULATION

[Natural condition tons]

NS raisins

Prior year’s shipments .............. 335,103 Multiplied by 90 percent ........... 0.90 Adjusted base ........................... 301,593 Minus carry-in inventory ........... 126,824

Plus desirable carryout ............. 60,000

Computed NS trade Demand ... 234,769

Computation of 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 2009 crop harvest was late. If the committee determines that volume regulation is warranted, it must also compute and announce preliminary free and reserve percentages. The committee met on October 6, 2009, and announced a 2009–10 crop estimate of 275,000 tons for NS raisins pursuant to § 989.54(b). NS raisins are the major varietal type of California raisin. The crop estimate of 275,000 tons is higher than the computed trade demand of

234,769 tons. Thus, it was determined that volume regulation for NS raisins was warranted. Preliminary volume regulation percentages computed to 73 percent free and 27 percent reserve to release 85 percent of the computed trade demand.

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.

Pursuant to § 989.54(c), at the same meeting on October 6, 2009, the committee announced interim volume regulation percentages for NS raisins to release less than the full trade demand at 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 § 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 CALCULATIONS


NS raisins

Trade demand .......................... 234,769 Divided by crop estimate .......... 275,000

Equals the free percentage ...... 85 100

Minus free percentage .............. 85

Equals the reserve percentage 15

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 exceeded for the 2010 crop year for NS raisins. The application of a free percentage of 85 percent, combined with release of reserve raisins to handlers during the crop year and handler carry-in inventories, is estimated to result in an available supply of 392,485 tons of natural condition NS raisins, which equates to 124 percent of the 2008–09 shipments of 317,718 tons.

Initial Regulatory Flexibility Analysis Pursuant to requirements set forth in

the Regulatory Flexibility Act (RFA) (5 U.S.C. 601–612), 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 3,000 raisin producers in the regulated area. Small agricultural service firms are defined by the Small Business Administration (SBA) (13 CFR 121.201) as those having annual receipts of less than $7,000,000, and small agricultural producers as those having annual receipts of less than $750,000. 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 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 to strengthen market conditions. If the primary market (the normal domestic market) is over-supplied with raisins, grower prices decline substantially.

Pursuant to § 989.54(d) of the order, this rule establishes final volume regulation percentages for the 2009–10 crop year for 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 275,000 tons is significantly higher than the 234,769 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


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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 63 percent of the 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 1970s, over 50 percent of the raisin grapes were sold fresh to the wine market for crushing. Since then, the percentage 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 demands 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 crop

years, 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 crop years 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, as noted below, producer prices were higher for the 2004–05 through the 2008–09 crop years. Crop prices fluctuate depending upon variable winery and table grape demand for raisin variety grapes.

NATURAL SEEDLESS (NATURAL CONDITION) DELIVERIES, FIELD PRICES AND PRODUCER PRICES

Crop year Deliveries (tons)

Field prices (per ton) 1

Producer prices (per ton)

2008–09 ....................................................................................... 364,268 $1,310.00 2 $1,139.70 2007–08 ....................................................................................... 329,288 1,210.00 2 1,028.50 2006–07 ....................................................................................... 282,999 1,210.00 1 1,089.00 2005–06 ....................................................................................... 319,126 1,210.00 1 998.25 2004–05 ....................................................................................... 265,262 1,210.00 3 1,210.00 2003–04 ....................................................................................... 296,864 810.00 567.00 2002–03 ....................................................................................... 388,010 745.00 491.20 2001–02 ....................................................................................... 377,328 880.00 650.94 2000–01 ....................................................................................... 432,616 877.50 603.36 1999–2000 ................................................................................... 299,910 1,425.00 1,211.25 1998–99 ....................................................................................... 240,469 1,290.00 3 1,290.00 1997–98 ....................................................................................... 382,448 1,250.00 946.52 1996–97 ....................................................................................... 272,063 1,220.00 1,049.20 1995–96 ....................................................................................... 325,911 1,160.00 1,007.19 1994–95 ....................................................................................... 378,427 1,160.00 928.27 1993–94 ....................................................................................... 387,007 1,155.00 904.60

1 Field prices for NS raisins are established by the Raisin Bargaining Association, and are also referred to in the industry as the ‘‘free tonnage price’’ for raisins.

2 Return-to-date, reserve pool still open. 3 No volume regulation.

There are essentially two broad markets for raisins—domestic and export. Domestic shipments generally increased over the 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 crop year, they increased from 174,117 packed tons during the 2000–01 crop year to 193,609 packed tons during the 2007–08 crop year and decreased to 191,929 packed tons during the 2008–09 crop year. Export shipments ranged from a high of 107,931 packed tons in the 1991–92 crop year 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, fell to 101,684 tons in 2006–07 crop year, and again increased to 142,541 tons in 2007– 08 crop year. This significant increase was due to a short crop in Turkey. Export shipments remained relatively high in 2008–09 at 125,789 tons.

The per capita consumption of raisins has declined from 2.07 pounds in 1988 to 1.46 pounds in 2007. This decrease is consistent with the decrease in the per capita consumption of dried fruits in general, which may be due to the increasing year-round availability of

most types of fresh fruit throughout the year.

While the overall demand for raisins has increased in four of the last five 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 crop year and 299,910 tons in 1999–2000 crop year. Deliveries for the 2000–01 crop year soared to a record level because of increased bearing acreage and yields. Deliveries for the


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2001–02 crop year were at 377,328 tons, 388,010 tons for the 2002–03 crop year, 296,864 tons 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 carry-in 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 crop year to 319,126 tons, this may have been because fewer growers opted to contract with wineries, as raisin variety grapes crushed in 2005–06 crop year decreased by 161,000 green tons, the equivalent of over 40,000 tons of raisins. In the 2006– 07 crop year, raisin deliveries were again less than 300,000 tons at 282,999 tons and increased to 329,288 tons in 2007–08 crop year. The 2008–09 crop year was considered to be a good crop and the quality of the crop has a direct bearing on the overall production with 364,268 tons of NS raisins delivered.

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 provides for raisins that handlers can market as free tonnage. Based on the 2009–10 crop year estimate of 275,000 tons, the 15 percent reserve would limit the total free tonnage to 233,750 natural condition tons (.85 × the 275,000 ton crop). Adding the estimated figure of 41,250 tons of raisins offered to handlers through the 10 + 10 program to the 233,750 tons of free tonnage, plus 126,824 tons of carry-in inventory, plus the 12,137 tons of 2008–09 NS reserve pool raisins released in the 2009–10 crop year results in a total supply of 413,961 tons of natural condition raisins.

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, generally, established 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 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 and 2004–05 crop years, small and large raisin producers and handlers have been operating under volume regulation percentages every year since the 1983– 84 crop year. There are no known additional costs incurred by small handlers that are not incurred by large handlers. 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 13 and October 6, 2009, 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 13 and October 6, 2009, and discussed these issues in detail. Those meetings were also public meetings, and both large and small entities were encouraged to participate and express their views. Finally, interested persons are invited to submit comments on this interim 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/ AMSv1.0/ams.fetchTemplateData.do?template=TemplateN&page=MarketingOrdersSmallBusinessGuide. Any questions about the compliance guide should be sent to Antoinette Carter 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 the 2009–10 crop year for 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


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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 2009–10 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 rule provides a 30-day comment period, and all comments timely received will be considered prior to finalization of this rule. Also, for the

reasons stated above, a 30-day comment period is deemed appropriate.

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 followed:

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 989.257 is revised to read as follows:

§ 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:

Crop year Varietal type Free percentage

Reserve 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 2008–09 ............ Natural (sun-dried) Seedless ................................................................................................ 87 13 2009–10 ............ Natural (sun-dried) Seedless ................................................................................................ 85 15

(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: April 16, 2010. Rayne Pegg, Administrator, Agricultural Marketing Service. [FR Doc. 2010–9241 Filed 4–21–10; 8:45 am]

BILLING CODE 3410–02–P

DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

18 CFR Part 38

[Docket No. RM05–5–017; Order No. 676–F]

Standards for Business Practices and Communication Protocols for Public Utilities

Issued April 15, 2010. AGENCY: Federal Energy Regulatory Commission. ACTION: Final rule.

SUMMARY: The Federal Energy Regulatory Commission (Commission) is amending its regulations at 18 CFR 38.2 to incorporate by reference business practice standards adopted by the Wholesale Electric Quadrant of the North American Energy Standards Board (NAESB) to categorize various demand response products and services and to support the measurement and verification of these products and services in wholesale electric energy markets. This rule ensures that participants in wholesale energy markets where demand response products are administered receive standardized access to information that will enable them to participate in those markets and addresses performance evaluation methods appropriate to use for demand response products. This rule facilitates the ability of demand response providers to participate in electricity markets, reducing transaction costs and providing an opportunity for more customers to participate in these programs, especially customers that operate in more than one organized market. It also provides a foundation for further business practice standardization efforts, and participants in the NAESB process can use these

standards to identify those elements for which standardization would be beneficial. Further, adoption of measurement and verification standards will improve the methods and procedures for measuring accurately the performance of demand response resources and assist in monitoring demand response services for potential manipulation. DATES: Effective Date: This rule will become effective May 24, 2010. Dates for implementation of the standards are provided in the Final Rule. This incorporation by reference of certain publications in the rule is approved by the Director of the Federal Register as of May 24, 2010. FOR FURTHER INFORMATION CONTACT: Ryan Irwin (technical issues), Office of Energy Policy and Innovation, Federal Energy Regulatory Commission, 888 First Street, NE., Washington, DC 20426, (202) 502–6454.

Gary D. Cohen (legal issues), Office of the General Counsel, Federal Energy Regulatory Commission, 888 First Street, NE., Washington, DC 20426, (202) 502–8321. SUPPLEMENTARY INFORMATION:

Table of Contents

Paragraph Nos.

I. Background ............................................................................................................................................................................................ 3. II. Discussion ............................................................................................................................................................................................ 9.

A. Overview ....................................................................................................................................................................................... 9. B. NAESB Phase I M&V Standards .................................................................................................................................................. 15.

1. Adoption of NAESB Phase I M&V Standards ...................................................................................................................... 15. 2. Clarification of Jurisdictional Concerns ............................................................................................................................... 17.


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35959 Federal Register / Vol. 75, No. 121 / Thursday, June 24, 2010 / Rules and Regulations

employee, including the rendering of advice or consultation, which requires advanced knowledge in a field of science or learning customarily acquired by a course of specialized instruction and study in an institution of higher education, hospital or similar facility. Professional services means the provision of personal service by an employee, including the rendering of advice or consultation, which involves application of the skills of a profession as defined in 5 CFR 2636.305(b)(1) or involves a fiduciary relationship as defined in 5 CFR 2636.305(b)(2).

Note to § 9201.102(b): There is a special approval requirement set out in both 18 U.S.C. 203(d) and 205(e) respectively, for certain representational activities otherwise covered by the conflict of interest restrictions on compensation and activities of employees in claims against and other matters affecting the Government. Thus, an employee who wishes to act as agent or attorney for, or otherwise represent his parents, spouse, child, or any person for whom, or any estate for which, he is serving as guardian, executor, administrator, trustee, or other personal fiduciary in such matters must obtain the approval required by law of the Government official responsible for the employee’s appointment in addition to the regulatory approval required by this section.

(c) Procedure for requesting approval. (1) The approval required by paragraph (a) of this section shall be requested by e-mail or other form of written correspondence at least 30 calendar days in advance of engaging in outside employment as defined in paragraph (b) of this section.

(2) The request for approval to engage in outside employment or certain other activities shall set forth, at a minimum:

(i) The name of the employer or organization;

(ii) The nature of the legal activity or other work to be performed;

(iii) The title of the position; and (iv) The estimated duration of the

outside employment. (3) Upon a significant change in the

nature or scope of the outside employment or in the employee’s official position within the SIGIR, the employee must, within 7 calendar days of the change, submit a revised request for approval.

(d) Standard for approval. Approval shall be granted only upon a determination that the outside employment is not expected to involve conduct prohibited by statute or Federal regulation, including 5 CFR part 2635.

(e) DAEO’s and alternate DAEO’s responsibilities. The SIGIR DAEO or alternate DAEO may issue instructions or manual issuances governing the submission of requests for approval for outside employment. The instructions

or manual issuances may exempt categories of employment from the prior approval requirement of this section based on a determination that employment within those categories of employment would generally be approved and is not likely to involve conduct prohibited by statute or Federal regulation, including 5 CFR part 2635. The DAEO or alternate DAEO may include in these instructions or issuances examples of outside employment that are permissible or impermissible consistent with this part and 5 CFR 2635.

Stuart W. Bowen, Jr., Special Inspector General for Iraq Reconstruction.

Approved: June 10, 2010. Robert I. Cusick, Director, Office of Government Ethics. [FR Doc. 2010–15103 Filed 6–23–10; 8:45 am]

BILLING CODE 3710–8N–P



7 CFR Part 989

[Doc. No. AMS–FV–09–0075; FV10–989–1 FIR]


AGENCY: Agricultural Marketing Service, USDA. ACTION: Affirmation of interim rule as final rule.

SUMMARY: The Department of Agriculture (USDA) is adopting, as a final rule, without change, an interim rule that established final volume regulation percentages of 85 percent free and 15 percent reserve for the 2009–10 crop of Natural (sun-dried) Seedless (NS) raisins covered under the Federal marketing order for California raisins (order). The percentages are intended to help stabilize raisin supplies and prices, and strengthen market conditions. DATES: Effective June 25, 2010. The volume regulation percentages apply to acquisitions of NS raisins from the 2009–10 crop until the reserve raisins from that crop are disposed of under the marketing order. FOR FURTHER INFORMATION CONTACT: Terry Vawter, Senior 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].

Small businesses may obtain information on complying with this and other marketing order regulations by viewing a guide at the following Web site: http://www.ams.usda.gov/AMSv1.0/ams.fetchTemplateData.do?template=TemplateN&page=MarketingOrdersSmallBusinessGuide; or by contacting Antoinette Carter, 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 handling of California raisins is regulated by 7 CFR part 989. The order authorizes the establishment of volume regulations, when warranted, for each crop. Volume regulations: (1) Help the industry address its marketing problems by keeping supplies in balance with demand; (2) strengthen market conditions; (3) fully supply both the domestic and export markets without overburdening them; and (4) provide for market expansion.

Volume regulation is warranted for the 2009–10 crop of NS raisins because the crop estimate (supply) exceeded the trade demand (demand). In an interim rule published in the Federal Register on April 22, 2010, and effective on April 23, 2010 (75 FR 20897; Doc No. AMS– FV–09–0075, FV10–989–1 IFR), § 989.257 was amended by incorporating the 2009–10 crop year final free and reserve percentages. This rule continues in effect the rule that established a final free percentage of 85 percent, and a final reserve percentage of 15 percent, of NS raisins acquired by handlers during the crop year, which began August 1, 2009, and ends July 31, 2010.

Final Regulatory Flexibility Analysis Pursuant to requirements set forth in

the Regulatory Flexibility Act (RFA) (5 U.S.C. 601–612), the Agricultural

VerDate Mar<15>2010 12:53 Jun 23, 2010 Jkt 220001 PO 00000 Frm 00003 Fmt 4700 Sfmt 4700 E:\FR\FM\24JNR1.SGM 24JNR1cpric

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Marketing Service (AMS) has considered the economic impact of this action on small entities. Accordingly, AMS has prepared this final regulatory flexibility analysis.


There are approximately 26 handlers of California raisins who are subject to regulation under the order and approximately 3,000 raisin producers in the regulated area. Small agricultural service firms are defined by the Small Business Administration (SBA) (13 CFR 121.201) as those having annual receipts of less than $7,000,000, and small agricultural producers as those having annual receipts of less than $750,000. Approximately 18 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 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 to strengthen market conditions. If the primary market (the normal domestic market) is over-supplied with raisins, grower prices decline substantially.

Pursuant to § 989.54(d) of the order, this rule establishes final volume regulation percentages for the 2009–10

crop year for 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 275,000 tons is significantly higher than the 234,769 ton trade demand.


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 63 percent of the 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 1970s, over 50 percent of the raisin grapes were sold fresh 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. These 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 and 1997–98 crop years, 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 crop years 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, as noted below, producer prices were higher for the 2004–05 through 2008–09 crop years:


Crop year Deliveries (tons) Field prices (per ton)1


2008–09 ........................................................................................................................... 364,268 $1,310.00 2 $1,139.70 2007–08 ........................................................................................................................... 329,288 1,210.00 2 1,028.50 2006–07 ........................................................................................................................... 282,999 1,210.00 1 1,089.00 2005–06 ........................................................................................................................... 319,126 1,210.00 1 998.25 2004–05 ........................................................................................................................... 265,262 1,210.00 3 1,210.00 2003–04 ........................................................................................................................... 296,864 810.00 567.00 2002–03 ........................................................................................................................... 388,010 745.00 491.20 2001–02 ........................................................................................................................... 377,328 880.00 650.94 2000–01 ........................................................................................................................... 432,616 877.50 603.36 1999–2000 ....................................................................................................................... 299,910 1,425.00 1,211.25 1998–99 ........................................................................................................................... 240,469 1,290.00 3 1,290.00 1997–98 ........................................................................................................................... 382,448 1,250.00 946.52 1996–97 ........................................................................................................................... 272,063 1,220.00 1,049.20 1995–96 ........................................................................................................................... 325,911 1,160.00 1,007.19 1994–95 ........................................................................................................................... 378,427 1,160.00 928.27 1993–94 ........................................................................................................................... 387,007 1,155.00 904.60

1 Field prices for NS raisins are established by the Raisin Bargaining Association, and are also referred to in the industry as the ‘‘free tonnage price’’ for raisins.


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There are essentially two broad markets for raisins—domestic and export. Domestic shipments generally increased over the 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 193,609 packed tons during the 2007–08 crop year and decreased to 191,929 packed tons during the 2008–09 crop year. Export shipments ranged from a high of 107,931 packed tons in the 1991–92 crop year 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, fell to 101,684 tons in the 2006–07 crop year, and again increased to 142,541 tons in the 2007–08 crop year. This significant increase was due to a short crop in Turkey. Export shipments remained relatively high in 2008–09 at 125,789 tons.

The per capita consumption of raisins has declined from 2.07 pounds in 1988 to 1.46 pounds in 2007. This decrease is consistent with the decrease in the per capita consumption of dried fruits in general, which may be due to the increasing year-round availability of most types of fresh fruit.

While the overall demand for raisins has increased in four of the last five 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 the 1998–99 crop year and 299,910 tons in the 1999–2000 crop year. 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 tons 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 carry-in 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 crop year to 319,126 tons, this may have been because fewer growers opted to contract with wineries, as raisin variety grapes crushed in 2005–06 crop year decreased by 161,000 green tons, the equivalent of over 40,000 tons of raisins. In the 2006– 07 crop year, raisin deliveries were again less than 300,000 tons at 282,999 tons and increased to 329,288 tons in 2007–08 crop year. The 2008–09 crop year was considered to be a good crop and the quality of the crop has a direct bearing on the overall production with 364,268 tons of NS raisins delivered.

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 balance supply and demand. If raisin markets are over-supplied with product, producer prices will decline.


The reserve percentage limits provides for raisins that handlers can market as free tonnage. Based on the 2009–10 crop year estimate of 275,000 tons, the 15 percent reserve would limit the total free tonnage to 233,750 natural condition tons (0.85 x the 275,000 ton crop). Adding the estimated figure of 41,250 tons of raisins offered to handlers through the 10 + 10 program to the 233,750 tons of free tonnage, plus 126,824 tons of carry-in inventory, plus 12,137 tons of 2008–09 NS reserve pool raisins released during the 2009–10 crop year, results in a total supply of 413,961 tons of natural condition raisins.

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 are generally established 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 determined that volume regulation was warranted for the 2009– 10 crop for only one of the nine raisin varietal types defined under the order.

The free and reserve percentages established in the interim 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 the 1983–84 crop year. 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.

This rule continues in effect the action that established final volume regulation percentages for the 2009–10 crop year for NS raisins at 85 percent free and 15 percent reserve. The volume regulation percentages are intended to help stabilize raisin supplies and prices, meet the needs of the domestic and export markets, strengthen market conditions, and expand marketing opportunities.

This rule will not impose any additional reporting or recordkeeping requirements on either small or large raisin handlers. 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. In addition, USDA has not identified any relevant Federal rules that duplicate, overlap, or conflict with this rule.

Further, the committee meeting on October 6, 2009, at which this recommendation was made, was widely publicized throughout the raisin industry, and all interested persons were invited to attend the meeting and encouraged to participate in the


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committee’s deliberations. Like all committee meetings, the meeting was a public meeting; and all entities, both large and small, were able to express their views on this issue.

Comments on the interim rule were required to be received by May 24, 2010. One comment supporting the rule was received. Therefore, for the reasons given in the interim rule, we are adopting the interim rule as a final rule, without change.

To view the interim rule, go to: http://www.regulations.gov/search/Regs/home.html#documentDetail?R=0900006480add0ad.

This action also affirms information contained in the interim rule concerning Executive Orders 12866 and 12988, the Paperwork Reduction Act (44 U.S.C. Chapter 35), and the E–Gov Act (44 U.S.C. 101).

After consideration of all relevant material presented, it is found that finalizing the interim rule without change, as published in the Federal Register (75 FR 20897, April 22, 2010), will tend to effectuate the declared policy of the Act.

List of Subjects in 7 CFR Part 989

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

PART 989—[AMENDED]

■ Accordingly, the interim rule that amended 7 CFR part 989 and that was published at 75 FR 20897 on April 22, 2010, is adopted as a final rule, without change.

Dated: June 18, 2010. Robert C. Keeney, Acting Administrator, Agricultural Marketing Service. [FR Doc. 2010–15298 Filed 6–23–10; 8:45 am]



Rural Utilities Service

7 CFR Part 1774

RIN 0572–AC14

Special Evaluation Assistance for Rural Communities and Households Program

ACTION: Final rule.

SUMMARY: The Rural Utilities Service (RUS) is issuing a regulation to establish the Special Evaluation Assistance for Rural Communities and Households (SEARCH) Program as authorized by Section 306(a)(2) of the Consolidated

Farm and Rural Development Act (CONACT) (7 U.S.C. 1926(a)(2)). The amendment added the new SEARCH grant program under which the Secretary is authorized to make predevelopment planning grants for feasibility studies, design assistance, and technical assistance to financially distressed communities in rural areas with populations of 2,500 or fewer inhabitants for water and waste disposal projects. DATES: This rule is effective June 24, 2010.

FOR FURTHER INFORMATION CONTACT: Anita O’Brien, Loan Specialist, Water and Environmental Programs, U.S. Department of Agriculture, Rural Utilities Service, Room 2230 South Building, Stop 1570, 1400 Independence Ave., SW., Washington, DC 20250–1570. Telephone: (202) 690– 3789, FAX: (202) 690–0649, E-mail: [email protected].

SUPPLEMENTARY INFORMATION:

Classification

Executive Order 12866

This final rule has been determined to be not significant for purposes of Executive Order 12866 and, therefore, has not been reviewed by the Office of Management and Budget (OMB).


This final rule has been reviewed in accordance with Executive Order 12988, Civil Justice Reform. RUS has determined that this final rule meets the applicable standards provided in section 3 of the Executive Order. In addition, all State and local laws and regulations that are in conflict with this rule will be pre-empted; no retroactive effect will be given to the rule; and in accordance with sec. 212(e) of the Department of Agriculture Reorganization Act of 1994 (7 U.S.C. sec. 6912(e)), appeal procedures must be exhausted before an action against the Department or its agencies may be initiated.

Regulatory Flexibility Act Certification

RUS has determined that this final rule will not have a significant economic impact on a substantial number of small entities, as defined in the Regulatory Flexibility Act (5 U.S.C. 601 et seq.). The RUS Water and Environmental Programs provide loans to borrowers at interest rates and terms that are more favorable than those generally available from the private sector. RUS borrowers, as a result of obtaining Federal financing, receive economic benefits that exceed any

direct economic costs associated with complying with RUS regulations and requirements.

Information Collection and Recordkeeping Requirements

The information collection and recordkeeping requirements contained in this final rule are pending approval by OMB pursuant to the Paperwork Reduction Act 1995 (44 U.S.C. Chapter 35) under control number 0572—New. The paperwork contained in this rule will not be effective until approved by OMB.

E-Government Act Compliance

The Rural Utilities Service is committed to the E-Government Act, which requires Government agencies in general to provide the public the option of submitting information or transacting business electronically to the maximum extent possible.

National Environmental Policy Act Certification

The Administrator of RUS has determined that this final rule will not significantly affect the quality of the human environment as defined by the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.). Therefore, this action does not require an environmental impact statement or assessment.

Catalog of Federal Domestic Assistance

The program described by this final rule is listed in the Catalog of Federal Domestic Assistance Programs under number 10.759—Special Evaluation Assistance for Rural Communities and Households Program (SEARCH). This catalog is available on a subscription basis from the Superintendent of Documents, the United States Government Printing Office, Washington, DC, 20402–9325, telephone number (202) 512–1800 and at https:// www.cfda.gov.


This program is not subject to the requirements of Executive Order 12372, ‘‘Intergovernmental Review of Federal Programs,’’ as implemented under USDA’s regulations at 7 CFR part 3015.

Unfunded Mandates

This final rule contains no Federal mandates (under the regulatory provision of title II of the Unfunded Mandates Reform Act of 1995) for State, local, and Tribal governments or the private sector. Therefore, this final rule is not subject to the requirements of section 202 and 205 of the Unfunded Mandates Reform Act.


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RAISIN ADMINISTRATIVE COMMITTEE

STATEMENT OF DISPOSITION AND GROWER EQUITY 2009-10 NATURAL SEEDLESS RESERVE POOL

(NATURAL CONDITION WEIGHTS IN TONS)

THIS STATEMENT IS THE FINAL STATEMENT ON THE 2009-10 NATURAL SEEDLESS RESERVE POOL.

A STATEMENT OF SALES, EXPENSES, AND GROWER'S EQUITY FOLLOWS:

RESERVE POOL SALES:

TONNAGE SALES PRICE 44,775.7670 TONS @ 1,422.89

2.1825 TONS @ EXEMPTIONS/LOSS 1.8440 TONS @ DONATIONS GROSS

44,779.7935 GROWER EQUITY BASE TONS SALES $ 63,716,526

OTHER INCOME:

INTEREST EARNED 54,791 BIN RENTAL INCOME 2,869,350 MISCELLANEOUS INCOME 14,617 UNUSED IMPF PROMOTIONAL FUNDS 457,501 UNUSED MIP FUNDS 305,343 UNUSED ASSOCIATION FEES 137,911

· TOTAL INCOME 67,556,039

POOL EXPENSES ON POOL TONNAGE: Receiving, Handling, Storage and Fumigation 2,059,845 Reserve Pool Storage Costs 137,795 Raisin Insurance 148,329 Inspection Fees 582,137 Bin & Hauling Reimbursement 895,585 RAC Bins and Raisin Transfer Costs 863,293 Export Programs and Incentives, net of FAS reimbursable expense 9,075,286 Export Cash-Back 46,158,445 All Admin istrative Expenses 1,360,117

TOTAL EXPENSES 61,280,832

Gain on Sale of Fixed Asset 18,500

GROSS GROWERS' EARNINGS $ 6,293,707

BASI;:D ON GROWER'S 15%

EQUITY RESERVE

GROSS GROWERS' EARNINGS $ 6,293,707 $ 140.55 LESS: PAYMENTS UNRESERVED INSURANCE 500,000 11.17 STALE DATED CHECKS 125,881 2.81 GROSS GROWERS' EQUITY (Before Adjustments) 6,919,588 154.52

LESS: UNALLOCABLE BIN EQUITY (1 ,768,205) (39.48) LESS: STALE DATED CHECKS (125,881) (2.81) NET GROWERS' EQUITY (Before State Advertising) 5.025,502 112.23

LESS: STATE ADVERTISING ASSESSMENT (866,055) (19.34)

FINAL PAYMENT $ 411591447 $ 92.89

THIS STATEMENT IS BASED UPON THE AUDITED FINAL REPORT, 2009-10 RESERVE POOL FOR

NATURAL SEEDLESS RAISINS ISSUED ON JANUARY 26,2015

PER RESERVE TON

$ 1,422.89

1.22 64.08

0.33 10.22 6.82 3.08

1,508.63

46.00 3.08 3.31

13.00 20.00 19.28

202.66 1,030.79

30.38

1,368.49

0.41

$ 140.55

BASED ON 100%

DELIVERIES

$ 21.08

1.67 0.42

23.18

(5.92) (0.42) 16.83

(2.90)

$ 13.93





9951

Vol. 74, No. 44

Monday, March 9, 2009

OFFICE OF PERSONNEL MANAGEMENT

5 CFR Part 300

RIN 3206–AL18

Time-in-Grade Eliminated, Delay of Effective Date and Addition of Comment Period

AGENCY: U.S. Office of Personnel Management. ACTION: Final rule; delay of effective date and addition of comment period.

SUMMARY: This document delays the effective date by 60 days and provides a 30-day public comment period to run concurrently for the final rule eliminating the time-in-grade requirement for competitive promotions, as published in the Federal Register on November 7, 2008. DATES: The effective date for the final rule published on November 7, 2008 (73 FR 66157), is delayed until May 18, 2009. Written comments must be received on or before April 8, 2009. FOR FURTHER INFORMATION CONTACT: Ms. Janice Warren by telephone (202) 606– 0960; by FAX (202) 606–2329; by TTY (202) 418–2134; or by e-mail [email protected].

SUPPLEMENTARY INFORMATION: The Office of Personnel Management published a Final Rule in the Federal Register on November 7, 2008 (73 FR 66157). Pursuant to a January 20, 2009, White House Memorandum on regulatory review, agencies are requested to consider extending for 60 days the effective date of regulations that have been published in the Federal Register but not yet taken effect, for the purpose of reviewing questions of law and policy raised by those regulations. Where such an extension is made, agencies are requested to immediately reopen the notice-and-comment period for 30 days to allow interested parties to provide

comments about issues of law and policy raised by those regulations. As a result, OPM has delayed the effective date of the final rule from March 9, 2008 to May 18, 2009. OPM has also opened a 30-day public comment period. U.S. Office of Personnel Management. Kathie Ann Whipple, Acting Director. [FR Doc. E9–5008 Filed 3–5–09; 11:15 am] BILLING CODE 6325–39–P

OFFICE OF PERSONNEL MANAGEMENT

5 CFR Part 532

RIN 3206–AL74

Prevailing Rate Systems; Abolishment of Santa Clara, CA, as a Nonappropriated Fund Federal Wage System Wage Area

AGENCY: U.S. Office of Personnel Management. ACTION: Final rule.

SUMMARY: The U.S. Office of Personnel Management is issuing a final rule to abolish the Santa Clara, California, nonappropriated fund (NAF) Federal Wage System (FWS) wage area and redefine Santa Clara County, CA, to the Monterey, CA, NAF wage area and Alameda, Contra Costa, and San Francisco Counties, CA, to the Solano, CA, NAF wage area. San Mateo County, CA, will no longer be defined to a wage area. These changes are necessary because the closure of the Moffett Federal Airfield Navy Exchange left the Santa Clara wage area without an activity having the capability to conduct a local wage survey. DATES: Effective date: This regulation is effective on March 9, 2009. Applicability date: This regulation applies on the first day of the first applicable pay period beginning on or after November 15, 2008. FOR FURTHER INFORMATION CONTACT: Madeline Gonzalez, (202) 606–2838; e- mail [email protected]; or FAX: (202) 606–4264. SUPPLEMENTARY INFORMATION: On November 4, 2008, the U.S. Office of Personnel Management (OPM) issued an interim rule (73 FR 65495) to abolish the Santa Clara, California, nonappropriated fund (NAF) Federal Wage System wage area, redefine Santa Clara County, CA,

to the Monterey, CA, NAF wage area and Alameda, Contra Costa, and San Francisco Counties, CA, to the Solano, CA, NAF wage area, and remove San Mateo County, CA, from the wage area definition. The interim rule had a 30- day public comment period, during which OPM received no comments.

Regulatory Flexibility Act I certify that these regulations will not

have a significant economic impact on a substantial number of small entities because they will affect only Federal agencies and employees.

List of Subjects in 5 CFR Part 532 Administrative practice and

procedure, Freedom of information, Government employees, Reporting and recordkeeping requirements, Wages. U.S. Office of Personnel Management. Kathie Ann Whipple, Acting Director.

■ Accordingly, under the authority of 5 U.S.C. 5343, the interim rule published on November 4, 2008, amending 5 CFR part 532 (73 FR 65495) is adopted as final with no changes.

[FR Doc. E9–4925 Filed 3–6–09; 8:45 am] BILLING CODE 6325–39–P



7 CFR Part 989

[Doc. No. AMS–FV–08–0114; FV09–989–1 IFR]


AGENCY: Agricultural Marketing Service, USDA. ACTION: Interim final rule with request for comments.

SUMMARY: This rule establishes final volume regulation percentages for 2008– 09 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 87 percent free and 13

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9952 Federal Register / Vol. 74, No. 44 / Monday, March 9, 2009 / Rules and Regulations

percent reserve. The percentages are intended to help stabilize raisin supplies and prices, and strengthen market conditions. DATES: Effective March 10, 2009. The volume regulation percentages apply to acquisitions of NS raisins from the 2008–09 crop until the reserve raisins from that crop are disposed of under the marketing order. Comments received by May 8, 2009, 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 document 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. All comments submitted in response to this rule will be included in the record and will be made available to the public. Please be advised that the identity of the individuals or entities submitting the comments will be made public on the Internet at the address provided above. 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].

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.’’


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 2008–09 crop year, which began August 1, 2008, and ends July 31, 2009. 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 the 2008–09 crop year for NS raisins covered under the order. The volume regulation percentages are 87 percent free and 13 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 December 18, 2008.


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 § 989.54(a) of the order, the Committee met on August 15, 2008, 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 § 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 2008–09 trade demand for NS raisins at 273,863 tons as shown below.

COMPUTED TRADE DEMAND [Natural condition tons]

NS Raisins

Prior year’s shipments .............. 355,680 Multiplied by 90 percent ........... 0.90 Equals adjusted base ............... 320,112 Minus carryin inventory ............ 106,249 Plus desirable carryout ............. 60,000 Equals computed NS trade De-

mand ..................................... 273,863


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


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Committee to extend the October 5 date up to 5 business days if warranted by a late crop. 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 9, 2008, and announced a 2008–09 crop estimate of 300,000 tons for NS raisins pursuant to § 989.54(b). NS raisins are the major varietal type of California raisin. The crop estimate of 300,000 tons was higher than the computed trade demand of 273,863 tons. Thus, it was determined that volume regulation for NS raisins was warranted. Preliminary volume regulation percentages computed to 78 percent free and 22 percent reserve to release 85 percent of the computed trade demand.

Pursuant to § 989.54(c), at its December 18, 2008, meeting, the Committee announced a revised crop estimate of 313,231 tons of NS raisins (up from the October estimate of 300,000 tons). The Committee announced interim volume regulation percentages for NS raisins to release slightly less than the full trade demand at 86.75 percent free and 13.25 percent reserve and recommended final volume regulation percentages of 87 percent free and 13 percent reserve pursuant to § 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


NS Raisins

Trade demand .......................... 273,863 Divided by crop estimate .......... 313,231 Equals the free percentage ...... 87.00 100 minus free percentage

equals the reserve percent-age ........................................ 13.00

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 2008–09 crop year. Application of the final percentages will make 273,863 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 § 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 2007–08 NS shipments of 355,680 natural condition tons, 71,136 tons should be made available in the 10 plus 10 offers. However, based on the 313,231-ton crop estimate and the 273,863-ton trade demand, only 39,368 tons of 2008–09 reserve raisins would be available. There is no tonnage available from prior pools. Thus, all available reserve pool raisins should be offered to handlers for free use through the 10 plus 10 offers. Raisins that are not purchased by handlers through the 10 plus 10 offers may be used for other programs authorized under the order.

In addition to the 10 plus 10 offers, § 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. Pursuant to § 989.67(j), 643 tons of 2007–08 reserve raisins were sold to handlers in August 2008.

Adding the estimated figure of 39,368 tons of 10 plus 10 raisins to the 273,863- ton trade demand, plus 106,249 tons of carryin inventory, plus 643 tons of reserve raisins sold pursuant to § 989.67(j) results in a total supply of 420,123 tons of natural condition raisins, or 397,054 packed tons. This equates to 118 percent of the 2007–08 shipments of 355,680 natural condition tons or 336,150 packed tons.


the Regulatory Flexibility Act (RFA) (5 U.S.C. 601–612), 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 18 handlers of California raisins who are subject to regulation under the order and approximately 3,000 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 $7,000,000, and small agricultural producers are defined as those having annual receipts of less than $750,000. 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 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 § 989.54(d) of the order, this rule establishes final volume regulation percentages for the 2008–09 crop year for NS raisins. The volume regulation percentages are 87 percent free and 13 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 313,231 tons is significantly higher than the 273,863 ton trade demand.




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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 62 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 crop

years, 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 crop years 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, as noted below, producer prices were higher for the 2004–05 through the 2007–08 crop years:





2007–08 ................................................................................................................... 329,288 $1,210.00 1 $1,028.50 2006–07 ................................................................................................................... 282,999 1,210.00 2 1,089.00 2005–06 ................................................................................................................... 319,126 1,210.00 2 998.25 2004–05 ................................................................................................................... 265,262 1,210.00 3 1,210.00 2003–04 ................................................................................................................... 296,864 810.00 567.00 2002–03 ................................................................................................................... 388,010 745.00 491.20 2001–02 ................................................................................................................... 377,328 880.00 650.94 2000–01 ................................................................................................................... 432,616 877.50 603.36 1999–2000 ............................................................................................................... 299,910 1,425.00 1,211.25 1998–99 ................................................................................................................... 240,469 1,290.00 3 1,290.00 1997–98 ................................................................................................................... 382,448 1,250.00 946.52 1996–97 ................................................................................................................... 272,063 1,220.00 1,049.20 1995–96 ................................................................................................................... 325,911 1,160.00 1,007.19 1994–95 ................................................................................................................... 378,427 1,160.00 928.27 1993–94 ................................................................................................................... 387,007 1,155.00 904.60

1 Field prices for NS raisins are established by the Raisin Bargaining Association, and are also referred to in the industry as the free tonnage price for raisins.


There are essentially two broad markets for raisins—domestic and export. Domestic shipments generally increased over the 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 crop year, they increased from 174,117 packed tons during the 2000–01 crop year to 193,609 packed tons during the 2007–08 crop year. Export shipments ranged from a high of 107,931 packed tons in 1991–92 crop year 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, fell to 101,684 tons in 2006–07 crop year, and again increased to 142,541 tons in 2007–

08 crop year. This significant increase was due to a short crop in Turkey.

The per capita consumption of raisins has declined from 2.07 pounds in 1988 to 1.51 pounds in 2006. 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 four of the last five 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 crop year and 299,910 tons in

1999–2000 crop year. 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 crop


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year to 319,126 tons, this may have been because fewer growers opted to contract with wineries, as raisin variety grapes crushed in 2005–06 crop year decreased by 161,000 green tons, the equivalent of over 40,000 tons of raisins. In the 2006– 07 crop year, raisin deliveries were again less than 300,000 tons at 282,999 tons and increased to 329,288 tons in 2007–08 crop year. The 2007–08 crop year was considered to be a good crop and the quality of the crop has a direct bearing on the overall production.



The reserve percentage limits what handlers can market as free tonnage. Based on the 2008–09 crop year estimate of 313,231 tons, the 13 percent reserve would limit the total free tonnage to 273,863 natural condition tons (.87 × the 313,231 ton crop). Adding the 273,863 ton figure to the carryin of 106,249 tons, plus 39,368 tons of 2008–09 crop year reserve raisins anticipated for sale to handlers during the 2008–09 crop year under the 10 plus 10 offers, and 643 tons of 2007–08 crop year reserve raisins available to handlers in the 2008–09 crop year results in a total free supply of 420,123 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 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 the 1983– 84 crop year. 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.


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 15, 2008, October 9, 2008, and December 18, 2008, 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 15, 2008, October 9, 2008, and December 18 2008, 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/ AMSv1.0/ams.fetchTemplateData.do?template=TemplateN&page=MarketingOrdersSmallBusinessGuide. 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 the 2008–09 crop year for 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


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designated herein for the 2008–09 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.










Reserve 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 2008–09 ...................................................................... Natural (sun-dried) Seedless ..................................... 87 13


Dated: March 3, 2009. Robert C. Keeney, Acting Associate Administrator. [FR Doc. E9–4851 Filed 3–6–09; 8:45 am] BILLING CODE 3410–02–P

DEPARTMENT OF HOMELAND SECURITY

Coast Guard

33 CFR Part 165

[Docket No. USCG–2009–0063]

RIN 1625–AA00

Safety Zone; Coast Guard Air Station San Francisco Airborne Use of Force Judgmental Training Flights

AGENCY: Coast Guard, DHS. ACTION: Temporary final rule.

SUMMARY: The Coast Guard is establishing a temporary safety zone in the navigable waters of the San Pablo Bay, CA for training purposes. This safety zone is established to ensure the safety of the public and participating crews from potential hazards associated with fast-moving Coast Guard smallboats taking part in the exercise. Unauthorized persons or vessels are prohibited from entering into, transiting through, or remaining in the safety zone without permission of the Captain of the Port San Francisco or his designated representative.

DATES: This safety zone is effective from 9 a.m. on February 10, 2009, until 10 p.m. on March 20, 2009. ADDRESSES: Comments and materials received from the public, as well as documents indicated in this preamble as being available in the docket, are part of docket USCG–2009–0063 and are available online at http:// www.regulations.gov, selecting the Advanced Docket Search option on the right side of the screen, inserting USCG– 2009–0063 in the Docket ID box, pressing Enter, and then clicking on the item in the Docket ID column. This material is also available for inspection or copying at two locations: The Docket Management Facility (M–30), U.S. Department of Transportation, West Building Ground Floor, Room W12–140, 1200 New Jersey Avenue, SE., Washington, DC 20590, between 9 a.m. and 5 p.m., Monday through Friday, except Federal holidays, and Coast Guard Sector San Francisco, 1 Yerba Buena Island, San Francisco, California 94130, between 9 a.m. and 4 p.m., Monday through Friday, except Federal holidays. FOR FURTHER INFORMATION CONTACT: If you have questions on this temporary rule, call Lieutenant Junior Grade Megan Clifford, U.S. Coast Guard Sector San Francisco, at (415) 399–7436. If you have questions on viewing the docket, call Renee V. Wright, Program Manager, Docket Operations, telephone 202–366– 9826. SUPPLEMENTARY INFORMATION:

Regulatory Information Due to the dynamic availability of

Coast Guard assets to conduct this training, the Coast Guard is issuing this

final rule without prior notice and opportunity to comment pursuant to authority under section (a)(1) of the Administrative Procedure Act (APA) (5 U.S.C. 553). This provision creates a military function exception to the advance publication requirements. Because of the potential hazards posed by this exercise, the safety zone is necessary to provide for the safety of the public, participating vessels and crews, and other vessels transiting the area. For the safety concerns noted, it is in the public interest to have these regulations in effect during the event.

Under 5 U.S.C. 553(b)(B), the Coast Guard finds that good cause exists for not publishing a notice of proposed rulemaking (NPRM) with respect to this rule because any delay in the effective date of this rule would expose mariners to the potential hazards posed by the exercises. For the same reasons as above, under 5 U.S.C. 553(d)(3), the Coast Guard finds that good cause exists for making this rule effective less than 30 days after publication in the Federal Register.

Background and Purpose

U.S. Coast Guard Air Station San Francisco will be conducting airborne use of force judgmental training flights with observers from the Coast Guard Aviation Training Center and Coast Guard Headquarters, on February 10, and March 5 through 20, 2009 (excluding Saturdays and Sundays), in the waters of San Pablo Bay. The exercises are designed to train and test Coast Guard aviation personnel in the judgmental decision-making process necessary to safely and effectively employ use of force from a helicopter


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44269

Vol. 74, No. 166

Friday, August 28, 2009



7 CFR Part 989

[Doc. No. AMS–FV–08–0114; FV09–989–1 FIR]


AGENCY: Agricultural Marketing Service, USDA. ACTION: Final rule.

SUMMARY: The Department of Agriculture (USDA) is adopting, as a final rule, without change, an interim final rule that established final volume regulation percentages for 2008–09 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 87 percent free and 13 percent reserve. The percentages are intended to help stabilize raisin supplies and prices, and strengthen market conditions. DATES: Effective Date: September 28, 2009. The volume regulation percentages apply to acquisitions of NS raisins from the 2008–09 crop until the reserve raisins from that crop are disposed of under the marketing order. 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].

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’’.

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 continues in effect the action that established final free and reserve percentages for NS raisins for the 2008–09 crop year, which began August 1, 2008, and ends July 31, 2009.


This rule continues in effect the action that established final volume regulation percentages for 2008–09 crop NS raisins covered under the order. The volume regulation percentages are 87

percent free and 13 percent reserve and were established through an interim final rule published on March 9, 2009 (74 FR 9951). 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 December 18, 2008.


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 § 989.54(a) of the order, the Committee met on August 15, 2008, 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 § 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

VerDate Nov<24>2008 16:25 Aug 27, 2009 Jkt 217001 PO 00000 Frm 00001 Fmt 4700 Sfmt 4700 E:\FR\FM\28AUR1.SGM 28AUR1jlent

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44270 Federal Register / Vol. 74, No. 166 / Friday, August 28, 2009 / Rules and Regulations

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 2008–09 trade demand for NS raisins at 273,863 tons as shown below.


NS Raisins

Prior year’s shipments .......... 355,680 Multiplied by 90 percent ....... 0 .90 Equals adjusted base ........... 320,112 Minus carryin inventory ........ 106,249 Plus desirable carryout ......... 60,000 Equals computed NS trade

demand ............................. 273,863


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. 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 9, 2008, and announced a 2008–09 crop estimate of 300,000 tons for NS raisins pursuant to § 989.54(b). NS raisins are the major varietal type of California raisin. The crop estimate of 300,000 tons was higher than the computed trade demand of 273,863 tons. Thus, it was determined that volume regulation for NS raisins was warranted. Preliminary volume regulation percentages computed to 78 percent free and 22 percent reserve to release 85 percent of the computed trade demand.

Pursuant to § 989.54(c), at its December 18, 2008, meeting, the Committee announced a revised crop estimate of 313,231 tons of NS raisins

(up from the October estimate of 300,000 tons). The Committee also announced interim volume regulation percentages for NS raisins to release less than the full trade demand at 86.75 percent free and 13.25 percent reserve and recommended final volume regulation percentages of 87 percent free and 13 percent reserve pursuant to § 989.54(d). The Committee’s calculations and determinations to arrive at final percentages for NS raisins are shown in the table below:



NS Raisins

Trade demand ...................... 273,863 Divided by crop estimate ...... 313,231 Equals the free percentage .. 87 .00 100 minus free percentage

equals the reserve per-centage ............................. 13 .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 was met for NS raisins for the 2008–09 crop year. Application of the final percentages made 305,541 tons of raisins available to handlers based on actual deliveries of 351,196 tons of raisins through May 30, 2009. In addition, handlers are offered reserve raisins for sale under the ‘‘10 plus 10 offers.’’ As specified in § 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 and those who export free tonnage raisins may receive reserve raisins, (raisin-back) at a reduced price, or reserve pool cash (cash-back) to blend down the value of their exported tonnage.

Based on 2007–08 NS shipments of 355,680 natural condition tons, 71,136 tons should have been made available in the 10 plus 10 offers. However, only about 45,656 tons (.13 × 351,196 tons) of reserve raisins will be available in the 2008–09 crop year, because of the reserve percentage in effect.

In addition to the 10 plus 10 offers, § 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. Pursuant to § 989.67(j), 643 tons of 2007–08 reserve raisins were sold to handlers in June 2008 and released to handlers in August 2008.

Adding the estimated figure of 45,656 tons of raisins offered to handlers through the 10 plus 10 program (35,568 and 10,088 tons) to the 305,541 tons of free tonnage raisins available through applying the volume regulation percentages, plus 106,249 tons of carryin inventory, plus 643 tons of 2007–08 reserve raisins sold pursuant to § 989.67(j) and released during the 2008–09 crop year results in a total supply of 458,089 tons of natural condition raisins, or 432,935 packed tons (.94509 shrink × 458,089 tons). This equates to 129 percent of the 2007– 08 shipments of 355,680 natural condition tons or 336,150 packed tons, which exceeds the USDA Guidelines goal of 110 percent.


the Regulatory Flexibility Act (RFA) (5 U.S.C. 601–612), the Agricultural Marketing Service (AMS) has considered the economic impact of this action on small entities. Accordingly, AMS has prepared this final regulatory flexibility analysis.

The purpose of the RFA is to fit regulatory actions to the scale of business subject to such actions in order that small businesses will not be unduly or disproportionately burdened. Marketing orders issued pursuant to the Act, and rules issued thereunder, are unique in that they are brought about through group action of essentially small entities acting on their own behalf.


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


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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 § 989.54(d) of the order, this rule establishes final volume regulation percentages for the 2008–09 crop year for NS raisins. The volume regulation percentages are 87 percent free and 13 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 was warranted this season because the crop estimate of 313,231 tons was significantly higher than the 273,863 ton trade demand. As mentioned previously, by the week ending May 30, 2009, acquisitions were at 351,196 tons.


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.


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 crop years, 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 crop years 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, as noted below, producer prices were higher for the 2004–05 through the 2007–08 crop years:





2007–08 ... 329,288 $1,210.00 2 $1,028.50 2006–07 ... 282,999 1,210.00 1,089.00 2005–06 ... 319,126 1,210.00 2 998.25 2004–05 ... 265,262 1,210.00 3 1,210.00 2003–04 ... 296,864 810.00 567.00 2002–03 ... 388,010 745.00 491.20 2001–02 ... 377,328 880.00 650.94 2000–01 ... 432,616 877.50 603.36 1999–2000 299,910 1,425.00 1,211.25 1998–99 ... 240,469 1,290.00 3 1,290.00 1997–98 ... 382,448 1,250.00 946.52 1996–97 ... 272,063 1,220.00 1,049.20 1995–96 ... 325,911 1,160.00 1,007.19 1994–95 ... 378,427 1,160.00 928.27 1993–94 ... 387,007 1,155.00 904.60



There are essentially two broad markets for raisins—domestic and export. Domestic shipments generally increased over the 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 the 1999–2000 crop year, they increased from 174,117 packed tons during the 2000–01 crop year to 193,609 packed tons during the 2007–08 crop year. Export shipments ranged

from a high of 107,931 packed tons in 1991–92 crop year 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, fell to


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101,684 tons in 2006–07 crop year, and again increased to 142,541 tons in 2007– 08 crop year. This significant increase was due to a short crop in Turkey.


While the overall demand for raisins has increased in four of the last five 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 crop year and 299,910 tons in 1999–2000 crop year. 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 the 2005–06 crop year to 319,126 tons, this may have been because fewer growers opted to contract with wineries, as raisin variety grapes crushed in 2005–06 crop year decreased by 161,000 green tons, the equivalent of over 40,000 tons of raisins. In the 2006– 07 crop year, raisin deliveries were again less than 300,000 tons at 282,999 tons and increased to 329,288 tons in 2007–08 crop year. Deliveries have increased for the 2008–09 crop year, and were at 351,196 tons for the week ending May 30, 2009.


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 provide for raisins that handlers can market as free tonnage. Data available as of May 30, 2009, showed that deliveries of NS raisins were at 351,196 tons. The 13 percent reserve thus provided handlers with free tonnage of 305,541 natural condition tons (.87 × the 351,196 ton crop).

Adding the estimated figure of 45,656 tons of raisins offered to handlers through the 10 plus 10 program (35,568 and 10,088 tons) to the 305,541 tons of free tonnage raisins available through applying the volume regulation percentages, plus 106,249 tons of carryin inventory, plus 643 tons of 2007–08 reserve raisins sold pursuant to § 989.67(j) and released during the 2008–09 crop year results in a total supply of 458,089 tons of natural condition raisins, or 432,935 packed tons (.94509 shrink × 458,089 tons).


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 was warranted for the 2008–09 season for only one of the nine raisin varietal types defined under the order.

The free and reserve percentages continue in effect, the release of the full trade demand for Natural Seedless raisins 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 the 1983–84 crop year. 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. In addition, as noted in the initial regulatory flexibility analysis, 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 15, 2008, October 9, 2008, and December 18, 2008, 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 15, 2008, October 9, 2008, and


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December 18, 2008, 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.

An interim final rule concerning this action was published in the Federal Register on March 9, 2009. Copies of the rule were mailed by the Committee’s staff to all Committee members and alternates, and raisin handlers. In addition, the rule was made available through the Internet by USDA and the Office of the Federal Register. That rule provided a 60-day comment period which ended May 8, 2009. No comments were received during the comment period.


After consideration of all relevant material presented, including the Committee’s recommendation and other information, it is found that finalizing the interim final rule, without change, as published in the Federal Register (74 FR 9951, March 9, 2009) will tend to effectuate the declared policy of the Act.


Raisins, Reporting and recordkeeping requirements.


■ Accordingly, the interim final rule amending 7 CFR part 989 which was published at 74 FR 9951 on March 9, 2009, is adopted as a final rule without change.

Dated: August 24, 2009. Rayne Pegg, Administrator, Agricultural Marketing Service. [FR Doc. E9–20766 Filed 8–27–09; 8:45 am] BILLING CODE 3410–02–P

DEPARTMENT OF ENERGY

10 CFR Parts 600 and 1024

RIN 1991–AB77

Assistance Regulations

AGENCY: Department of Energy.

ACTION: Final rule.

SUMMARY: The Department of Energy (DOE) amends its Financial Assistance Regulations to update, streamline, and simplify the general rules. DOE also removes regulations governing the DOE Financial Assistance Appeals Board. DATES: This rulemaking is effective September 28, 2009. FOR FURTHER INFORMATION CONTACT: Ms. Jacqueline Kniskern, Office of Procurement and Assistance Policy, U.S. Department of Energy, at 202–287– 1342, or by e-mail at [email protected]. SUPPLEMENTARY INFORMATION: I. Background II. Procedural Requirements

A. Review Under Executive Order 12866 B. Review Under the Regulatory Flexibility

Act of 1980 C. Review Under the Paperwork Reduction

Act of 1980 D. Review Under the National

Environmental Policy Act E. Review Under Executive Order 13132 F. Review Under Executive Order 12988 G. Review Under the Unfunded Mandates

Reform Act of 1995 H. Review Under the Treasury and General

Government Appropriations Act, 1999 I. Review Under the Treasury and General

Government Appropriations Act, 2001 J. Review Under Executive Order 13211 K. Approval by the Office of the Secretary

of Energy

I. Background DOE has been actively engaged in the

government-wide effort to streamline and simplify the application, administrative and reporting procedures for Federal financial assistance programs pursuant to the Federal Financial Assistance Management Improvement Act of 1999, Public Law 106–107.

As part of this initiative, DOE has solicited comments and suggestions from the grant community and made changes to its assistance regulations. In particular, the DOE added to 10 CFR part 600 Subpart D, Administrative Requirements for Grants and Cooperative Agreements with For-Profit Organizations, in a rule published in the Federal Register at 68 FR 50645 on August 21, 2003.

DOE has also incorporated policy directives issued by the Office of Management and Budget (OMB) that established a standard format for Federal agency announcements of funding opportunities under programs that award discretionary grants or cooperative agreements, established standard data elements for electronically posting synopses of Federal agencies’ announcements of

funding opportunities, and required Federal agencies to post synopses of their discretionary grant and cooperative agreement funding opportunity announcements on the Grants.gov Web site, http:// www.Grants.gov. The final rule incorporating these policy directives was published in the Federal Register at 69 FR 7865 on February 20, 2004. In addition, DOE developed a standard format for its funding opportunity announcements and revised systems to comply with the new posting requirements.

On May 16, 2008, a Notice of Proposed Rulemaking (NOPR) was published in the Federal Register (73 FR 28385) that detailed changes to update, streamline and simplify the general rules in 10 CFR 600, Subpart A of its Financial Assistance Rules. The NOPR also proposed to remove the regulations at 10 CFR part 1024 governing the DOE Financial Assistance Appeals Board. This Board was abolished when DOE’s Energy Board of Contract Appeals was merged into the Civilian Board of Contract Appeals as required by Section 847 of the National Defense Authorization Act for Fiscal Year 2006, Public Law 109–163.

DOE received no comments from members of the public in response to the NOPR. Nevertheless, DOE made the following technical changes to the text of the rule.

1. Section 600.5(d) is revised to add a reference to Section 600.352 after 600.162 and 600.243.

2. Section 600.7(c) is revised to show the referenced Sections to be 600.144, 60.236 and 600.331.

3. Section 600.25(a)(2) is revised to correct the modifying ‘‘An’’ to ‘‘A’’.

II. Procedural Requirements

A. Review Under Executive Order 12866

This regulatory action has been determined not to be ‘‘a significant regulatory action’’ under Executive Order 12866, ‘‘Regulatory Planning and Review,’’ (58 FR 51735, October 4, 1993). Accordingly, this action is not subject to review under that Executive Order by the Office of Information and Regulatory Affairs (OIRA) of the Office of Management and Budget (OMB).

B. Review Under Regulatory Flexibility Act of 1980

The Regulatory Flexibility Act (5 U.S.C. 601 et seq.) requires preparation of an initial regulatory flexibility analysis for any rule that by law must be proposed for public comment, unless the agency certifies that the rule, if promulgated, will not have a significant


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Raisin Administrative Committee 2445 Capitol Street, Suite 200

Fresno, CA 93721 TELEPHONE: 559-225-0520

ADMINISTERING THE FEDERAL MARKETING

AGREEMENT AND ORDER REGULATING THE

HANni IN(:; OF C:AIIFORNIA l'lAI!::IN,<;

January 31,2013

TO: ALL 2008-09 Natural (sun-dried) Seedless Growe·r· s. . / f ~. . ~ FROM: Gary Schulz, President/General Manage~.~~/ /(k~~(J SUBJECT: 2008-2009 Natural Seedless Reserve Pool (/

FAX: 559-225-0852

Printed on page 2 of this letter is an analysis of the revenue and expenses of the 2008-09 Natural (sun-dried) Seedless Reserve Pool. The Raisin Administrative Committee recommended the closing of the 2008-09 Reserve Pool on January 6, 2011 and the final audited report was issued on December 6, 2012. The 2008-09 reserve represented 13% of raisins delivered to handlers during the period of August 1, 2008 to July 31, 2009.

In order to ensure orderly marketing and to be competitive in the global marketplace with other producing countries, the California raisin industry developed export incentive

programs that are funded from the proceeds of reserve pool sales. These programs allowed the raisin industry to export 125,789 tons in 2008-09 and a record 152,246 tons in 2009-10. These export shipments represented 41.9 percent of the annual Natural Seedless raisin sales, up from levels of 3 7 percent of the crop the prior ten years.

On July 31, 2010, the California raisin industry measured Natural Seedless carry out

inventory at 83,214 tons, the lowest level in twenty years, and the Raisin Administrative Committee declared the 2010-11 crop as 100 percent Free Tonnage.

As a result of this aggressive marketing effort, all equity in the 2008-09 Natural (sun

dried) Seedless Raisin Reserve Pool has been exhausted and no reserve payment will be made on the 2008-09 Natural (sun-dried) Seedless Reserve PooL Your support of our industry's export marketing efforts is greatly appreciated.

In the event you have questions or concerns, feel free to call me at 559-225-0520.


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RAISIN ADMINISTRATIVE COMMITTEE STATEMENT OF DISPOSITION AND GROWER EQUITY

2008-09 NATURAL SEEDLESS RESERVE POOL (NATURAL CONDITION WEIGHTS IN TONS)

THIS STATEMENT IS THE FINAL STATEMENT ON THE 2008-09 NATURAL SEEDLESS RESERVE POOL. A STATEMENT OF SALES, EXPENSES, AND GROWER'S EQUITY FOLLOWS:

RESERVE POOL SALES:

TONNAGE SALES PRICE 9,795.2695 TONS@ 1,410.00 4,472.0291 TONS@ $100 RAISIN BACK

31,241.2774 TONS@ $200 RAISIN BACK GROSS PER RESERVE 45,508.5760 GROWER EQUITY BASE TONS SALES TON

$ 23,017,784 $ 505.79 OTHER INCOME:

INTEREST EARNED 32,913 0.72 BIN RENTAL INCOME 826,930 18.17 MISCELLANEOUS INCOME 2,114 0.05 UNUSED IMPF PROMOTIONAL FUNDS 3,076,384 67.60 UNUSED MIP FUNDS 213,690 4.70

TOTAL INCOME $ 27,169 815 $ 597.03

POOL EXPENSES ON POOL TONNAGE: Receiving, Handling, Storage and Fumigation 2,230,188 49.01 0 eserve Pool Storage Costs 23,449 0.52

isin Insurance 68,424 1.50 .nspection Fees 615,613 13.53 Bin & Hauling Reimbursement 947,096 20.81 RAC Bins and Raisin Transfer Costs 303,702 6.67 Export Programs and Incentives, net of FAS reimbursable expense 4,598,593 101.05 Export Cash-Back 16,362.563 359.55 All Administrative Expenses 1 074,257 23.62

TOTAL EXPENSES $ 26,223,885 $ 576.26

Gain on Sale of Fixed Asset

GROSS GROWER'S EQUITY $ 945,930 $ 20.77

BASED ON BASED ON GROWER'S 13% 100%

EQUITY RESERVE DELIVERIES

GROSS GROWERS EQUITY $ 945,930 $ 20.77 $ 2.70 LESS: STATE ADVERTISING ASSESSMENT $ {945,930} {20.77} {2.70} FINAL GROWER EQUITY $ 0 $ (0.00) $ 0.00

THIS STATEMENT IS BASED UPON THE AUDITED FINAL REPORT, 2008-09 RESERVE POOL FOR NATURAL SEEDLESS RAISINS ISSUED ON DECEMBER 6, 2012.


9005 Federal Register / Vol. 73, No. 33 / Tuesday, February 19, 2008 / Rules and Regulations

continues to pursue export opportunities.

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 information collection requirements have been previously approved by the Office of Management and Budget under OMB No. 0581–0178, Vegetable and Specialty Crops. The forms require information which is readily available from handler records and which can be provided without data processing equipment or trained statistical staff. 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. This rule does not change those requirements.

The 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.


Further, the Board’s meetings were widely publicized throughout the hazelnut industry and all interested persons were invited to attend the meetings and participate in Board deliberations. Like all Board meetings, those held on August 23, 2007, and November 15, 2007, were public meetings and all entities, both large and small, were able to express their views on this issue. Finally, interested persons are invited to submit information on 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 interim final and final free and restricted percentages for the 2007–2008 marketing year under the hazelnut marketing order. Any comments received will be considered prior to finalization of this rule.

After consideration of all relevant material presented, including the Board’s recommendation, and other

information, it is found that this interim final 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 action until 30 days after publication in the Federal Register because: (1) The 2007–2008 marketing year began July 1, 2007, and the percentages established herein apply to all merchantable hazelnuts handled from the beginning of the crop year; (2) the percentages make the full trade demand available so handlers can take advantage of inshell marketing opportunities; (3) handlers are aware of this rule, which was recommended at an open Board meeting, and need no additional time to comply with this rule; and (4) interested persons are provided a 60-day comment period in which to respond, and all comments timely received will be considered prior to finalization of this action.


Filberts, Hazelnuts, Marketing agreements, Nuts, Reporting and recordkeeping requirements.

■ For the reasons set forth in the preamble, 7 CFR Part 982 is amended as follows:

PART 982—HAZELNUTS GROWN IN OREGON AND WASHINGTON

■ 1. The authority citation for 7 CFR Part 982 continues to read as follows:


■ 2. A new section 982.255 is added to read as follows:

§ 982.255 Free and restricted percentages—2007–2008 marketing year.

(a) The interim final free and restricted percentages for merchantable hazelnuts for the 2007–2008 marketing year shall be 8.1863 and 91.8137 percent, respectively.

(b) On May 1, 2008, the final free and restricted percentages for merchantable hazelnuts for the 2007–2008 marketing year shall be 9.2671 and 90.7329 percent, respectively.

Dated: February 12, 2008. Lloyd C. Day, Administrator, Agricultural Marketing Service. [FR Doc. 08–739 Filed 2–15–08; 8:45 am] BILLING CODE 3410–02–P



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


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].

VerDate Aug<31>2005 16:30 Feb 15, 2008 Jkt 214001 PO 00000 Frm 00011 Fmt 4700 Sfmt 4700 E:\FR\FM\19FER1.SGM 19FER1rwilk

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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 § 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 § 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.


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 de-

mand ..................................... 232,822


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 § 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 § 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


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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 § 989.54(d), the Committee’s calculations and determinations to arrive at final percentages for NS raisins are shown in the table below:



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 percent-age ...................................... 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 § 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, § 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.


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.


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 § 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.





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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

Crop year

Deliveries (natural

condition tons)

Producer prices

(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

NATURAL SEEDLESS PRODUCER PRICES—Continued

Crop year

Deliveries (natural

condition tons)

Producer prices

(per ton)

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


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.


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.


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 × 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.


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


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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.




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.


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.


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 followed:








Reserve 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


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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


Office of the Secretary

8 CFR Part 274

19 CFR Part 162

[USCBP–2006–0122]

RIN 1651–AA58

Administrative Process for Seizures and Forfeitures Under the Immigration and Nationality Act and Other Authorities

AGENCY: Office of the Secretary, DHS. ACTION: Interim rule with request for comments.

SUMMARY: This interim rule amends Department of Homeland Security regulations, to consolidate the procedures for administrative seizure and forfeiture process. The interim rule also permits earlier consideration of petitions for the remission of seized assets in cases that would otherwise be brought under the procedures in title 8 of the Code of Federal Regulations. The interim rule also makes technical and conforming changes to update the regulations.

DATES: This interim rule is effective February 19, 2008. Written comments must be submitted on or before April 21, 2008. ADDRESSES: You may submit comments, identified by docket number, by one of the following methods:

• Federal eRulemaking Portal: http:// www.regulations.gov. Follow the instructions for submitting comments via docket number USCBP–2006–0122.

• Mail: Border Security Regulations Branch, Office of Regulations and Rulings, U.S. Customs and Border Protection, 1300 Pennsylvania Avenue, NW. (Mint Annex), Washington, DC 20229.

Instructions: All submissions received must include the agency name and document number for this rulemaking. All comments received will be posted

without change to http:// www.regulations.gov, including any personal information provided.

Docket: For access to the docket to read background documents or comments received, go to http:// www.regulations.gov. Submitted comments may also be inspected on regular business days between the hours of 9 a.m. and 4:30 p.m. at the Office of Regulations and Rulings, U.S. Customs and Border Protection, 799 9th Street, NW., 5th Floor, Washington, DC. Arrangements to inspect submitted comments should be made in advance by calling Mr. Joseph Clark, U.S. Customs and Border Protection, at (202) 572–8768. FOR FURTHER INFORMATION CONTACT: Jeremy Baskin, Office of Regulations and Rulings, U.S. Customs and Border Protection (202) 572–8700. SUPPLEMENTARY INFORMATION:

Public Participation

Interested persons are invited to participate in this rulemaking by submitting written data, views, or arguments on all aspects of the interim rule. DHS also invites comments that relate to the economic, environmental, or federalism effects that might result from this interim rule. Comments that will provide the most assistance to the Department of Homeland Security (DHS) in developing these procedures will reference a specific portion of the interim rule, explain the reason for any recommended change, and include data, information, and authority that support such recommended change.

Background

On November 25, 2002, the President signed into law the Homeland Security Act of 2002, Public Law 107–296, 116 Stat. 2135 (HSA). Accordingly, as of March 1, 2003, the former Immigration and Nationalization Service (INS) of the Department of Justice and the former U.S. Customs Service of the Department of the Treasury were transferred to DHS and reorganized to become U.S. Customs and Border Protection (CBP), U.S. Immigration and Customs Enforcement (ICE), and U.S. Citizenship and Immigration Services (USCIS).

After passage of the HSA, both CBP and ICE retained authority to perform asset seizures and forfeitures under the provisions of 8 CFR part 274 and 19 CFR parts 162 and 171. DHS, for the purpose of improved efficiency, has consolidated the processing of asset forfeitures into CBP’s operations. The regulations in Titles 8 and 19, however, currently provide two different procedures. This interim rule

consolidates the procedures for administrative seizure and forfeiture process by altering the text of 8 CFR 274.1 to refer to 19 CFR parts 162 and 171. This rule also makes technical conforming changes to update references from INS and U.S. Customs Service to CBP and ICE where applicable.

Interim Rule Changes Pursuant to the provisions of section

618 of the Tariff Act of 1930, as amended (19 U.S.C. 1618), petitions for remission of forfeitures were accepted by the former U.S. Customs Service, and now accepted by CBP, prior to initiation of any administrative or judicial forfeiture process. Under the regulations adopted under section 274(b) of the Immigration and Nationality Act of 1952, as amended (8 U.S.C. 1324(b) (INA)), the remission or mitigation of such forfeitures could occur only after completion of the forfeiture process. No statute, however, requires this restriction. Under this interim rule, the procedures previously used for immigration-related forfeitures will be eliminated and all asset forfeiture proceedings will be conducted under a consolidated procedure. This interim rule revises 8 CFR part 274 in its entirety to bring seizures and forfeitures effected under section 274(b) of the INA, as amended, and other forfeiture authorities, into conformity with procedures under 19 CFR parts 162 and 171. This change permits CBP to entertain petitions for remission and return of seized property prior to completing the forfeiture process, whether the seizure was effected under the customs laws or the immigration laws, and whether the seizure was made by CBP or ICE.

Accordingly, 8 CFR part 274 is amended to reference Title 19 administrative seizure and forfeiture processes. This is the only significant difference between the provisions and DHS through this interim rule adopts the procedure that provides greater flexibility and is more favorable to petitioners for remission.

Other Changes The provisions of current 19 CFR

162.21 reference the former U.S. Customs Service and U.S. Customs Officers. The interim rule updates these references to reflect U.S. Customs and Border Protection and CBP Officers as applicable.

Currently, 19 CFR 162.22(d) references retention of vessels or vehicles pending penalty payment and specifically references section 460 of the Tariff Act of 1930, as amended (19


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38307

Vol. 73, No. 130

Monday, July 7, 2008



7 CFR Part 989

[Docket No. AMS–FV–07–0130; FV08–989– 1 FIR]



SUMMARY: The Department of Agriculture (USDA) is adopting, as a final rule, without change, an interim final rule that established final volume regulation percentages for the 2007–08 crop of 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 Date: August 6, 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. 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].




This rule has been reviewed under Executive Order 12988, Civil Justice Reform. Under the order provisions now in effect, final free and reserve percentages may be established for raisins acquired by handlers during the crop year. This rule continues in effect the action that established 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.


This rule continues in effect the action that established 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 and were established through an interim final rule published on February 19, 2008 (73 FR 9005). 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.


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 § 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 § 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

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38308 Federal Register / Vol. 73, No. 130 / Monday, July 7, 2008 / Rules and Regulations

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.


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


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 § 989.54(b). NS raisins are the major varietal type of California raisin. The crop estimate of 273,908 tons was 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, which released 85 percent of the computed trade demand, as required by the order,

since a field price had been established. Field price is the price paid by handlers to producers for the free tonnage portion of their crop. The field price for 2007– 08 NS raisins is $1,210 per ton. 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 § 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 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 subjected 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 resulted in additional costs to growers. Establishing interim and final percentages early in the season allowed growers to be paid on a higher percentage of their crop earlier in the season. This helped growers meet the costs of reconditioning, and the reconditioned product was then suitable for acquisition and processing by handlers.

Pursuant to § 989.54(d), the Committee’s calculations and determinations to arrive at final percentages for NS raisins are shown in the table below:



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 percent-age ...................................... 15 .00

By the week ending May 17, 2008, deliveries of NS raisins totaled 322,458 tons of NS raisins. Thus, the committee’s recommendation provided handlers with an additional 41,267 tons over the computed trade demand (322,458 tons × 85 percent = 274,089 tons; 274,089 tons¥232,822 tons = 41,267 tons). This additional tonnage is not expected to cause disorderly marketing conditions, as California

export shipments are up about 30 percent due to other countries’ declining export shipments.

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 was met for NS raisins for the 2007–08 crop year. Application of the final percentages made 232,822 tons of raisins available to handlers when the crop estimate was realized. In addition, handlers are offered additional reserve raisins for sale under the ‘‘10 plus 10 offers.’’ As specified in § 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, 30,916.9 tons should have been made available in each of the 10 plus 10 offers. However, this amount was not available in reserve.

The first 10 plus 10 offer was made in February 2008. A total of 6,065.2 tons of remaining 2006–07 reserve raisins and 24,851.7 tons of 2007–08 reserve raisins (a total of 30,916.9 tons) were made available to raisin handlers and all available tonnage was purchased and released to handlers during the 2007–08 crop year.

The second 10 plus 10 offer (a balance of about 24,000 tons remaining in the reserve pool) will be made available to handlers by July 31, 2008. Thus, all available reserve pool raisins should be offered to handlers for free use through the 10 plus 10 offers by the end of the crop year.

In addition to the second anticipated 10 plus 10 purchase, 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 into 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 404,962 tons of natural condition raisins, or 380,674 packed tons. This equates to 131 percent of the 2006–07 shipments of 309,169 natural condition tons or 290,628 packed tons. (Additionally, at least another 41,000


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tons of raisins are available to handlers for free use with the Committee’s underestimation of the crop.)



the Regulatory Flexibility Act (RFA), the Agricultural Marketing Service (AMS) has considered the economic impact of this action on small entities. Accordingly, AMS has prepared this final regulatory flexibility analysis.



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 § 989.54(d) of the order, this rule continues in effect the action that established 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 was warranted this season because the Committee’s October crop estimate of 273,908 tons was significantly higher than the 232,822 ton trade demand. As mentioned previously, by the week ending May 17, 2008, acquisitions were at 322,458 tons.



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 62 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.


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 from 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.

The chart below shows data regarding NS raisin deliveries, field prices, and producer prices over the past several years:




Producer prices

(per ton)

2006–07 ....................................................................................................................................... 282,999 $1,210.00 2 $1,089.00 2005–06 ....................................................................................................................................... 319,126 1,210.00 2 998.25 2004–05 ....................................................................................................................................... 265,262 1,210.00 3 1,210.00 2003–04 ....................................................................................................................................... 296,864 810.00 567.00 2002–03 ....................................................................................................................................... 388,010 745.00 491.20


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NATURAL SEEDLESS (NATURAL CONDITION) DELIVERIES, FIELD PRICES AND PRODUCER PRICES—Continued



Producer prices

(per ton)

2001–02 ....................................................................................................................................... 377,328 880.00 650.94 2000–01 ....................................................................................................................................... 432,616 877.50 603.36 1999–2000 ................................................................................................................................... 299,910 1,425.00 1,211.25 1998–99 ....................................................................................................................................... 240,469 1,290.00 3 1,290.00 1997–98 ....................................................................................................................................... 382,448 1,250.00 946.52 1996–97 ....................................................................................................................................... 272,063 1,220.00 1,049.20 1995–96 ....................................................................................................................................... 325,911 1,160.00 1,007.19 1994–95 ....................................................................................................................................... 378,427 1,160.00 928.27 1993–94 ....................................................................................................................................... 387,007 1,155.00 904.60



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. Export shipments increased to 106,755 tons of raisins during the 2004–05 crop year, but fell to 101,684 tons in 2006–07. For the 2007– 08 crop year, exports are up about 30 percent due to a short crop from Turkey.


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. Deliveries have increased for the 2007–08 crop year, and were at 322,458 for the week ending May 17, 2008.

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.


The reserve percentage limits what handlers can market as free tonnage. Data available as of May 17, 2008, showed that deliveries of NS raisins were at 322,458 tons. The 15 percent reserve limited the total free tonnage to 274,089 natural condition tons (.85 × 322,458 ton crop). Adding the 274,089 ton figure with the carryin of 105,430

tons, plus 45,710 tons of 10 plus 10 reserve raisins that were released to handlers during the 2007–08 crop year (14,793 tons in August 2007 and 30,917 tons in February 2008) made the total free supply equal to 425,229 natural condition tons. Including the anticipated 24,000 tons or reserve raisins that likely will be offered in the second 10 plus 10 offer to be held prior to July 31, 2008, the end of the crop year, should make the total free supply 449,229 natural condition tons.



The free and reserve percentages continue in effect the release of 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


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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 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. In addition, as noted in the initial regulatory flexibility analysis, 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.

An interim final rule concerning this action was published in the Federal Register on February 19, 2008. Copies of the rule were mailed by the Committee’s staff to all Committee members and alternates and raisin handlers. In addition, the rule was made available through the Internet by USDA and the Office of the Federal Register. That rule provided a 60-day comment period which ended April 21, 2008. No comments were received during the comment period.


After consideration of all relevant material presented, including the Committee’s recommendation, and other information, it is found that finalizing the interim final rule, without change, as published in the Federal Register (73 FR 9005, February 19, 2008) will tend to effectuate the declared policy of the Act.




■ Accordingly, the interim final rule amending 7 CFR part 989 which was published at 73 FR 9005 on February 19, 2008, is adopted as a final rule without change.

Dated: July 1, 2008.

Lloyd C. Day, Administrator, Agricultural Marketing Service. [FR Doc. E8–15293 Filed 7–3–08; 8:45 am]


DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 39

[Docket No. FAA–2008–0740; Directorate Identifier 2008–NM–077–AD; Amendment 39–15605; AD 2008–14–10]

RIN 2120–AA64

Airworthiness Directives; Lockheed Model 382, 382B, 382E, 382F, 382G, and 382J Series Airplanes

AGENCY: Federal Aviation Administration (FAA), DOT. ACTION: Final rule; request for comments.

SUMMARY: We are adopting a new airworthiness directive (AD) for all Lockheed Model 382, 382B, 382E, 382F, 382G, and 382J series airplanes. This AD requires, among other actions, an inspection to determine whether a certain upper engine mount bolt is installed, and replacement of any discrepant upper engine mount bolt with a new one. This AD results from a report indicating that several upper engine mount bolts manufactured by a certain supplier broke during installation. We are issuing this AD to prevent failure of the upper engine mount bolts, which could result in reduced structural capability of an engine mount, and possible separation of a strut and engine from the airplane during flight. DATES: This AD is effective July 22, 2008.

We must receive comments on this AD by September 5, 2008. ADDRESSES: You may send comments by any of the following methods:

• Federal eRulemaking Portal: Go to http://www.regulations.gov. Follow the instructions for submitting comments.

• Fax: 202–493–2251. • Mail: U.S. Department of

Transportation, Docket Operations, M– 30, West Building Ground Floor, Room W12–140, 1200 New Jersey Avenue, SE., Washington, DC 20590.

• Hand Delivery: U.S. Department of Transportation, Docket Operations, M– 30, West Building Ground Floor, Room W12–140, 1200 New Jersey Avenue, SE., Washington, DC 20590, between 9 a.m. and 5 p.m., Monday through Friday, except Federal holidays.

Examining the AD Docket

You may examine the AD docket on the Internet at http:// www.regulations.gov; or in person at the Docket Management Facility between 9 a.m. and 5 p.m., Monday through


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HANDLING OF CALIFORNIA RAISINS

MINUTES OF THE

Telephone: 559-225-0520 Fax: 559-225-0652

Email: [email protected] Website: www.raisins.org


January 6, 2011

Chairperson Chris Gunlund called the meeting of the Raisin Administrative Committee to order at 3:29p.m. on Thursday, January 6, 2011 in the RAC/CRMB Large Conference Room, 2445 Capitol Street, Suite 200, Fresno, California.

MEMBER

Abdulian, Linda Kay [a] Albrecht, Wayne

Bagdasarian, Mitch Barserian, Kalem Bedrosian, Bryan

[a] Bortolussi, Jeff [a] Brar, Harry [a] Cederquist, Douglas

Chooljian, Gerald (a] Chooljian, Michael

Creasy, Stacy Crowe, Richard Cubre, Anthony

[a) Envernizzi, Jack Epperson, Robert Goto, Glen Gunlund, Chris Hilker, Harold Housepian, Dennis Jue,Jeff Kasparian, Alan Kazarian, Michael Kazarian, Ron Kister, Steve Koligian, Michael Kriebel, Barry

[a] Marthedal, Jon [a] Medeiros, Manuel

Mikaelian, Michael [a] Milinovich, Dan [a] Moles, Ray

Pacini, Deni Peters, David

[a) Phillips, Jon Rebensdorf, Jerald Rodrigues, Tim

[a] Sahatdjian, Bill [a] Sahatdjian, Margaret [a] Sahatdjian, Victor [a] Salwasser, Charlotte [a] Salwasser, George

ALTERNATE

VACANT Cardoza, Dwayne

[a] Nielsen, Herman VACANT VACANT Hoff, Darren VACANT VACANT

[a] Cisneros, Eric VACANT VACANT VACANT Olson, Brad Spate, Steve Koligian, Vaughn

[a] Geringer, Linda [a] Loquaci, David

Moriyama, Michael [a] Moles, Doug [a) Blayney, David

VACANT [a] Lung, Jerry

VACANT Estermann, David

[a] Benik, Doug Emde, Richard

[a] Locker, Paul VACANT

[a) Batth, Gagandip [a] Boghosian, Philip

Shinkawa, Ken [a] Wilt, Dennis

Penner, Pete [a] Zeluff, Grace

VACANT [a] King, Dan

VACANT Teixeira, Allen Sahatjian, Robert

[a] Wilson. Steve VACANT

2445 Capitol Street, Suite 200 • Fresno CA 93721-2236


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[a] Sandhu, Nindy Nielsen, Mike Sangha, Mitch [a] Berekoff, Jim Schutz, Monte [a] Fanucchi, Edward

(a] Singh, Harvey (a] O'Brien, Michael (a] Stark, Rick (a] Koop, Hans

VACANT VACANT

Messrs. L. Blagg, R. Degiuli, H. Omapas, G. Schulz, and J. Simmons, Mmes. M. Jones, D. Powell and T. Vawter were present along with approximately 15 industry representatives and growers.

The Chairperson directed Ms. D. Powell to call roll and establish a quorum.

Chairperson Gunlund welcomed everyone and wished them a Happy New Year.

APPROVAL OF MINUTES

The Chairperson reported that a correction to the November 2, 2010 minutes had been requested by Mr. G. Salwasser. Under the Personnel Subcommittee Report a motion was recommended and approved to authorize a 3% increase to staff. Mr. G. Salwasser would like his statement regarding the increase included in the minutes "Just because it is in the budget doesn't mean we have to approve it." The Chair directed Ms. D. Powell to include his statement.

The Chairperson asked for any further corrections or additions to the minutes of November 2, 2010, hearing none, approved the minutes as amended.

USDA/MANAGEMENT REPORT

Ms. T. Vawter reported that the assessment rate rule is in channels and will be published in the Federal Register for comments. The comment period will be open for ten (1 0) days and following that period the rule would need to be published again in the Federal Register as a final rule and would be effective the following day.

Discussion followed regarding the exact wording of the rule and a request was made of Ms. T. Vawter to clarify that once the rule is approved, if the Committee will be required to assess at the $14.00/ton rate or will we have the option of assessing at the $7.50/ton rate. Ms. T. Vawter stated it would be at the $14.00/ton rate. ·

Mr. G. Schulz reported that management will be working with Chairperson Gun lund to schedule an Independent Grower Vacancy Nomination Meeting for District 2 (all Counties south of Fresno County) in Visalia in the immediate future.

Mr. G. Schulz reported the current crop statistics and stated that currently export shipments are down 28% from last year.

Mr. G. Schulz stated he and the Chair have been discussing the $5 million bin inventory and that a Bin Workgroup will be formed to discuss bin issues such as storage, inventory and repairs, and will then report back to the Committee later in the spring.

AUDIT SUBCOMMITTEE

Mr. B. Epperson reported that the Audit Subcommittee met earlier today to review the Annual

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Audits and reviewed the 2007 Reserve Pool Audit Report by the outside auditing firm, Morse, Yardumian, & Wittwer LLP, and reviewed a number of options for the utilization of the remaining cash in the 2009 Reserve Pool (which were discussed at the Reserve Sales and Marketing Subcommittee earlier today).

-+ Moved by Mr. B. Epperson, seconded by Mr. S. Kister that the Audit Subcommittee has reviewed and approved the Morse, Yardumian, Wittwer audit reports and recommends to close the 2007 Natural Seedless Reserve Pool. Consequently, management is directed to mail grower equity statements for the 2007 Reserve Pool as soon as available following the audit

The motion carried unanimously.

-+ Moved by Mr. B. Epperson, seconded by Mr. J. Jue to recommend that management arrange for external auditors to audit the 2008 Natural Seedless Reserve Pool in order to close the pool, and make any final payments to the growers or disposition.


ADMINISTRATIVE ISSUES SUBCOMMITTEE

Mr. G. Goto reported that the Administrative Issues Subcommittee met on December 16, 2010 to review and discuss/clarify the various proposals on Formal Rulemaking. Mr. G. Goto reminded the Subcommittee that a timetable was established and presented to USDA regarding the Rulemaking and that 1 or 2 more meetings will still take place for more discussions on the proposals.

RESERVE SALES & MARKETING SUBCOMMITTEE

Mr. G. Chooljian reported that the Reserve Sales & Marketing Subcommittee met earlier today to discuss reserve pool issues, 2010/11 Marketing Policy, and the MIP Programs.

Mr. G. Chooljian reported that a handler had failed to deliver 2.18 tons of the 2009/10 Reserve and that USDA was working on recovering the funds.

-+ Moved by Mr. G. Chooljian, seconded by Mr. B. Epperson to authorize staff to "write off'' or clear the books and remove the obligation ofthe 2.18 tons from the 2009/2010 reserve pool, this will provide accountability of the reserve pool.


Mr. G. Chooljian reported that there was an issue regarding terminology that was discussed at the Reserves Sales and Marketing Subcommittee and a motion was made.

-+ Moved by Mr. G. Chooljian, seconded by Mr. D. Peters to rescind the motion made on November 2, 2010 accepting the 2010/11 Marketing Policy, and approve the revisions on page 5 of the 201 0/11 Marketing Policy as presented by management, with the additional change to paragraph 1, line 6 striking "incentive program", and inserting "replacement offer (ERO)", thereby accepting the Marketing Policy (attached).


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RAisiN ADMINISTRATIVE COMMITTEE



HANDLING OF CALIFORNIA RAlSINS

Aprill, 2011

Telephone: 559-225-0520 Fax: 559-225-0652

Email: [email protected] Website: www.raisins.org

TO: All 2007-08 Natural (sun-dried) Seedless Raisin Growers

FROM: Gary Schulz, Presid~nt/General Manager A ~ SUBJECT: 2007-2008 Natural (sun-dried) Seedless Reserve7ool (! Printed on page 2 of this letter is an analysis of the revenue and expenses of the

2007-08 Natural (sun-dried} Seedless Reserve Pool. The Raisin Administrative

Committee recommended the closing of the 2007-08 Reserve Pool in 2010 and

the final audited report was issued on January 7, 2011. The 2007-08 reserve

represented 15% of raisins delivered to handlers during the period August 1, 2007

through July 31, 2008.

In order to ensure orderly marketing and to be competitive in the global

marketplace with other producing countries, the California raisin industry

developed export incentive programs that are funded from the proceeds of

reserve pool sales. These programs allowed the raisin industry to export 142,541

tons in 2007-08, 125,789 tons in 2008-09, and a record 152,246 tons in 2009-

2010. These export shipments represented 42.3% of the annl:J~I Natural Seedless

raisin sales, up from levels of 37% of the crop the prior ten years.

On July 31, 2010, the California raisin industry measured Natural Seedless carry

out inventory at 83,214 tons, the lowest level in thirty years, and the Raisin

Administrative Committee declared the 2010-11 crop as 100% Free Tonnage. .

As a result of this aggressive marketing effort, all equity in the 2007-08 Natural

(sun-dried) Seedless Raisin Reserve Pool has been exhausted and no reserve

payment will be made on the 2007-08 Natural (sun-dried} Seedless Reserve Pool.

Your support of our industry's export marketing efforts is greatly appreciated.

In the event you have questions or concerns, feel free to call me at 559-225-0520.

2445 Capitol Street, Suite 200 • Fresno CA 93721-2236


A 39

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THIS STATEMENT IS THE FINAL STATEMENT ON THE 2007·08 NATURAL SEEDLESS RESERVE POOL. A STATEMENT OF SALES, EXPENSES, AND GROWER'S EQUITY FOLLOWS:

RESERVE POOL SALES:

TONNAGE SALES PRICE 49,387.9180 TONS@ 1,315.00

17.4710 TONS @ DONATIONS {12.1710} TONS @ HANDLER LOSS GROSS PER RESERVE

49,393.2180 GROWER EQUITY BASE TONS SALES TON $ 64,890,139.12 $ 1,313.75

OTHER INCOME:

INTEREST EARNED 226,552.03 4.59 BIN RENTAL INCOME 366,520.00 7.42 MISCELLANEOUS INCOME UNUSED ASSOCIATION FEES

$ 65 483 211.15 $ 1 325.76 POOL EXPENSES ON POOL TONNAGE: Receiving, Handling, Storage and Fumigation 2,275,006.15 46.06 Reserve Pool Storage Costs 72,753.30 1.47 Raisin Insurance 76,592.79 1.55

.. Jnspection Fees 642,111.85 13.00 ln & Hauling Reimbursement 987,864.00 20.00

·' AC Bins and Raisin Transfer Costs 558,210.46 11 .30 Export Programs and Incentives, net of FAS reimbursable expense 4,892,127.85 99.04 Export Cash-Back 53,929,879.77 1,091.85

All Administrative Expenses 1 063 550.04 21.54

$ 64 498 096.21 $ 1 305.81

Gain on Sale of Fixed Asset 2,400.00 0.05

GROSS GROWER'S EQUITY $ 987,514.94 $ 20.00

BASED ON BASED ON GROWER'S 15% ' 100%


GROSS GROWERS EQUITY $ 987,514.94 $ 20.00 $ 3.00

LESS: STATE ADVERTISING ASSESSMENT {9871514.94} {20.00} {3.00}

FINAL GROWER EQUITY $ 0.00 $ 0.0!! $ 0.00

.. '

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17362 Federal Register / Vol. 72, No. 67 / Monday, April 9, 2007 / Rules and Regulations

address in the FOR FURTHER INFORMATION CONTACT section.

This rule invites comments on the exemption of onions for export from the handling regulations prescribed under the Texas onion marketing order. Any comments received will be considered prior to finalization of this rule.

After consideration of all relevant material presented, including the Committee’s recommendation, and other information, it is found that this interim final 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) This rule relaxes the order’s regulatory requirements by exempting South Texas onions shipped to the export market from the order’s handling regulations; (2) onion handlers are aware of this recommendation and need no additional time to comply with the relaxed requirements; (3) the shipping season for South Texas onions started around March 1, thus this rule should be effective as soon as possible to ensure that all handlers can take advantage of the relaxation for as much of the season as possible; and (4) this rule provides a 60-day comment period, and any comments received will be considered prior to finalization of this rule.


Onions, Marketing agreements, Reporting and recordkeeping requirements. ■ For the reasons set forth in the preamble, 7 CFR part 959 is amended as follows:

PART 959—ONIONS GROWN IN SOUTH TEXAS



■ 2. Section 959.322 is amended by revising paragraph (e)(1) and the introductory sentence of paragraph (f) to read as follows: * * * * *

(e) Special purpose shipments. (1) The minimum grade, size, quality, and inspection requirements set forth in paragraphs (a) through (c) of this section shall not be applicable to shipments of onions for charity, relief, export, and

processing if handled in accordance with paragraph (f) of this section. * * * * *

(f) Safeguards. Each handler making shipments of onions for charity, relief, export, processing, or experimental purposes shall: * * * * *

Dated: April 4, 2007. Lloyd C. Day, Administrator, Agricultural Marketing Service. [FR Doc. 07–1749 Filed 4–4–07; 4:27 pm] BILLING CODE 3410–02–P



7 CFR Part 989

[Docket No. AMS–FV–07–0027; FV07–989– 1 IFR]

Raisins Produced From Grapes Grown in California; Final Free and Reserve Percentages for 2006–07 Crop Natural (sun-dried) Seedless Raisins


SUMMARY: This rule establishes final volume regulation percentages for 2006– 07 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 90 percent free and 10 percent reserve. The percentages are intended to help stabilize raisin supplies and prices, and strengthen market conditions. DATES: Effective April 10, 2007. The volume regulation percentages apply to acquisitions of NS raisins from the 2006–07 crop until the reserve raisins from that crop are disposed of under the marketing order. Comments received by June 8, 2007, 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].





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

VerDate Aug<31>2005 16:25 Apr 06, 2007 Jkt 211001 PO 00000 Frm 00010 Fmt 4700 Sfmt 4700 E:\FR\FM\09APR1.SGM 09APR1rwilk

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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 2006–07 crop NS raisins covered under the order. The volume regulation percentages are 90 percent free and 10 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 November 21, 2006, and on January 23, 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 percentages. Pursuant to § 989.54(a) of the order, the Committee met on August 15, 2006, 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 § 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 2006–07 trade demand for NS raisins at 219,870 tons as shown below.

COMPUTED TRADE DEMANDS [Natural condition tons]

NS raisins

Prior year’s shipments .............. 301,460 Multiplied by 90 percent ........... 0.90 Equals adjusted base ............... 271,314 Minus carryin inventory ............ 111,444 Plus desirable carryout ............. 60,000 Equals computed NS trade De-

mand ..................................... 219,870

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 September 6, 2006, and announced preliminary percentages for Zante Currant (ZC) raisins. They met again on October 4, 2006, and announced preliminary percentages and a preliminary crop estimate for NS raisins of 259,557 tons, which is about 21 percent lower than the 10-year average of 327,410 tons. NS raisins are the major varietal type of California raisin. Adding the carryin inventory of 111,444 tons to the 259,557-ton crop estimate resulted in a total available supply of 371,001 tons, which was significantly higher (169 percent) than the 219,870-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 72 percent free and 28 percent reserve.

In addition, preliminary percentages were also announced for Dipped

Seedless, Golden Seedless, and Other Seedless raisins. It was ultimately determined at Committee meetings held on November 21, 2006, and January 23, 2007, 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 § 989.54(c), at its November 21, 2006, 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 244,300 tons (down from the October estimate of 259,557 tons), interim percentages for NS raisins were announced at 89.75 percent free and 10.25 percent reserve.

Pursuant to § 989.54(d), the Committee also recommended final percentages at its November 21, 2006, meeting to release the full trade demands for NS raisins. Final percentages were recommended at 90 percent free and 10 percent reserve. The Committee’s calculations and determinations to arrive at final percentages for NS raisins are shown in the table below:



NS raisins

Trade demand .......................... 219,870 Divided by crop estimate .......... 244,300 Equals the free percentage ...... 90.00 100 minus free percentage

equals the reserve percent-age ........................................ 10.00

By the week ending February 3, 2007, data showed that deliveries of NS raisins exceeded the Committee’s crop estimate of 244,300 tons. By that date deliveries totaled 262,477 tons. Thus, deliveries are likely to be at least 18,000 tons higher than estimated by the Committee during the fall. Based on this, the Committee’s recommendation will provide handlers 6.2 percent more raisins than would be provided if a 262,477 ton estimate had been used, but the additional tonnage is not expected to result in disorderly marketing conditions.

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.


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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 § 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 made in February 2007. A total of 30,146 tons was made available to raisin handlers. The second 10 plus 10 offer of 20,923 tons (the balance remaining in the reserve pool) will be made available to handlers by July 31, 2007. Adding the total figure of 51,648 tons of 10 plus 10 raisins to the 219,870 ton trade demand figure, plus the 111,444 tons of 2005–06 carryin NS inventory, equates to 382,962 tons of natural condition raisins, or 360,819 tons of packed raisins, that are available to handlers for free use or primary markets. This is about 127 percent of the quantity of NS raisins shipped during the 2005–06 crop year (301,460 natural condition tons or 284,030 packed tons).


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 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. Eleven of the 20 handlers subject to regulation have annual sales estimated to be at least $6,500,000, and the remaining 9 handlers have sales less than $6,500,000. No more than 9 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. If the primary market (the normal domestic market) is over- supplied with raisins, grower prices decline substantially.


Volume regulation is warranted this season because the revised crop estimate of 244,300 tons combined with the carryin inventory of 111,444 tons results in a total available supply of 355,744 tons, which is about 162 percent higher than the 219,870 ton trade demand.

Handlers provide their best estimate on the amount of tonnage growers will deliver each crop year. By the week ending February 3, 2007, data showed that deliveries of NS raisins exceeded the Committee’s crop estimate of 244,300 tons by 18,177 tons. The higher deliveries further warrant volume regulation, as the total available supply is currently expected to be 373,921 tons, which is about 170 percent higher than the 219,870 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.





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


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1996–97. Total 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, the producer prices were higher for the 2004–05 and the 2005–06 crop years, as noted below:


Crop year Deliveries

(natural condition tons)


2005–06 ....................................................................................................................................................... 319,126 1 $998.25 2004–05 ....................................................................................................................................................... 265,262 2 1210.00 2003–04 ....................................................................................................................................................... 296,864 1 567.00 2002–03 ....................................................................................................................................................... 388,010 1 491.20 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


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 186,358 tons during the 2005–06 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 97,672 tons in 2005–06.


While the overall demand for raisins has increased in two out of the last three 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 41,000 acres in 2001; 27,000 acres in 2002; and 15,000 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.

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.


The reserve percentage limits what handlers can market as free tonnage. Data available as of February 7, 2007,

showed that deliveries of NS raisins were at 262,477 tons. The 10 percent reserve would limit the total free tonnage to 236,229 natural condition tons (.90 × the 262,477 ton crop). Adding the 236,229 ton figure with the carryin of 111,444 tons, plus the 51,648 tons of reserve raisins that are available for purchase and release to handlers during the 2006–07 crop year under the 10 plus 10 offers, would make the total free supply equal to 399,321 natural condition tons.

To assess the impact that volume control has on the prices producers receive for their product, a price dependent econometric model was estimated. This model is used to estimate producer prices both with and without the use of volume control. The volume control used by the raisin industry would result in decreased shipments to primary markets. Without volume control the primary market (domestic) could be over-supplied resulting in lower producer prices and the build-up of unwanted inventories.

With volume controls, producer prices are estimated to be approximately $65 per ton higher than without volume controls. 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


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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 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 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 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. 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.



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 15, 2006, September 6, 2006, October 4, 2006, November 21, 2006, and January 23, 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 15, 2006, September 6, 2006, October 4, 2006, November 21, 2006, and January 23, 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 information on the regulatory and informational impacts of this action on small businesses.



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 2006–07 crop year apply to all NS raisins acquired from the beginning of that crop year; (2) handlers are currently marketing their 2006–07 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 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.


Grapes, Marketing agreements, Raisins, Reporting and recordkeeping requirements. ■ For the reasons set forth in the preamble, 7 CFR part 989 is amended as follows:








Reserve percentage

2003–2004 .................................................................. Natural (sun-dried) Seedless ..................................... 70 30 2005–2006 .................................................................. Natural (sun-dried) Seedless ..................................... 82 .50 17 .50 2006–2007 .................................................................. Natural (sun-dried) Seedless ..................................... 90 10


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Dated: April 3, 2007. Lloyd C. Day, Administrator, Agricultural Marketing Service. [FR Doc. E7–6530 Filed 4–6–07; 8:45 am] BILLING CODE 3410–02–P

SMALL BUSINESS ADMINISTRATION

13 CFR Part 102

RIN 3245–AF20

Record Disclosure and Privacy

AGENCY: U.S. Small Business Administration (SBA). ACTION: Direct Final Rule.

SUMMARY: This rule updates the U.S. Small Business Administration’s (SBA) regulations implementing the Privacy Act of 1974. This rule ensures the security and confidentiality of personally identifiable records and protects against hazards to their integrity. Specifically, Subpart B of the Privacy Act regulations is revised to include SBA’s procedures for maintaining appropriate administrative, technical and physical safeguards to ensure the security of the records. Also included are Privacy Act standards of conduct for Agency employees; training and reporting requirements pursuant to Privacy Act guidelines and the Office of Management and Budget (OMB) guidance; and the Privacy Act responsibilities of the Chief, Freedom of Information/Privacy Acts (FOI/PA) Office.

DATES: This rule is effective June 8, 2007 without further action, unless significant adverse comment is received by May 9, 2007. If significant adverse comment is received, the SBA will publish a timely withdrawal of the rule in the Federal Register. ADDRESSES: You may submit comments, identified by RIN 3245–AF20, by any of the following methods: (1) Federal rulemaking portal at http:// www.regulations.gov; (2) e-mail: [email protected], include RIN number 3245–AF20 in the subject line of the message; (3) mail to: Delorice P. Ford, Agency Chief FOIA Officer, 409 3rd Street, SW., Mail Code: 2441, Washington, DC 20416; and (4) Hand Delivery/Courier: 409 3rd Street, SW., Washington, DC 20416.

FOR FURTHER INFORMATION CONTACT: Delorice P. Ford, Agency Chief FOIA Officer, (202) 401–8203. SUPPLEMENTARY INFORMATION: SBA is revising Subpart B of Part 102 to include more in-depth information about Privacy Act (PA) responsibilities, and to further ensure the security and confidentiality of the Agency’s personally identifiable records, including the standards for disclosure of information under computer matching programs. This rule will further assist the SBA in focusing on the four basic policy objectives of the Privacy Act. Those objectives are: the restriction of disclosure of personally identifiable information; individuals’ increased right of access to records maintained on them; individuals’ right to seek amendment of records maintained on them; and the establishment of fair information practices. SBA is substantially revising this rule to present it in a statement and narrative format rather than question and answer, which conforms to the current writing style of Subpart A. As a result, the headings and section numbers are different than current SBA rule 13 CFR part 102, Subpart B.

SBA is publishing this rule as a direct final rule because it believes the rule is non-controversial since it merely enforces the basic policy objectives of the Privacy Act and does not present novel or unusual policies or practices. Because the rule follows routine, standard government-wide Privacy Act practices, SBA believes that this direct final rule will not elicit any significant adverse comments. However, if such comments are received, SBA will publish a timely notice of withdrawal in the Federal Register.

Section-by Section Analysis General provisions, § 102.20, provides

an overview of the scope of regulations contained in Subpart B as well as definitions for terms that are not previously defined in Part 102.

New § 102.21 Agency officials responsible for the Privacy Act, describes the various Agency personnel responsible for the PA and a listing of their duties. Some of this information is currently included in SBA PA rules at 13 CFR 102.29 and 102.32.

Section 102.22 Requirements relating to systems of records, this section expands current SBA PA rules at §§ 102.24 and 102.25 and establishes parameters for the type of information that SBA may collect from an individual, including the prohibition on maintaining records concerning First Amendment rights in certain circumstances. Section 102.22 also

addresses how to ensure the accurate and secure maintenance of records on individuals, and how to report new systems of records.

Section 102.23—Publication in the Federal Register Notices of systems of records explains that SBA will publish notice of new or modified systems of records and routine uses in the Federal Register. This section is not currently included in SBA rules.

Section 102.24—Requests for access to records describes procedures for individuals on how and where to make requests for access to records under the PA. This section is similar to current SBA rule at 13 CFR 102.34.

Section 102.25—Responsibility for responding to requests for access to records provides a description of responsibilities for Agency respondents to requests for access to records, while § 102.26—Responses to requests for access to record describes what to include in those responses. Current SBA rule at 13 CFR 102.36 provides similar information.

New § 102.27—Appeals from denials of requests for access to records provides procedures for individuals on how and where to make appeals from denials of requests for access to records.

Section 102.28—Requests for amendment or correction of records, provides a description of how and where to make requests and appeals for amendment or correction of records, including how to file Statements of Disagreement if appeals under this section are denied in whole or part.

Section 102.29—Requests for an accounting of record disclosures describes procedures for individuals to make requests and appeals for an accounting of records disclosures.

Section 102.30—Preservation of records this section describes how SBA will implement the record retention requirements of Title 44 of the United States Code or the National Archives and Records Administration’s General Records Schedule 14.

Section 102.31—Fees this section states that for PA matters, SBA charges only for duplication of records and all fees under $25 are waived.

Section 102.32—Notice of court- ordered and emergency disclosures this section explains SBA’s compliance with court-ordered and emergency disclosures. SBA will notify individuals by mailing a notice to their last known address.

Section 102.33—Security of systems of records this section requires SBA offices that maintain PA records to establish controls to protect records on individuals and ensure that record access is limited to only those


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59153

Vol. 72, No. 202

Friday, October 19, 2007



7 CFR Part 989


Raisins Produced From Grapes Grown in California; Final Free and Reserve Percentages for 2006–07 Crop Natural (sun-dried) Seedless Raisins


SUMMARY: The Department of Agriculture (USDA) is adopting, as a final rule, without change, an interim final rule that established final volume regulation percentages for 2006–07 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 90 percent free and 10 percent reserve. The percentages are intended to help stabilize raisin supplies and prices, and strengthen market conditions. DATES: Effective Date: November 19, 2007. The volume regulation percentages apply to acquisitions of NS raisins from the 2006–07 crop until the reserve raisins from that crop are disposed of under the marketing order. 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].

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].



This rule has been reviewed under Executive Order 12988, Civil Justice Reform. Under the order provisions now in effect, final free and reserve percentages may be established for raisins acquired by handlers during the crop year. This rule continues in effect the action that established final free and reserve percentages for NS raisins for the 2006–07 crop year, which began August 1, 2006, and ended July 31, 2007. This rule will not preempt any State or local laws, regulations, or policies, unless they present an irreconcilable conflict with this rule.


This rule continues in effect the action that established final volume regulation percentages for 2006–07 crop NS raisins covered under the order. The volume regulation percentages are 90 percent free and 10 percent reserve and were established through an interim final rule published on April 9, 2007 (72 FR 17362). 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 November 21, 2006.


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 § 989.54(a) of the order, the Committee met on August 15, 2006, 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 § 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

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59154 Federal Register / Vol. 72, No. 202 / Friday, October 19, 2007 / Rules and Regulations

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 2006–07 trade demand for NS raisins at 219,870 tons as shown below.


NS Raisins

Prior year’s shipments ........ 301,460 Multiplied by 90 percent ..... 0 .90 Equals adjusted base ......... 271,314 Minus carryin inventory ...... 111,444 Plus desirable carryout ....... 60,000 Equals computed NS trade

demand ........................... 219,870



The Committee met on September 6, 2006, and announced preliminary percentages for Zante Currant raisins. It met again on October 4, 2006, and announced preliminary percentages and a preliminary crop estimate for NS raisins of 259,557 tons, which is about 21 percent lower than the 10-year average of 327,410 tons. NS raisins are the major varietal type of California raisin. Adding the carryin inventory of 111,444 tons to the 259,557-ton crop estimate, plus an additional 31,975 tons of reserve raisins released to handlers for free use in August 2006, resulted in a total available supply of 402,976 tons, which was significantly higher (183 percent) than the 219,870-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 72 percent free and 28 percent reserve.

In addition, preliminary percentages were announced for Dipped Seedless, Golden Seedless, and Other Seedless raisins. It was ultimately determined at Committee meetings held on November 21, 2006, and January 23, 2007, that volume regulation was only warranted for NS raisins. As in past seasons, the Committee submitted its marketing policy to USDA for review.


Pursuant to § 989.54(c), at its November 21, 2006, 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 244,300 tons (down from the October estimate of 259,557 tons), interim percentages for NS raisins were announced at 89.75 percent free and 10.25 percent reserve.

Pursuant to § 989.54(d), the Committee also recommended final percentages at its November 21, 2006, meeting to release the full trade demand for NS raisins. Final percentages were recommended at 90 percent free and 10 percent reserve. The Committee’s calculations and determinations to arrive at final percentages for NS raisins are shown in the table below:



NS Raisins

Trade demand .................... 219,870 Divided by crop estimate .... 244,300 Equals the free percentage 90 .00 100 minus free percentage

equals the reserve per-centage ........................... 10 .00

By the end of the crop year, final deliveries of NS raisins totaled 282,999 tons. Thus, handlers were provided with an additional 63,129 tons over the computed trade demand, but the additional tonnage did not appear to impact marketing conditions.

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 was met for NS raisins by the establishment of final percentages, which released 100 percent of the trade demand and the offer of additional reserve raisins for sale to handlers under

the ‘‘10 plus 10 offers.’’ As specified in § 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.

Based on 2005–06 NS shipments of 301,460 natural condition tons, 30,146 tons should have been made available in each of the 10 plus 10 offers, or a total of 60,292 tons. However, this amount was not available in the reserve. Thus, all available reserve pool raisins were offered to handlers for free use through the 10 plus 10 offers.

The first 10 plus 10 offer was made in February 2007. A total of 30,146 tons was made available to raisin handlers; all the raisins were purchased and released to handlers during the 2006–07 crop year. The second offer was made in July 2007. A total of 20,923 tons (the balance of the reserve pool) was made available to handlers; 14,793 tons were purchased and released to handlers in 2007–08. Adding the 30,146 tons of 10 plus 10 reserve raisins to the 219,870 ton trade demand figure, plus the 111,444 tons of 2005–06 carryin NS inventory, plus the 31,975 tons of 10 plus 10 raisins released to handlers in August 2006, equates to 393,435 tons of natural condition raisins, or 370,686 tons of packed raisins, that were available to handlers for free use or primary markets. This is about 130 percent of the quantity of NS raisins shipped during the 2005–06 crop year (301,460 natural condition tons or 284,030 packed tons).


Final Regulatory Flexibility Analysis

Pursuant to requirements set forth in the Regulatory Flexibility Act (RFA), the Agricultural Marketing Service (AMS) has considered the economic impact of this action on small entities. Accordingly, AMS has prepared this final regulatory flexibility analysis.


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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 service 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. Thirteen of the 23 handlers subject to regulation have annual sales estimated to be at least $6,500,000, and the remaining 10 handlers have sales less than $6,500,000.


Pursuant to § 989.54(d) of the order, this rule continues in effect the action that established final volume regulation percentages for 2006–07 crop NS raisins. The volume regulation percentages are 90 percent free and 10 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 was warranted this season because acquisitions of 282,999 tons through July 31, 2007, combined with the carryin inventory of 111,444 tons, plus 31,975 tons of 10 plus 10 reserve raisins that were released to handlers in August 2006, resulted in a total available supply of 426,418 tons, which is about 194 percent higher than the 219,870 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.


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 1970s, 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.



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. Total 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 and the 2005–06 crop years, as noted below:


Crop year

Deliveries (natural

condition tons)

Producer prices

(per ton)

2005–06 ............ 319,126 1 $998.25 2004–05 ............ 265,262 2 1210.00 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


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 186,358 tons during the 2005–06 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 97,672 tons in 2005–06.


While the overall demand for raisins has increased in two out of the last three 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


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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 41,000 acres in 2001; 27,000 acres in 2002; and 15,000 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.



The reserve percentage limits what handlers can market as free tonnage. Data available as of July 31, 2007, showed that deliveries of NS raisins were at 282,999 tons. The 10 percent reserve limited the total free tonnage to 254,699 natural condition tons (.90 × the 282,999 ton crop). Adding the 254,699 ton figure with the carryin of 111,444 tons, plus the 62,121 tons of 10 plus 10 reserve raisins that were released to handlers during the 2006–07 crop year (31,975 tons in August 2006 and 30,146 tons in March 2007) made the total free supply equal to 428,264 natural condition tons.

To assess the impact that volume regulation has on the prices producers receive for their product, a price dependent econometric model was estimated. This model is used to estimate producer prices both with and

without the use of volume regulation. The volume regulation used by the raisin industry would result in decreased shipments to primary markets. Without volume regulation the primary market (domestic) could be over-supplied resulting in lower producer prices and the build-up of unwanted inventories.

With volume regulation, producer prices are estimated to be approximately $65 per ton 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 was warranted during the 2006–07 season for only one of the nine raisin varietal types defined under the order.

The free and reserve percentages continue in effect the release of 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 is 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 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. 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. In addition, as noted in the initial regulatory analysis, 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 15, September 6, October 4, November 21, 2006, and the January 23, 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 15, September 6, October 4, November 21, 2006, and January 23, 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.

An interim final rule concerning this action was published in the Federal Register on April 9, 2007. Copies of the rule were mailed by the Committee’s staff to all Committee members and alternates and raisin handlers. In addition, the rule was made available through the Internet by USDA and the Office of the Federal Register. That rule provided for a 60-day comment period which ended June 8, 2007. One comment was received during the comment period; it was not relevant to the rulemaking action. Accordingly, no changes were made to the rule, based on comment received.

A small business guide on complying with fruit, vegetable, and specialty crop


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1 Section 274b. of the AEA authorizes the Commission to enter into an agreement with the Governor of a State that provides for discontinuance of the Commission’s regulatory authority in the State over byproduct material as defined in section 11e., source materials, and special nuclear materials in quantities not sufficient to form a critical mass.

2 Section 274n. of the AEA defines the term ‘‘State’’ to mean any State, Territory, or possession

of the United States, the Canal Zone, Puerto Rico, and the District of Columbia.

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 Committee’s recommendation, and other information, it is found that finalizing the interim final rule, without change, as published in the Federal Register (72 FR 17362, April 9, 2007) will tend to effectuate the declared policy of the Act.




■ Accordingly, the interim final rule amending 7 CFR part 989 which was published at 72 FR 17362 on April 9, 2007, is adopted as a final rule without change.

Dated: October 15, 2007. Lloyd C. Day, Administrator, Agricultural Marketing Service. [FR Doc. E7–20621 Filed 10–18–07; 8:45 am] BILLING CODE 3410–02–P

NUCLEAR REGULATORY COMMISSION

10 CFR Chapter I

RIN 3150–AH84

Notification of the Plan for the Transition of Regulatory Authority Resulting From the Expanded Definition of Byproduct Material

AGENCY: Nuclear Regulatory Commission. ACTION: Notice of publication of transition plan.

SUMMARY: In accordance with Section 651e of the Energy Policy Act of 2005, the U.S. Nuclear Regulatory Commission is publishing a ‘‘Plan for the Transition of Regulatory Authority Resulting from the Expanded Definition of Byproduct Material’’ (transition plan) to facilitate an orderly transition of regulatory authority with respect to the byproduct material defined in paragraphs (3) and (4) of section 11e. of the Atomic Energy Act of 1954, as amended. A copy of the final transition

plan is provided as Appendix A to this document. FOR FURTHER INFORMATION CONTACT: Kim K. Lukes, Office of Federal and State Materials and Environmental Management Programs, U.S. Nuclear Regulatory Commission, Washington, DC 20555–0001, telephone (301) 415– 6701 or e-mail [email protected].

Dated at Rockville, Maryland, this 11th day of October, 2007.

For the Nuclear Regulatory Commission. Annette L. Vietti-Cook, Secretary of the Commission.

Appendix A—A Plan for the Transition of Regulatory Authority Resulting From the Expanded Definition of Byproduct Material

I. Introduction

The Energy Policy Act of 2005 (EPAct) expanded U.S. Nuclear Regulatory Commission (NRC or Commission) regulatory authority over radioactive materials to include new byproduct material, as defined in paragraphs (3) and (4) of section 11e. of the Atomic Energy Act of 1954, as amended (AEA), hereinafter referred to as the new byproduct material. The expanded NRC authority pre-empted existing State regulatory authority over the subject materials. NRC is authorized, however, to discontinue its regulatory authority over the new byproduct material under certain conditions, allowing States to exercise regulatory authority over these materials.

The EPAct requires the Commission to prepare and publish a transition plan to facilitate an orderly transition of regulatory authority with respect to the new byproduct material. The plan must address States that have, before the date on which the plan is published, entered into agreements with the Commission, under section 274b. of the AEA 1 (Agreement States), and States that have not entered into such agreements (non- Agreement States). The plan must also include a description of the conditions under which a State may exercise regulatory authority over the new byproduct material.

To meet the requirements of the EPAct, the transition plan must include a statement of the Commission that any Agreement between the Commission and a State 2 under section 274b. of the

AEA, covering byproduct material and entered into before the date of publication of the transition plan, must be considered to include the new byproduct material, if the Governor of the State certifies to the Commission, on the date of the publication of the transition plan that: (1) The State has a program for licensing the new byproduct material that is adequate to protect the public health and safety, as determined by the Commission; and (2) the State intends to continue to implement the regulatory responsibility of the State with respect to the new byproduct material. This transition plan is being promulgated in response to those requirements.

II. Background

On August 8, 2005, the President signed into law the Energy Policy Act of 2005. Public Law No. 109–58, 119 Stat 594 (2005). Before then, byproduct material had been defined in section 11e. of the AEA as: (1) Any radioactive material (except special nuclear material) yielded in or made radioactive by exposure to the radiation incident to the process of producing or using special nuclear material; and (2) the tailings or wastes produced by the extraction or concentration of uranium or thorium from any ore processed primarily for its source material content.

Section 651(e) of the EPAct, among other things, expanded the definition of byproduct material in section 11e. of the AEA, thereby placing additional byproduct material under NRC’s jurisdiction. Section 651(e) further required the Commission to provide a regulatory framework for licensing and regulating this additional byproduct material.

In particular, section 651(e) of the EPAct expanded the definition of byproduct material by adding paragraphs (3) and (4) to the definition of byproduct material in section 11e. Section 11e.(3) defines, as byproduct material:

‘‘(A) any discrete source of radium-226 that is produced, extracted, or converted after extraction, before, on, or after the date of enactment of this paragraph for use for a commercial, medical, or research activity; or (B) any material that—

(i) has been made radioactive by use of a particle accelerator; and

(ii) is produced, extracted, or converted after extraction, before, on, or after the date of enactment of this paragraph for use for a commercial, medical, or research activity.

Section 11e.(4) defines, as byproduct material, any discrete source of


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Raisin Administrath

ADMINISTERING THE FEDERAL MARKETING AGREEMENT AND ORDER REGULATING THE HANDLING OF CALIFORNIA RAISINS

3445 N. First Street, Sl P.O. Box 5217

Fresno, CA 93755

February 19, 2009

TO: ALL 2006-07 Natural (sun-dried) Seedless Grower

FROM: Gary Schulz, President/General Manager

Bruno Cassidy Emde Gavello

Henderson Hilker Koligian Kriebel

Lewis McCarty Naito Pattar

Stark Tietjen (McBee) (Resare)

TELEPHONE: 559-225-0520 FAX: 559-225-0652

EMAIL: [email protected] WORLD WIDE WEB: www .raisins.orq

Printed on the reverse side of this letter is an analysis of the sales and expenses ofthe 2006-07 Natural (sun-dried) Seedless reserve pool. The Raisin Administrative Committee recommended the closing of the 2006-07 Reserve Pool in 2008 and the final audited report was issued on December 23,2008. The 2006-07 reserve represented 10% of raisins delivered to handlers during the period August 1, 2006 and July 31, 2007. This was subsequently followed by the2007-08 crop which was 85% Free.

During the 2006-2008 crop years, the Raisin Administrative Committee has been faced with a difficult problem of maximizing grower returns and selling all of our annual production of raisins.

Historically, the domestic market consumes 200,000 tons of our annual production. With crop sizes averaging between 300,000 and 350,000 tons, the industry has relied on our export market to buy the tonnage not sold domestically. In order to be competitive on the world market against other producing countries, the industry developed an export program that is funded from the proceeds of reserve pool sales. This program has allowed our packers to sell more than 100,000 tons into the export market annually, avoiding the possibility of disposing the tonnage into other outlets such as cattle feed or sold to

the distilleries.

During the 2006, 2007, and 2008 crop years, support of the export program and the funding thereof was a difficult task for the Committee. The 2006 crop production exceeded 280,000 tons. At this level of production, the export program had to continue. As a result, all equity in the 2006-07 Natural (sun-dried) Seedless pool was exhausted to accomplish this effort and NO RESERVE PAYMENT WILL BE MADE ON THE 2006-07 NATURAL SEEDLESS RESERVE POOL.

The Raisins Administrative Committee continues to be faced with this challenge of providing the

domestic market with an adequate supply of raisins to meet all needs, without oversupplying the market and creating an unstable situation. The export program is vital in maintaining this delicate balance and providing the maximum dollar return to all growers.


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THIS STATEMENT IS THE FINAL STATEMENT ON THE 2006-07 NATURAL SEEDLESS RESERVE POOL. A STATEMENT OF SALES, EXPENSES, GROWER'S EQUITY FOLLOWS:

RESERVE POOL SALES:

TONNAGE SALES PRICE 26,761.4905 TONS@ 1,315.00

10.7000 TONS@ DONATIONS 1524.6315 TONS @ FIRE LOSS GROSS PER RESERVE

28,296.8220 GROWER EQUITY BASE TONS SALES TON $ 35,140,114.70 $ 1,241.84

OTHER INCOME:

INTEREST EARNED 645;944.30 ' 22 .83 BIN RENTAL INCOME 192,450.00 6.80 MISCELLANEOUS INCOME 167,999.59 5.94 FIRE LOSS RECOVERY 1,834,444.17 64.83 UNUSED ASSOCIATION FEES 71,919.83 2.54

$ 38,052,872.59 $ 1,344.78 POOL EXPENSES ON POOL TONNAGE: Receiving, Handling, Storage and Fumigation 1,425,681.45 50.38 Reserve Pool Storage Costs 218,535.00 7.72 Raisin Insurance 36,100.51 1.28 Inspection Fees 367,858.68 13.00 Bin & Hauling Reimbursement 565,936.42 20.00 RAC Bins and Raisin Transfer Costs 329,298.57 11.64 Export Programs and Incentives, net of FAS reimbursable expense 4,655,703.34 164.53 Export Cash-Back 28,948,037.10 1,023.02 All Administrative Expenses 970,491.72 34.30

$ 37,517,642.79 $ 1,325.87

GROSS GROWER'S EQUITY $ 535,229.80 $ 18.91



GROSS GROWERS EQUITY $ 535,229.80 $ 18.91 $ 1.89 LESS: STATE ADVERTISING ASSESSMENT {535,229.80) {18.91) (1.89) FINAL GROWER EQUITY $ 0.00 $ 0.00 $ 0.00


29567 Federal Register / Vol. 71, No. 99 / Tuesday, May 23, 2006 / Rules and Regulations

■ 2. In § 945.341, paragraph (g) is revised to read as follows:

§ 945.341 Handling regulation.

* * * * * (g) Minimum quantity exemption.

Each handler may ship up to, but not to exceed, five hundredweight of potatoes any day without regard to the inspection and assessment requirements of this part, but this exception shall not apply to any shipment that exceeds five hundredweight of potatoes. * * * * *

Dated: May 17, 2006. Lloyd C. Day, Administrator, Agricultural Marketing Service. [FR Doc. 06–4748 Filed 5–22–06; 8:45 am] BILLING CODE 3410–02–P



7 CFR Part 989

[Docket No. FV06–989–2 IFR]



SUMMARY: This rule establishes final volume regulation percentages for 2005– 06 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 82.50 percent free and 17.50 percent reserve. The percentages are intended to help stabilize raisin supplies and prices, and strengthen market conditions. DATES: Effective August 1, 2005, through July 31, 2006. The volume regulation percentages apply to acquisitions of NS raisins from the 2005–06 crop until the reserve raisins from that crop are disposed of under the marketing order. Comments received by July 24, 2006, 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 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.ams.usda.gov/fv/moab.html. FOR FURTHER INFORMATION CONTACT: Kurt Kimmel, Officer-in-Charge, or Rose M. Aguayo, Marketing Specialist, California Marketing Field Office, Marketing Order Administration Branch, Fruit and Vegetable Programs, AMS, USDA; Telephone: (559) 487–5901; Fax: (559) 487–5906.

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 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 2005–06 crop NS raisins covered under the order. The volume regulation percentages are 82.50 percent free and 17.50 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 January 26, 2006, and further justified their recommendation on March 16, 2006.


procedures and time frames to be followed in establishing volume regulation. This includes methodology used to calculate percentages. Pursuant to § 989.54(a) of the order, the Committee met on August 15, 2005, 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 § 989.154(a), the desirable

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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 2005–06 trade demand for NS raisins at 232,985 tons as shown below.


NS raisins

Prior year’s shipments .................. 319,752 Multiplied by 90 percent ............... 0.90 Equals adjusted base ................... 287,777 Minus carryin inventory ................ 114,792 Plus desirable caryout .................. 60,000 Equals computed NS trade De-

mand ......................................... 232,985



The Committee met on October 4, 2005, and announced a preliminary crop estimate for NS raisins of 266,227 tons, which is about 19 percent lower than the 10-year average of 328,088 tons. NS raisins are the major varietal type of California raisin. Adding the carryin inventory of 114,792 tons, plus the 266,227-ton crop estimate resulted in a total available supply of 381,019 tons, which was significantly higher (164 percent) than the 232,985-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 74 percent free and 26 percent reserve.

In addition, preliminary percentages were also announced for Dipped Seedless, Golden Seedless, Zante Currant, and 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.


Pursuant to § 989.54(c), at its January 26, 2006, 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 283,000 tons (up from the October estimate of 266,227 tons), interim percentages for NS raisins were announced at 82.25 percent free and 17.75 percent reserve.

Pursuant to § 989.54(d), the Committee also recommended final percentages at its January 26, 2006, meeting to release the full trade demands for NS raisins. Final percentages were recommended at 82.50 percent free and 17.50 percent reserve. The Committee’s calculations and determinations to arrive at final percentages for NS raisins are shown in the table below:



NS raisins

Trade demand .............................. 232,985 Divided by crop estimate .............. 283,000 Equals the free percentage .......... 82.30 100 minus free percentage equals

the reserve percentage ............. 17.70

* * * The Committee recommended rounding the free percentage to 82.50 percent and reducing the reserve percentage to 17.50 percent to compensate for the higher than normal processing shrinkage being experienced by handlers with the 2006 NS crop.

By the week ending February 11, 2006, data showed that deliveries of NS raisins exceeded the Committee’s crop estimate of 283,000 tons. By that date, deliveries of NS raisins totaled 285,052 tons. Thus, at USDA’s request, the RAC met again on March 16, 2006, and reviewed the current available data and the computations used in arriving at the recommended final percentages.

At the March meeting, the Committee continued to support a crop estimate of 283,000 tons, because of the higher than

normal processing shrinkage being experienced with the 2005 NS raisin crop. With a lower crop estimate, more free tonnage raisins will be made available to handlers for free tonnage use, but due to the above normal processing shrinkage, the Committee expects supplies to be in balance with market needs.

By the week ending April 5, 2006, data showed that deliveries of NS raisins were at 301,019 tons of NS raisins. Thus, it is likely that final deliveries may reach 311,493 tons by July 31, 2006—the end of the crop year. The Committee’s recommendation will provide handlers with 7.5 percent more raisins than would be provided if a 311,493 ton estimate had been used, but the additional tonnage is not expected to cause disorderly marketing conditions.

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 § 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 made in February 2006. A total of 31,975 tons was made available to raisin handlers; all of the raisins were purchased. The second 10 plus 10 offer of 31,975 tons will be made available to handlers by July 31, 2006. Adding the total figure of 63,950 tons of 10 plus 10 raisins to the 232,985 ton trade demand figure, plus 114,792 tons of 2004–05 carryin NS inventory equates to 411,727 tons of natural condition raisins, or 386,855 tons of packed raisins, that are available to handlers for free use or primary markets. This is about 130 percent of the quantity of NS raisins shipped during the 2004–05 crop year (317,998 natural condition tons or 300,435 packed tons).

In addition to the 10 plus 10 offers, § 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


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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 USDA’s Guidelines.


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.


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 firms are defined by the Small Business Administration (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. Eleven of the 20 handlers subject to regulation have annual sales estimated to be at least $6,500,000, and the remaining 9 handlers have sales less than $6,500,000. No more than 9 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 § 989.54(d) of the order, this rule establishes final volume regulation percentages for 2005–06 crop NS raisins. The volume regulation percentages are 82.50 percent free and 17.50 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 revised crop estimate of 283,000 tons combined with the carryin inventory of 114,792 tons results in a total available supply of 397,792 tons, which is about 70 percent higher than the 232,985 ton trade demand.

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.




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 in 1996– 97. 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, 2001–02, and 2002–03 crop years due to record-size production, large carry-in inventories, and stagnant demand. However, the producer prices increased slightly with a shorter crop in 2003–04 and rebounded to pre-1998–99 prices during the 2004–05 crop years as noted below:


Crop year

Deliveries (natural

condition tons)

Producer prices

(per ton)

2004–05 ............ 265,262 2 $1210.00 2003–04 ............ 296,864 1 567.00 2002–03 ............ 388,010 1 491.20 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


There are essentially two broad markets for raisins—domestic and export. In recent years, both domestic and export shipments have been increasing. 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. Since that time domestic shipments steadily increased from 174,117 packed tons during the 2000–01 crop year to 193,680 packed tons during the 2004–05 crop year. 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 recent years, export shipments have increased from a low of 101,537 tons during the 2002–03 crop year to 106,755


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tons of raisins during the 2004–05 crop year.

Moreover, the per capita consumption of raisins has declined from 2.09 pounds in 1988 to 1.46 pounds in 2004. 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 been increasing (as reflected in increased in 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 raisins or removed 41,000 acres in 2001; 27,000 acres in 2002; and 15,000 acres of vines in 2003 to reduce the industry’s burdensome supply of raisins. These actions resulted in declining deliveries of 296,865 tons for the 2003–04 crop year and 265,262 tons for the 2004–05 crop year.



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 17.50 percent reserve limits the total free tonnage to 233,475 natural condition tons (.8250 x the 283,000-ton crop estimate) and carryin is 114,792 natural condition tons, and all of the 63,950 natural condition tons of reserve raisins offered for sale under the 10 plus 10 offers are purchased, then the total free supply is estimated at 412,217 natural condition tons. Data available as of April 5, 2006, shows that deliveries of NS raisins are at 301,019 tons. If the Committee used a 311,493 ton crop estimate, and assuming a 25.2 percent reserve limits the total free tonnage to 232,996 natural condition tons (.7480 x the 311,493-ton crop estimate) and carryin and 10+10 offers and purchases remained the same, then the total free supply would be estimated at 411,738 natural condition tons, a difference of 479 tons. The Committee believes that this additional tonnage will provide handlers with enough free tonnage to compensate for the above normal processing shrink being experienced with this season’s crop.

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 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 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 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. 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 compliance with the Government Paperwork Elimination Act (GPEA), which requires Government agencies in general to provide the public the option of submitting information or transacting business electronically to the maximum extent possible.


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 15, 2005, October 4, 2005, January 26, 2006, and March 16, 2006, meetings were public meetings and all entities, both


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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 15, 2005, October 4, 2005, January 26, 2006, and March 16, 2006, 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 information on the regulatory and informational impacts of this action on small businesses.




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 2005–06 crop year apply to all NS raisins acquired from the beginning of that crop year; (2) handlers are currently marketing their 2005–06 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 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.



■ For the reasons set forth in the preamble, 7 CFR part 989 is amended to read as follows:




■ 2. Section 989.258 is added to Subpart—Supplementary Regulations to read as follows:

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

§ 989.258 Final free and reserve percentages for the 2005–06 crop year.

The final percentages for standard Natural (sun-dried) Seedless raisins acquired by handlers during the crop year beginning on August 1, 2005, which shall be free tonnage and reserve tonnage, respectively, are designated as follows:

Varietal type Free percentage

Reserve percentage

Natural (sun- Dried) Seed-less ................ 82.50 17.50

Dated: May 17, 2006. Lloyd C. Day, Administrator, Agricultural Marketing Service. [FR Doc. 06–4747 Filed 5–22–06; 8:45 am] BILLING CODE 3410–02–P


U.S. Citizenship and Immigration Services

8 CFR Part 103

[DHS Docket No. USCIS–2005–0038; CIS No. 2367–05]

RIN 1615–AB40

Changes to the Procedures for Notifying the Public of Premium Processing Service Designations and Availability

AGENCY: U.S. Citizenship and Immigration Services, DHS. ACTION: Interim rule with request for comments.

SUMMARY: This interim rule amends Department of Homeland Security regulations to change the process whereby U.S. Citizenship and Immigration Services will notify the public of the dates and conditions for Premium Processing Service of designated employment-based petitions and applications. This interim rule also clarifies that notices announcing the designation of petitions and applications for Premium Processing Service will identify the individual classifications within each designated petition or application that will be eligible for premium processing. DATES: Effective date: This interim rule is effective May 23, 2006.

Comment date: Written comments must be submitted on or before July 24, 2006. ADDRESSES: You may submit comments, identified by DHS Docket No. USCIS 2005–0038, by one of the following methods:

• Federal eRulemaking Portal: http:// www.regulations.gov. Follow the instructions for submitting comments.

• E-mail: You may submit comments directly to USCIS by e-mail at [email protected]. Include DHS Docket No. USCIS–2005–0038 in the subject line of the message.

• Mail: The Director, Regulatory Management Division, U.S. Citizenship and Immigration Services, Department of Homeland Security, 111 Massachusetts Avenue, NW., 3rd Floor, Washington, DC 20529. To ensure proper handling, please reference DHS Docket No. USCIS–2005–0038 on your correspondence. This mailing address may also be used for paper, disk, or CD– ROM submissions.

• Hand Delivery/Courier: U.S. Citizenship and Immigration Services, Department of Homeland Security, 111 Massachusetts Avenue, NW., 3rd Floor, Washington, DC 20529. Contact Telephone Number is (202) 272–8377. FOR FURTHER INFORMATION CONTACT: Kristina Carty-Pratt, Adjudications Officer, Office of Program and Regulations Development, U.S. Citizenship and Immigration Services, Department of Homeland Security, 111 Massachusetts Avenue, NW., Washington, DC 20536. Contact Telephone Number (202) 272–8400. SUPPLEMENTARY INFORMATION:

I. Public Participation

Interested persons are invited to participate in this rulemaking by submitting written data, views, or arguments on all aspects of the interim rule. Comments that will provide the most assistance to U.S. Citizenship and


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2173 Federal Register / Vol. 72, No. 11 / Thursday, January 18, 2007 / Rules and Regulations

Branch, Fruit and Vegetable Programs, AMS, USDA. * * * * *

Dated: January 11, 2007. Lloyd C. Day, Administrator, Agricultural Marketing Service. [FR Doc. E7–593 Filed 1–17–07; 8:45 am] BILLING CODE 3410–02–P



7 CFR Part 989




SUMMARY: The Department of Agriculture (USDA) is adopting, as a final rule, without change, an interim final rule that established final volume regulation percentages for 2005–06 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 82.50 percent free and 17.50 percent reserve. The percentages are intended to help stabilize raisin supplies and prices, and strengthen market conditions. DATES: Effective Date: February 20, 2007. The volume regulation percentages apply to acquisitions of NS raisins from the 2005–06 crop until the reserve raisins from that crop are disposed of under the marketing order. FOR FURTHER INFORMATION CONTACT: Rose M. Aguayo, Marketing Specialist, or Kurt 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].

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].



This rule has been reviewed under Executive Order 12988, Civil Justice Reform. Under the order provisions now in effect, final free and reserve percentages may be established for raisins acquired by handlers during the crop year. This rule continues in effect the action that established final free and reserve percentages for NS raisins for the 2005–06 crop year, which began August 1, 2005, and ended July 31, 2006. 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 continues in effect the action that established final volume regulation percentages for 2005–06 crop NS raisins covered under the order. The volume regulation percentages are 82.50 percent free and 17.50 percent reserve and were established through an interim final rule published on May 23, 2006 (71 FR 29567). 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 January 26, 2006, and further justified its recommendation on March 16, 2006.


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 § 989.54(a) of the order, the Committee met on August 15, 2005, 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 § 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 2005–06 trade demand for NS raisins at 232,985 tons as shown below.

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NS raisins

Prior year’s shipments .................... 319,752 Multiplied by 90 percent ................. 0.90 Equals adjusted base ..................... 287,777 Minus carryin inventory .................. 114,792 Plus desirable caryout .................... 60,000 Equals computed NS trade De-

mand ........................................... 232,985



The Committee met on October 4, 2005, and announced a preliminary crop estimate for NS raisins of 266,227 tons, which is about 19 percent lower than the 10-year average of 328,088 tons. NS raisins are the major varietal type of California raisin. Adding the carry in inventory of 114,792 tons, plus the 266,227-ton crop estimate resulted in a total available supply of 381,019 tons, which was significantly higher (164 percent) than the 232,985-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 74 percent free and 26 percent reserve.

In addition, preliminary percentages were announced for Dipped Seedless, Golden Seedless, Zante Currant, and 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.


Pursuant to § 989.54(c), at its January 26, 2006, 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 283,000 tons (up from the October estimate of 266,227

tons), interim percentages for NS raisins were announced at 82.25 percent free and 17.75 percent reserve.

Pursuant to § 989.54(d), the Committee also recommended final percentages at its January 26, 2006, meeting to release the full trade demand for NS raisins. Final percentages were recommended at 82.50 percent free and 17.50 percent reserve. The Committee’s calculations and determinations to arrive at final percentages for NS raisins are shown in the table below:



NS raisins

Trade demand ................................ 232,985 Divided by crop estimate ................ 283,000 Equals the free percentage ............ 82.30 100 minus free percentage equals

the reserve percentage ............... 17.70

* * * The Committee recommended rounding the free percentage to 82.50 percent and reducing the reserve percentage to 17.50 percent to compensate for the higher than normal processing shrinkage being experienced by handlers with the 2005 NS crop.

By the week ending February 11, 2006, data showed that deliveries of NS raisins exceeded the Committee’s crop estimate of 283,000 tons. By that date, deliveries of NS raisins totaled 285,052 tons. Thus, at USDA’s request, the Committee met again on March 16, 2006, and reviewed the current available data and the computations used in arriving at the recommended final percentages.

At the March meeting, the Committee continued to support a crop estimate of 283,000 tons, because of the higher than normal processing shrinkage being experienced with the 2005 NS raisin crop. With a lower crop estimate, more free tonnage raisins would be made available to handlers for free tonnage use, but due to the above normal processing shrinkage the Committee expected supplies to be in balance with market needs.

By the end of the crop year, July 31, 2006, final deliveries of NS raisins totaled 319,126 tons. Thus, the Committee’s recommendation provided handlers with an additional 30,294 tons over the computed trade demand, but the additional tonnage did not appear to impact marketing conditions.

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 was met for NS raisins by the establishment of final percentages, which released 100 percent of the trade demand and the offer of additional reserve raisins for sale to handlers under the ‘‘10 plus 10 offers.’’ As specified in § 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 made in February 2006, and the second offer was made in July 2006. A total of 63,950 tons was made available to raisin handlers through these offers, and 31,975 tons were purchased by and released to handlers during the 2005–06 crop year. Adding the 31,975 tons of 10 plus 10 raisins to the 232,985 ton trade demand, plus the 30,294 tons of additional raisins released to handlers through use of the 283,000 ton crop estimate to compute final percentages, plus 114,792 tons of carry-in inventory equates to 410,046 tons of natural condition raisins, or 385,275 tons of packed raisins, that were available to handlers for shipment to free or primary markets. This is about 128 percent of the quantity of NS raisins shipped during the 2004–05 crop year (319,752 natural condition tons or 300,435 packed tons).

In addition to the 10 plus 10 offers, § 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 USDA’s Guidelines.



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


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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 firms are defined by the Small Business Administration (SBA) (13 CFR 121.201) as those having annual receipts of less that $6,500,000, and small agricultural producers are defined as those having annual receipts of less than $750,000. Eleven of the 20 handlers subject to regulation have annual sales estimated to be at least $6,500,000, and the remaining 9 handlers have sales less than $6,500,000. No more than 9 handlers and a majority of producers of California raisins may be classified as small entities.


Pursuant to § 989.54(d) of the order, this rule continues in effect the action that established final volume regulation percentages for 2005–06 crop NS raisins. The volume regulation percentages are 82.50 percent free and 17.50 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 was warranted for the 2005–06 season because acquisitions of 319,126 tons through July 31, 2006, combined with the carryin inventory of 114,792 tons resulted in a total available supply of 433,918 tons, which was about 86 percent higher than the 232,985 ton trade demand.

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.





According to Committee data, the total producer return per ton during those years, which includes proceeds from both free tonnage plus reserve pool raisins, varied from a low of $904.60 in 1993–94 to a high of $1,049 in 1996–97. 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, 2001–02, and 2002–03 crop years due to record-size production, large carry-in inventories, and stagnant demand. However, producer prices increased slightly with a shorter crop in 2003–04 and rebounded to pre-1998–99 prices during the 2004–05 and 2005–06 crop years as noted below:


Crop year

Deliveries (natural

condition tons)

Producer Prices

(per ton)

2005–06 ............ 319,126 1$1210.00 2004–05 ............ 265,262 21210.00 2003–04 ............ 296,864 1567.00 2002–03 ............ 388,010 1491.20 2001–02 ............ 377,328 650.94 2000–01 ............ 432,616 603.36 1999–2000 ........ 299,910 1,211.25 1998–99 ............ 240,469 21,290.00 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


There are essentially two broad markets for raisins—domestic and export. Excluding the 2005–06 crop year, both domestic and export shipments have been increasing in recent years. 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. Since that time domestic shipments steadily increased from 174,117 packed tons during the 2000–01 crop year to 193,680 packed tons during the 2004–05 crop year, but fell to 186,358 packed tons in 2005–06. 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. Export shipments increased from 101,537 tons during the 2002–03 crop year to 106,755 tons of raisins during the 2004–05 crop year, but fell to 97,672 packed tons in 2005– 06.

Moreover, the U.S. per capita consumption of raisins has declined from 2.09 pounds in 1988 to 1.46 pounds in 2004. 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 two out of the last three years (as reflected in increased commercial shipments), production has


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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 raisins or removed 41,000 acres in 2001; 27,000 acres in 2002; and 15,000 acres of vines in 2003 to reduce the industry’s burdensome supply of raisins. These actions resulted in declining deliveries of 296,865 tons for the 2003–04 crop year and 265,262 tons for the 2004–05 crop year. Deliveries increased in 2005–06 to 319,126 tons.



The reserve percentage limits what handlers can market as free tonnage. Data available as of July 31, 2006, showed that deliveries of NS raisins were at 319,126 tons. The 17.50 percent reserve limited the total free tonnage to 263,279 natural condition tons (.8250 x the 319,126 ton crop). Adding 263,279 ton figure with the carryin of 114,792 tons, plus the 31,975 tons of reserve raisins that were purchased by and released to handlers during the 2005–06 crop year under the 10 plus 10 offers, made the total free supply equal to 410,046 natural condition tons.

To assess the impact that volume control has on the prices growers receive for their product, a price dependent econometric model was estimated. This model is used to estimate grower prices both with and without the use of volume control. The volume control used by the raisin industry will result in decreased

shipments to primary markets. Without volume control the primary market (domestic) could be over-supplied resulting in lower grower prices and the build-up of unwanted inventories.

The econometric model is used to estimate the difference between grower prices with and without restrictions. With volume controls, grower prices are estimated to be approximately $40 per ton higher than without volume controls. 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.


The free and reserve percentages continued in effect the release of 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 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 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. 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. In addition, as noted in the initial regulatory flexibility analysis, 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 15, 2005, October 4, 2005, January 26, 2006, and March 16, 2006, 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 15, 2005, October 4, 2005, January 26, 2006, and March 16, 2006, 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.

An interim final rule concerning this action was published in the Federal Register on May 23, 2006 (71 FR 29567). Copies of the rule were mailed to all Committee members and alternates, the Raisin Bargaining Association, handlers, and dehydrators. In addition, the rule was made available through the Internet by the Office of the Federal Register and USDA. That rule provided for a 60-day comment period that ended on July 24, 2006. No comments were received. However, the interim final rule identified the effective date as August 1, 2005, through July 3, 2006. This final rule clarifies that the effective date of the volume percentages for the 2005–06 NS raisins is simply August 1, 2005, and the percentages apply to all raisins


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acquired during the 2005–06 crop year and continue in effect until all 2005–06 reserve raisins are disposed of under the order. Accordingly, § 989.258 will appear in the Code of Federal Regulations.


After consideration of all relevant material presented, including the Committee’s recommendation, and other information, it is found that finalizing the interim final rule, without change, as published in the Federal Register (71 FR 29567, May 23, 2006) will tend to effectuate the declared policy of the Act.




■ Accordingly, the interim final rule amending 7 CFR part 989 which was published at 71 FR 29567 on May 23, 2006, is adopted as a final rule without change.

Dated: January 12, 2007. Lloyd C. Day, Administrator, Agricultural Marketing Service. [FR Doc. E7–623 Filed 1–17–07; 8:45 am] BILLING CODE 3410–02–P



14 CFR Part 39

[Docket No. FAA–2006–25584; Directorate Identifier 2000–NE–62–AD; Amendment 39– 14733; AD 2006–17–12]

RIN 2120–AA64

Airworthiness Directives; Rolls-Royce plc RB211 Series Turbofan Engines; Correction.

AGENCY: Federal Aviation Administration, DOT. ACTION: Final rule; correction.

SUMMARY: This document makes corrections to Airworthiness Directive (AD) 2006–17–12. That AD applies to

Rolls-Royce plc RB211 series turbofan engines. We published AD 2006–17–12 in the Federal Register on August 23, 2006 (71 FR 49339). An incorrect engine model number exists in the applicability paragraph and in the title of Table 5. Also, an incorrect serial number appears in Table 1. This document corrects these numbers. In all other respects, the original document remains the same. DATES: Effective Date: Effective January 18, 2007. FOR FURTHER INFORMATION CONTACT: Ian Dargin, Aerospace Engineer, Engine Certification Office, FAA, Engine and Propeller Directorate, 12 New England Executive Park, Burlington, MA, 01803; telephone (781) 238–7178; fax (781) 238–7199. SUPPLEMENTARY INFORMATION: A final rule AD, FR Doc. E6–13910, that applies to Rolls-Royce plc RB211 series turbofan engines was published in the Federal Register on August 23, 2006 (71 FR 49339). The following corrections are needed:

§ 39.13 [Corrected]

■ On page 49340, in the third column, in applicability paragraph (c), in the fourth line, ‘‘RB211–535E4–C’’ is corrected to read ‘‘RB211–535E4–C–37’’. Also, on page 49341, in Table 1, in the fourth column, in the last line, ‘‘WGQDY90005’’ is corrected to read ‘‘WGQDY0005’’. Also, on page 49342, in the first column, in the Table 5 title, ‘‘RB211–02’’ is corrected to read ‘‘RB211–22B–02’’.

Issued in Burlington, MA, on January 10, 2007. Francis A. Favara, Manager, Engine and Propeller Directorate, Aircraft Certification Service. [FR Doc. E7–497 Filed 1–17–07; 8:45 am] BILLING CODE 4910–13–P



14 CFR Part 39

[Docket No. FAA–2007–26855; Directorate Identifier 2006–NM–264–AD; Amendment 39–14888; AD 2007–02–01]

RIN 2120–AA64

Airworthiness Directives; Dassault Model F2000EX Airplanes

AGENCY: Federal Aviation Administration (FAA), Department of Transportation (DOT). ACTION: Final rule; request for comments.

SUMMARY: We are adopting a new airworthiness directive (AD) for the products listed above. This AD results from mandatory continuing airworthiness information (MCAI) issued by an aviation authority of another country to identify and correct an unsafe condition on an aviation product. The MCAI describes the unsafe condition as incorrect monitoring of the fire detection system; therefore, its integrity is not guaranteed at all times. This AD requires actions that are intended to address the unsafe condition described in the MCAI.

DATES: This AD becomes effective February 2, 2007.

The Director of the Federal Register approved the incorporation by reference of a certain document listed in this AD as of February 2, 2007.

We must receive comments on this AD by March 19, 2007.

ADDRESSES: You may send comments by any of the following methods:

• DOT Docket Web Site: Go to http://dms.dot.gov and follow the instructions for sending your comments electronically.

• Fax: (202) 493–2251. • Mail: Docket Management Facility,

U.S. Department of Transportation, 400 Seventh Street, SW., Nassif Building, Room PL–401, Washington, DC 20590– 0001.

• Hand Delivery: Room PL–401 on the plaza level of the Nassif Building, 400 Seventh Street, SW., Washington, DC, between 9 a.m. and 5 p.m., Monday through Friday, except Federal holidays.

• Federal Rulemaking Portal: http:// www.regulations.gov. Follow the instructions for submitting comments.

Examining the AD Docket

You may examine the AD docket on the Internet at http://dms.dot.gov; or in person at the Docket Management Facility between 9 a.m. and 5 p.m., Monday through Friday, except Federal holidays. The AD docket contains this AD, the regulatory evaluation, any comments received, and other information. The street address for the Docket Office (telephone (800) 647– 5227) is in the ADDRESSES section. Comments will be available in the AD docket shortly after receipt. FOR FURTHER INFORMATION CONTACT: Tom Rodriguez, Aerospace Engineer, International Branch, ANM–116, FAA, Transport Airplane Directorate, 1601 Lind Avenue, SW., Renton, Washington 98057–3356; telephone (425) 227–1137; fax (425) 227–1149. SUPPLEMENTARY INFORMATION:


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Raisin AdministrativE

ADMINISTERING THE FEDERAL MARKETING AGREEMENT AND ORDER REGULATING THE HANDLING OF CALIFORNIA RAISINS ·

3445 N. First Street, Suite P.O:Box 5217

Fresno, CA 93755

February 19, 2009

TO: ALL 2005-06 Natural (sun-dried) Seedless Grower

FROM: Gary Schulz, President/General Manager

SUBJECT: 2005-2006 Natural (sun-dried) Seedle

Bruno Cassidy Emde .Gavello

Henderson Lewis Stark Hilker McCarty Tietjen Koliglan Naito (McBee) l(riebel Pattar (Resare)

REC'D FEB 2 ·5 2009 TELEPHONE: 559-225-0520

FAX: 559-225-0852 'EMAIL: infoOrJiltjns.prg

WORLD WIDE WEB: www raitjns.prs

f) f:- ""E"-l'V' r-r ...... f~· ••.. ~. ' 'H ... t.~ . c J r· t. o: l b ?r;no

1-U~_.. \)

Printed on the reverse side of this letter is an analysis of the sales and expenses ofthe 2005-06 Natural (sun-dried) Seedless reserve pool. The :Raisin Administrative Committee recommended the closing ofthe 2005-06 Reserve Pool in 2008 and the final audited report was issued on December 23, 2008. The 2005-06 reserve represented 17 .SO% of raisins delivered to handlers during the period August 1, 2005 and July 31, 2006. This w~ subsequently followed by the 2006-07 crop which was 90% Free.

During the 2005·~2008 crop years, the Raisin Administrative Committee has been faced with a difficult ·problem of maXimizing grower returns and selling all of our annual production of raisins.

Historically, the domestic market consumes 200,000 tons of our annual production. With crop sizes averaging between 300,000 and 3 50,000 tons, the industry has relied on our export market to buy the tonnage not sold domestically. In order to be competitive on the world market against other producing countries, the industry developed an export program that is funded from the proceeds of reserve pooi sales. This program has allowed our packers to sell more than 100,000 tons into the export market

annually, avoiding the possibility of disposing the tonnage into other outlets such as cattle feed or sold to the distilleries.

During the.2005, 2006,2007, and 2008 crop years, support of the export program and the funding thereof

wa5 a difficult task for the Committee. The 2004 crop production exceeded 265,000 tons, even though it had been declared 100% free. At this level of production, the export program had to continue. This required funding the program during that period by the 2002, 2003 and 2005 reserve pools. As a result, all equity in the 2005-06 Natural (sun-dried) Seedless pool was exhausted to accomplish this effort and

NO RESERVE PAYMENT WILL BE MADE ON THE 2005-06 NATURAL SEEDLESS RESERVE POOL.

The Raisin Administrative Committee continues to be faced with this challenge of providing the domestic market with an adequate supply of raisins to meet all needs, without oversupplying the market and creating an unstable situation. The export program is vital in maintaining this delicate balance and providing the maximum dollar return to all growers.


A 64



THIS STATEMENT IS THE FINAL STATEMENT ON THE 2005-06 NATURAL SEEDLESS RESERVE·POOL. A STATEMENT OF SALES, EXPENSES, GROWER'S EQUITY FOLLOWS:

RESERVE POOL SALES:

TONNAGE 53,104.6805

982.0335 1,158.3100

583.8850 55,828.9090

OTHER INCOME:

SALES PRICE TONS@ 1,315.00 TONS @ 950.00 TONS@ DONATIONS TONS@ FIRE LOSS GROWER EQUITY BASE TONS

INTEREST EARNED BIN RENTAL INCOME UNUSED ASSOCIATION FEES

POOL EXPENSES ON POOL TONNAGE: Receiving, Handling, Storage and Fumigation Reserve Pool Storage Costs Raisin Insurance Inspection Fees Bin & Hauling Reimbursement RAC Bins and Raisin Transfer Costs Export Programs and Incentives, net of FAS reimbursable expense Export Cash-Back All Administrative Expenses

GROSS GROWER'S EQUITY

GROSS GROWERS EQUITY LESS: STATE ADVERTISING ASSESSMENT FINAL GROWER EQUITY

$

$

$

$

$

$

GROSS SALES

70,508,167.16

1,575,698.68 332,840.00

57.591.15 72.474.296.99

2,977,842.42 306,150.00 49,235.57

726,070.58 1 '116,781.67

222,772.13 5,195,257.54

59,670,137.61 1,171.925.83

71.436,173.35

1,038,123.64

BASED ON GROWER'S 17.50%

EQUITY RESERVE

1 ,038,123.64 $ 18.59 {1.038.123.64} {18.59}

0.00 $ 0.00

PER RESERVE TON

$ 1,262.93

28.22 5.96 1.03

$ 1,298.15 '· .

53.34 5.48 0.88

13.01 20.00

3.99 93.06

1,068.80 20.99

$ 1,279.56

$ 18.59

BASED ON 100%

DELIVERIES

$ 3.25

$ {3.25} 0.00



will tend to effectuate the declared policy of the Act.

List of Subjects in 7 CFR Part 981 Almonds, Marketing agreements,

Reporting and recordkeeping requirements.

PART 981—ALMONDS GROWN IN CALIFORNIA

■ Accordingly, the interim final rule amending 7 CFR part 981, which was published at 69 FR 1269 on January 8, 2004, is adopted as a final rule without change.

Dated: April 19, 2004. Kenneth C. Clayton, Associate Administrator, Agricultural Marketing Service. [FR Doc. 04–9135 Filed 4–21–04; 8:45 am] BILLING CODE 3410–02–P



7 CFR Part 989




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].



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.


procedures and time frames to be followed in establishing volume regulation. This includes methodology used to calculate percentages. Pursuant to § 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

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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 § 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).


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 de-

mand ..................................... 210,993 Plus Oleate minimum trade de-

mand tons ............................. 500 Equals revised trade demand .. 211,493



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.


Pursuant to § 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 § 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:



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 § 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, § 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


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offers of reserve raisins make even more raisins available to primary markets, which is consistent with USDA’s Guidelines.




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.



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.)



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.


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.


Crop year

Deliveries (natural

condition tons)

Producer prices

(per 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


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–


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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.



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.


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.



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


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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.





Authority: 7 U.S.C. 601–674. ■ 2. Section 989.257 is added to Subpart—Supplementary Regulations to read as follows:


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:

Varietal type

Free percentage

Reserve percentage

Natural (sun- dried) Seed-less ................ 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

FARM CREDIT ADMINISTRATION

12 CFR Parts 609, 611, 612, 614, 615, and 617

RIN 3052–AB69

Electronic Commerce; Organization; Standards of Conduct and Referral of Known or Suspected Criminal Violations; Loan Policies and Operations; Funding and Fiscal Affairs, Loan Policies and Operations, and Funding Operations; Borrower Rights; Effective Date

AGENCY: Farm Credit Administration. ACTION: Notice of effective date.

SUMMARY: The Farm Credit Administration (FCA) published a final rule under parts 609, 611, 612, 613, 614, 615, and 617 on March 9, 2004 (69 FR 10901). This final rule clarifies the rights provided in the Farm Credit Act of 1971, as amended, for loan applicants and borrowers of the Farm Credit System (System). The final rule further explains the responsibilities of the System in providing these rights, responds to comments, and places all borrower rights provisions in one part of our regulations. In accordance with 12 U.S.C. 2252, the effective date of the interim final rule is 30 days from the date of publication in the Federal Register during which either or both Houses of Congress are in session. Based on the records of the sessions of Congress, the effective date of the regulations is April 19, 2004. DATES: Effective Date: The regulation amending 12 CFR parts 609, 611, 612, 614, 615, and 617 published on March 9, 2004 (69 FR 15045) is effective April 19, 2004. FOR FURTHER INFORMATION CONTACT: Mark L. Johansen, Policy Analyst, Office of Policy and Analysis, Farm Credit Administration, McLean, VA 22102– 5090, (703) 883–4498, TTY (703) 883– 4434; or Joy Strickland, Senior Counsel, Office of General Counsel, Farm Credit Administration, McLean, VA 22102– 5090, (703) 883–4020, TTY (703) 883– 2020. (12 U.S.C. 2252(a)(9) and (10))

Dated: April 16, 2004. Jeanette C. Brinkley, Secretary, Farm Credit Administration Board. [FR Doc. 04–9096 Filed 4–21–04; 8:45 am] BILLING CODE 6705–01–P



14 CFR Part 39

[Docket No. 2003–CE–59–AD; Amendment 39–13581; AD 2004–08–12]

RIN 2120–AA64

Airworthiness Directives; Schempp- Hirth Flugzeugbau GmbH Models Ventus-2a, Ventus-2b, Discus-2a, and Discus-2b Sailplanes

AGENCY: Federal Aviation Administration (FAA), DOT. ACTION: Final rule.

SUMMARY: The FAA adopts a new airworthiness directive (AD) for all Schempp-Hirth Flugzeugbau GmbH (Schempp-Hirth) Models Ventus-2a,

Ventus-2b, Discus-2a, and Discus-2b sailplanes. This AD requires you to inspect and modify the elevator mass balance. For Models Discus-2a and Discus-2b sailplanes only, this AD also requires you to replace the elevator pushrod. This AD is the result of mandatory continuing airworthiness information (MCAI) issued by the airworthiness authority for Germany. We are issuing this AD to detect and correct problems within the sailplane elevator control system before they lead to flutter and sailplane instability. This could eventually result in loss of sailplane control. DATES: This AD becomes effective on June 4, 2004.

As of June 4, 2004, the Director of the Federal Register approved the incorporation by reference of certain publications listed in the regulation. ADDRESSES: You may get the service information identified in this AD from Schempp-Hirth Flugzeugbau GmbH, Postfach 14 43, D–73230 Kirchheim/ Teck, Germany; telephone : 011 49 7021 7298–0; facsimile: 011 49 7021 7298– 199.

You may view the AD docket at FAA, Central Region, Office of the Regional Counsel, Attention: Rules Docket No. 2003–CE–59–AD, 901 Locust, Room 506, Kansas City, Missouri 64106. Office hours are 8 a.m. to 4 p.m., Monday through Friday, except Federal holidays. FOR FURTHER INFORMATION CONTACT: Greg Davison, Aerospace Engineer, FAA, Small Airplane Directorate, 901 Locust, Room 301, Kansas City, Missouri 64106; telephone: (816) 329–4130; facsimile: (816) 329–4090. SUPPLEMENTARY INFORMATION:

Discussion

What events have caused this AD? The Luftfahrt-Bundesamt (LBA), which is the airworthiness authority for Germany, recently notified FAA that an unsafe condition may exist on Schempp-Hirth Models Ventus-2a, Ventus-2b, Discus-2a, and Discus-2b sailplanes. The LBA reports that the potential exists for elevator mass balance problems on the referenced sailplanes.

What is the potential impact if FAA took no action? Elevator mass balance problems, if not detected and corrected, could lead to flutter and sailplane instability. This could eventually result in loss of sailplane control.

Has FAA taken any action to this point? We issued a proposal to amend part 39 of the Federal Aviation Regulations (14 CFR part 39) to include an AD that would apply to all Schempp- Hirth Flugzeugbau GmbH (Schempp-


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50289Federal Register / Vol. 69, No. 157 / Monday, August 16, 2004 / Rules and Regulations

The Committee’s meetings were widely publicized throughout the sweet onion industry and all interested persons were invited to attend the meetings and participate in Committee deliberations on all issues. Like all Committee meetings, the December 8, 2003, and the February 10, 2004, meetings were public meetings and all entities, both large and small, were able to express their views.

An interim final rule concerning this action was published in the Federal Register on April 26, 2004 (69 FR 22377). Copies of the rule were mailed by the Committee’s staff to all Committee members and Walla Walla sweet onion handlers. In addition, the rule was made available through the Internet by the Office of the Federal Register and the USDA. That rule provided a 60-day comment period which ended June 25, 2004. No comments were received.

A small business guide on complying with fruit, vegetable, and specialty crop marketing agreements and orders may be viewed at: http://www.ams.usda.gov/fv/moab.html. Any questions about the compliance guide should be sent to Jay Guerber at the previously mentioned address in the FOR FURTHER INFORMATION CONTACT section.

After consideration of all relevant material presented, including the Committee’s recommendation, and other information, it is found that finalizing the interim final rule, without change, as published in the Federal Register (69 FR 22377, April 26, 2004) will tend to effectuate the declared policy of the Act.


Marketing agreements, Onions, Reporting and recordkeeping requirements.

PART 956—SWEET ONIONS GROWN IN THE WALLA WALLA VALLEY OF SOUTHEAST WASHINGTON AND NORTHEAST OREGON


Dated: August 10, 2004.

A.J. Yates, Administrator, Agricultural Marketing Service.[FR Doc. 04–18612 Filed 8–13–04; 8:45 am]




7 CFR Part 989

[Docket No. FV04–989–1 FIR]


AGENCY: Agricultural Marketing Service, USDA.ACTION: Final rule.

SUMMARY: The Department of Agriculture (USDA) is adopting, as a final rule, without change, an interim final rule that established 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.EFFECTIVE DATE: Effective September 15, 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 order.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.’’


This rule has been reviewed under Executive Order 12988, Civil Justice Reform. Under the order provisions now in effect, final free and reserve percentages may be established for raisins acquired by handlers during the crop year. This rule continues to establish 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.


This rule continues in effect 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, and were established through an interim final rule published on April 22, 2004 (69 FR 21695). 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

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50290 Federal Register / Vol. 69, No. 157 / Monday, August 16, 2004 / Rules and Regulations

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.


procedures and time frames to be followed in establishing volume regulation. This includes methodology used to calculate percentages. Pursuant to § 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 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 § 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, Oleates were 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 Committee 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 Committee established the trade demand for Oleates at 500 tons. At USDA’s request, the Committee 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 ................ 297,176Multiplied by 90 percent ............. 0.90Equals adjusted base ................. 267,458Minus carryin inventory .............. 116,465Plus desirable carryout ............... 60,000Equals computed trade demand 210,993Plus Oleate minimum trade de-

mand tons ............................... 500

Equals revised trade demand .... 211,493



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 the 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.


Pursuant to § 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 § 989.54(d), the Committee also recommended final percentages at its February 2004 meeting to release the full trade demand 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 PERCENT-AGES (NATURAL CONDITION TONS)

NS raisins

Trade demand ............................ 211,493Divided by crop estimate ............ 304,072Equals free percentage .............. 70100 minus free percentage

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 was met for NS raisins by the establishment of final percentages, which released almost 100 percent of the trade demand, and offers of additional reserve raisins for sale to handlers for free pursuant to § 989.54(g) (‘‘10 plus 10 offers’’), and § 989.67(j) of the order.

As specified in § 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 made in February 2004, and the second offer was made in April 2004. A total of 61,026 tons was made available to raisin handlers through these offers, and all of the raisins were purchased. Adding the total figure of 61,026 tons of 10 plus 10 raisins to the


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207,638 tons of free tonnage raisins acquired by handlers from producers through the week ending June 19, 2004, plus 129,345 tons of 2002–03 carryin NS and Oleate inventory, equates to 398,009 tons of natural condition raisins, or 373,117 tons of packed raisins, that are available to handlers for free use or primary markets. This is almost 130 percent of the quantity of NS 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, § 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, inadequate carryover, 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 USDA’s Guidelines.

The Committee plans to offer 5,714 tons of 2002–03 NS reserve raisins for sale to handlers for free use pursuant to § 989.67(j). Free tonnage deliveries as of June 19, 2004, were 207,638 tons, which is 3,855 tons below the 211,493-ton trade demand. Offering 3,855 tons of reserve raisins for sale to handlers for free use would allow the industry to make available the full 211,493-ton trade demand. Free tonnage shipments from August 2003 through May 2004 are 1,859 tons greater than free tonnage shipments during the same period last year. Adding the 1,859 tons to the 3,855 tons equates to a total of 5,714 tons of reserve being offered to handlers for free use under § 989.67(j) of the order.



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.



Pursuant to § 989.54(d) of the order, this rule continues in effect 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 for NS raisins because acquisitions of 296,625 tons through the week ending June 19, 2004, combined with the carryin inventory of 129,345 tons, results in a total available supply of 425,970 tons, which is about 200 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.)




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 from 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-


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50292 Federal Register / Vol. 69, No. 157 / Monday, August 16, 2004 / Rules and Regulations

size production, large carry-in inventories, and stagnant demand.


Crop year Deliveries (natural condition tons)

Producer prices(per ton)($)

2002–03 ................................................................................................................................................... 388,010 1394.852001–02 ................................................................................................................................................... 377,328 650.942000–01 ................................................................................................................................................... 432,616 603.361999–2000 ............................................................................................................................................... 299,910 1,211.251998–99 ................................................................................................................................................... 240,469 21,290.001997–98 ................................................................................................................................................... 382,448 946.521996–97 ................................................................................................................................................... 272,063 1,049.201995–96 ................................................................................................................................................... 325,911 1,007.191994–95 ................................................................................................................................................... 378,427 928.271993–94 ................................................................................................................................................... 387,007 904.60



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 throughout the year.

While the overall demand for raisins has been decreasing (as reflected in the 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 2000–01 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 377,328 tons, and deliveries for the 2002–03 crop year were 388,010 tons. Deliveries through the week ending June 19, 2004, of the current crop year were at 296,625 tons. Three crop years of high production and a large 2001–02 carryin inventory have 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.



The reserve percentage limits what handlers can market as free tonnage. Assuming the 30 percent reserve limits the total free tonnage to 207,638 natural condition tons (.70 × 296,625 tons delivered through June 19, 2004) and carryin is 129,345 natural condition tons, and purchases from reserve total 66,740 natural condition tons (which includes reserve raisins released

through both 10 plus 10 offers plus the offer under § 989.67(j)), then the total free supply is estimated at 403,723 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.


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 volume regulation 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


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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.


An interim final rule concerning this action was published in the Federal Register on April 22, 2004 (69 FR 21695). Copies of the rule were mailed to all Committee members and alternates, the Raisin Bargaining Association, handlers, and dehydrators. In addition, the rule was made available through the Internet by the Office of the Federal Register and USDA. That rule provided for a 60-day comment period that ended on June 21, 2004. No comments were received.

A small business guide on complying with fruit, vegetable, and specialty crop marketing agreements and orders may be viewed at: http://www.ams.usda.gov/fv/moab.html. Any questions about the compliance guide should be sent to Jay Guerber at the previously mentioned address in the FOR FURTHER INFORMATION CONTACT section.

After consideration of all relevant material presented, including the information and recommendation

submitted by the Committee and other available information, it is hereby found that this rule, as hereinafter set forth, will tend to effectuate the declared policy of the Act.




Accordingly, the interim final rule amending 7 CFR part 989 which was published at 69 FR 21695 on April 22, 2004, is adopted as a final rule without change.

Dated: August 10, 2004. A.J. Yates, Administrator, Agricultural Marketing Service.[FR Doc. 04–18613 Filed 8–13–04; 8:45 am] BILLING CODE 3410–02–P

DEPARTMENT OF THE TREASURY

Office of the Comptroller of the Currency

12 CFR Part 5

[Docket No. 04–20]

RIN 1557–AC11

Fundamental Change in Asset Composition of a Bank

AGENCY: Office of the Comptroller of the Currency, Treasury.ACTION: Final rule.

SUMMARY: The Office of the Comptroller of the Currency (OCC) is amending its regulations to require a national bank to obtain the approval of the OCC before changing the composition of all, or substantially all, of its assets (1) through sales or other dispositions, or (2) after having sold or disposed of all, or substantially all, of its assets, through subsequent purchases or other acquisitions or other expansions of its operations. The final rule provides that, in the second case, the OCC will apply, among other factors, the same factors as it applies to the establishment of a de novo bank. This new approval requirement will enable the OCC to better assess the bank’s compliance with applicable law and whether the proposed change comports with safe and sound banking practices.DATES: Effective Date: October 1, 2004.FOR FURTHER INFORMATION CONTACT: For questions concerning the final rule,

contact Heidi M. Thomas, Special Counsel, Legislative and Regulatory Activities, at (202) 874–5090; Richard Cleva, Senior Counsel, Bank Activities and Structure Division, at (202) 874–5300; or Jan Kalmus, NBE/Licensing Expert, Licensing Activities, at (202) 874–5060, 250 E Street, SW., Washington, DC 20219.SUPPLEMENTARY INFORMATION:

I. Introduction The OCC’s current regulations at 12

CFR part 5 do not require the approval of the OCC before a national bank substantially changes the composition of its assets through sale or other disposition, nor do they require prior OCC review or approval before a national bank charter becomes a ‘‘stripped’’ or ‘‘dormant’’ bank charter. Likewise, our regulations do not address a dormant national bank’s increase in asset size through purchases or acquisitions to engage again in the business of banking. On January 7, 2004, we proposed to add to our regulations a prior approval requirement for these fundamental changes in a bank’s asset composition in order to address the supervisory concerns raised by these types of transactions. See 69 FR 892 (Jan. 7, 2004).

As described in the preamble to the proposed rule, these concerns may include increased operations risk, increased concentration risk (especially where asset composition changes as a result of divestiture), and the ability of bank management to implement the new strategy successfully. In addition, a dormant bank being revived may propose to engage in activities that significantly deviate or are a change from the bank’s original business plan or operations. If ill conceived, poorly planned, or inadequately executed, these new activities can expose the bank to imprudent levels of risk, with the potential for adverse consequences for the bank’s financial condition and, in the extreme situation, for its viability. Even entry into lines of business that are traditional for national banks may present elevated levels of risk to a particular bank if the bank expands substantially or too quickly from a dormant status, misjudges its markets, or fails to ensure that bank management and internal control systems keep pace with the change. The preamble to the proposal also noted that concerns raised by the acquisition of a dormant bank by a third party necessitates the need for the OCC to thoroughly review the nature of the services and products that might be initiated by an acquiring entity.

For the reasons discussed in this preamble, we are adopting in final form


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Raisin Administrative Committee


3445 N. First Street, Suite 101 P.O. Box 5217

Fresno, CA 93755

TO: ALL 2003-04 Natural (sun-dried) Seedless Growers

SUBJECT: 2003-04 Natural (sun-dried) Seedless Reserve Pool

Printed on the reverse side of this letter is an analysis of the sales and expenses of the 2003-04 Natural (sun-dried) Seedless reserve pool. The Raisin Administrative Committee recommended the closing of the 2003-04 Reserve Pool in 2006 and the final audited report was issued on March 21, 2007. The 2003-04 Reserve represented 30% of raisins delivered to handlers during the period August 1, 2003 and July 31, 2004. This was subsequently followed by the 2004-05 crop which was 100% Free.

During the 2002, 2003, 2004 and subsequent crop years, the Raisin Administrative Committee has been faced with a difficult problem of maximizing grower returns and at the same time selling all of our annual production of raisins.

Historically, the domestic market consumes 200,000 tons of our annual production. With crop sizes averaging between 300,000 and 350,000 tons, the industry has relied on our export market to buy the tonnage not sold domestically. In order to be competitive on the world market against other producing countries, the industry developed an export program that is funded from the proceeds of reserve pool sales. This program has allowed our packers to sell more than 100,000 tons into the export market annually, avoiding the possibility of disposing the tonnage into other outlets such as cattle feed or sold to the distilleries.

During the 2002, 2003 and 2004 crop years, support of the export program and the funding thereof was a difficult task for the Committee. The 2004 crop production exceeded 265,000 tons, even though it had been declared 100% free. At this level of production, the export program had to continue. This required funding the program during that period by the 2002, 2003 and 2005 reserve pools. ·As a result, all equity in the 2003-04 Natural (sun-dried) Seedless pool was exhausted to accomplish this effort and NO RESERVE PAYMENT WILL BE MADE ON THE 2003-04 NA TUARAL SEEDLESS RESERVE POOL.

The Raisin Administrative Committee continues to be faced with this challenge of providing the domestic market with an adequate supply of raisins to meet all needs, without oversupplying the market and creating an unstable situation. The export program is vital in maintaining this delicate balance and providing the maximum dollar return to all growers.


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THIS STATEMENT IS THE FINAL STATEMENT ON THE 2003-04 NATURAL SEEDLESS RESERVE POOL. A STATEMENT OF SALES, EXPENSES, GROWER'S EQUITY AND PRIOR PAYMENTS FOLLOWS:

RESERVE POOL SALES:

TONNAGE SALES PRICE 60,992.0000 TONS@ 1,270.00 25,656.9405 TONS@ 1,315.00

82.9480 TONS@ 700.00 2,312.0950 TONS@ DONATIONS

GROSS PER RESERVE 89,043.9835 GROWER EQUITY BASE TONS SALES TON

$ 111 ,242,849.17 $ 1,249.30 OTHER INCOME:

INTEREST EARNED 749,351.93 8.42 BIN RENTAL INCOME 970.00 0.01 MISCELLANEOUS INCOME 917.52 0.01 UNUSED ASSOCIATION FEES 222,592.53 2.50

$ 112,216,681.15 $ 1,260.24 POOL EXPENSES ON POOL TONNAGE: Storage and Fumigation 5,823,286.09 65.40 Bin Rental - Deficiency 237,030.00 2.66 Raisin Insurance 148,086.94 1.66 Inspection Fees 818,508.89 9.19 Bin & Hauling Reimbursement 1,776,168.60 19.95 RAC Bins and Raisin Transfer Costs 857,836.26 9.63 Export Programs and Incentives, net of FAS reimbursable expense 7,103,222.52 79.77 Export Cash-Back 92,704,734.95 1,041.11 All Administrative Expenses 1 ,344,094.06 15.09

$ 110,812,968.31 $ 1,244.47

GROSS GROWER'S EQUITY s 1 ,403, 712.84 15.76


RESERVE DELIVERIES

GROSS GROWERS EQUITY $ 1,403,712.84 $ 15.76 $ 4.73 LESS: PAYMENTS 0.00 0.00 0.00 LESS: STATE ADVERTISING ASSESSMENT (1 ,403, 712.84) (15.76) (4.73) FINAL GROWER EQUITY $ 0.00 $ 0.00 $ 0.00


15926 Federal Register / Vol. 68, No. 63 / Wednesday, April 2, 2003 / Rules and Regulations

on those who are to respond, including the use of appropriate automated, electronic, mechanical, or other technological collection techniques or other forms of information technology.

Comments should reference OMB No. 0581–NEW and the Marketing Order for Sweet Cherries Grown in Designated Counties in Washington and be sent to the USDA in care of the Docket Clerk at the previously mentioned address. All comments received will be available for public inspection during regular business hours at the same address.

All responses to this notice will be summarized and included in the request for OMB approval. All comments will become a matter of public record. As mentioned before, because there was insufficient time for a normal clearance procedure and prompt implementation is needed, AMS has obtained emergency approval from OMB for the use of the new forms for the year. This collection will be merged with the forms currently approved for use under OMB No. 0581–0189 ‘‘Generic OMB Fruit 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.

This rule allows the grading or packing of sweet cherries outside the production area established under the Washington sweet cherry marketing order. Persons desiring to ship or receive sweet cherries for grading or packing outside the production area will apply and report to the Washington Cherry Marketing Committee on forms provided by the Committee. The reporting requirement will provide the Committee with safeguard information to ensure compliance on the grading or packing of sweet cherries outside the production area.

Any comments received will be considered prior to finalization of this rule.

After consideration of all relevant material presented, including the Committee’s recommendation, and other information, it is found that this interim final rule, as hereinafter set forth, will tend to effectuate the declared policy of the Act.

Pursuant to 5 U.S.C. 553, is also found and determined upon good cause that it is impracticable, unnecessary, and contrary to 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 order amendments prompting these changes were

implemented on November 21, 2001, after approval in a grower referendum;

(2) the Committee unanimously recommended these changes at a public meeting and all interested parties had an opportunity to provide input;

(3) Washington sweet cherry growers and handlers are aware of this rule and need no additional time to comply with the relaxed requirements;

(4) sweet cherries will begin being shipped in June; and

(5) this rule provides a 60-day comment period and any comments received will be considered prior to finalization of this rule.

List of Subjects in 7 CFR Part 923Cherries, Marketing agreements,

Reporting and recordkeeping requirements.■ For the reasons set forth in the pre-amble, 7 CFR part 923 is amended as fol-lows:

PART 923—SWEET CHERRIES GROWN IN DESIGNATED COUNTIES IN WASHINGTON■ 1. The authority citation for 7 CFR part 923 continues to read as follows:


■ 2. Section 923.322 is amended by redesignating paragraphs (f) and (g) as (g) and (h), respectively, and adding a new paragraph (f) to read as follows:

§ 923.322 Washington Cherry Regulation.* * * * *

(f) Grading or packing cherries outside the production area. (1) Persons desiring to ship or receive cherries for grading or packing outside the production area shall apply to the committee on a ‘‘Shippers/Receivers Application for Special Purpose Shipment Certificate’’ form, and receive approval from the Committee. The application shall contain the following: (i) Name, address, telephone number, and signature of applicant;

(ii) Certification by the applicant that cherries graded and packed outside the production area shall be inspected by the Federal-State Inspection Service and shall meet the grade, size, maturity, container, and pack requirements of this section prior to shipment; and

(iii) Such other information as the committee may require.

(2) Each approved applicant shall furnish to the committee, at the close of business every Friday, a report containing the following information on a ‘‘Special Purpose Shipment Report’’ form:

(i) Name, address, telephone number, and signature of applicant;

(ii) Names of growers and handlers of such cherries;

(iii) The total quantity of each variety of cherries; and

(iv) Such other information as the committee may require.

(3) The committee may rescind or deny to any applicant its approval of the ‘‘Shippers/Receivers Application for Special Purpose Shipment Certificate’’ if proof satisfactory to the committee is obtained that any cherries shipped or received by such applicant for grading or packing were handled contrary to the provisions of this section.* * * * *

Dated: March 26, 2003. A.J. Yates, Administrator, Agricultural Marketing Service.[FR Doc. 03–7846 Filed 4–1–03; 8:45 am] BILLING CODE 3410–02–M



7 CFR Part 989


Raisins Produced From Grapes Grown in California; Final Free and Reserve Percentages for 2002–03 Crop Natural (Sun-Dried) Seedless and Zante Currant Raisins

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Interim final rule with request for comments.

SUMMARY: This rule establishes final volume regulation percentages for 2002–03 crop Natural (sun-dried) Seedless (NS) and Zante Currant (ZC) 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 53 percent free and 47 percent reserve for NS raisins, and 80 percent free and 20 percent reserve for ZC raisins. The percentages are intended to help stabilize raisin supplies and prices, and strengthen market conditions.DATES: Effective April 3, 2003. The volume regulation percentages apply to acquisitions of NS and ZC raisins from the 2002–03 crop until the reserve raisins from that crop are disposed of under the marketing order. Comments received by June 2, 2003, will be considered prior to issuance of a final rule.

VerDate Jan<31>2003 14:46 Apr 01, 2003 Jkt 200001 PO 00000 Frm 00004 Fmt 4700 Sfmt 4700 E:\FR\FM\02APR1.SGM 02APR1

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15927Federal Register / Vol. 68, No. 63 / Wednesday, April 2, 2003 / Rules and Regulations

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] 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.’’


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 ZC raisins for the 2002–03 crop year, which began August 1, 2002, and ends July 31, 2003. This rule will not preempt any State or local laws, regulations, or policies, unless they present an irreconcilable conflict with this rule.


This rule establishes final volume regulation percentages for 2002–03 crop NS and ZC raisins covered under the order. The volume regulation percentages are 53 percent free and 47 percent reserve for NS raisins, and 80 percent free and 20 percent reserve for ZC 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. The Committee unanimously recommended ZC final percentages on January 29, 2003, and NS final percentages on February 13, 2003.


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 § 989.54(a) of the order, the Committee met on August 14, 2002, 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 § 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, including ZC raisins, 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 2002–03 trade demands for NS and ZC raisins at 196,185 tons and 2,166 tons, respectively, as shown below.

COMPUTED TRADE DEMANDS[Natural condition tons]

NS raisins ZC raisins

Prior year’s shipments ............................................................................................................................................. 298,133 3,441 Multiplied by 90 percent .......................................................................................................................................... 0.90 0.90


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COMPUTED TRADE DEMANDS—Continued[Natural condition tons]

NS raisins ZC raisins

Equals adjusted base ....................................................................................................................................... 268,320 3,097

Minus carryin inventory ............................................................................................................................................ 132,135 1,910 Plus desirable carryout ............................................................................................................................................ 60,000 978

Equals computed trade demand ...................................................................................................................... 196,185 2,166



Due to a late 2002 crop, the Committee met on October 8, 2002, and announced a preliminary crop estimate for NS raisins of 407,996 tons, which is almost 18 percent higher than the 10-year average of 346,770 tons. NS raisins are the major varietal type of California raisin. Adding the carryin inventory of 132,135 tons, plus 18,000 tons of reserve raisins expected to be released to handlers this season for free use in an export program, plus the 407,996-ton crop estimate resulted in a total available supply of 558,131 tons, which was significantly higher (almost 285 percent) than the 196,185-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 65 percent of the computed trade demand since the field price (price paid by handlers to producers for their free tonnage raisins) had not been established. The preliminary percentages were 31 percent free and 69 percent reserve.

Also at its October 8, 2002, meeting, the Committee announced a preliminary crop estimate for ZC raisins at 4,544 tons, which is comparable to the 10-year

average of 4,494 tons. Combining the carry-in inventory of 1,910 tons with the 4,544-ton crop estimate resulted in a total available supply of 6,454 tons. With the estimated supply significantly higher (almost three times) than the 2,166-ton trade demand, the Committee determined that volume regulation for ZC raisins was warranted. The Committee announced preliminary percentages for ZC raisins, which released 65 percent of the computed trade demand since field price had not been established. The preliminary percentages were 31 percent free and 69 percent reserve.

Field prices for both NS and ZC raisins were established on January 10, 2003, and preliminary percentages were revised on January 13, 2003, to 41 percent free and 59 percent reserve for NS and ZC raisins to release 85 percent of their trade demands.

In addition, preliminary percentages were announced for Other Seedless, Dipped Seedless, and Oleate and Related Seedless. It was ultimately determined that volume regulation was only warranted for NS and ZC raisins. As in past seasons, the Committee submitted its marketing policy to USDA for review.

Modification to Marketing Policy Regarding ZC Raisins

Pursuant to § 989.54(f) of the order, the Committee met on January 29, 2003, and revised its marketing policy regarding ZC raisins due to a major change in economic conditions. The Committee recommended, and USDA subsequently approved, an increase in the ZC trade demand from 2,166 to 3,302 tons. The Committee’s rationale

for this action was to take advantage of increased demand created by a short Greek crop. Greece’s crop has been reduced due to adverse weather conditions, and the Committee hopes to be able to sell more California ZC raisins in world markets.


Pursuant to § 989.54(c), at its January 29, 2003, meeting, the Committee announced interim percentages for NS and ZC raisins to release slightly less than their full trade demands. Based on a revised NS crop estimate of 373,138 tons (down from the October estimate of 407,996 tons), interim percentages for NS raisins were announced at 52.75 percent free and 47.25 percent reserve. Based on a revised ZC crop estimate of 4,128 tons (down from the October estimate of 4,544 tons), interim percentages for ZC raisins were announced at 79.75 percent free and 20.25 percent reserve.

Pursuant to § 989.54(d), the Committee also recommended final percentages to release the full trade demands for NS and ZC raisins. Final percentages were recommended for ZC raisins at the Committee’s January meeting at 80 percent free and 20 percent reserve. Final percentages for NS raisins were recommended by the Committee at a meeting on February 13, 2003, at 53 percent free and 47 percent reserve, based on a revised crop estimate of 373,680 tons (slightly up from the January estimate of 373,138 tons). The Committee’s calculations to arrive at final percentages for NS and ZC raisins are shown in the table below:

FINAL VOLUME REGULATION PERCENTAGES[Natural condition tons]

NS Raisins ZC Raisins

Trade demand ......................................................................................................................................................... 196,185 3,302 Divided by crop estimate ......................................................................................................................................... 1 373,680 2 4,128

Equals free percentage .................................................................................................................................... 53 80 100 minus free percentage equals reserve percentage .................................................................................. 47 20

1 The crop estimate for NS raisins is underestimated, as acquisitions through the week ending February 22, 2003, were at 378,601 tons.


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2 The crop estimate for ZC raisins is underestimated, as acquisitions through the week ending February 22, 2003, were at 4,200 tons.

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 ZS 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.’’ As specified in § 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 2003. A total of 29,813 tons was made available to raisin handlers; all of the raisins were purchased. The second 10 plus 10 offer of 29,813 tons will be made available to handlers in May 2003. Adding the total figure of 59,626 tons of 10 plus 10 raisins to the 200,658 tons of free tonnage raisins acquired by handlers from producers through the week ending February 22, 2003, plus 132,135 tons of 2001–02 carryin inventory, plus 18,000 tons of reserve raisins released during the season through an export program, equates to 410,419 tons of natural condition raisins, or 385,207 tons of packed raisins, that are available to handlers for free use or primary markets. This is about 138 percent of the quantity of NS raisins shipped during the 2001–02 crop year (298,133 natural condition tons or 279,819 packed tons).

For ZC raisins, both ‘‘10 plus 10 offers’’ were held simultaneously in February 2003. A total of 688 tons was made available to handlers, and all of the raisins were purchased. Adding the 688 tons of 10 plus 10 raisins to the 3,360 tons of free tonnage raisins acquired by handlers from producers through the week ending February 22, 2003, plus 1,910 tons of 2001–02 carryin inventory equates to 5,958 tons of natural condition raisins, or about 5,268 tons of packed raisins, available to handlers for free use or primary markets. This is about 173 percent of the quantity of ZC raisins shipped during the 2001–02 crop year (3,441 tons natural condition tons or 3,043 packed tons).

In addition to the 10 plus 10 offers, § 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 USDA’s Guidelines.






Pursuant to § 989.54(d) of the order, this rule establishes final volume

regulation percentages for 2002–03 crop NS and ZC raisins. The volume regulation percentages are 53 percent free and 47 percent reserve for NS raisins, and 80 percent free and 20 percent reserve for ZC 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 raisin acquisitions of 378,601 tons through the week ending February 22, 2003, combined with the carryin inventory of 132,135 tons, plus 18,000 tons of reserve raisins released for free use through an export program, results in a total available supply of 528,736 tons, which is about 270 percent higher than the 196,185-ton trade demand. Volume regulation is warranted for ZC raisins this season because acquisitions of 4,200 tons through the week ending February 22, 2003, combined with the carryin inventory of 1,910 tons results in a total available supply of 6,110 tons, which is about twice the 3,302-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.




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In addition, the price wineries have offered for raisin grapes has dropped to $65 per ton.

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 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 114,944 tons. 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 $148. 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 two seasons due to record-size production and large carry-in inventories.


Crop Year Deliveries (nat-ural condition

tons)Producer Prices

(per ton)

2001–02 ............................................................................................................................................................. 377,328 1 $554.402000–01 ............................................................................................................................................................. 432,616 2 570.821999–2000 ......................................................................................................................................................... 299,910 1,211.25 1998–99 ............................................................................................................................................................. 240,469 3 1,290.001997–98 ............................................................................................................................................................. 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 and 2 Return-to-date, reserve pools still open. 3 No volume regulation.



While the overall demand for raisins has been decreasing (as reflected in the decline in commercial shipments and per capita consumption), production has been increasing. Deliveries of NS dried raisins from producers to handlers reached an all-time high of 432,616 tons in the 2000–01 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, yields, and growers drying more grapes for raisins. Deliveries for the 2001–02 crop year were at 377,328 tons, and deliveries through February 22, 2003, for the current year were at 378,601 tons. Three crop years of high production and a large 2001–02 carryin inventory has contributed to the industry’s burdensome supply of raisins.

This type of surplus situation leads to serious marketing problems. Handlers compete against each other in an attempt to sell more raisins to reduce inventories and to market their crop. This situation puts downward pressure on growers’ prices and incomes.





The reserve percentage limits what handlers can market as free tonnage. Assuming the 53 percent reserve limits the total free tonnage to 200,658 natural


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condition tons (.53 x 378,601 tons delivered through February 22, 2003) and carryin is 132,135 natural condition tons, and purchases from reserve total 77,626 natural condition tons (which includes anticipated reserve raisins released through the export program and other purchases), then the total free supply is estimated at 410,419 natural condition tons. The econometric model estimates prices to be $142 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.

Regarding ZC raisins, ZC raisin production is much smaller than NS raisin production. Volume regulation has been implemented for ZC raisins during the 1994–95, 1995–96, 1997–98, 1998–99, 1999–2000, and 2000–01 seasons. Various programs to utilize reserve pool ZC raisins were implemented during those years. As shown in the table below, although production varied during those years, volume regulation helped to reduce

inventories, and helped to strengthen total producer prices (free tonnage plus reserve ZC raisins) from $412.56 per ton in 1994–95 to a high of $1,034.03 per ton in 1998–99. The Committee is implementing an export program for ZC raisins, in addition to NS raisins. Through this program, the Committee plans to continue to manage its ZC supply, build and maintain export markets, and ultimately improve producer returns. Volume regulation helps the industry not only to manage oversupplies of raisins, but also maintain market stability.

ZC INVENTORIES AND PRODUCER PRICES DURING YEARS OF VOLUME REGULATION —(NATURAL CONDITION TONS)

Crop year Deliveries Inventory Producer prices

(per ton) Desirable Physical

2001–02 .................................................................................................................................... 4,213 1,227 1,395 1$1,000.002000–01 .................................................................................................................................... 4,848 1,227 1,109 851.55 1999–2000 ................................................................................................................................ 3,683 573 1,906 669.14 1998–99 .................................................................................................................................... 3,880 694 1,188 1,034.03 1997–98 .................................................................................................................................... 4,826 788 1,679 710.08 1996–97 .................................................................................................................................... 4,491 987 549 21,150.001995–96 .................................................................................................................................... 3,294 782 2,890 711.32 1994–95 .................................................................................................................................... 5,377 837 4,364 412.56

1 and 2 No volume regulation.

Free and reserve percentages are established by varietal type, and usually in years when the supply exceeds the trade demand by a large enough margin that the Committee believes volume regulation is necessary to maintain market stability. Accordingly, in assessing whether to apply volume regulation or, as an alternative, not to apply such regulation, it has been determined that volume regulation is warranted this season for only two of the ten raisin varietal types defined under the order.

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

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.


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 INFORMATIONCONTACT section.


This rule invites comments for a 60-day period on the establishment of final volume regulation percentages for 2002–03 crop NS and ZC raisins covered under the order. All comments received within the comment period will be considered prior to finalization of this rule.


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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 2002–03 crop year apply to all NS and ZC raisins acquired from the beginning of that crop year; (2) handlers are currently marketing their 2002–03 crop NS and ZC 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 public meetings, 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.



■ For the reasons set forth in the pre-amble, 7 CFR part 989 is amended to read as followed:




■ 2. Section 989.256 is added to Subpart—Supplementary Regulations to read as follows:



The final percentages for standard Natural (sun-dried) Seedless and Zante Currant raisins acquired by handlers during the crop year beginning on August 1, 2002, which shall be free tonnage and reserve tonnage, respectively, are designated as follows:

Varietal type Freepercentage

Reservepercentage

Natural (sun-dried) Seed-less ................ 53 47

Zante Currant ... 80 20

Dated: March 27, 2003. A.J. Yates, Administrator, Agricultural Marketing Service.[FR Doc. 03–7938 Filed 4–1–03; 8:45 am] BILLING CODE 3410–02–P


Animal and Plant Health Inspection Service

9 CFR Part 94[Docket No. 99–032–2]

Importation of Cooked Meat and Meat Products

AGENCY: Animal and Plant Health Inspection Service, USDA.ACTION: Final rule.

SUMMARY: We are amending the regulations governing the importation of certain animals, meat, and other animal products to allow meat cooked in plastic in processing establishments located in regions where rinderpest or foot-and-mouth disease exists to be further processed after cooking and before importation. Additionally, we are allowing the pink juice test to be used in determining whether ground meat cooked in such establishments has been adequately cooked. These amendments will provide foreign meat processing establishments with additional processing options while continuing to protect against the introduction of rinderpest and foot-and-mouth disease into the United States.EFFECTIVE DATE: May 2, 2003.FOR FURTHER INFORMATION CONTACT: Dr. Masoud Malik, Senior Staff Veterinarian, Products Program, National Center for Import and Export, VS, APHIS, 4700 River Road Unit 40, Riverdale, MD 20737–1231; (301) 734–3277.SUPPLEMENTARY INFORMATION:Background

The regulations in 9 CFR part 94 (referred to below as the regulations) govern the importation of specified animals and animal products to prevent the introduction into the United States of various animal diseases, including rinderpest, foot-and-mouth disease (FMD), bovine spongiform encephalopathy, swine vesicular disease, hog cholera, and African swine fever. These are dangerous and destructive communicable diseases of ruminants and swine.

Under § 94.4 of the regulations, the Animal and Plant Health Inspection

Service (APHIS) prohibits the importation of cured and cooked meat from regions where rinderpest or FMD exists unless the cured or cooked meat fulfills the conditions prescribed in that section.

Meat Cut Into Cubes Section 94.4(b)(8) requires that

cooked ruminant or swine meat imported into the United States from regions where rinderpest or FMD exists be inspected at the port of arrival by an inspector of the Food Safety and Inspection Service (FSIS) of the U.S. Department of Agriculture (Department) and be found to be thoroughly cooked. For meat that is cooked in plastic, thoroughness of cooking must be determined either by a temperature indicator device (TID) or by the pink juice test performed on a piece of meat known as an indicator piece. It is important for the FSIS inspector to be able to associate a TID or indicator piece with the plastic tube of cooked meat that it came from. Until now, that has meant that meat from various cooking tubes could not be combined after cooking for further processing at a foreign meat processing establishment before being exported to the United States.

On May 22, 2002, we published a proposed rule in the Federal Register (67 FR 35936–35939, Docket No. 99–032–1) in which we proposed to allow meat cooked in different plastic tubes in a single cycle of cooking to be combined after that cooking for further processing. Additionally, we proposed to allow the pink juice test to be used in determining whether ground meat cooked in foreign meat processing establishments has been adequately cooked.

We solicited comments concerning our proposal for 60 days ending July 22, 2002. We received 16 comments by that date. They were from livestock associations, food processing associations, a State department of agriculture, foreign and domestic meat processors, importers, manufacturers of packaged food products, and a meat science association. Three of the commenters opposed the proposed provisions, two supported the proposal as written, and the rest of the commenters recommended changes to the proposed rule. We discuss the issues raised by the commenters below.

Comments Received In our proposed rule, we referred to

meat that is cooked in the same cooking cycle as being part of the same ‘‘shift.’’ A number of commenters stated that the word ‘‘shift’’ connotes the time worked by personnel, rather than a cooking


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41686 Federal Register / Vol. 68, No. 135 / Tuesday, July 15, 2003 / Rules and Regulations

Committee’s recommendation, and other information, it is found that finalizing the interim final rule, without change, as published in the Federal Register (68 FR 19708, April 22, 2003) will tend to effectuate the declared policy of the Act.


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

PART 925—GRAPES GROWN IN A DESIGNATED AREA OF SOUTHEASTERN CALIFORNIA


Dated: July 9, 2003. A.J. Yates, Administrator, Agricultural Marketing Service.[FR Doc. 03–17798 Filed 7–14–03; 8:45 am] BILLING CODE 3410–02–P



7 CFR Part 989


Raisins Produced From Grapes Grown in California; Final Free and Reserve Percentages for 2002–03 Crop Natural (Sun-dried) Seedless and Zante Currant Raisins

AGENCY: Agricultural Marketing Service, USDA.ACTION: Final rule.

SUMMARY: The Department of Agriculture (USDA) is adopting, as a final rule, without change, an interim final rule that established final volume regulation percentages for 2002–03 crop Natural (sun-dried) Seedless (NS) and Zante Currant (ZC) 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 53 percent free and 47 percent reserve for NS raisins, and 80 percent free and 20 percent reserve for ZC raisins. The percentages are intended to help stabilize raisin supplies and prices, and strengthen market conditions.

EFFECTIVE DATE: Effective August 14, 2003. This rule applies to acquisitions of NS and ZC raisins from the 2002–2003 crop until the reserve raisins from that crop are disposed of under the order.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] 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.’’


This rule has been reviewed under Executive Order 12988, Civil Justice Reform. Under the order provisions now in effect, final free and reserve percentages may be established for raisins acquired by handlers during the crop year. This rule continues in effect final free and reserve percentages for NS and ZC raisins for the 2002–03 crop year, which began August 1, 2002, and ends July 31, 2003. 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 continues in effect final volume regulation percentages for 2002–03 crop NS and ZC raisins covered under the order. The percentages were established through an interim final rule published on April 2, 2003 (68 FR 15926). The volume regulation percentages are 53 percent free and 47 percent reserve for NS raisins, and 80 percent free and 20 percent reserve for ZC 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. The Committee unanimously recommended ZC final percentages on January 29, 2003, and NS final percentages on February 13, 2003.


procedures and time frames to be followed in establishing volume regulation. This includes methodology used to calculate percentages. Pursuant to § 989.54(a) of the order, the Committee met on August 14, 2002, 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

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41687Federal Register / Vol. 68, No. 135 / Tuesday, July 15, 2003 / Rules and Regulations

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 § 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, including ZC raisins, 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 2002–03 trade demands for NS and ZC raisins at 196,185 tons and 2,166 tons, respectively, as shown below.



Prior year’s shipments ......................................................................................................................................... 298,133 3,441 Multiplied by 90 percent ...................................................................................................................................... 0.90 0.90 Equals adjusted base .......................................................................................................................................... 268,320 3,097 Minus carryin inventory ........................................................................................................................................ 132,135 1,910 Plus desirable carryout ........................................................................................................................................ 60,000 978 Equals computed trade demand ......................................................................................................................... 196,185 2,166



Due to a late 2002 crop, the Committee met on October 8, 2002, and announced a preliminary crop estimate for NS raisins of 407,996 tons, which is almost 18 percent higher than the 10-year average of 346,770 tons. NS raisins are the major varietal type of California raisin. Adding the carryin inventory of 132,135 tons, plus 18,000 tons of reserve raisins expected to be released to handlers this season for free use in an export program, plus the 407,996-ton crop estimate resulted in a total available supply of 558,131 tons, which was significantly higher (almost 285 percent) than the 196,185-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 65 percent of the computed trade demand since the field price (price paid by handlers to producers for their free tonnage raisins) had not been established. The preliminary percentages were 31 percent free and 69 percent reserve.

Also at its October 8, 2002, meeting, the Committee announced a preliminary crop estimate for ZC raisins at 4,544 tons, which is comparable to the 10-year

average of 4,494 tons. Combining the carry-in inventory of 1,910 tons with the 4,544-ton crop estimate resulted in a total available supply of 6,454 tons. With the estimated supply significantly higher (almost three times) than the 2,166-ton trade demand, the Committee determined that volume regulation for ZC raisins was warranted. The Committee announced preliminary percentages for ZC raisins, which released 65 percent of the computed trade demand since field price had not been established. The preliminary percentages were 31 percent free and 69 percent reserve.

Field prices for both NS and ZC raisins were established on January 10, 2003, and preliminary percentages were revised on January 13, 2003, to 41 percent free and 59 percent reserve for NS and ZC raisins to release 85 percent of their trade demands.

In addition, preliminary percentages were announced for Other Seedless, Dipped Seedless, and Oleate and Related Seedless. It was ultimately determined that volume regulation was only warranted for NS and ZC raisins. As in past seasons, the Committee submitted its marketing policy to USDA for review.

Modification To Marketing Policy Regarding ZC Raisins

Pursuant to § 989.54(f) of the order, the Committee met on January 29, 2003, and revised its marketing policy regarding ZC raisins due to a major change in economic conditions. The Committee recommended, and USDA subsequently approved, an increase in the ZC trade demand from 2,166 to 3,302 tons. The Committee’s rationale

for this action was to take advantage of increased demand created by a short Greek crop. Greece’s crop has been reduced due to adverse weather conditions, and the Committee hopes to be able to sell more California ZC raisins in world markets.


Pursuant to § 989.54(c), at its January 29, 2003, meeting, the Committee announced interim percentages for NS and ZC raisins to release slightly less than their full trade demands. Based on a revised NS crop estimate of 373,138 tons (down from the October estimate of 407,996 tons), interim percentages for NS raisins were announced at 52.75 percent free and 47.25 percent reserve. Based on a revised ZC crop estimate of 4,128 tons (down from the October estimate of 4,544 tons), interim percentages for ZC raisins were announced at 79.75 percent free and 20.25 percent reserve.

Pursuant to § 989.54(d), the Committee also recommended final percentages to release the full trade demands for NS and ZC raisins. Final percentages were recommended for ZC raisins at the Committee’s January meeting at 80 percent free and 20 percent reserve. Final percentages for NS raisins were recommended by the Committee at a meeting on February 13, 2003, at 53 percent free and 47 percent reserve, based on a revised crop estimate of 373,680 tons (slightly up from the January estimate of 373,138 tons). The Committee’s calculations to arrive at final percentages for NS and ZS raisins are shown in the table below:


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Trade demand ......................................................................................................................................................... 196,185 3,302 Divided by crop estimate ......................................................................................................................................... 1 373,680 2 4,128Equals free percentage ........................................................................................................................................... 53 80 100 minus free percentage equals reserve percentage ......................................................................................... 47 20

1 The crop estimate for NS raisins is underestimated, as acquisitions through the week ending April 26, 2003, were 385,575 tons. 2 The crop estimate for ZC raisins is underestimated, as acquisitions through the week ending April 26, 2003, were 4,356 tons.

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 was met for NS and ZS raisins by the establishment of final percentages, which released 100 percent of the trade demands and the offer of additional reserve raisins for sale to handlers under the ‘‘10 plus 10 offers.’’ As specified in § 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 made in February 2003, and the second offer was made in May 2003. A total of 59,626 tons was made available to raisin handlers through these offers, and 56,796 tons were purchased. Adding the total figure of 56,796 tons of 10 plus 10 raisins to the 385,575 tons of free tonnage raisins acquired by handlers from producers through the week ending April 26, 2003, plus 132,135 tons of 2002–03 carryin inventory, plus 18,000 tons of reserve raisins released during the season through an export program, equates to 592,506 tons of natural condition raisins, or 556,108 tons of packed raisins, that are available to handlers for free use or primary markets. This is almost 200 percent of the quantity of NS raisins shipped during the 2001–02 crop year (298,133 natural condition tons or 279,819 packed tons).

For ZC raisins, both ‘‘10 plus 10 offers’’ were held simultaneously in February 2003. A total of 688 tons was made available to handlers, and all of the raisins were purchased. Adding the 688 tons of 10 plus 10 raisins to the 4,356 tons of free tonnage raisins acquired by handlers from producers through the week ending April 26, 2003, plus 1,910 tons of 2002–03 carryin inventory equates to 6,954 tons of

natural condition raisins, or 6,147 tons of packed raisins, available to handlers for free use or primary markets. This is over 200 percent of the quantity of ZC raisins shipped during the 2001–02 crop year (3,441 tons natural condition tons or 3,043 packed tons).

In addition to the 10 plus 10 offers, § 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 USDA’s Guidelines.




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.


Pursuant to § 989.54(d) of the order, this rule continues in effect final volume regulation percentages for 2002–03 crop NS and ZC raisins. The volume regulation percentages are 53 percent free and 47 percent reserve for NS raisins, and 80 percent free and 20 percent reserve for ZC 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 acquisitions of 385,575 tons through the week ending April 26, 2003, combined with the carryin inventory of 132,135 tons, plus 19,700 tons of reserve raisins released for free use through an export program, results in a total available supply of 537,410 tons, which is about 274 percent higher than the 196,185-ton trade demand. Volume regulation is warranted for ZC raisins this season because acquisitions of 4,356 tons through the week ending April 26, 2003, combined with the carryin inventory of 1,910 tons results in a total available supply of 6,266 tons, which is almost twice the 3,302-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


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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.


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. In addition, the price wineries have offered for raisin grapes has dropped to $65 per ton.


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 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 114,944 tons. 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 $148. 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 two seasons due to record-size production and large carry-in inventories.


Crop year Deliveries

(natural condi-tion tons)

Producerprices

(per ton)

2001–02 ................................................................................................................................................................... 377,328 1 $663.952000–01 ................................................................................................................................................................... 432,616 570.82 1999–2000 ............................................................................................................................................................... 299,910 1,211.25 1998–99 ................................................................................................................................................................... 240,469 2 1,290.001997–98 ................................................................................................................................................................... 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




While the overall demand for raisins has been decreasing (as reflected in the decline in commercial shipments and per capita consumption), production has been increasing. Deliveries of NS dried raisins from producers to handlers reached an all-time high of 432,616 tons in the 2000–01 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, increased yields, and growers drying more grapes for raisins. Deliveries for the 2001–02 crop year were at 377,328 tons, and deliveries through April 26, 2003, for the current year were at 385,575 tons. Three crop years of high production and a large 2002–03 carryin inventory has

contributed to the industry’s burdensome supply of raisins.

This type of surplus situation leads to serious marketing problems. Handlers compete against each other in an attempt to sell more raisins to reduce inventories and to market their crop. This situation puts downward pressure on growers’ prices and incomes.




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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 53 percent reserve limits the total free tonnage to 204,355 natural condition tons (.53 × 385,575 tons delivered through April 26, 2003) and carryin is 132,135 natural condition tons, and purchases from reserve total 79,326 natural condition tons (which includes anticipated reserve raisins released through the export program and other purchases), then the total free supply is estimated at 415,816 natural condition tons. The econometric model estimates prices to be $142 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.

Regarding ZC raisins, ZC raisin production is much smaller than NS raisin production. Volume regulation has been implemented for ZC raisins during the 1994–95, 1995–96, 1997–98, 1998–99, 1999–2000, and 2000–01 seasons. Various programs to utilize reserve pool ZC raisins were implemented during those years. As shown in the table below, although production varied during those years, volume regulation helped to reduce inventories, and helped to strengthen total producer prices (free tonnage plus reserve ZC raisins) from $412.56 per ton in 1994–95 to a high of $1,034.03 per ton in 1998–99. The Committee is implementing an export program for ZC raisins, in addition to NS raisins. Through this program, the Committee plans to continue to manage its ZC supply, build and maintain export markets, and ultimately improve producer returns. Volume regulation helps the industry not only to manage oversupplies of raisins, but also maintain market stability.

ZC INVENTORIES AND PRODUCER PRICES DURING YEARS OF VOLUME REGULATION[Natural condition tons]

Crop year Deliveries Inventory Producer

prices(per ton) Desirable Physical

2001–02 ........................................................................................................... 4,213 1,227 1,395 1 $1,000.002000–01 ........................................................................................................... 4,848 1,227 1,109 851.551999–2000 ....................................................................................................... 3,683 573 1,906 669.141998–99 ........................................................................................................... 3,880 694 1,188 1,034.031997–98 ........................................................................................................... 4,826 788 1,679 710.081996–97 ........................................................................................................... 4,491 987 549 2 1,150.001995–96 ........................................................................................................... 3,294 782 2,890 711.321994–95 ........................................................................................................... 5,377 837 4,364 412.56

1 and 2 No volume regulation.

Free and reserve percentages are established by varietal type, and usually in years when the supply exceeds the trade demand by a large enough margin that the Committee believes volume regulation is necessary to maintain market stability. Accordingly, in assessing whether to apply volume regulation or, as an alternative, not to apply such regulation, it has been determined that volume regulation is warranted this season for only two of the ten raisin varietal types defined under the order.

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 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.


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An interim final rule concerning this action was published in the Federal Register on April 2, 2003 (68 FR 15926). Copies of the rule were mailed to all Committee members and alternates, the Raisin Bargaining Association, handlers, and dehydrators. In addition, the rule was made available through the Internet by the Office of the Federal Register and USDA. That rule provided for a 60-day comment period that ended on June 2, 2003. No comments were received.








A.J. Yates, Administrator, Agricultural Marketing Service.[FR Doc. 03–17799 Filed 7–14–03; 8:45 am]




14 CFR Part 71[Docket No. FAA–2003–15454; Airspace Docket No. 03–ACE–52]

Modification of Class E Airspace; Wichita Mid-Continent Airport, KSAGENCY: Federal Aviation Administration (FAA), DOT.ACTION: Direct final rule; request for comments.

SUMMARY: This amendment to Title 14 Code of Federal Regulations, part 71 (14 CFR part 71) modifies the Wichita Mid-Continent Airport, KS Class E airspace area. The FAA has developed an Area Navigation (RNAV) Global Positioning System (GPS) Standard Instrument Approach Procedure (SIAP) and an amended VHF Omni-directional Range (VOR) SIAP to serve Cessna Aircraft Field, Wichita, KS. The Wichita Mid-Continent Airport, KS Class E airspace area encompasses that Class E airspace designed to protect aircraft executing SIAPs into Cessna Aircraft Field. This action modifies the Wichita Mid-Continent Airport, KS Class E airspace area to the appropriate dimensions for protecting aircraft executing these newly developed instrument approach procedures. An examination of controlled airspace for Wichita Mid-Continent Airport, KS has revealed several discrepancies in the Wichita Mid-Continent Airport, KS Class E airspace area. This action corrects the discrepancies by modifying the airspace area and its legal description.EFFECTIVE DATE: This direct final rule is effective on 0901 UTC, October 30, 2003. Comments for inclusion in the rules Docket must be received on or before August 20, 2003.ADDRESSES: Send comments on this proposal to the Docket Management System, U.S. Department of Transportation, Room Plaza 401, 400 Seventh Street, SW., Washington, DC 20590–0001. You must identify the docket number FAA–2003–15454/Airspace Docket No. 03–ACE–52, at the beginning of your comments. You may also submit comments on the Internet at http://dms.dot.gov. You may review the public docket containing the proposal, any comments received, and any final disposition in person in the Dockets Office between 9 a.m. and 5 p.m., Monday through Friday, except Federal holidays. The Docket Office (telephone 1–800–647–5527) is on the plaza level of the Department of Transportation NASSIF Building at the above address.

FOR FURTHER INFORMATION CONTACT: Kathy Randolph, Air Traffic Division, Airspace Branch, ACE–520C, DOT Regional Headquarters Building, Federal Aviation Administration, 901 Locust, Kansas City, MO 64106; telephone: (816) 329–2525.SUPPLEMENTARY INFORMATION: The FAA has developed RNAV (GPS)—D ORIGINAL SIAP and VOR—C AMENDMENT 1 SIAP to serve Cessna Aircraft Field, Wichita, KS. The Wichita Mid-Continent Airport, KS Class E airspace area encompasses that Class E airspace designed to protect aircraft executing SIAPs into Cessna Aircraft Field. This action modifies the Wichita Mid-Continent Airport, KS Class E airspace area to the appropriate dimension for protecting aircraft executing these newly developed/amended instrument approach procedures. As a result, Cessna Aircraft Field airport reference is no longer required in the Wichita Mid-Continent Airport, KS Class E airspace legal description. An examination of controlled airspace for Wichita Mid-Continent Airport, KS Class E airspace area. The locations of Wichita Mid-Continent Localizer Runway 1L, Wichita McConnell Air Force Base (AFB) Localizer Runway 1L and AUBRA Waypoint, all of which are used in the legal description of this airspace area, have been redefined. Portions of the airspace area description in the vicinity of McConnell AFB were omitted in the previous publication. This action corrects the discrepancies by modifying the airspace area and its legal description. This amendment to 24 CFR 71 modifies the Class E airspace area extending upward from 700 feet above the surface of the earth at Wichita Mid-Continent Airport, KS. It also brings the legal descriptions of this airspace area into compliance with FAA Order 7400.2E, Procedures for handling Airspace Matters. The area will be depicted on appropriate aeronautical charts. Class E airspace area extending upward from 700 feet or more above the surface of the earth are published in paragraph 6005 of FAA Order 7400.9K, dated August 30, 2002, and effective September 16, 2002, which is incorporated by reference in 14 CFR 71.1. The Class E airspace designation listed in this document will be published subsequently in the Order.

The Direct Final Rule Procedure

The FAA anticipates that this regulation will not result in adverse or negative comment and, therefore, is issuing it as a direct final rule. Previous actions of this nature have not been


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A 90

Bagley

Raisin Administrativ ~~~s~dy


• Henderson 3445 N. First St., Sune 1 v 1

P.O.Box5217 Fresno, CA 93755

MINUTES OF THE MEETING April 12, 2007

Hilker Koligian Kriebel Lewis

Naito Pattar Stark Tietjen

(McBee) (Resare)

TELEPHONE: 559-225-0520 FAX: 559-225-0652

EMAIL: [email protected] www.raisins orq

Chairperson Chris Gunlund called the meeting of the Raisin Administrative Committee to order at 4:05p.m. on Thursday, April12, 2007 in the RAC/CRMB Conference Center, 3445 North First Street, Fresno, California.

MEMBER . ALTERNATE

[a] Albrecht, Wayne [a] O'Brien, Michael Barserian, Kalem [a] Sahatjian, Robert

[a] Brar, Harry [a] Porter, Tres Cederquist, Doualas VACANT

[a] Chooljian, Geral (~J Chooljian, Michael Cisneros, Eric Kenneson, George

[a] EJ:>Rerson, Robert Cubre, Anthony VACANT Sin~h, Harv~ Goto, Glen We er1 Ran y Gularte, Tom (~J Moses1a'b Richard Gunlund, Chris Lo~aciT avid Gunlund, Gere VA AN

[a] Gupta, Anil l~~ Steggall,· Chris Hilker, Harold Ko~AHans Hornor, Don VA NT HouseRian, Dennis [a] Salwasser, Charlotte

[a] Huber, Timothy VACANT Jue,Jeff [a] Blatney, David KasparianRAian VA ANT Kazarian, on VACANT Kister, Steve a Estermann, David Koli~ian, Michael a Goehri~, George Krie el, Barry a Emde. 1chard Marthedal, Jon a Bortolussi, Jeff Medeiros, Manuel VACANT

f~J Milinovich, Dan [a] Paboo~an, John Milloy, Marlyn VACA T Moles, Ray [a] Berekoff, Jim Nielsen, Herman Ba~dasarian, Mitch Nonini, Gena VA ANT Pacini, Deni [a] Brar, lqbai"Bob" Penner, Pete Olson, Brad Peters, David

(:J Peters, Darrell

Phillips, Jon C. Williams, Lynn R. Rebensdorf T Jerald VACANT Rodrigues, im [a] Gill, Ken (Kulwant) Sahat~ian, Bill VACANT

[a] Sahat~ian, Margaret f~l Bedrosian, Ernie Sahat Jian, Victor Logoluso, Michael Salwasser, George VACANT Sandhu, Nindy Nielsen, Mike Sangha, Mitcli Teixeira, Allen

[a] San1, James (:) King, Dan Schutz, Monte Fanucchi, Edward sr.ate, Steven Wilt

1 Dennis

S ark, Rick TietJen, Carsten [a] Wilson, Steve [a] Boghosian, Philip


A 91

Messrs: R. Worthley, J. Stiavelli, and Mmes. R. Aguayo, and D. Powell were present along with approximately 8 industry representatives and growers.

Chairperson Gunlund directed Ms. D. Powell to call roll and establish a quorum.

APPROVAL OF MINUTES

The Chairperson called for any additions or corrections to the minutes of the January 23, 2007 meeting, hearing none, approved the minutes as mailed.

USDA & MANAGEMENT REPORTS

Ms. R. Aguayo reported the following:

1) 2)

3)

4)

Horne's first case is awaiting the JO's decision; Records have been subpoenaed for Horne's second case to which he has claimed the 51

h Amendment and USDAIOGC working on the case; Class action suit - DOJ issued a ruling dismissing the case, the plaintiffs appealed and OGC has until 5/7/07 to respond; Last June the Administrative Law Judge issued a decision debarring Lion Raisins, Inc. for 5 years from USDA inspection and grading services- they appealed and we are awaiting the JO's decision;

5)

6)

15A's - 2 packers filed 15A's regarding "2002" Other Seedless volume regulations, ALJ dismissed these cases in 1/07 with prejudice. Marvin Horne filed a 15A claiming the USDAIRAC claim he is a handler; he claims he is not. Petitioner's contend they are not subject to the Marketing Order as they are producers, and that if they are subject to the M.O. then it violates the AMAA; and The interim Final Rule was published on 4/9 for the 2006/07 final volume regulation percentages of 90% free and 10% reserve with comments due by 6/8/07.

Mr. V. Sahatdjian asked the government if there was any reason why the government hasn't filed an injunction to stop Horne's operation. Mr. V. Sahatdjian informed the Committee and the Department that he has heard of growers speaking with Horne and that Horne is misleading them and telling them they can market their raisins themselves, which gives them a price advantage with no obligation of assessments or reserve set aside.

Ms. R. Aguayo stated she understood the industry's frustrati.on and that USDA is utilizing what means are available to them and working with the USDA's attorneys. Ms. R. Aguayo stated she would speak with OGC and get back to the Committee with their response.

Mr. R. Worthley informed the Committee that CRMB Chairman Dennis Wilt has appointed a delegation of 5 plus the PresidenVGeneral Manager to travel to Washington to discuss congressional and Department issues and has requested the RAC attend as well and share half the cost. Mr. R. Worthley stated that the delegation consists of individuals that are members of both the RAC and CRMB.

_. Moved by Mr. K. Barserian seconded by Mr. V. Sahatdjian to authorize a delegation to travel to Washington, DC on April 24 through 26 to discuss Department issues with approximate costs not to exceed $10,000 to the RAC.

2


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Discussion took place with some Members questioning why the Committee needed to encumber expenses and go all the way to Washington when there is representation here. Others commented that the Department likes to see the industry in their offices where multiple meetings can take place to discuss topics that will benefit our industry such as school lunch, nutrition, and health issues.

Ms. R. Aguayo cautioned the delegation regarding lobbying.


Mr. R. Worthley reported that the final 2002/03 reserve payment had been placed in the mail today and deferred to Mr. J. Jue to present the March 16 Audit Subcommittee report.

Mr. J. Jue reported that the Audit Subcommittee met on March 16 to review 2002, 2003, 2005 and 2006 Reserve Pool equities with related cash flow and had taken the following actions:

1) Reviewed and Approved the Hood & Strong reports and moved to close the 2002 and 2003 Natural Seedless Reserve Pools; and

2) Recommended making a final payment for the 2002 Natural Seedless Reseve Pool equity holders. The payment will total about $12.3 million and will reflect a $67.73/ton payment on the47% reserve pool, or $31.83/ton based on 100% of grower's deliveries. After State Advertising Assessment's are deducted the final payment will result in a $58.40/ton on the 47% reserve pool, or a $27.45/ton based on 1 00% of grower's deliveries.

Mr. J. Jue informed the Committee that financial statements for January 31, 2007 had been received and upon review of the reserve pool equities and related cash flow position, the Audit Subcommittee has determined that the RAC has sufficient equity to continue the export program to September 30, 2007 under the current Terms and Conditions.

ADMINISTRATIVE ISSUES SUBCOMMITTEE

Mr. J. Marthedal stated the Administrative Issues Subcommittee met earlier today, April 12, 2007, to discuss the Estimated Trade Demand, and the proposed revisions to the InterHandler Transfer of Free Tonnage Raisins form (RAC-6).

Mr. J. Marthedal reported the Subcommittee discussed revisions to the RAC 6 form that would require the transferring handler to sign certifying that he is transferring only free tonnage raisins that have been properly acquired in accordance with all Marketing Order requirements. Mr. J. Marthedal deferred to Mr. R. Worthley to present the Justification for these revisions.

-+ Moved by Mr. J. Marthedal, seconded by Mr. J. Rebensdorf to accept and submit to USDA for approval the justification and changes to the RAC 6 as presented by staff (attached).


Mr. J. Marthedal reported the Subcommittee discussed and approved an Estimated Trade Demand which will be used as a tool should the industry need it to protect our export · market. Mr. J. Marthedal stated the Estimated Trade Demand would be implemented if the crop

3


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IYJa~~tf '1/12-(tJ? RAISIN ADMINISTRATIVE COMMITTEE

STATEMENT OF DISPOSITION AND GROWER EQUITY 2002-03 NATURAL SEEDLESS RESERVE POOL

(NATURAL CONDITION WEIGHTS IN TONS)

THIS CHECK IS THE FINAL PAYMENT ON THE 2002-03 NATURAL SEEDLESS RESERVE POOL. A STATEMENT OF SALES, EXPENSES, GROWER'S EQUITY AND PRIOR PAYMENTS FOLLOWS:

RESERVE POOL SALES:

TONNAGE 34,199.0025 66,740.0000

6,083.1600 426.4500

19,553.0580 470.3400

15,299.3475 37,201.3745

2,144.8685

182,117.6010

OTHER INCOME:

SALES PRICE TONS @ $ 835.00 TONS @ 905.00 TONS@ 1,215.00 TONS @ 750.00 TONS @ 700.00 TONS @ 450.00 TONS @ 395.00 TONS @ 57.39197 TONS@ DONATIONS/OTHER

GROWER EQUITY BASE TONS

INTEREST EARNED BIN RENTAL INCOME MISCELLANEOUS INCOME

POOL EXPENSES ON POOL TONNAGE: Storage and Fumigation Bin Rental - Deficiency Raisin Insurance Inspection Fees Bin & Hauling Reimbursement RAC Bins and Raisin Transfer Costs Export Programs and Incentives, net of FAS reimbursable expense Export Cash-Back All Administrative Expenses

RAC BIN EQUITY TRANSFERS: 2001 Bin Repair Equity Transfer In


GROSS GROWERS EQUITY PRIOR PAYMENTS

FINAL PAYMENT (Before State Advertising)

STATE ADVERTISING ASSESSMENT

NET CASH PAYMENT PER TON ON 100%

GROSS SALES

$ 118,280,586.99

1 ,683,687.62 10,600.00 29,285.80

$ 120,004,160.41

9,969,064.60 513,030.00 127,059.20

1 ,658,209.31 3,646,838.52

183,287.94 5,382,343.29

47,978,510.50 979,090.52

$ 70,437,433.88

$ 102,892.14

$ 49,669,618.67

GROWER'S EQUITY

$ 49,669,618.67 37,334,108.36

$ 12,335,510.31

$ 1 ,698,498.64

PER RESERVE TON

$ 649.47

9.25 0.06 0.16

$ 658.94

54.74 2.82 0.70 9.11

20.02 1.01

29.55 263.45

5.38

$ 386.78

0.56

$ 272.73

BASED ON BASED ON 47% 100%

RESERVE DELIVERIES

$ 272.73 $ 128.18 205.00 96.35

$ 67.73 $ 31.83

$ 9.33 $ 4.38

I$ 27.45 I





15707

Vol. 67, No. 64

Wednesday, April 3, 2002



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 RaisinsAGENCY: 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].



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.


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

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OS raisins and indicated that he cannotmeet his market needs under thevolume regulation percentages.


Section 989.54 of the order prescribesprocedures and time frames to befollowed in establishing volumeregulation. This includes methodologyused to calculate percentages. Pursuantto § 989.54(a) of the order, theCommittee met on August 14, 2001, toreview shipment and inventory data,and other matters relating to thesupplies of raisins of all varietal types.The Committee computed a tradedemand for each varietal type for whicha free tonnage percentage might berecommended. Trade demand iscomputed using a formula specified inthe order and, for each varietal type, isequal to 90 percent of the prior year’sshipments of free tonnage and reservetonnage raisins sold for free use into allmarket outlets, adjusted by subtractingthe carryin on August 1 of the currentcrop year, and adding the desirablecarryout at the end of that crop year. Asspecified in § 989.154(a), the desirablecarryout for each varietal type is equalto a 5-year rolling average, dropping thehigh and low figures, of free tonnageshipments during the months of August,September, and October. In accordancewith these provisions, the Committeecomputed and announced 2001–02trade demands for NS and OS raisins at235,850 tons and 1,692 tons,respectively, as shown below.


NSRaisins

OSRaisins

Prior year’s ship-ments .................... 295,477 5,544

Multiplied by 90 per-cent ....................... 0.90 0.90

Equals adjusted base 265,929 4,990Minus carryin inven-

tory ........................ 116,131 4,273Plus desirable carry-

out ......................... 86,052 975Equals computed

trade demand ........ 235,850 1,692

Computation of Preliminary VolumeRegulation Percentages

As required under § 989.54(b) of theorder, the Committee met on September20, 2001, and announced a preliminarycrop estimate for NS raisins of 359,341tons, which is comparable to the 10-yearaverage of 344,303 tons. NS raisins arethe major varietal type of Californiaraisin. Adding the carryin inventory of116,131 tons, plus 32,193 tons of reserve

raisins released to handlers for free usein September 2001 through an exportprogram, plus the 359,341-ton cropestimate resulted in a total availablesupply of 507,665 tons, which wassignificantly higher (about 115 percent)than the 235,850-ton trade demand.Thus, the Committee determined thatvolume regulation for NS raisins waswarranted. The Committee announcedpreliminary free and reserve percentagesfor Naturals, which released 85 percentof the computed trade demand since thefield price (price paid by handlers toproducers for their free tonnage raisins)had been established. The preliminarypercentages were 56 percent free and 44percent reserve.

Also at its September 20, 2001,meeting, the Committee announced apreliminary crop estimate for OS raisinsat 7,073 tons, which is almost doublethe 10-year average of 3,786 tons.Combining the carry-in inventory of4,273 tons with the 7,073-ton cropestimate resulted in a total availablesupply of 11,346 tons. With theestimated supply significantly higher(over 500 percent) than the 1,692-tontrade demand, the Committeedetermined that volume regulation forOS raisins was warranted. TheCommittee announced preliminarypercentages for OS raisins, whichreleased 85 percent of the computedtrade demand since field price had beenestablished. The preliminarypercentages were 20 percent free and 80percent reserve.

In addition, preliminary percentageswere also announced for DippedSeedless, Oleate and Related Seedless,and Zante Currant raisins. TheCommittee ultimately determined thatvolume regulation was only warrantedfor NS and OS raisins. As in pastseasons, the Committee submitted itsmarketing policy to USDA for review.

Modification to Marketing PolicyRegarding OS Raisins

Pursuant to § 989.54(f) of the order,the Committee met on December 11,2001, and revised its marketing policyregarding OS raisins due to a majorchange in economic conditions. The7,073-ton crop estimate was reduced to5,000 tons, and the 1,692-ton tradedemand was increased to 2,800 tons.This resulted in volume regulationpercentages at 48 percent free and 52percent reserve to release 85 percent ofthe 2,800-ton trade demand.

The Committee took this action inresponse to concerns raised by OShandlers who were facing difficultiesunder the preliminary percentages of 20percent free and 80 percent reserve.Volume regulation has not been

implemented for OS raisins since the1994–95 season. Some handlers whodeveloped markets since that time, inthe absence of volume regulation, werehaving difficulties meeting theircustomers’ needs. The merits ofsuspending volume regulation weredeliberated by the Committee. However,the majority of Committee memberssupported some level of regulation. TheCommittee ultimately determined thatthe OS trade demand should beincreased to 2,800 tons which resultedin less restrictive volume regulationpercentages.

Computation of Final VolumeRegulation Percentages

Pursuant to § 989.54(c), theCommittee met on February 14, 2002,and recommended interim percentagesfor NS and OS raisins to release slightlyless than their full trade demands.Specifically, interim percentages wereannounced for both NS and OS raisinsat 62.75 percent free and 37.25 percentreserve. The interim percentages werebased on revised crop estimates. The NScrop estimate was increased from359,341 to 372,499 tons, and the OScrop estimate was decreased from 5,000to 4,416 tons. Pursuant to § 989.54(d),the Committee also recommended finalpercentages to release the full tradedemands for NS and OS raisins. Finalpercentages compute to 63 percent freeand 37 percent reserve for both varietaltypes. The Committee’s calculations toarrive at final percentages for NS andOS raisins are shown in the table below:

FINAL VOLUME REGULATIONPERCENTAGES


NSRaisins

OSRaisins

Trade demand .......... 235,850 2,800Divided by crop esti-

mate ...................... 372,499 4,416Equals free percent-

age ........................ 63 63100 minus free per-

centage equals re-serve percentage .. 37 37

In addition, USDA’s ‘‘Guidelines forFruit, Vegetable, and Specialty CropMarketing Orders’’ (Guidelines) specifythat 110 percent of recent years’ salesshould be made available to primarymarkets each season for marketingorders utilizing reserve pool authority.This goal will be met for NS and OSraisins by the establishment of finalpercentages, which release 100 percentof the trade demands and the offer ofadditional reserve raisins for sale tohandlers under the ‘‘10 plus 10 offers.’’

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As specified in § 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, § 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.


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.




Pursuant to § 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.





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


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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 PRODUCERPRICES

Crop Year Deliveries

(natural condi-tion tons)

ProducerPrices

2000–01 .... 432,616 1 $570.821999–2000 299,910 1,211.25 1998–99 .... 240,469 2 1,290.001997–98 .... 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.



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


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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.




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.


Raisins, Reporting and recordkeeping requirements.

For the reasons set forth in the preamble, 7 CFR part 989 is amended to read as follows:


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:



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:

Varietal type Free per-centage

Reservepercentage

Natural (sun-dried) Seed-less ................ 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


Animal and Plant Health Inspection Service

9 CFR Part 113 [Docket No. 95–066–2]

Viruses, Serums, and Toxins and Analogous Products; Autogenous BiologicsAGENCY: Animal and Plant Health Inspection Service, USDA.ACTION: Final rule.

SUMMARY: We are amending the Virus-Serum-Toxin Act regulations for autogenous biologics by reducing the number of test summaries that manufacturers must submit to the Animal and Plant Health Inspection Service. In addition, we are amending the requirement concerning the submission of containers selected from each serial of autogenous biologic that exceeds 50 containers. Manufacturers will hold these containers, and submission is not required unless requested by the Animal and Plant Health Inspection Service. These actions will result in savings in time and resources for autogenous biologics manufacturers and the Animal and Plant Health Inspection Service without a significant reduction in regulatory oversight.

EFFECTIVE DATE: May 3, 2002.FOR FURTHER INFORMATION CONTACT: Dr. Albert P. Morgan, Chief Staff Officer, Operational Support Section, Center for Veterinary Biologics, Licensing and Policy Development, VS, APHIS, 4700 River Road Unit 148, Riverdale, MD 20737–1231; (301) 734–8245.SUPPLEMENTARY INFORMATION:Background

The regulations in 9 CFR part 113 (referred to below as the regulations) contain standard requirements for the preparation of veterinary biological products. Section 113.113 of the regulations sets forth the requirements for autogenous biologics. Autogenous biologics are prepared from cultures of microorganisms that are isolated from sick or dead animals from a particular flock or herd. The cultures are used to produce an autogenous veterinary


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47439

Vol. 67, No. 139

Friday, July 19, 2002



7 CFR Part 989 [Docket No. FV02–989–4 FIR]

Raisins Produced From Grapes Grown in California; Final Free and Reserve Percentages for 2001–02 Crop Natural (sun-dried) Seedless and Other Seedless RaisinsAGENCY: Agricultural Marketing Service, USDA.ACTION: Final rule.

SUMMARY: The Department of Agriculture (USDA) is adopting, as a final rule, without change, an interim final rule that established 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.EFFECTIVE DATE: August 19, 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.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] 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.’’


This rule has been reviewed under Executive Order 12988, Civil Justice Reform. Under the order provisions now in effect, final free and reserve percentages may be established for raisins acquired by handlers during the crop year. This rule continues in effect final free and reserve percentages for 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 continues in effect final volume regulation percentages for 2001–02 crop NS and OS raisins covered under the order. The percentages were established through an interim final rule published on April 3, 2002 (67 FR 15707). 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 OS raisins and indicated that he cannot meet his market needs under the volume regulation percentages.


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 § 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

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47440 Federal Register / Vol. 67, No. 139 / Friday, July 19, 2002 / Rules and Regulations

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 § 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.


NSRaisins

OSRaisins

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 caryout .. 86,052 975 Equals computed trade

demand ..................... 235,850 1,692


As required under § 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 § 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.


Pursuant to § 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 § 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:



NSRaisins

OSRaisins

Trade demand .............. 235,850 2,800 Divided by crop esti-

mate .......................... 372,499 4,416 Equals free percentage 63 63 100 minus free percent-

age equals reserve percentage ................ 37 37

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 was met for NS and OS raisins by the establishment of final percentages, which released 100 percent of the trade demands and the offer of additional reserve raisins for sale to handlers under the ‘‘10 plus 10 offers.’’ As specified in § 989.54(g), the 10 plus 10 offers are two offers of reserve pool raisins, which are made available to handlers during each season. For each such offer, a quantity of reserve raisins equal to 10 percent of the prior year’s shipments is made available for free use. Handlers may sell their 10 plus 10 raisins to any market.

The ‘‘10 plus 10 offers’’ 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


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47441Federal Register / Vol. 67, No. 139 / Friday, July 19, 2002 / Rules and Regulations

raisins, or about 363,940 tons of packed raisins, that were actually under the control of handlers for free use or 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, § 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.




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.


Pursuant to § 989.54(d) of the order, this rule continues in effect 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 34,414 tons of reserve raisins released to-date for free use through another export program, results in a total available supply of 555,237 tons, which is 135 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.


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 other products 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.


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 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.


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47442 Federal Register / Vol. 67, No. 139 / Friday, July 19, 2002 / Rules and Regulations


Crop Year Deliveries(natural

conditiontons)

ProducerPrices

2000–01 ........ 432,616 1 $570.821999–2000 .... 299,910 1,211.25 1998–99 ........ 240,469 2 1,290.001997–98 ........ 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.



While the overall demand for raisins has been decreasing (as reflected in the 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 the 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 × 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 ten 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 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


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47443Federal Register / Vol. 67, No. 139 / Friday, July 19, 2002 / Rules and Regulations

1 42 U.S.C. 6294. The statute also requires the Department of Energy (‘‘DOE’’) to develop test procedures that measure how much energy the appliances use, and to determine the representative average cost a consumer pays for the different types of energy available.

2 Reports for dishwashers are usually due June 1. For reasons detailed in the Federal Register on May 17, 2002 (67 FR 35006), this submission date was changed to June 17 for 2002 submissions.

3 The Commission’s classification of ‘‘Standard’’ and ‘‘Compact’’ dishwashers is based on internal load capacity. Appendix C of the Commission’s Rule defines ‘‘Compact’’ as including countertop dishwasher models with a capacity of fewer than eight (8) place settings and ‘‘Standard’’ as including portable or built-in dishwasher models with a capacity of eight (8) or more place settings. The Rule requires that place settings be determined in accordance with appendix C to 10 CFR Part 430, subpart B, of DOE’s energy conservation standards program.

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.



An interim final rule concerning this action was published in the Federal Register on April 3, 2002 (64 FR 15707). Copies of the rule were mailed by Committee staff to all Committee members and alternates, the Raisin Bargaining Association, handlers and dehydrators. In addition, the rule was made available through the Internet by the Office of the Federal Register and USDA. That rule provided for a 60-day comment period that ended on June 3, 2002. No comments were received.





Accordingly, the interim final rule amending 7 CFR part 989 which was published at 67 FR 15707 on April 3, 2002, is adopted as a final rule without change.

Dated: July 15, 2002. A.J. Yates, Administrator, Agricultural Marketing Service.[FR Doc. 02–18257 Filed 7–18–02; 8:45 am] BILLING CODE 3410–02–P

FEDERAL TRADE COMMISSION

16 CFR Part 305

Rule Concerning Disclosures Regarding Energy Consumption and Water Use of Certain Home Appliances and Other products Required Under the Energy Policy and Conservation Act (‘‘Appliance Labeling Rule’’)AGENCY: Federal Trade Commission.ACTION: Final rule.

SUMMARY: The Federal Trade Commission (‘‘Commission’’) amends its Appliance Labeling Rule (‘‘Rule’’) by publishing new ranges of comparability to be used on required labels for standard and compact dishwashers. The Commission is also publishing minor and conforming changes to the requirements for EnergyGuide labels for dishwashers.EFFECTIVE DATES: The amendments to § 305.11, Appendix C2 to part 305 (ranges for standard-size dishwashers), and Appendix L to part 305 will become effective September 17, 2002. The amendments to Appendix C1 to part 305 establishing new ranges of comparability for compact dishwashers will become effective March 22, 2003.FOR FURTHER INFORMATION CONTACT: Hampton Newsome, Attorney, Division of Enforcement, Federal Trade Commission, Washington, DC 20580, (202) 326–2889); [email protected] INFORMATION: The Rule was issued by the Commission in 1979, 44 FR 66466 (Nov. 19, 1979), in response to a directive in the Energy Policy and Conservation Act of 1975 (‘‘EPCA’’).1 The Rule covers several categories of major household appliances including dishwashers.

The Rule requires manufacturers of all covered appliances to disclose specific energy consumption or efficiency information (derived from the DOE test procedures) at the point of sale in the form of an ‘‘Energy Guide’’ label and in catalogs. The Rule requires manufacturers to include, on labels and fact sheets, an energy consumption or

efficiency figure and a ‘‘range of comparability.’’ This range shows the highest and lowest energy consumption or efficiencies for all comparable appliance models so consumers can compare the energy consumption or efficiency of other models (perhaps competing brands) similar to the labeled model. The Rule also requires manufacturers to include, on labels for some products, a secondary energy usage disclosure in the form of an estimated annual operating cost based on a specified DOE national average cost for the fuel the appliance uses.

Section 305.8(b) of the Rule requires manufacturers, after filing an initial report, to report certain information annually to the Commission by specified dates for each product type.2These reports, which are to assist the Commission in preparing the ranges of comparability, contain the estimated annual energy consumption or energy efficiency ratings for the appliances derived from tests performed pursuant to the DOE test procedures. Because manufacturers regularly add new models to their lines, improve existing models, and drop others, the data base from which the ranges of comparability are calculated is constantly changing. To keep the required information on labels consistent with these changes, the Commission will publish new ranges if an analysis of the new information indicates that the upper or lower limits of the ranges have changed by more than 15%. Otherwise, the Commission will publish a statement that the prior ranges remain in effect for the next year.

I. 2002 Dishwasher Data

A. New Ranges The Commission has analyzed the

annual data submissions for dishwashers. The data submissions show significant change in the high or low ends of the range of comparability scale for standard and compact models.3 Accordingly, the Commission is publishing new ranges of comparability for standard and compact dishwashers. These new ranges of comparability


A 103


A 104

Raisin Administrative L?ommittee


3445 N. First St., Suite I 0 I P.O. Box 5217

Fresno, CA 93755

MINUTES OF THE MEETING November 25, 2003

TELEPHONE: 559-225-0520 FAX: 559-225-0652

EMAIL: [email protected] www.raisins.org

Chairperson Richard Garabedian called the meeting of the Raisin Administrative Committee to order at 3:00p.m. on Tuesday, November 25, 2003 in the RAC/CRMB Conference Center, 3445 North First Street, Fresno, California.

[a]

[a]

[a]

a a a a a

[a]

MEMBER

Garabedian, Richard, Chairman Gunlund, Chris, Vice-Chairman Albrecht, Eddie W. Boghosian, Nicholas Boghosian, Phillip Brar, Harry Chooljian, Gerald Epperson, Robert Ferguson, Bernadine Forrest, Mark Garabedian, Gilbert Geringer, Linda Goto, Glen Gupta, Anil Hilker, Harold Housepian, Dennis Jerkov1ch, Mike Jue, Jeff Kasparian, Alan Kazarian, Ron King, Dan Koo~, Hans Krie el , Barry F. Lehman, Steve Lion, Bruce Logoluso, Mike Marthedal, Jon Miyake, Curtis Moles, Ray Nielsen, Herman Nonini, Gena M. Pacini, Deni Penner, Pete J. Peters, David Rebensdorf, Jerry Sahatdjian, Victor Salwasser, George Sandhu, Nindy Sangha, Mitch San1, James Schutz, Monte Silva, Frank Singh, Harvey Spate, Steve Wulf, James Vacant Vacant

ALTERNATE

f~~ Kazan~an, David Podsa off, Bill Cardoza, Dewayne

f~~ Milinovich, Dan Gularte, Tom Barserian, Kalem

[a] Sousa, George Jr. [a] Simpson, Lee

Vacant

!~I Mooradian, Jacob Chatha, Kuldip Kay, Raymond Arakelian, Bryan

!~I Steggall, Chns Stark, Rick Salwasser, Charlotte Flagler, David Carter, Brim

[a] Bedrosian, Kirker Cederquist, Doug Kister, Steve

a Kaercher, Stefan a Emde, Richard a Norton, Vern a Troehler, Steve a Logoluso, Rick

Rodriques, Tim Medeiros, Manuel

[a] Kaleka, Kuldip Sorensen , Mark

[a] Clark, Kenneth Goehring, George

[a] Olson, Brad Peters, Darrell

a Verwer, James a Nadler, Hunter a Hornor, Don a Nielsen, Mike

Koligian, Mike [a] Feaver, Glenn

Fla~ler, George

!!I We er, Ron Teixeira, Allen Martinelli, Lorrin Schletewitz, Ron

f~1 Bedrosian, Ernie Guilla, Tony


A 105

Messrs. J. Beck, R. Worthley, M. Garrett and Mmes. M. Pella, D. Pilloud and K. Kissee were present, along with approximately 15 industry representatives.

The Chairperson directed Ms. D. Pilloud to call roll and establish a quorum.

APPROVAL OF MINUTES

The Chairperson called for any corrections or additions to the minutes of November 12, 2003. Mr. B. Kriebel stated an objection to the attachment of the RBA Motion for Reconsideration to the November 12, 2003 minutes stating the Motion was not read or distributed at the November 12, 2003 meeting and requested it be stricken from the record . Mr. G. Goto stated the RBA would not oppose striking the Motion from the record.

_,. Moved by Mr. G. Chooljian, seconded by Mr. N. Boghosian to accept the minutes as amended.



Ms. M. Pella stated elections for the 2004-2006 RAC term of office would take place in the Spring. Ms. M. Pella reiterated USDA' s commitment to support outreach efforts by commodity boards that USDA oversees to enhance the diversity of such boards and encourage new industry members to consider running for office- particularly women, minorities, and person with disabilities. Ms. M. Pelle reviewed for the Committee the activities that the RAC has done in the past (diversity subcommittee and plan) .

Mr. J. Beck added that the RAC's Executive Committee discussed at its earlier meeting and would be overseeing the RAC's outreach effort.

Mr. J. Beck stated a request had been received for the RAC's participation and funding of two statistical surveys to be conducted by Cal Ag Statistical Services. The request was for $75,000 to fund both an acreage and objective measurement survey.

Discussion followed.

_,. Moved by Mr. K. Barserian, seconded by Mr. R. Kazarian to direct the staff to work with the Executive Committee to prepare a survey questionnaire for acreage and raisin/grape forecast in lieu of providing funding for the Cal Ag Statistical Service surveys.


EXECUTIVE COMMITTEE REPORT

Mr. C. Gunlund stated the Executive Committee met earlier in the day to discuss a request made by the FRUCOM Scientific Committee during the Sultana Conference to endorse a risk assessment study investigating the effects of Ochratoxin A on humans and the current EU acceptable tolerance levels. Mr. C. Gunlund stated the study was only an endorsement and no funding was required.

2


A 106


-+ Moved by Mr. C. Gunlund, seconded by Mr. J. Jue to endorse a study to be done on Ochratoxin A by FRUCOM, with the proviso that endorsement of the study does not mean that the RAC is taking a position on what level of Ochratoxin A is appropriate for the European Union (EU).


AUDIT SUBCOMMITTEE REPORT

Mr. J. Jue stated the Audit Subcommittee met earlier to review and discuss the final audited Financial Statements for year-end July 31, 2003 and the final audited Financial Statements of the 2001-2002 Natural Seedless and Other Seedless Reserve Pools.

-+ Moved by Mr. J. Jue, seconded by Mr. V. Sahatdjian to approve the final audited Financial Statements for year-ending July 31, 2003 and the final audited Financial Statements of the 2001-2002 Natural Seedless and Other Seedless Reserve Pools.


Mr. J. Jue informed the Committee that final payments for both the 2001 Natural 'Seedless and 2001 Other Seedless would be mailed on December 12, 2003. Mr. J. Jue stated the payment for Natural Seedless would be for $13.69 based on 100% of deliveries and Other Seedless would be for $68.16 based on 100% of deliveries.

ADMINISTRATIVE ISSUES SUBCOMMITTEE REPORT

Mr. C. Gu.nlund stated the Administrative Issues Subcommittee met earlier in the day to discuss a possible raisin diversion program. He stated it was the determination of the Subcommittee, after reviewing the 2003-2004 Reserve Pool projections, not to authorize a raisin diversion program.

-+ Moved by Mr. C. Gunlund, seconded by Mr. D. Flagler to have no rais in diversion program for the 2004 crop year.

The motion carried with Mr. N. Sandhu recording a "no" vote.

RESERVE SALES AND MARKETING SUBCOMMITTEE REPORT

Mr. G. Chooljian stated the Reserve Sales and Marketing Subcommittee met earlier to discuss several topics first of which was the possibility of a 10 + 10 offer.

-+ Moved by Mr. G. Chooljian, seconded by Mr. W. Albrecht to offer the first 10 of the 1 0+1 0 offer out of the 2002 reserve pool on or before February 15, 2004 when the final free tonnage percentage is established and the second 10 of the 1 0+1 0 offer

3


A 107



THIS CHECK IS THE FINAL PAYMENT ON THE 2001-02 NATURAL SEEDLESS RESERVE POOL. A STATEMENT OF SALES, EXPENSES, GROWER'S EQUITY AND PRIOR PAYMENTS FOLLOWS:

RESERVE POOL SALES:

TONNAGE SALES PRICE 4,000.0000 TONS @ $975.00

22,757.6990 TONS@ 835.00 44,322.3345 TONS@ 100.00 16,678.9875 TONS@ 750.00 46,794.0650 TONS@ 395.00

4,045.9350 TONS@ 155.00 969.8380 TONS@ Donations

139,568.8590 GROWER EQUITY BASE TONS $

OTHER INCOME:

INTEREST EARNED UNUSED PROMOTIONAL FEES MISCELLANEOUS INCOME

$ POOL EXPENSES ON POOL TONNAGE: Storage and Fumigation Bin Rental - Bin Deficiency Raisin Insurance Inspection Fees Bin & Hauling Reimbursement RAG Bins and Raisin Transfer Costs Export Programs and Incentives Export Cash-Back All Administrative Expenses

$ RAC BIN EQUITY TRANSFERS: 2000 Bin Repair Equity Transfer In 2001 Bin Repair Equity Transfer Out

GROSS GROWER'S EQUITY $

GROSS GROWER'S EQUITY $ PRIOR PAYMENTS

FINAL PAYMENT (Before State Advertising) $

STATE ADVERTISING ASSESSMENT $


GROSS SALES

58,954,928.80

169,641.00 456,884.77

4.46 59,581,459.03

7,527,572.34 "158,590.00 111,419.80

1,284,594.89 2,791,924.16

766,686.76 2,24 7,534.83 7,974,218.39

799,602.12

23,662,143.29

600,000.00 {102,892.14}

36,416,423.60

BASED ON GROWER'S 37%

EQUITY RESERVE

36,416,423.60 $ 260.92 30,007,305.23 215.00

6,409,118.37 $ 45.92

1 ,245,418.53 $ 8.92

PER RESERVE

$

$

$

$

$

$

$

1$

TON 422.41

1.22 3.27

426.90

53.93 1.14 0.80 9.20

20.00 5.49

16.10 57.13

5.75

169.54

4 .30 {0.74}

260.92

BASED ON 100%

DELIVERIES

1218/2003 10:33AM

96.54 79.55

16.99

3.30

13.69j


39623Federal Register / Vol. 66, No. 148 / Wednesday, August 1, 2001 / Rules and Regulations

was then determined by dividing thetotal recommended budget by thequantity of assessable onions, estimatedat 7.5 million 50-pound equivalents forthe 2000–2001 fiscal period. This isapproximately $81,740 below theanticipated expenses, which theCommittee determined to be acceptable.

A review of historical information andpreliminary information pertaining tothe 2000–2001 fiscal period indicatesthat the grower price for the 2000–2001marketing season could range between$7.00 and $12.00 per 50-poundequivalent of onions. Therefore, theestimated assessment revenue for the2000–2001 fiscal period as a percentageof total grower revenue could rangebetween .43 and .25 percent.

This action continues to decrease theassessment obligation imposed onhandlers. Assessments are applieduniformly on all handlers, and some ofthe costs may be passed on toproducers. However, decreasing theassessment rate reduces the burden onhandlers, and may reduce the burden onproducers. In addition, the Committee’smeeting was widely publicizedthroughout the South Texas onionindustry and all interested persons wereinvited to attend the meeting andparticipate in Committee deliberationson all issues. Like all Committeemeetings, the December 27, 2000,meeting was a public meeting and allentities, both large and small, were ableto express views on this issue.

This action imposes no additionalreporting or recordkeeping requirementson either small or large South Texasonion handlers. As with all Federalmarketing order programs, reports andforms are periodically reviewed toreduce information requirements andduplication by industry and publicsector agencies.

The Department has not identifiedany relevant Federal rules thatduplicate, overlap, or conflict with thisrule.

An interim final rule concerning thisaction was published in the FederalRegister on March 27, 2001 (66 FR16594). The interim final rule was madeavailable through the Internet by theOffice of the Federal Register. A 60-daycomment period was provided forinterested persons to respond to theinterim final rule. The comment periodended on May 29, 2001, and nocomments were received.

A small business guide on complyingwith fruit, vegetable, and specialty cropmarketing agreements and orders maybe viewed at: http://www.ams.usda.gov/fv/moab.html. Any questions about thecompliance guide should be sent to JayGuerber at the previously mentioned

address in the FOR FURTHER INFORMATIONCONTACT section.

After consideration of all relevantmaterial presented, including theinformation and recommendationsubmitted by the Committee and otheravailable information, it is hereby foundthat this rule, as hereinafter set forth,will tend to effectuate the declaredpolicy of the Act.


Marketing agreements, Onions,Reporting and recordkeepingrequirements.

PART 959—ONIONS GROWN INSOUTH TEXAS

Accordingly, the interim final ruleamending 7 CFR part 959 which waspublished at 66 FR 16594 on March 27,2001, is adopted as a final rule withoutchange.

Dated: July 26, 2001.Kenneth C. Clayton,Acting Administrator, Agricultural MarketingService.[FR Doc. 01–19098 Filed 7–31–01; 8:45 am]BILLING CODE 3410–02–P



7 CFR Part 989


Raisins Produced From Grapes Grownin California; Final Free and ReservePercentages for 2000–01 Crop Natural(Sun-Dried) Seedless and ZanteCurrant Raisins

AGENCY: Agricultural Marketing Service,USDA.ACTION: Interim final rule with respectfor comments.

SUMMARY: This rule establishes finalvolume regulation percentages for 2000–01 crop Natural (sun-dried) Seedlessraisins (Naturals) and Zante Currantraisins (Zantes) covered under theFederal marketing order for Californiaraisins (order). The order regulates thehandling of raisins produced fromgrapes grown in California and is locallyadministered by the RaisinAdministrative Committee (Committee).The volume regulation percentages are53 percent free and 47 percent reservefor Naturals, and 83 percent free and 17percent reserve for Zantes. Thepercentages are intended to helpstabilize raisin supplies and prices, andstrengthen market conditions.

DATES: Effective date: August 2, 2001.Comments received by August 31, 2001will be considered prior to issuance ofa final rule.ADDRESSES: Interested persons areinvited to submit written commentsconcerning this rule. Comments must besent to the Docket Clerk, MarketingOrder Administration Branch, Fruit andVegetable Programs, AMS, USDA, room2525–S, P.O. Box 96456, Washington,DC 20090–6456; Fax: (202) 720–8938, orE-mail: moab.docket [email protected] comments should reference thedocket number and the date and pagenumber of this issue of the FederalRegister and will be made available forpublic inspection in the Office of theDocket Clerk during regular businesshours, or can be viewed at: http://www.ams.usda.gov/fv/moab.html.FOR FURTHER INFORMATION CONTACT:Maureen T. Pello, Senior MarketingSpecialist, California Marketing FieldOffice, Marketing Order AdministrationBranch, 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, TechnicalAdvisor, Marketing OrderAdministration Branch, Fruit andVegetable Programs, AMS, USDA, room2525–S, P.O. Box 96456, Washington,DC 20090–6456; telephone: (202) 720–2491, Fax: (202) 720–8938.

Small businesses may requestinformation on complying with thisregulation by contacting Jay Guerber,Marketing Order AdministrationBranch, Fruit and Vegetable Programs,AMS, USDA, P.O. Box 96456, room2525–S, Washington, DC 20090–6456;telephone: (202) 720–2491, Fax: (202)720–8938, or E-mail:[email protected] INFORMATION: This ruleis issued under Marketing Agreementand Order No. 989 (7 CFR part 989),both as amended, regulating thehandling of raisins produced fromgrapes grown in California, hereinafterreferred to as the ‘‘order.’’ Themarketing agreement and order areeffective under the AgriculturalMarketing Agreement Act of 1937, asamended (7 U.S.C. 601–674), hereinafterreferred to as the ‘‘Act.’’

The Department of Agriculture(Department) is issuing this rule inconformance with Executive Order12866.

This rule has been reviewed underExecutive Order 12988, Civil JusticeReform. Under the order provisions nowin effect, final free and reservepercentages may be established forraisins acquired by handlers during the

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39624 Federal Register / Vol. 66, No. 148 / Wednesday, August 1, 2001 / Rules and Regulations

crop year. This rule establishes final freeand reserve percentages for naturals andZantes for the 2000–01 crop year, whichbegan August 1, 2000, and ends July 31,2001. This rule will not preempt anyState or local laws, regulations, orpolicies, unless they present anirreconcilable conflict with this rule.

The Act provides that administrativeproceedings must be exhausted beforeparties may file suit in court. Undersection 608c(15)(A) of the Act, anyhandler subject to an order may filewith the Secretary a petition stating thatthe order, any provision of the order, orany obligation imposed in connectionwith the order is not in accordance withlaw and request a modification of theorder or to be exempted therefrom. Suchhandler is afforded the opportunity fora hearing on the petition. After thehearing the Secretary would rule on thepetition. The Act provides that thedistrict court of the United States in anydistrict in which the handler is aninhabitant, or has his or her principalplace of business, has jurisdiction toreview the Secretary’s ruling on thepetition, provided an action is filed notlater than 20 days after the date of theentry of the ruling.

This rule establishes final volumeregulation percentages for 2000–01 cropNaturals and Zantes covered under theorder. The volume regulationpercentages are 53 percent free and 47percent reserve for Naturals and 83percent free and 17 percent reserve forZantes. Free tonnage raisins may be soldby handlers to any market. Reserveraisins must be held in a pool for theaccount of the Committee and aredisposed of through various programsauthorized under the order. Forexample, reserve raisins may be sold bythe Committee to handlers for free useor to replace part of the free tonnageraisins they exported; used in diversionprograms; carried over as a hedgeagainst a short crop; or disposed of inother outlets not competitive with thosefor free tonnage raisins, such asgovernment purchase, distilleries, oranimal feed.

The volume regulation percentagesare intended to help stabilize raisinsupplies and prices, and strengthenmarket conditions. Final percentageswere unanimously recommended by theCommittee on January 12, 2001.

Computation of Trade DemandsSection 989.54 of the order prescribes

procedures and time frames to be

followed in establishing volumeregulation. This includes methodologyused to calculate percentages. Pursuantto § 989.54(a) of the order, theCommittee met on August 15, 2000, toreview shipment and inventory data,and other matters relating to thesupplies of raisins of all varietal types.The Committee computed a tradedemand for each varietal type for whicha free tonnage percentage might berecommended. Trade demand iscomputed using a formula specified inthe order and, for each varietal type, isequal to 90 percent of the prior year’sshipments of free tonnage and reservetonnage raisins sold for free use into allmarket outlets, adjusted by subtractingthe carryin on August 1 of the currentcrop year, and adding the desirablecarryout at the end of that crop year. Asspecified in § 989.154(a), the desirablecarryout for each varietal type is equalto a 5-year rolling average, dropping thehigh and low figures, of free tonnageshipments during the months of August,September, and October. In accordancewith these provisions, the Committeecomputed and announced 2000–01trade demands for Naturals and Zantesat 233,344 tons and 4,290 tons,respectively, as shown below.


Naturals Zantes

Prior year’s shipments ............................................................................................................................................. 264,619 4,635Multiplied by 90 percent .......................................................................................................................................... 0.90 0.90Equals adjusted base .............................................................................................................................................. 238,157 4,172Minus carryin inventory ............................................................................................................................................ 97,109 1,109Plus desirable carryout ............................................................................................................................................ 92,296 1,227Equals computed trade demand ............................................................................................................................. 233,344 4,290


As required under § 989.54(b) of theorder, the Committee met on October 4,2000, and announced a preliminarycrop estimate of 427,394 tons forNaturals. Naturals are the major varietaltype of California raisin. This estimatewas about 27 percent higher than the10-year average of 336,766 tons.Combining the carrying inventory of97,109 with the 427,394-ton cropestimate resulted in a total availablesupply of 524,503 tons, which wassignificantly higher (about 125 percent)than the 233,344-ton trade demand.Thus, the Committee determined thatvolume regulation for Naturals waswarranted. The Committee announcedpreliminary free and reserve percentagesfor Naturals which released 65 percentof the computed trade demand since the

field price (price paid by handlers toproducers for their free tonnage raisins)had not yet been established. Thepreliminary percentages were 35percent free and 65 percent reserve.

Also at its October 4, 2000, meeting,the Committee announced a preliminarycrop estimate for Zantes at 4,828 tons,which is comparable to the 10-yearaverage of 4,447 tons. Combining thecarry-in inventory of 1,109 tons with the4,828-ton crop estimate resulted in atotal available supply of 5,937 tons.With the estimated supply about 38percent greater than the 4,290-ton tradedemand, the Committee determined thatvolume regulation for Zantes waswarranted. The Committee announcedpreliminary percentages for Zanteswhich released 65 percent of thecomputed trade demand since fieldprice had not yet been established. The

preliminary percentages were 58percent free and 42 percent reserve.

In addition, preliminary percentageswere also announced for DippedSeedless and Other Seedless raisins.The Committee ultimately determinedthat volume regulation was onlywarranted for Naturals and Zantes. Asin past seasons, the Committeesubmitted its marketing policy to theDepartment for review.


Pursuant to § 989.54(c) and (d) of theorder, the Committee met on January 12,2001, and recommended interiumpercentages for Naturals and Zantes torelease slightly less than their full tradedemands. Specifically, interimpercentages were recommended forNaturals at 52.75 percent free and 47.25


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percent reserve, and for Zantes at 82.75percent free and 17.25 percent reserve.

The Department reviewed theCommittee’s recommendation forinterim percentages in light of unusualcircumstances facing the industry thisseason. Field prices for Naturals andZantes are negotiated between theRaisin Bargaining Association (RBA)and handlers, and are usually set inOctober. For the first time ever, pricenegotiations proceeded to arbitration, aprocess that occurred between April 30–May 2, 2001. The Committee’s rationalefor recommending interim percentagesin January, prior to the establishment offield prices, was that the industry wasproceeding to binding arbitration, andthat field prices would be set throughthis process.

In reviewing the Committee’srecommendation regarding interimpercentages, the Department consideredthe fact that volume regulation under

the order is linked to the establishmentof field prices. Preliminary percentagesrelease 85 percent of the trade demandif field prices have been set, but only 65percent if they have not. The order alsopermits preliminary and interimpercentages to be implemented throughannouncements by the Committee, butfinal percentages must be established bythe Department through informalrulemaking.

While preliminary percentages weredesigned to release 65 percent of thetrade demand until field price is set, theorder does not contemplate andprovides no contingency for the failureto set prices by mid-February. Therulemaking record indicates that thequantity of tonnage released at the 65-percent level would be sufficient tosupply market needs through February,but does not address restrictions afterFebruary 15. The Department does notsupport marketing order regulations that

restrict supplies to the point wheremarket needs are not met. This wouldnegatively hurt the industry as a whole.Thus, on March 15, 2001, theDepartment approved the establishmentof interim percentages for Naturals andZantes.

At its January 2001 meeting, theCommittee also recommended finalpercentages to release the full tradedemands for Naturals and Zantes, oncefield prices were set through arbitration.Field prices were established on May 2,2001. Final percentages compute to 53percent free and 47 percent reserve forNaturals, and 83 percent free and 17percent reserve for Zantes.

Both the interim and final percentagecomputations were based on revisedcrop estimates of 440,000 tons forNaturals and 5,160 tons for Zantes. TheCommittee’s calculations to arrive atfinal percentages for Naturals andZantes are shown in the table below:


Naturals Zantes

Trade demand ......................................................................................................................................................... 233,344 4,290Divided by crop estimate ......................................................................................................................................... 440,000 5,160Equals free percentage ........................................................................................................................................... 53 83100 minus free percentage equals reserve percentage ......................................................................................... 47 17

In addition, the Department’s‘‘Guidelines for Fruity, Vegetable, andSpecialty Crop Marketing Orders’’(Guidelines) specify that 110 percent ofrecent years’ sales should be madeavailable to primary markets eachseason for marketing orders utilizingreserve pool authority. This goal will bemet for Naturals and Zantes by theestablishment of final percentageswhich release 100 percent of the tradedemand and the offer of additionalreserve raisins for sale to handlers underthe ‘‘10 plus 10 offers.’’ As specified in§ 989.54(g), the 10 plus 10 offers are twooffers of reserve pool raisins which aremade available to handlers during eachseason. For each such offer, a quantityof reserve raising equal to 10 percent ofthe prior year’s shipments is madeavailable for free use. Handlers may selltheir 10 plus 10 raisins to any market.

The ‘‘10 plus 10 offers’’ were held forboth Naturals and Zantes in May 2001.For Naturals, a total of 52,924 tons wasmade available to raisin handlers.Adding the 52,924 tons of 10 plus 10raisins to the 233,344-ton trade demandfigure, plus 97,109 tons of 1999–2000carryin inventory, equates to about383,377 tons of natural conditionraisins, or about 359,190 tons of packed

raisins, that were made available for freeuse, or to the primary market. This is145 percent of the quantity of Naturalsshipped during the 1999–2000 crop year(264,619 natural condition tons or247,925 packed tons).

For Zantes, about 820 tons were madeavailable to handlers through 10 plus 10offers. This quantity is less than theamount specified in the order (927tons). Although 927 tons were notavailable, all of the reserve raisinsavailable were offered to handlers forfree use through the 10 plus 10 offers.Adding the 820-tons of 10 plus 10raisins to the 4,290-ton trade demandfigure, plus 1,109 tons of 1999–2000carryin inventory equates to 6,219 tonsnatural condition raisins, or about 5,540tons of packed raisins, that were madeavailable for free use, or to primarymarkets. This is 134 percent of thequantity of Zantes shipped during the1999–2000 crop year (4,635 tons naturalcondition tons or 4,129 tons packedtons).

In addition to the 10 plus 10 offers,§ 989.67(j) of the order providesauthority for sales of reserve raisins tohandlers under certain conditions suchas a national emergency, crop failure,change in economic or marketingconditions, or if free tonnage shipments

in the current crop year exceedshipments of a comparable period of theprior crop year. Such reserve raisinsmay be sold by handlers to any market.When implemented, the additionaloffers of reserve raisins make even moreraisins available to primary marketswhich is consistent with theDepartment’s Guidelines.

Initial Regulatory Flexibility AnalysisPursuant to requirements set forth in

the Regulatory Flexibility Act (RFA), theAgricultural marketing Service (AMS)has considered the economic impact ofthis action on small entities.Accordingly, AMS has prepared thisinitial regulatory flexibility analysis.

The purpose of the RFA is to fitregulatory actions to the scale ofbusiness subject to such actions in orderthat small businesses will not be undulyor disproportionately burdened.Marketing orders issued pursuant to theAct, and rules issued thereunder, areunique in that they are brought aboutthrough group action of essentiallysmall entities acting on their ownbehalf. Thus, both statutes have smallentity orientation and compatibility.

There are approximately 20 handlersof California raisins who are subject toregulation under the order and


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approximately 4,500 raisin producers inthe regulated area. Small agriculturalservice firms are defined by the SmallBusiness Administration (13 CFR121.201) as those having annual receiptsof less than $5,000,000, and smallagricultural producers are defined asthose having annual receipts of less than$500,000. Thirteen of the 20 handlerssubject to regulation have annual salesestimated to be at least $5,000,000, andthe remaining 7 handlers have sales lessthan $5,000,000, excluding receiptsfrom any other sources. No more than 7handlers, and a majority of producers, ofCalifornia raisins may be classified assmall entities, excluding receipts fromother sources.

Since 1949, the California raisinindustry has operated under a Federalmarketing order. The order containsauthority to, among other things, limitthe portion of a given year’s crop thatcan be marketed freely in any outlet byraisin handlers. This volume controlmechanism is used to stabilize suppliesand prices and strengthen marketconditions.

Pursuant to § 989.54(d) of the order,this rule establishes final volumeregulation percentages for 2000–1 cropNatural and Zante raisins. The volumeregulation percentages are 53 percentfree and 47 percent reserve for Naturalsand 83 percent free and 17 percentreserve for Zantes. Free tonnage raisinsmay be sold by handlers to any market.Reserve raisins must be held in a poolfor the account of the Committee andare disposed of through certainprograms authorized under the order.

Volume regulation is warranted thisseason for Naturals because the finalcrop estimate of 440,000 tons combinedwith the carryin inventory of 97,109tons, plus 45,275 tons of reserve raisinsreleased to-date for free use through an

export program, results in a totalavailable supply of 582,384 tons, whichis about 150 percent higher than the233,344-ton trade demand. Volumeregulation is warranted for Zantes thisseason because the crop estimate of5,160 tons combined with the carryininventory of 1,109 tons results in a totalavailable supply of 6,269 tons, which isabout 46 percent higher than the 4,290-ton trade demand.

Many years of marketing experienceled to the development of the currentvolume regulation procedures. Theseprocedures have helped the industryaddress its marketing problems bykeeping supplies in balance withdomestic and export market needs, andstrengthening market conditions. Thecurrent volume regulation proceduresfully supply the domestic and exportmarkets, provide for market expansion,and help prevent oversupplies in thedomestic market.

Raisin grapes are a perennial crop, soproduction in any year in dependentupon plantings made in earlier years.The sun-drying method of producingraisins involves considerable riskbecause of variable weather patterns.

Even though the product and theindustry are viewed as mature, theindustry has experienced considerablechange over the last several decades.Before the 1975–76 crop year, more than50 percent of the raisins were packedand sold directly to consumers. Now,over 60 percent of raisins are sold inbulk. This means the raisins are nowsold to consumers mostly as aningredient in another product such ascereal and baked goods. In addition, fora few years in the early 1970’s, over 50percent of the raisin grapes were sold tothe wine market for crushing. Sincethen, the percent of raisin-variety grapessold to the wine industry has decreased.

California’s grapes are classified intothree groups—table grapes, wine grapes,and raisin-variety grapes. Raisin-varietygrapes are the most versatile of the threetypes. They can be marketed as freshgrapes, crushed for juice in theproduction of wine or juice concentrate,or dried into raisins. Annualfluctuations in the fresh grape, wine,and concentrate markets, as well asweather-related factors, causefluctuations in raisin supply. This typeof situation introduces a certain amountof variability into the raisin market.Although the size of the crop for raisin-variety grapes may be known, theamount dried for raisins depends on thedemand for crushing. This makes themarketing of raisins a more difficulttask. These supply fluctuations canresult in producer price instability anddisorderly market conditions.

Volume regulation is helpful to theraisin industry because it lessens theimpact of such fluctuations andcontributes to orderly marketing. Forexample, producer prices for Naturalshave remained fairly steady between the1992–93 through the 1997–98 seasons,although production has varied. Asshown in the table below, during thoseyears, production varied from a low of272,063 tons in 1996–97 to a high of387,007 tons in 1993–94, or about 42percent. According to Committee data,the total producer return per ton duringthose years, which includes proceedsfrom both free tonnage plus reserve poolraisins, has varied from a low of $901in 1992–93 to a high of $1,049 in 1996–97, or 16 percent. Total producer pricesfor the past two seasons, 1998–99 and1999–2000, increased significantly dueto back-to-back short crops during thoseyears.


Crop yearProduction

(naturalcondition

tons)

Producerprices

1999–2000 ....................................................................................................................................................................... 299,910 1$1,211.251998–99 ........................................................................................................................................................................... 240,469 21,290,001997–98 ........................................................................................................................................................................... 382,448 946.521996–97 ........................................................................................................................................................................... 272,063 1,049.201995–96 ........................................................................................................................................................................... 325,911 1,007.191994–95 ........................................................................................................................................................................... 378,427 928.271993–94 ........................................................................................................................................................................... 387,007 904.601992–93 ........................................................................................................................................................................... 371,516 901.41

1 Return to date, reserve pool still open.2 No volume regulation.

There are essentially two broadmarkets for raisins—domestic andexport. In recent years, both export anddomestic shipments have been

decreasing. Domestic shipmentsdecreased from a high of 204,805packed tons during the 1990–91 cropyear to a low of 156,325 packed tons in

1999–2000. In addition, exportsdecreased from 114,576 packed tons in1991–92 to 91,599 packed tons in the1999–2000 crop year.


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In addition, the per capitaconsumption of raisins has declinedfrom 2.07 pounds in 1988 to 1.62pounds in 1999. This decrease isconsistent with the prices in the percapita consumption of dried fruits ingeneral, which is due to the increasingavailability of most types of fresh fruitthrough out the year.

While the overall demand for raisinshas been decreasing (as reflected indecline in commercial shipments),production has been increasing. Theproduction of dried raisins reached anall-time high of an estimated 440,000tons in the 2000–01 crop year. Thislarge crop was preceded by two shortcrop years; production was 240,469 tonsin 1998–99 and 299,910 tons in 1999–2000. Production for the 2000–01 cropyear soared to a record level because ofincreased bearing acreage and yields.

The order permits the industry toexercise supply control provisions,which allow for the establishment offree and reserve percentages, andestablishment of a reserve pool. One ofthe primary purposes of establishingfree and reserve percentages is toequilibrate supply and demand. If raisinmarkets are over-supplied with product,grower prices will decline.

Raisins are generally marketed atrelatively lower price levels in the moreelastic export market than in the moreinelastic domestic market. This resultsin a larger volume of raisins beingmarketed and enhances grower returns.

In addition, this system allows the U.S.raisin industry to be more competitivein export markets.

To assess the impact that volumecontrol has on the prices growersreceive for their product, aneconometric model has beenconstructed. The model developed is forthe purpose of estimating nominalprices under a number of scenariosusing the volume control authorityunder the Federal marketing order. Theprice growers receive for the harvest anddelivery of their crop is largelydetermined by the level of productionand the volume of carryin inventories.The Federal marketing order permits theindustry to exercise supply controlprovisions, which allow for theestablishment of reserve and freepercentages for primary markets, and areserve pool. The establishment ofreserve percentages impacts theproduction that is marketed in theprimary markets.

The reserve percentage limits whathandlers can market as free tonnage.Assuming the 47 percent reserve limitsthe total free tonnage to 233,200 naturalcondition tons (.53 x 440,000 tons) andcarryin is 97,109 natural condition tons,and purchases from reserve total 55,000natural condition tons (which includesanticipated reserve raisins releasedthrough the export program and otherpurchases), then the total free supply isestimated at 385,309 natural condition

tons. The econometric model estimatesprices to be $240 per ton higher thanunder an unregulated scenario. Thisprice increase is beneficial to allgrowers regardless of size and enhancesgrowers’ total revenues in comparison tono volume control. Establishing areserve allows the industry to helpstabilize supplies in both domestic andexport markets, while improving returnsto producers.

Regarding Zantes, Zante production ismuch smaller than that of Naturals.Volume regulation has beenimplemented for Zantes during the1994–95, 1995–96, 1997–98, 1998–99,1999–2000, and 2000–01 seasons.Various programs to utilize reserve poolZantes were implemented during thoseyears. As shown in the table below,although production varied during thoseyears, volume regulation helped toreduce inventories, and helped tostrengthen total producer prices (freetonnage plus reserve Zantes) from$412.56 per ton in 1994–95 to a high of$1,034.03 per ton in 1998–99. TheCommittee is implementing an exportprogram for Zantes, in addition toNaturals. Through this program, theCommittee plans to continue to manageits Zante supply, build and maintainexport markets, and ultimately improveproducer returns. Volume regulationhelps the industry not only to manageoversupplies of raisins, but alsomaintain market stability.

ZANTE CURRANT INVENTORIES AND PRODUCER PRICES DURING YEARS OF VOLUME REGULATION[Natural condition tons]

Crop year ProductionInventory Total season

average pro-ducer price

(per ton)Desirable Physical

1999–2000 ....................................................................................................... 3,683 573 1,906 1 $612.001998–99 ........................................................................................................... 3,880 694 1,188 $1,034.031997–98 ........................................................................................................... 4,826 788 1,679 $710.081996–97 ........................................................................................................... 4,491 987 549 2 $1,150.001995–96 ........................................................................................................... 3,294 782 2,890 $711.321994–95 ........................................................................................................... 5,377 837 4,364 $412.56

1 Return to date, reserve pool open.2 No volume regulation.

Free and reserve percentages areestablished by varietal type, and usuallyin years when the supply exceeds thetrade demand by a large enough marginthat the Committee believes volumeregulation is necessary to maintainmarket stability. Accordingly, inassessing whether to apply volumeregulation or, as an alternative, not toapply such regulation, the Committeerecommended only two of the nineraisin varietal types defined under theorder for volume regulation this season.

The free and reserve percentagesestablished by this rule release the fulltrade demands and apply uniformly toall handlers in the industry, regardlessof size. For Naturals, with the exceptionof the 1998–99 crop year, small andlarge raisin producers and handlershave been operating under volumeregulation percentages every year since1983–84. There are no known additionalcosts incurred by small handlers that arenot incurred by large handlers. Whilethe level of benefits of this rulemaking

are difficult to quantify, the stabilizingeffects of the volume regulations impactsmall and large handlers positively byhelping them maintain and expandmarkets even though raisin suppliesfluctuate widely from season to season.Likewise, price stability positivelyimpacts small and large producers byallowing them to better anticipate therevenues their raisins will generate.

There are some reporting,recordkeeping and other compliancerequirements under the order. The


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reporting and recordkeeping burdensare necessary for compliance purposesand for developing statistical data formaintenance of the program. Therequirements are the same as thoseapplied in past seasons. Thus, thisaction will not impose any additionalreporting or recordkeeping burdens oneither small or large handlers. The formsrequire information which is readilyavailable from handler records andwhich can be provided without dataprocessing equipment or trainedstatistical staff. The informationcollection and recordkeepingrequirements have been previouslyapproved by the Office of Managementand Budget (OMB) under OMB ControlNo. 0581–0178. As with other similarmarketing order programs, reports andforms are periodically studied to reduceor eliminate duplicate informationcollection burdens by industry andpublic sector agencies. In addition, theDepartment has not identified anyrelevant Federal rules that duplicate,overlap, or conflict with this rule.Finally, interested persons are invited tosubmit information on the regulatoryand informational impact of this actionon small businesses.

Further, Committee andsubcommittee meetings are widelypublicized in advance and are held ina location central to the production area.The meetings are open to all industrymembers, including small businessentities, and other interested personswho are encouraged to participate in thedeliberations and voice their opinionson topics under discussion.

A small business guide on complyingwith fruit, vegetable, and specialty cropmarketing agreements and orders may

be viewed at: http://www.ams.usda.gov/fv/moab.html. Any questions about thecompliance guide should be sent to JayGuerber at the previously mentionedaddress in the FOR FURTHER INFORMATIONCONTACT section.


This rule invites comments for a 30-day period on the establishment of finalvolume regulation percentages for 2000–01 crop Natural and Zante raisinscovered under the order. Thirty days isdeemed appropriate because handlersare currently marketing their 2000–01crop Natural and Zante raisins and thisaction should be taken promptly toachieve the intended purpose of makingthe full trade demands available tohandlers. All comments received withinthe comment period will be consideredprior to finalization of this rule.

Pursuant to 5 U.S.C. 553, it is alsofound and determined upon good causethat it is impracticable, unnecessary,and contrary to the public interest togive preliminary notice prior to puttingthis rule into effect, and that good causeexists for not postponing the effectivedate of this rule until 30 days afterpublication in the Federal Registerbecause: (1) The relevant provisions ofthis part require that the percentagesdesignated herein for the 2000–01 cropyear apply to all Natural and Zanteraisins acquired from the beginning ofthat crop year; (2) handlers are currentlymarketing their 2000–01 crop Natural

and Zante raisins and this action shouldbe taken promptly to achieve theintended purpose of making the fulltrade demands available to handlers; (3)handlers are aware of this action, whichwas unanimously recommended at apublic meeting, and need no additionaltime to comply with these percentages;and (4) this interim final rule providesa 30-day comment period, and allcomments timely received will beconsidered prior to finalization of thisrule.


Grapes, Marketing agreements,Raisins, Reporting and recordkeepingrequirements.

For the reasons set forth in thepreamble, 7 CFR part 989 is amended toread as followed:

PART 989—RAISINS PRODUCEDFROM GRAPES GROWN INCALIFORNIA

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


2. Section 989.254 is added toSubpart—Supplementary Regulations toread as follows:

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

§ 989.254 Final free and reservepercentages for the 2000–01 crop year.

The final percentages for standardNatural (sun-dried) Seedless and ZanteCurrant raisins acquired by handlersduring the crop year beginning onAugust 1, 2000, which shall be freetonnage and reserve tonnage,respectively, are designated as follows:

Varietal type Freepercentage

Reservepercentage

Natural (sun-dried) Seedless ................................................................................................................................... 53 47Zante Currant ........................................................................................................................................................... 83 17


Barry L. Carpenter,Acting Administrator, Agricultural MarketingService.[FR Doc. 01–19263 Filed 7–30–01; 10:06 am]

BILLING CODE 3410–02–M


Animal and Plant Health InspectionService

9 CFR Part 130[Docket No. 99–060–2]

Veterinary Services User Fees; Feesfor Permit Applications

AGENCY: Animal and Plant HealthInspection Service, USDA.ACTION: Final rule.

SUMMARY: We are amending the userfees for processing applications for

permits to import and transport certainanimal products, organisms, vectors,and germ plasm. We are alsoestablishing new user fees that wouldpay the cost of processing applicationsto import live animals. We are takingthis action in order to ensure that werecover our costs.

EFFECTIVE DATE: August 31, 2001.

FOR FURTHER INFORMATION CONTACT: Forinformation concerning programoperations for Veterinary Services,contact Ms. Inez Hockaday, ActingDirector, Management Support Staff,VS, APHIS, 4700 River Road Unit 44,


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53945

Vol. 66, No. 207

Thursday, October 25, 2001


Farm Service Agency

7 CFR Part 723

Release of Burley Tobacco Farmer’sWarehouse, Receiving Station andDealer Designations to WarehouseOperators, Receiving Station BuyingCompanies and DealersAGENCY: Commodity Credit Corporation,USDA.ACTION: Notice of Intent to ReleaseDesignation Records and Opportunity toOpt Out of the Release.

SUMMARY: This document announces theintention of the Secretary of Agricultureto release the burley tobacco farmdesignation information, whichincludes, but is not limited to, the farmserial number, operator’s name andaddress and pounds designated to aspecific market location; and providesnotice of the method in whichinterested parties can opt out of thatrelease. The release will be to thedesignated warehouse operator,receiving station buying company ordealer in order to facilitate an orderlymarketing of the 2001 crop of burleytobacco.

DATES: Submit Request to Opt Out ofRelease October 30, 2001.ADDRESSES: Notices should be mailed toMisty Jones, Farm Service Agency(FSA), Tobacco and Peanuts Division,STOP 0514, 1400 IndependenceAvenue, SW., Washington, DC 20250–0514.

FOR FURTHER INFORMATION CONTACT:Misty L. Jones, telephone number (202)720–0200 or via e-mail [email protected].

SUPPLEMENTARY INFORMATION: Themarketing quota program is provided forin Section 319 of the AgriculturalAdjustment Act of 1938, as amended,

and is a program in which Federalmarketing quotas are established forburley tobacco. Tobacco farmers whofiled market designation informationwere asked to provide the Farm ServiceAgency (FSA) the exact market locationand the poundage of burley tobacco thatwould be offered for sale at eachrespective location.

In order to facilitate an orderlymarketing of such commodity FSAcollected information to be used inscheduling Federal graders at auctionwarehouses and to provide likeinformation to nonauction receivingstations and dealers and auctionwarehouse operators for marketingscheduling purposes. So that affectedparties may efficiently andexpeditiously make arrangements forthe 2001 burley tobacco marketingseason FSA will release informationcollected after October 30, 2001. Therelease will be made to any personasking for the information. This willhelp warehouse operators schedulesales in a manner that will assistfarmers, the warehouse operators andinspectors. This can also avoiddifficulties for the farmer with regard toprivate contracts for sale. Because thisinformation can provide much neededhelp to market locations, the Secretaryintends to provide the information tothe warehouse operators, receivingstation buying companies, dealers andothers as may request the informationthat is not confidential, except in thecase of those parties who wish to optout of the release. Those who wish toopt out of the release should send noticein writing of their election to MistyJones, Farm Service Agency, Tobaccoand Peanuts Division, STOP 0514, 1400Independence Avenue, SW.,Washington, DC 20250–0514. Suchnotice must be received by October 30,2001.

The Agency does not expect manyexemption requests.

Signed at Washington, DC on October 16,2001.

James R. Little,Administrator, Farm Service Agency, andExecutive Vice President, Commodity CreditCorporation.[FR Doc. 01–26947 Filed 10–22–01; 4:41 pm]




7 CFR Part 989


Raisins Produced From Grapes Grownin California; Final Free and ReservePercentages for 2000–01 Crop Natural(Sun-dried) Seedless and ZanteCurrant Raisins

AGENCY: Agricultural Marketing Service,USDA.ACTION: Final rule.

SUMMARY: The Department ofAgriculture (Department) is adopting, asa final rule, without change, an interimfinal rule that established final volumeregulation percentages for 2000–01 cropNatural (sun-dried) Seedless raisins(Naturals) and Zante Currant raisins(Zantes) covered under the Federalmarketing order for California raisins(order). The order regulates the handlingof raisins produced from grapes grownin California and is locally administeredby the Raisin Administrative Committee(Committee). The volume regulationpercentages are 53 percent free and 47percent reserve for Naturals, and 83percent free and 17 percent reserve forZantes. The percentages are intended tohelp stabilize raisin supplies and prices,and strengthen market conditions.EFFECTIVE DATE: November 26, 2001.FOR FURTHER INFORMATION CONTACT:Maureen T. Pello, Senior MarketingSpecialist, California Marketing FieldOffice, Marketing Order AdministrationBranch, 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, TechnicalAdvisor, Marketing OrderAdministration Branch, Fruit andVegetable Programs, AMS, USDA, room2525–S, P.O. Box 96456, Washington,DC 20090–6456; telephone: (202) 720–2491, Fax: (202) 720–8938.

Small businesses may requestinformation on complying with thisregulation by contacting Jay Guerber,Marketing Order AdministrationBranch, Fruit and Vegetable Programs,AMS, USDA, room 2525–S, P.O. Box96456, Washington, DC 20090–6456;telephone: (202) 720–2491, Fax: (202)

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53946 Federal Register / Vol. 66, No. 207 / Thursday, October 25, 2001 / Rules and Regulations

720–8938, or E-mail:[email protected].

SUPPLEMENTARY INFORMATION: This ruleis issued under Marketing Agreementand Order No. 989 (7 CFR part 989),both as amended, regulating thehandling of raisins produced fromgrapes grown in California, hereinafterreferred to as the ‘‘order.’’ Themarketing agreement and order areeffective under the AgriculturalMarketing Agreement Act of 1937, asamended (7 U.S.C. 601–674), hereinafterreferred to as the ‘‘Act.’’

The Department is issuing this rule inconformance with Executive Order12866.

This rule has been reviewed underExecutive Order 12988, Civil JusticeReform. Under the order provisions nowin effect, final free and reservepercentages may be established forraisins acquired by handlers during thecrop year. This rule continues in effectfinal free and reserve percentages forNaturals and Zantes for the 2000–01crop year, which began August 1, 2000,and ended July 31, 2001. This rule willnot preempt any State or local laws,regulations, or policies, unless theypresent an irreconcilable conflict withthis rule.

The Act provides that administrativeproceedings must be exhausted beforeparties may file suit in court. Undersection 608c(15)(A) of the Act, anyhandler subject to an order may filewith the Secretary a petition stating thatthe order, any provision of the order, orany obligation imposed in connectionwith the order is not in accordance withlaw and request a modification of theorder or to be exempted therefrom. Suchhandler is afforded the opportunity fora hearing on the petition. After thehearing the Secretary would rule on thepetition. The Act provides that thedistrict court of the United States in anydistrict in which the handler is aninhabitant, or has his or her principalplace of business, has jurisdiction toreview the Secretary’s ruling on thepetition, provided an action is filed notlater than 20 days after the date of theentry of the ruling.

This rule continues in effect finalvolume regulation percentages for 2000–01 crop Naturals and Zantes which wereestablished through an interim final rulepublished on August 1, 2001, in theFederal Register (66 FR 39623). Thevolume regulation percentages are 53percent free and 47 percent reserve forNaturals and 83 percent free and 17percent reserve for Zantes. Free tonnageraisins may be sold by handlers to anymarket. Reserve raisins must be held ina pool for the account of the Committee

and are disposed of through variousprograms authorized under the order.For example, reserve raisins may be soldby the Committee to handlers for freeuse or to replace part of the free tonnageraisins they exported; used in diversionprograms; carried over as a hedgeagainst a short crop; or disposed of inother outlets not competitive with thosefor free tonnage raisins, such asgovernment purchase, distilleries, oranimal feed.

The volume regulation percentagesare intended to help stabilize raisinsupplies and prices, and strengthenmarket conditions. Final percentageswere unanimously recommended by theCommittee on January 12, 2001.


Section 989.54 of the order prescribesprocedures and time frames to befollowed in establishing volumeregulation. This includes methodologyused to calculate percentages. Pursuantto § 989.54(a) of the order, theCommittee met on August 15, 2000, toreview shipment and inventory data,and other matters relating to thesupplies of raisins of all varietal types.The Committee computed a tradedemand for each varietal type for whicha free tonnage percentage might berecommended. Trade demand iscomputed using a formula specified inthe order and, for each varietal type, isequal to 90 percent of the prior year’sshipments of free tonnage and reservetonnage raisins sold for free use into allmarket outlets, adjusted by subtractingthe carryin on August 1 of the currentcrop year, and adding the desirablecarryout at the end of that crop year. Asspecified in § 989.154(a), the desirablecarryout for each varietal type is equalto a 5-year rolling average, dropping thehigh and low figures, of free tonnageshipments during the months of August,September, and October. In accordancewith these provisions, the Committeecomputed and announced 2000–01trade demands for Naturals and Zantesat 233,344 tons and 4,290 tons,respectively, as shown below.


Naturals Zantes

Prior year’s shipments ..... 264,619 4,635Multiplied by 90 percent .. 0.90 0.90Equals adjusted base ...... 238,157 4,172Minus carry-in inventory .. 97,109 1,109Plus desirable carryout .... 92,296 1,227Equals computed trade

demand ........................ 233,344 4,290


As required under § 989.54(b) of theorder, the Committee met on October 4,2000, and announced a preliminarycrop estimate of 427,394 tons forNaturals. Naturals are the major varietaltype of California raisin. This estimatewas about 27 percent higher than the10-year average of 336,766 tons.Combining the carryin inventory of97,109 tons with the 427,394-ton cropestimate resulted in a total availablesupply of 524,503 tons, which wassignificantly higher (about 125 percent)than the 233,344-ton trade demand.Thus, the Committee determined thatvolume regulation for Naturals waswarranted. The Committee announcedpreliminary free and reserve percentagesfor Naturals which released 65 percentof the computed trade demand since thefield price (price paid by handlers toproducers for their free tonnage raisins)had not yet been established. Thepreliminary percentages were 35percent free and 65 percent reserve.

Also at its October 4, 2000, meeting,the Committee announced a preliminarycrop estimate for Zantes at 4,828 tons,which was comparable to the 10-yearaverage of 4,447 tons. Combining thecarry-in inventory of 1,109 tons with the4,828-ton crop estimate resulted in atotal available supply of 5,937 tons.With the estimated supply about 38percent greater than the 4,290-ton tradedemand, the Committee determined thatvolume regulation for Zantes waswarranted. The Committee announcedpreliminary percentages for Zanteswhich released 65 percent of thecomputed trade demand since fieldprice had not yet been established. Thepreliminary percentages were 58percent free and 42 percent reserve.

In addition, preliminary percentageswere also announced for DippedSeedless and Other Seedless raisins.The Committee ultimately determinedthat volume regulation was onlywarranted for Naturals and Zantes. Asin past seasons, the Committeesubmitted its marketing policy to theDepartment for review.


Pursuant to § 989.54(c) and (d) of theorder, the Committee met on January 12,2001, and recommended interimpercentages for Naturals and Zantes torelease slightly less than their full tradedemands. Specifically, interimpercentages were recommended forNaturals at 52.75 percent free and 47.25percent reserve, and for Zantes at 82.75percent free and 17.25 percent reserve.


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The Department reviewed theCommittee’s recommendation forinterim percentages in light of unusualcircumstances facing the industry. Fieldprices for Naturals and Zantes arenegotiated between the RaisinBargaining Association (RBA) andhandlers, and are usually set in October.For the first time ever, pricenegotiations proceeded to arbitration, aprocess that occurred between April30—May 2, 2001. The Committee’srationale for recommending interimpercentages in January, prior to theestablishment of field prices, was thatthe industry was proceeding to bindingarbitration, and that field prices wouldbe set through this process.

In reviewing the Committee’srecommendation regarding interimpercentages, the Department consideredthe fact that volume regulation underthe order is linked to the establishmentof field prices. Preliminary percentagesrelease 85 percent of the trade demandif field prices have been set, but only 65percent if they have not. The order alsopermits preliminary and interimpercentages to be implemented throughannouncements by the Committee, butfinal percentages must be established bythe Department through informalrulemaking.

While preliminary percentages weredesigned to release 65 percent of thetrade demand until field price is set, theorder does not contemplate andprovides no contingency for the failureto set prices by mid-February. Therulemaking record indicates that thequantity of tonnage released at the 65-percent level would be sufficient tosupply market needs through February,but does not address restrictions afterFebruary 15. The Department does notsupport marketing order regulations thatrestrict supplies to the point wheremarket needs are not met. This wouldnegatively impact the industry as awhole. Thus, on March 15, 2001, theDepartment approved the establishmentof interim percentages for Naturals andZantes.

At its January 2001 meeting, theCommittee also recommended finalpercentages to release the full tradedemands for Naturals and Zantes, oncefield prices were set through arbitration.Field prices were established on May 2,2001. Final percentages compute to 53percent free and 47 percent reserve forNaturals, and 83 percent free and 17percent reserve for Zantes.

Both the interim and final percentagecomputations were based on revisedcrop estimates of 440,000 tons forNaturals and 5,160 tons for Zantes. TheCommittee’s calculations to arrive at

final percentages for Naturals andZantes are shown in the table below:



Naturals Zantes

Trade demand ................. 233,344 4,290Divided by crop estimate 440,000 5,160Equals free percentage ... 53 83100 minus free percent-

age equals reserve per-centage ........................ 47 17

In addition, the Department’s‘‘Guidelines for Fruit, Vegetable, andSpecialty Crop Marketing Orders’’(Guidelines) specify that 110 percent ofrecent years’ sales should be madeavailable to primary markets eachseason for marketing orders utilizingreserve pool authority. This goal wasmet for Naturals and Zantes by theestablishment of final percentageswhich released 100 percent of the tradedemand and the offer of additionalreserve raisins for sale to handlers underthe ‘‘10 plus 10 offers.’’ As specified in§ 989.54(g), the 10 plus 10 offers are twooffers of reserve pool raisins which aremade available to handlers during eachseason. For each such offer, a quantityof reserve raisins equal to 10 percent ofthe prior year’s shipments is madeavailable for free use. Handlers may selltheir 10 plus 10 raisins to any market.

The ‘‘10 plus 10 offers’’ were held forboth Naturals and Zantes in May 2001.For Naturals, a total of 52,924 tons wasmade available to raisin handlers, and22,091 tons were purchased. Adding the22,091 tons of 10 plus 10 raisinspurchased to the 233,344-ton tradedemand figure, plus 97,109 tons of1999–2000 carryin inventory, equates toabout 352,544 tons of natural conditionraisins, or about 330,300 tons of packedraisins, that were made available for freeuse, or to the primary market. This is133 percent of the quantity of Naturalsshipped during the 1999–2000 crop year(264,619 natural condition tons or247,925 packed tons).

For Zantes, 824 tons were madeavailable to handlers through 10 plus 10offers. This quantity is less than theamount specified in the order (927tons). Although 927 tons were notavailable, all of the reserve raisinsavailable were offered to and purchasedby handlers for free use through the 10plus 10 offers. Adding the 824 tons of10 plus 10 raisins to the 4,290-ton tradedemand figure, plus 1,109 tons of 1999–2000 carryin inventory equates to 6,223tons natural condition raisins, or about5,543 tons of packed raisins, that were

made available for free use, or toprimary markets. This is 134 percent ofthe quantity of Zantes shipped duringthe 1999–2000 crop year (4,635 tonsnatural condition tons or 4,129 tonspacked tons).

In addition to the 10 plus 10 offers,§ 989.67(j) of the order providesauthority for sales of reserve raisins tohandlers under certain conditions suchas a national emergency, crop failure,change in economic or marketingconditions, or if free tonnage shipmentsin the current crop year exceedshipments of a comparable period of theprior crop year. Such reserve raisinsmay be sold by handlers to any market.When implemented, the additionaloffers of reserve raisins make even moreraisins available to primary marketswhich is consistent with theDepartment’s Guidelines.

Final Regulatory Flexibility AnalysisPursuant to requirements set forth in

the Regulatory Flexibility Act (RFA), theAgricultural Marketing Service (AMS)has considered the economic impact ofthis action on small entities.Accordingly, AMS has prepared thisfinal regulatory flexibility analysis.


There are approximately 20 handlersof California raisins who are subject toregulation under the order andapproximately 4,500 raisin producers inthe regulated area. Small agriculturalservice firms are defined by the SmallBusiness Administration (13 CFR121.201) as those having annual receiptsof less than $5,000,000, and smallagricultural producers are defined asthose having annual receipts of less than$750,000. Thirteen of the 20 handlerssubject to regulation have annual salesestimated to be at least $5,000,000, andthe remaining 7 handlers have sales lessthan $5,000,000, excluding receiptsfrom non-agricultural sources. No morethan 7 handlers, and a majority ofproducers, of California raisins may beclassified as small entities, excludingreceipts from non-agricultural sources.

Since 1949, the California raisinindustry has operated under a Federalmarketing order. The order containsauthority to, among other things, limitthe portion of a given year’s crop that


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can be marketed freely in any outlet byraisin handlers. This volume controlmechanism is used to stabilize suppliesand prices and strengthen marketconditions.

Pursuant to § 989.54(d) of the order,this rule continues in effect finalvolume regulation percentages for 2000–01 crop Natural and Zante raisins. Thevolume regulation percentages are 53percent free and 47 percent reserve forNaturals and 83 percent free and 17percent reserve for Zantes. Free tonnageraisins may be sold by handlers to anymarket. Reserve raisins must be held ina pool for the account of the Committeeand are disposed of through certainprograms authorized under the order.

Volume regulation was warranted for2000–01 crop Naturals because the finalcrop estimate of 440,000 tons combinedwith the 1999–2000 carryin inventory of97,109 tons, plus 41,395 tons of 1999–2000 reserve raisins released for free usethrough an export program, resulted ina total available supply of 578,504 tons,which was almost 150 percent higherthan the 233,344-ton trade demand.Volume regulation was warranted for2000–01 Zantes because the final cropestimate of 5,160 tons combined withthe carryin inventory of 1,109 tonsresulted in a total available supply of6,269 tons, which was about 46 percenthigher than the 4,290-ton trade demand.


Raisin grapes are a perennial crop, soproduction in any year is dependentupon plantings made in earlier years.The sun-drying method of producingraisins involves considerable riskbecause of variable weather patterns.

Even though the product and theindustry are viewed as mature, theindustry has experienced considerablechange over the last several decades.Before the 1975–76 crop year, more than50 percent of the raisins were packedand sold directly to consumers. Now,over 60 percent of raisins are sold inbulk. This means that raisins are nowsold to consumers mostly as aningredient in another product such ascereal and baked goods. In addition, fora few years in the early 1970’s, over 50percent of the raisin grapes were sold tothe wine market for crushing. Since

then, the percent of raisin-variety grapessold to the wine industry has decreased.

California’s grapes are classified intothree groups—table grapes, wine grapes,and raisin-variety grapes. Raisin-varietygrapes are the most versatile of the threetypes. They can be marketed as freshgrapes, crushed for juice in theproduction of wine or juice concentrate,or dried into raisins. Annualfluctuations in the fresh grape, wine,and concentrate markets, as well asweather-related factors, causefluctuations in raisin supply. This typeof situation introduces a certain amountof variability into the raisin market.Although the size of the crop for raisin-variety grapes may be known, theamount dried for raisins depends on thedemand for crushing. This makes themarketing of raisins a more difficulttask. These supply fluctuations canresult in producer price instability anddisorderly market conditions.

Volume regulation is helpful to theraisin industry because it lessens theimpact of such fluctuations andcontributes to orderly marketing. Forexample, producer prices for Naturalshave remained fairly steady between the1992–93 through the 1997–98 seasons,although production has varied. Asshown in the table below, during thoseyears, production varied from a low of272,063 tons in 1996–97 to a high of387,007 tons in 1993–94, or about 42percent. According to Committee data,the total producer return per ton duringthose years, which includes proceedsfrom both free tonnage plus reserve poolraisins, has varied from a low of $901in 1992–93 to a high of $1,049 in 1996–97, or 16 percent. Total producer pricesfor the 1998–99 and 1999–2000 seasonsincreased significantly due to back-to-back short crops during those years.


Crop year Produc-tion 1

Producerprices

1999–2000 ........ 299,910 2 $1,211.251998–99 ............ 240,469 3 1,290.001997–98 ............ 382,448 946.521996–97 ............ 272,063 1,049.201995–96 ............ 325,911 1,007.191994–95 ............ 378,427 928.271993–94 ............ 387,007 904.601992–93 ............ 371,516 901.41

1 Natural condition tons.2 Return to-date, reserve pool still open.3 No volume regulation.

There are essentially two broadmarkets for raisins—domestic andexport. In recent years, both export anddomestic shipments have beendecreasing. Domestic shipments

decreased from a high of 204,805packed tons during the 1990–91 cropyear to a low of 156,325 packed tons in1999–2000. In addition, exportsdecreased from 114,576 packed tons in1991–92 to 91,599 packed tons in the1999–2000 crop year.

In addition, the per capitaconsumption of raisins has declinedfrom 2.07 pounds in 1988 to 1.62pounds in 1999. This decrease isconsistent with the decrease in the percapita consumption of dried fruits ingeneral, which is due to the increasingavailability of most types of fresh fruitthrough out the year.

While the overall demand for raisinshas been decreasing (as reflected in thedecline in commercial shipments),production has been increasing. Theproduction of dried raisins reached anall-time high of an estimated 440,000tons in the 2000–01 crop year. Thislarge crop was preceded by two shortcrop years; production was 240,469 tonsin 1998–99 and 299,910 tons in 1999–2000. Production for the 2000–01 cropyear soared to a record level because ofincreased bearing acreage and yields.

The order permits the industry toexercise supply control provisions,which allow for the establishment offree and reserve percentages, andestablishment of a reserve pool. One ofthe primary purposes of establishingfree and reserve percentages is toequilibrate supply and demand. If raisinmarkets are over-supplied with product,grower prices will decline.

Raisins are generally marketed atrelatively lower price levels in the moreelastic export market than in the moreinelastic domestic market. This resultsin a larger volume of raisins beingmarketed and enhances grower returns.In addition, this system allows the U.S.raisin industry to be more competitivein export markets.

To assess the impact that volumecontrol has on the prices growersreceive for their product, aneconometric model has beenconstructed. The model developed is forthe purpose of estimating nominalprices under a number of scenariosusing the volume control authorityunder the Federal marketing order. Theprice growers receive for the harvest anddelivery of their crop is largelydetermined by the level of productionand the volume of carry-in inventories.The Federal marketing order permits theindustry to exercise supply controlprovisions, which allow for theestablishment of reserve and freepercentages for primary markets, and areserve pool. The establishment ofreserve percentages impacts the


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production that is marketed in theprimary markets.

The reserve percentage limits whathandlers can market as free tonnage.Assuming the 47 percent reserve limitsthe total free tonnage to 233,200 naturalcondition tons (.53 × 440,000 tons) andcarryin is 97,109 natural condition tons,and purchases from reserve total 55,000natural condition tons (which includesreserve raisins released through theexport program and other purchases),then the total free supply would total385,309 natural condition tons. Theeconometric model estimates prices tobe $240 per ton higher than under anunregulated scenario. This price

increase is beneficial to all growersregardless of size and enhances growers’total revenues in comparison to novolume control. Establishing a reserveallows the industry to help stabilizesupplies in both domestic and exportmarkets, while improving returns toproducers.

Regarding Zantes, Zante production ismuch smaller than that of Naturals.Volume regulation has beenimplemented for Zantes during the1994–95, 1995–96, 1997–98, 1998–99,1999–2000, and 2000–01 seasons.Various programs to utilize reserve poolZantes were implemented during thoseyears. As shown in the table below,

although production varied during thoseyears, volume regulation helped toreduce inventories, and helped tostrengthen total producer prices (freetonnage plus reserve Zantes) from$412.56 per ton in 1994–95 to a high of$1,034.03 per ton in 1998–99. TheCommittee is implementing an exportprogram for Zantes, in addition toNaturals. Through this program, theCommittee plans to continue to manageits Zante supply, build and maintainexport markets, and ultimately improveproducer returns. Volume regulationhelps the industry not only to manageoversupplies of raisins, but alsomaintain market stability.

ZANTE CURRANT INVENTORIES AND PRODUCER PRICES DURING YEARS OF VOLUME REGULATION[Natural condition tons]

Crop year ProductionInventory

Total 1

Desirable Physical

1999–2000 ....................................................................................................... 3,683 573 1,906 $771.141998–99 ........................................................................................................... 3,880 694 1,188 1,034.031997–98 ........................................................................................................... 4,826 788 1,679 710.081996–97 ........................................................................................................... 4,491 987 549 2 1,150.001995–96 ........................................................................................................... 3,294 782 2,890 711.321994–95 ........................................................................................................... 5,377 837 4,364 412.56

1Total season average produces price (per ton).2 No volume regulation.

Free and reserve percentages areestablished by varietal type, and usuallyin years when the supply exceeds thetrade demand by a large enough marginthat the Committee believes volumeregulation is necessary to maintainmarket stability. Accordingly, inassessing whether to apply volumeregulation or, as an alternative, not toapply such regulation, the Committeerecommended only two of the nineraisin varietal types defined under theorder for volume regulation this season.

The free and reserve percentagesrelease the full trade demands andapply uniformly to all handlers in theindustry, regardless of size. ForNaturals, with the exception of the1998–99 crop year, small and largeraisin producers and handlers have beenoperating under volume regulationpercentages every year since 1983–84.There are no known additional costsincurred by small handlers that are notincurred by large handlers. While thelevel of benefits of this rulemaking aredifficult to quantify, the stabilizingeffects of the volume regulations impactsmall and large handlers positively byhelping them maintain and expandmarkets even though raisin suppliesfluctuate widely from season to season.Likewise, price stability positivelyimpacts small and large producers by

allowing them to better anticipate therevenues their raisins will generate.

There are some reporting,recordkeeping and other compliancerequirements under the order. Thereporting and recordkeeping burdensare necessary for compliance purposesand for developing statistical data formaintenance of the program. Therequirements are the same as thoseapplied in past seasons. Thus, thisaction will not impose any additionalreporting or recordkeeping burdens oneither small or large handlers. The formsrequire information which is readilyavailable from handler records andwhich can be provided without dataprocessing equipment or trainedstatistical staff. The informationcollection and recordkeepingrequirements have been previouslyapproved by the Office of Managementand Budget (OMB) under OMB ControlNo. 0581–0178. As with other similarmarketing order programs, reports andforms are periodically studied to reduceor eliminate duplicate informationcollection burdens by industry andpublic sector agencies. In addition, theDepartment has not identified anyrelevant Federal rules that duplicate,overlap, or conflict with this rule.

Further, Committee andsubcommittee meetings are widely

publicized in advance and are held ina location central to the production area.The meetings are open to all industrymembers, including small businessentities, and other interested personswho are encouraged to participate in thedeliberations and voice their opinionson topics under discussion.

An interim final rule concerning thisaction was published in the FederalRegister on August 1, 2001 (66 FR39623). Copies of the rule were mailedby Committee staff to all Committeemembers and alternates, the RBA,handlers and dehydrators. In addition,the rule was made available through theInternet by the Office of the FederalRegister and the Department. That ruleprovided for a 30-day comment periodthat ended on August 31, 2001. Nocomments were received.

A small business guide on complyingwith fruit, vegetable, and specialty cropmarketing agreements and orders maybe viewed at: http://www.ams.usda.gov/fv/moab.html. Any questions about thecompliance guide should be sent to JayGuerber at the previously mentionedaddress in the FOR FURTHER INFORMATIONCONTACT section.

After consideration of all relevantmaterial presented, including theinformation and recommendationsubmitted by the Committee and otheravailable information, it is hereby found


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

List of Subjects in 7 CFR Part 989Grapes, Marketing agreements,

Raisins, Reporting and recordkeepingrequirements.


Accordingly, the interim final ruleamending 7 CFR part 989 which waspublished at 66 FR 39623 on August 1,2001, is adopted as a final rule withoutchange.

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



14 CFR Part 71[Airspace Docket No. 01–ASO–9]

Establishment of Class E2 Airspace;Greenwood, MSAGENCY: Federal AviationAdministration (FAA), DOT.ACTION: Final rule; correction.

SUMMARY: This action corrects errors inthe geographic position coordinates andthe description of airspace lateraldistance of a final rule that waspublished in the Federal Register onJuly 31, 2001, (66 FR 39435), AirspaceDocket No. 01–ASO–9. The final ruleestablished Class E2 airspace atGreenwood, MS.EFFECTIVE DATE: October 25, 2001.FOR FURTHER INFORMATION CONTACT:Walter R. Cochran, Manager, AirspaceBranch, Air Traffic Division, FederalAviation Administration, P.O. Box20636, Atlanta, Georgia 30320;telephone (404) 305–5627.SUPPLEMENTARY INFORMATION:History

Federal Register Document 01–19044,Airspace Docket No. 01–ASO–9,published on July 31, 2001, (66 FR39435), established Class E2 airspace atGreenwood, MS. The airspacedescription inadvertently contained anincorrect lateral distance and geographicposition coordinates for the Greenwood-Leflore Airport. This action correctsthose errors.

Correction to Final Rule

Accordingly, pursuant to theauthority delegated to me, the airspacedescription for the Class E2 airspacearea Greenwood, MS, incorporated byreference at Sec. 71–1 and published inthe Federal Register on July 31, 2001,(66 FR 39435), is corrected as follows:

§ 71.71 [Corrected]* * * * *

ASO MS E2 Greenwood, MS [Corrected]

On page 39435, column 3, line 2, of theGreenwood-Leflore Airport, MS, geographicposition description, correct the geographicposition coordinates by substituting ‘‘(lat.33°29′40″N, long. 90°05′05″W)’’ for ‘‘(lat.33°29′44″N, long. 90°05′03″W)’’. On line 3,correct the lateral distance from theGreenwood-Leflore Airport, MS, bysubstituting ‘‘4.4-mile radius’’ for 4-mileradius’’.

* * * * *Issued in College Park, Georgia, on October

15, 2001.Richard Biscomb,Acting Manager, Air Traffic Division,Southern Region.[FR Doc. 01–26923 Filed 10–24–01; 8:45 am]BILLING CODE 4910–13–M



14 CFR Part 71[Airspace Docket No. 01–ASO–3]

Establishment of Class E5 Airspace;Reform, ALAGENCY: Federal AviationAdministration (FAA), DOT.ACTION: Final rule.

SUMMARY: This action established ClassE5 airspace at Reform, AL. A AreaNavigation (RNAV) Global PositioningSystem (GOP) Runway (RWY) 19Standard Instrument ApproachProcedure (SIAP) has been developedfor North Pickens Airport, Reform, AL.As a result, controlled airspaceextending upward from 700 feet AboveGround Level (AGL) is needed tocontain the SIAP and other InstrumentFlight Rules (IFR) operations at NorthPickens Airport. The operating status ofthe airport will change from VisualFlight Rules (VFR) to include IFRoperations concurrent with thepublication of the SIAP.EFFECTIVE DATE: 0901 UTC, December27, 2001.FOR FURTHER INFORMATION CONTACT:Walter R. Cochran, Manager, AirspaceBranch, Air Traffic Division, Federal

Aviation Administration, P.O. Box20636, Atlanta, Georgia 30320;telephone (404) 305–5586.

SUPPLEMENTARY INFORMATION:History

On September 5, 2001, the FAAproposed to amend Part 71 of theFederal Aviation Regulations (14 CFRPart 71) by establishing Class E5airspace at Reform, AL, (66 FR 46406)to provide adequate controlled airspaceto contain the RNAV (GPS) RWY 19SIAP and other IFR operations at NorthPickens Airport. Class E airspacedesignations for airspace extendingupward from 700 feet or more above thesurface of the earth are published inFAA Order 7400.9J, dated August 31,2001, and effective September 16, 2001,which is incorporated by reference in 14CFR 71.1. The Class E airspacedesignation listed in this document willbe published subsequently in the Order.

Interested parties were invited toparticipate in this rulemakingproceeding by submitting writtencomments on the proposal to the FAA.No comments objecting to the proposalwere received.

The Rule

This amendment to Part 71 of theFederal Aviation Regulations (14 CFRpart 71) establishes Class E5 airspace atReform, AL.

The FAA has determined that thisregulation only involves an establishedbody of technical regulations for whichfrequent and routine amendments arenecessary to keep them operationallycurrent. It, therefore, (1) is not a‘‘significant regulatory action’’ underExecutive Order 12866; (2) is not a‘‘significant rule’’ under DOTRegulatory Policies and Procedures (44FR 11034; February 26, 1979); and (3)does not warrant preparation of aRegulatory Evaluation, as theanticipated impact is so minimal. Sincethis is a routine matter that will onlyaffect air traffic procedures and airnavigation, it is certified that this rulewill have a significant economic impacton a substantial number of small entitiesunder the criteria of the RegulatoryFlexibility Act.


Airspace, Incorporation by reference,Navigation (air).

Adoption of the Amendment

In consideration of the foregoing, theFederal Aviation Administrationamends 14 CFR Part 71 as follows:


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Raisin Administrative a,mmittee 3445 N. First St., Suite I 0 I

P.O. Box 5217 Fresno, CA 93755

MINUTES OF THE MEETING (corrected Apri123, 2003)

March 27, 2003

TELEPHONE: 559-225-0520 FAX: 559-225-0652

EMAIL: info@raisins org www.r.aisins erg

Chairperson Richard Garabedian called the meeting of the Raisin Administrative Committee to order at 1:40 p.m. on Thursday, March 27, 2003 in the RAC/CRMB Conference Center, 3445 North First Street, Fresno, California.

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MEMBER .Albrecht, Eddie W. Bedrosian, Ernie Boghosian, Nicholas Brar, Haey Carter: Bnm Chooljian, Gerald Ciulla, Tol!Y Epperson, Robert Ferguson, Bernadine Forrest, Mark Garabedian, Gilbert Garabedian, Richard Gerin~r, Lmda Goto,Ulen Gularte, Tom Gunlund, Chris Gupta, Anil Hilker, Harold Jerkovich, Mike Jue, Jeff KasparianhAlan Kazarian, KOn King, Dan Kister, Steve Koop, Hans Kriebel, Barry F. Lehman Steve Marthed'cy, Jon Miyake-t-. \..-Urtis Moles, K~ay Nielsen, Herman Nonini, Gena M. Penner, Pete J. Peters, David Rebensdorf Jerry Sahatdjian, Victor Salwasser, Charlotte Salwasst~,rl- George Sangha, lVlitch Sam, James Schutz., Monte Silva, !'rank Singh, Harvey fuJa1e, Steve noehler, Steve WeberjMike Wulf, ames

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ALTERNATE Cardoza""" Dw~yne Vartan, uenms Milinovich Dan Barserian, Kalem Nielsen Mike SousakGeorge, Jr. Katao a, Robert . Simpson, Lee Vacant Mooradian, Jacob Chatha, Kuldip Kazam1an, David Kay, Raymond Si11znoft~ Johnnie Boghosian, Philip Podsakoff Bill Steggall, Chris StafK, Rick Flagler, David Sanahu, Nindy Bedrosian, Ki1kor Cederquist, Doug Vacant Pacini Deni Kaercher, Stefan Emde, Richard Norton, Vern Rodrigues, Tim Mede1ro~; Manuel Kaleka, l'l...uldig Sorensen, Mark Clark, Kenneth Olson, Brad Peters, Darrell Venver, James Nadler, Hunter Housepian, Dennis Hornor, Don KoligianA Michael Feaver, ulenn Flagler, George Weoer, Ron Teixeira Allen Martinelli, Lorrin Lion, Bruce LogolusoJ Mike Scliletew1tz, Ron


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The motion . carried unanimously.

=> Moved by Mr. G. Chooljian, seconded by Mr. M. Logo/uso, to delay action on the Export Incentive Programs in Taiwan for the period February 1, 2003 through January 31, 2004 pending a consultative meeting with representatives from the Taiwanese Dried Fruit Importers Association.


Mr. G. Chooljian also reported that the Subcommittee addressed some issues regarding the re-exports of California raisins from China into Japan during the 2002-2003 incentive period. Mr. G. Chooljian alluded to JDFIA's desire for credit and incentive payment on such re-exports.

=> Moved by Mr. G. Chooljian, seconded by Mr. J. Wulf, to request the Japanese Dried Fruit Importers Association to provide appropriate documents verifying transshipments of California raisins from China· into Japan, for the incentive period covering February 1, 2002 to January 31, 2003.



The Chairperson declared a brief recess at 3:55p.m. and reconvened the meeting at 4:10p.m.

AUDIT SUBCOMMITTEE REPORT

The Chairperson recognized Mr. J. Jue for the Audit Subcommittee report.

Mr. J. Jue stated that the Subcommittee, which met earlier in the day took the following actions: (a) accepted the Final Audit ofthe 2000-2001 Natural (sun-dried) Seedless Reserve Pool as presented by Baker, Peterson and Franklin; (b) accepted the RAC 2nd Quarter Financial Statements ending January 31, 2003, as presented by the Staff; (c) recommended to the USDA a FINAL payment on the 2000-2001 Natural (sundried) Seedless Reserve Pool at $9.59/ton on 100% of grower deliveries, or $20.41/ton on the 47% Reserve Pool per Section 989.66(h), and to zero-out any outstanding balance; and (d) recommended to the USDA a progress payment on the 2001-2002 Natural (sundried) Seedless Reserve Pool at $46.25/ton on 100% of grower deliveries, or $125/ton on the 37% Reserve Pool per Section 989.66(h).

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THIS CHECK IS THE FINAL PAYMENT ON THE 2000-01 NATURAL SEEDLESS RESERVE POOL. A STATEMENT OF SALES, EXPENSES, GROWER'S EQUITY AND PRIOR PAYMENTS FOLLOW:

RESERVE POOL SALES:

TONNAGE 22,090.8795 73,044.9695 16,921.7475 89,076.3135

882.0695 1,282.0895

TONS@ TONS@ TONS@ TONS@ TONS@ TONS@

SALES PRICE 975.00 100.00 750.00 415.00

50.00 DONATION

203,298.0690 ORIGINAL POOL TONNAGE

OTHER INCOME: BIN RENTAL INTEREST EARNED UNUSED PROMOTIONAL FEES MISCELLANEOUS INCOME

POOL EXPENSES:

Storage and Fumigation Bin Rental - Bin Deficiency Raisin Insurance Inspection Fees Bin & Hauling Reimbursement RAC Bins and Raisin Transfer Costs Export Programs and Incentives All Administrative Expenses 1999 Pool Deficiency Bin Repair Equity Transfer


GROSS SALES

$ 78,575,633.25

1,031,830.00 6,08,091.17 626,437.10

8,530.61

80,850,522.13

10,446,855.85 1,130,340.00

182,807.00 1,842,341.87 4,065,961.36

492,557.62 1,392,873.31

873,307.11 7,680.89

600,000.00

21,034,725.01

$ 59,815,797.12

BASED ON GROWER'S 47%

EQUITY RESERVE

GROSS GROWERS EQUITY $ 59,815,797.12 $ 294.23 PRIOR PAYMENTS 53,873,988.58 265.00

FINAL PAYMENT (Before State Advertising) $ 5,941,808.54 $ 29.23

STATE ADVERTISING ASSESSMENT $ 1,793,068.08 $ 8.82


F:ISHARED\ACCT\KathleeniRAC Audit 07310212000-01 Natural Seedless TriaiBalance-022803

PER RESERVE TON

$ 386.50

5.08 2.99 3.08 0.04

397.69

51.39 5.56 0.90 9.06

20.00 2.42 6.85 4.29 0.04 2.95

103.46

$ 294.23

BASED ON 100%

DELIVERIES

$ 138.29 $ 124.55

$ 13.74

$ 4.15

I$ 9.591

312712003 8:08AM


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Raisin Administrative ~mmittee 3445 N. First St., Suite I 0 I

P.O. Box 5217 Fresno, CA 93755

MINUTES OF THE MEETING

April 23, 2003

TELEPHONE: 559-225-0520 FAX: 559-225-0652

EMAIL: [email protected] www raisins.org

Chairperson Richard Garabedian called the meeting of the Raisin Administrative Committee to order at 3:00p.m. on Wednesday, April23, 2003 in the RAC/CRMB Conference Center, 3445 North First Street, Fresno, California.

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MEMBER Albrecht, Eddie W. Bedrosian, Ernie Boghosian, Nicholas Brar, Harry Carter: Bnm ChoolJian, Gerald Ciulla, Toey Epperson, Robert Ferguson, Bernadine Forrest, Mark Garabedian, Gilbert Garabedian~ Richard Gerin~r, Lmda Goto,ulen Gularte, Tom Gunlund, Chris Gupta, Anil Hilker, Harold J erkovich, Mike Jue, Jeff Kasparian,_, Alan Kazanan, Kon King, Dan Kister, Steve Koop, Hans Kriebel, Barry F. Lehman, Steve Martheoal Jon Miyaker. Curtis Moles, K_ay Nielsen, Herman Nonini, Gena M. Penner,_Jete J. Peters, uavid Rebensdorf Jerry Sahatdjian, Victor Salwasser, Charlotte Salwass\.r l- George Sangha, 1v1itch San1, James Schutz., Monte Silva, .r<rank Singh, Harvey ~pa1e, Steve "1 roeliler, Steve Weber Mike Wulf, James

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ALTERNATE Cardoza"' Dw~yne Vartan, uenms Milinovich Dan Barserian, Kalem Nielsen Mike SousakGeorge, Jr. Katao a, Rooert Simpson, Lee Vacant Mooradian, Jacob Chathal Kuldip Kazanj mn, David Kay, Ra:Ymond Sihznoff~ Johnnie Boghosian, Philip Podsakoff Bill Steggall: Chris StafK, R1ck Flagler, David Sanohu, Nindy Bedrosian, Knkor Cederquist, Doug Vacanl Pacini Deni Kaercher, Stefan Emde, Richard Norton, Vern Rodrigues, Tim Medeuo?7 Manuel Kaleka, .1.\...Uldig Sorensen, Mark Clark, Kenneth Olson, Brad Peters, Darrell Verwer, James Nadler, Hunter Housepian, Dennis Hornor, Don KoligianA Michael Feaver, vlenn Flagler, George Weoer, Ron Teixeira Allen Martinelli, Lorrin Lion, Bruce Lo_goluso) Mike ScfiJetew1tz, Ron


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Messrs. Martin Engeler, J. Beck, Ron Worthley and Ted Consignado, and Mmes. Maureen Pella and Debbie Pilloud were present, along with approximately 15 industry representatives .

The Chairperson welcomed members and guests. He then introduced Mr. J. Beck as the new President of the RAC. Mr. J. Beck thanked members for his selection as President, assuring them that his administrative, legislative and lobbying experience spanning several years would be very helpful to the industry.

Mr. J. Beck recognized Mr. R. Worthley and thanked him for his stewardship of the Committee as Interim President.

APPROVAL OF MINUTES

The Chairperson called for additions or corrections to the minutes of March 27, 2003 meeting. Ms. M. Pella commented that the minutes should be corrected to show that on page 9, motion number 2, the vote should read as follows:

The motion carried. unanimously.

Hearing no other corrections, the Chairperson ordered the minutes approved as corrected.


The Chairperson recognized Ms. M. Pella to address the USDA report.

Ms. M. Pella reported the following actions taken by the Department since the Committee's meeting on March 27, 2003.

1) Issuance of a press release inviting raisin growers, handlers and other interested persons to propose amendments to the raisin Marketing Order.

Ms. M Pella commented that the deadline for submission would be April 25, 2003, with a two-week hearing being scheduled during the last week of July and first week of August. An Economist from the Washington, D.C. head office, and an Administrative Law Judge, would assist in the hearing process.

2) Approval afFinal payment on the 2000-2001 Natural (sun-dried) Seedless Reserve Pool at $9.59/ton on 100% of grower deliveries, or $20.41/ton on the 47% Reserve Pool per Section 989.66(h).

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18871

Vol. 65, No. 69

Monday, April 10, 2000



7 CFR Part 989[Docket No. FV00–989–4 IFR]

Raisins Produced From Grapes GrownIn California; Final Free and ReservePercentages for 1999–2000 CropNatural (Sun-Dried) Seedless andZante Currant RaisinsAGENCY: Agricultural Marketing Service,USDA.ACTION: Interim final rule with requestfor comments.

SUMMARY: This rule establishes finalvolume regulation percentages for 1999–2000 crop Natural (sun-dried) Seedlessraisins (Naturals) and Zante Currantraisins (Zantes) covered under theFederal marketing order for Californiaraisins (order). The volume regulationpercentages are 85 percent free and 15percent reserve for Naturals and 51percent free and 49 percent reserve forZantes. The order regulates the handlingof raisins produced from grapes grownin California and is administered locallyby the Raisin Administrative Committee(Committee). The volume regulationpercentages are intended to helpstabilize raisin supplies and prices, andstrengthen market conditions.DATES: Effective April 10, 2000.Comments received by June 9, 2000,will be considered prior to issuance ofa final rule.ADDRESSES: Interested persons areinvited to submit written commentsconcerning this rule. Comments must besent to the Docket Clerk, MarketingOrder Administration Branch, Fruit andVegetable Programs, AMS, USDA, room2525–S, P.O. Box 96456, Washington,DC 20090–6456; Fax: (202) 720–5698.All comments should reference thedocket number and the date and pagenumber of this issue of the Federal

Register and will be made available forpublic inspection in the Office of theDocket Clerk during regular businesshours.FOR FURTHER INFORMATION CONTACT:Maureen T. Pello, Marketing Specialist,California Marketing Field Office,Marketing Order AdministrationBranch, 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, TechnicalAdvisor, Marketing OrderAdministration Branch, Fruit andVegetable Programs, AMS, USDA, room2525–S, P.O. Box 96456, Washington,DC 20090–6456; telephone: (202) 720–2491, or Fax: (202) 720–5698.

Small businesses may requestinformation on complying with thisregulation by contacting Jay Guerber,Marketing Order AdministrationBranch, Fruit and Vegetable Programs,AMS, USDA, P.O. Box 96456, room2525–S, Washington, DC 20090–6456;telephone: (202) 720–2491, Fax: (202)720–5698, or E-mail:[email protected] INFORMATION: This ruleis issued under Marketing Agreementand Order No. 989 (7 CFR part 989),both as amended, regulating thehandling of raisins produced fromgrapes grown in California, hereinafterreferred to as the ‘‘order.’’ The order iseffective under the AgriculturalMarketing Agreement Act of 1937, asamended (7 U.S.C. 601–674), hereinafterreferred to as the ‘‘Act.’’

The Department of Agriculture(Department) is issuing this rule inconformance with Executive Order12866.

This rule has been reviewed underExecutive Order 12988, Civil JusticeReform. Under the order provisions nowin effect, final free and reservepercentages may be established forraisins acquired by handlers during thecrop year. This rule establishes final freeand reserve percentages for Naturals andZantes for the 1999–2000 crop year,which began August 1, 1999, and endsJuly 31, 2000. This rule will notpreempt any State or local laws,regulations, or policies, unless theypresent an irreconcilable conflict withthis rule.

The Act provides that administrativeproceedings must be exhausted beforeparties may file suit in court. Under

section 608c(15)(A) of the Act, anyhandler subject to an order may filewith the Secretary a petition stating thatthe order, any provision of the order, orany obligation imposed in connectionwith the order is not in accordance withlaw and request a modification of theorder or to be exempted therefrom. Ahandler is afforded the opportunity fora hearing on the petition. After thehearing, the Secretary would rule on thepetition. The Act provides that thedistrict court of the United States in anydistrict in which the handler is aninhabitant, or has his or her principalplace of business, has jurisdiction inequity to review the Secretary’s rulingon the petition, provided an action isfiled not later than 20 days after the dateof the entry of the ruling.

This rule establishes final volumeregulation percentages for 1999–2000crop Naturals and Zantes covered underthe order. The volume regulationpercentages are 85 percent free and 15percent reserve for Naturals and 51percent free and 49 percent reserve forZantes. Free tonnage raisins may be soldby handlers to any market. Reserveraisins must be held in a pool for theaccount of the Committee and aredisposed of through various programsauthorized under the order. Forexample, reserve raisins may be sold bythe Committee to handlers for free useor to replace part of the free tonnageraisins they exported; used in diversionprograms; carried over as a hedgeagainst a short crop the following year;or disposed of in other outlets notcompetitive with those for free tonnageraisins, such as government purchase,distilleries, or animal feed.

The volume regulation percentagesare intended to help stabilize raisinsupplies and prices, and strengthenmarket conditions. Final percentages forZantes were recommended by theCommittee on January 13, 2000, and forNaturals on February 11, 2000.


Section 989.54 of the order prescribesthe procedures and time frames to befollowed in establishing volumeregulation. This includes methodologyused to calculate percentages. Pursuantto § 989.54(a) of the order, theCommittee met on August 12, 1999, toreview shipment and inventory data,and other matters relating to thesupplies of raisins of all varietal types.

VerDate 20<MAR>2000 11:08 Apr 07, 2000 Jkt 190000 PO 00000 Frm 00001 Fmt 4700 Sfmt 4700 E:\FR\FM\10APR1.SGM pfrm07 PsN: 10APR1

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The Committee computed a tradedemand for each varietal type for whicha free tonnage percentage might berecommended. Trade demand iscomputed using a formula specified inthe order and, for each varietal type, isequal to 90 percent of the prior year’sshipments of free tonnage and reservetonnage raisins sold for free use into allmarket outlets, adjusted by subtractingthe carryin on August 1 of the currentcrop year and by adding the desirablecarryout at the end of that crop year. Asspecified in § 989.154(a), the desirablecarryout for each varietal type is equalto the shipments of free tonnage raisinsof the prior crop year during the monthsof August, September, and one-half ofOctober. In accordance with theseprovisions, the Committee computedand announced 1999–2000 tradedemands for Naturals and Zantes at254,475 and 1,855 tons, respectively, asshown below.


Naturals Zantes

Prior year’s ship-ments ................ 1 314,013 3,542

Multiplied by 90percent .............. 0.90 0.90

Equals adjustedbase .................. 282,612 3,188

Minus carryin in-ventory .............. 101,946 1,906

Plus desirable car-ryout .................. 73,809 573

Equals computedtrade demand .... 254,475 1,8551 Pursuant to § 989.54(a), 1996–97 ship-

ments were utilized to compute trade demandbecause 1998–99 shipments were limited.


As required under § 989.54(b) of theorder, the Committee met on October 1,1999, and announced a preliminarycrop estimate of 294,519 tons forNaturals. This estimate was almost 15percent lower than the 10-year averageof 346,325 tons. Naturals are the majorvarietal type of California raisins.Combining the carryin inventory of101,946 tons with the 294,519-ton cropestimate resulted in a total availablesupply of 396,465 tons, which wasmuch higher than the 254,475-ton tradedemand. Thus, the Committeedetermined that volume regulation forNaturals was warranted. The Committeeannounced preliminary free and reservepercentages for Naturals which released65 percent of the computed tradedemand since the field price had not yetbeen established. The preliminarypercentages were 56 percent free and 44

percent reserve. The Committeeauthorized its staff to modify thepreliminary percentages to release 85percent of the trade demand once thefield price was established. The fieldprice was established on October 22,1999, and the preliminary percentageswere thus modified to 73 percent freeand 27 percent reserve.

Also at its October 1, 1999, meeting,the Committee announced a preliminarycrop estimate for Zantes at 4,187 tons,which is comparable to the 10-yearaverage of 4,463 tons. Combining thecarryin inventory of 1,906 tons with the4,187-ton crop estimate resulted in atotal available supply of 6,093 tons,which is significantly greater the 1,855-ton trade demand. Thus, the Committeedetermined that volume regulation forZantes was warranted. The Committeeannounced preliminary free and reservepercentages for Zantes which released65 percent of the computed tradedemand since field price had not yetbeen established. The preliminarypercentages were 29 percent free and 71percent reserve. Like Naturals, theCommittee authorized its staff to modifythe preliminary percentages to release85 percent of the trade demand once thefield price was established. The fieldprice was established on October 12,1999, and the preliminary percentageswere thus modified to 38 percent freeand 62 percent reserve. As in pastseasons, the Committee submitted itsmarketing policy to the Department forreview. In addition, the Committeedetermined that volume regulation wasnot warranted for the other varietaltypes of raisins covered under the order.


Pursuant to §§ 989.54(c) and (d) of theorder, the Committee met on January 12,2000, and announced interimpercentages for Zantes at 50.75 percentfree and 49.25 percent reserve. Theseinterim percentages were based on arevised Zante crop estimate of 3,650tons. At that meeting, the Committeealso computed final percentages forZantes which, when applied to the final3,650-ton crop estimate, tend to releasethe full Zante trade demand. Finalpercentages compute to 51 percent freeand 49 percent reserve.

The Committee met on February 11,2000, and announced interimpercentages for Naturals at 84.75percent free and 15.25 percent reserve.These interim percentages were basedon a revised crop estimate of 298,477tons. The Committee also computedfinal percentages for Naturals which,when applied to the final 298,477-toncrop estimate, tend to release the full

trade demand. Final percentagescompute to 85 percent free and 15percent reserve. The Committee’scalculations to arrive at finalpercentages for Naturals and Zantes areshown in the table below.


[Tonnage as natural condition weight]

Naturals Zantes

Trade demand ...... 254,475 1,855Divided by crop es-

timate ................ 298,477 3,650Equals free per-

centage ............. 85 51100 minus free

percentageequals reservepercentage ........ 15 49

In addition, the Department’s‘‘Guidelines for Fruit, Vegetable, andSpeciality Crop Marketing Orders’’(Guidelines) specify that 110 percent ofrecent years’ sales should be madeavailable to primary markets eachseason for marketing orders utilizingreserve pool authority. This goal will bemet for Naturals and Zantes by theestablishment of final percentageswhich release 100 percent of the tradedemand and the offer of additionalreserve raisins for sale to handlers underthe ‘‘10 plus 10 offers.’’ As specified in§ 989.54(g), the 10 plus 10 offers are twooffers of reserve pool raisins which aremade available to handlers during eachseason. For each such offer, a quantityof reserve raisins equal to 10 percent ofthe prior year’s shipments is madeavailable for free use. Handlers may selltheir 10 plus 10 raisins to any market.

For Naturals, both 10 plus 10 offerswill be held in June 2000 where a totalof about 44,000 tons of raisins will bemade available to handlers. Thisquantity is less than the amountspecified in the order. As previouslystated, the Committee utilized 1996–97shipments of 314,013 tons as a base tocompute trade demand because 1998–99shipments were limited. Similarly, asspecified in § 989.54(g), 1996-97shipments were used as a base tocompute the amount of tonnage to bemade available in the 10 plus 10 offers.Thus, 31,402 tons should be madeavailable in each of the 10 plus 10 offers(62,803 tons total). However, thisamount is not available in the reserve.Thus, all of the reserve pool raisins willbe made available to handlers for freeuse through the 10 plus 10 offers.

Adding the 44,000 tons of 10 plus 10raisins to the 254,475-ton trade demandfigure, plus 101,946 tons of 1998-99


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18873Federal Register / Vol. 65, No. 69 / Monday, April 10, 2000 / Rules and Regulations

carryin inventory equates to about400,423 tons natural condition raisins,or 375,893 tons packed raisins, that willbe made available for free use, or to theprimary market. This is 136 percent ofthe quantity of Naturals shipped duringthe 1998–99 crop year (295,401 naturalcondition tons or 277,305 packed tons).

For Zantes, both Zante 10 plus 10offers were made availablesimultaneously in early February 2000and 708 tons of raisins were purchasedby handlers. Adding the 708 tons of 10plus 10 raisins to the 1,855 ton tradedemand figure, plus 1,906 tons of 1998–99 carryin inventory equates to 4,469tons natural condition raisins, or about3,985 tons packed raisins, madeavailable for free use, or to the primarymarket. This is 126 percent of thequantity of Zantes shipped during the1998–99 crop year (3,542 naturalcondition tons or 3,158 packed tons).

In addition to the 10 plus 10 offers,§ 989.67(j) of the order providesauthority for sales of reserve raisins tohandlers under certain conditions suchas a national emergency, crop failure,change in economic or marketingconditions, or if free tonnage shipmentsin the current crop year exceedshipments of a comparable period of theprior crop year. Such reserve raisinsmay be sold by handlers to any market.When implemented, these additionaloffers of reserve raisins make even moreraisins available to primary marketswhich is consistent with theDepartment’s Guidelines.


Pursuant to requirements set forth inthe Regulatory Flexibility Act (RFA), theAgricultural Marketing Service (AMS)has considered the economic impact ofthis action on small entities.Accordingly, AMS has prepared thisinitial regulatory flexibility analysis.

The purpose of the RFA is to fitregulatory actions to the scale ofbusiness subject to such actions in orderthat small businesses will not be undulyor disproportionately burdened.Marketing orders issued pursuant to theAct, and rules issued thereunder, areunique in that they are brought aboutthrough group action of essentiallysmall entities acting on their own

behalf. Thus, both statutes have smallentity orientation and compatibility.

There are approximately 20 handlersof California raisins who are subject toregulation under the order andapproximately 4,500 raisin producers inthe regulated area. Small agriculturalservice firms have been defined by theSmall Business Administration (13 CFR121.201) as those having annual receiptsof less than $5,000,000, and smallagricultural producers are defined asthose having annual receipts of less than$500,000. Thirteen of the 20 handlerssubject to regulation have annual salesestimated to be at least $5,000,000, andthe remaining 7 handlers have sales lessthan $5,000,000, excluding receiptsfrom any other sources. No more than 7handlers, and a majority of producers, ofCalifornia raisins may be classified assmall entities.

Pursuant to § 989.54(d) of the order,this rule establishes final volumeregulation percentages for 1999-2000crop Natural and Zante raisins. Thevolume regulation percentages are 85percent free and 15 percent reserve forNaturals and 51 percent free and 49percent reserve for Zantes. Free tonnageraisins may be sold by handlers to anymarket. Reserve raisins must be held ina pool for the account of the Committeeand are disposed of through certainprograms authorized under the order.

Volume regulation is warranted thisseason for Naturals because the finalcrop estimate of 298,477 tons combinedwith the carryin inventory of 101,946tons results in a total available supplyof 400,423 tons, which is about 57percent higher than the 254,475-tontrade demand. Volume regulation iswarranted for Zantes this seasonbecause the crop estimate of 3,650 tonscombined with the carryin inventory of1,906 tons results in a total availablesupply of 5,556 tons which is about 200percent higher than the 1,855-ton tradedemand. The volume regulationpercentages are intended to helpstabilize raisin supplies and prices, andstrengthen market conditions.

Many years of marketing experienceled to the development of the currentvolume regulation procedures. Theseprocedures have helped the industry

address its marketing problems bykeeping supplies in balance withdomestic and export market needs, andstrengthening market conditions. Thecurrent volume regulation proceduresfully supply the domestic and exportmarkets, provide for market expansion,and help prevent oversupplies in thedomestic market.

Raisin-variety grapes can be marketedas fresh grapes, crushed for use in theproduction of wine or juice concentrate,or dried into raisins. Annualfluctuations in the fresh grape, wine,and concentrate markets, as well asweather-related factors, causefluctuations in raisin supply. Thesesupply fluctuations can cause producerprice instability and disorderly marketconditions. Volume regulation is helpfulto the raisin industry because it lessensthe impact of such fluctuations andcontributes to orderly marketing. Forexample, excluding the 1997–98 seasonfor which complete data is not yetavailable, producer prices for Naturalshave remained fairly steady between the1992–93 through the 1998–99 seasons,although production has varied. Asshown in the table below, productionhas varied from a low of 240,469 tonsin 1998–99 to a high of 387,007 tons in1993–94, or 61 percent. According toCommittee data, during years of Naturalvolume regulation, the total producerreturn per ton, which includes proceedsfrom both free tonnage plus reserve poolraisins, has varied from a low of $901in 1992–93 to a high of $1,049 in 1996–97, or 16 percent.


Crop yearProduction

(naturalcondition

tons)

Producerprices

1998–99 ............ 240,469 1 $1,2901997–98 ............ 382,448 2 925.501996–97 ............ 272,063 1,0491995–96 ............ 325,911 1,0071994–95 ............ 378,427 9281993–94 ............ 387,007 9041992–93 ............ 371,516 901

1 No volume regulation.2 Return to date, reserve pool still open.


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In addition, the Committee isimplementing an export program forNaturals. Through this program, theCommittee hopes to export moreNaturals thereby helping to build andmaintain export markets, and ultimatelyimproving producer returns. Volumeregulation helps the industry not only tomanage its supply of raisins, but alsomaintain market stability.

Regarding Zantes, Zante production ismuch smaller than that of Naturals.Volume regulation has been

implemented for Zantes during the1994–95, 1995–96, 1997–98, and 1998–99 seasons. Various programs to utilizereserve Zantes were implemented whenvolume regulation was in effect duringthe 1994–95, 1995–96, 1997–98, and1998–99 seasons. As shown in the tablefollowing this paragraph, althoughproduction varied during those years,volume regulation helped to reduceinventories, and helped to strengthentotal producer prices (free tonnage plusreserve Zantes) from $412.56 per ton in

1994–95 to an estimated high of $730per ton in 1997–98. The Committee isimplementing an export program forZantes, in addition to Naturals. Throughthis program, the Committee hopes toexport more Zantes, thereby continuingto reduce the industry’s oversupply,helping to build export markets, andultimately improving producer returns.Volume regulation helps the industrynot only to manage oversupplies ofraisins, but also maintain marketstability.

ZANTE CURRANT INVENTORIES AND PRODUCER PRICES DURING YEARS OF VOLUME REGULATION[* Natural condition tons]

Crop year Production *Inventory * Total season aver-

age producerprice (per ton)Desirable Physical

1998–99 ............................................................................................................. 3,880 573 1,906 (1)1997–98 ............................................................................................................. 4,826 694 1,188 2 $730.001996–97 ............................................................................................................. 4,491 987 549 3 1,150.001995–96 ............................................................................................................. 3,294 782 2,890 711.321994–95 ............................................................................................................. 5,377 837 4,364 412.56

1 Data not yet available, reserve pool open.2 Estimate.3 No volume regulation.

Free and reserve percentages areestablished by variety, and usually inyears when the supply exceeds the tradedemand by a large enough margin thatthe Committee believes volumeregulation is necessary to maintainmarket stability. However, volumeregulation may also be utilized in shortcrop years so that the industry mayutilize its export program as describedto maintain its export markets andprovide stability in the domestic market.Accordingly, in assessing whether toapply volume regulation or, as analternative, not to apply such regulation,the Committee recommended only twoof the nine raisin varieties definedunder the order for volume regulationthis season.

The free and reserve percentagesestablished by this rule release the fulltrade demands and apply uniformly toall handlers in the industry, regardlessof size. For Naturals, with the exceptionof the 1998–99 crop year, small andlarge raisin producers and handlershave been operating under volumeregulation percentages every year since1983–84. There are no known additionalcosts incurred by small handlers that arenot incurred by large handlers. Allhandlers are regulated based on thequantity of raisins which they acquirefrom producers. While the level ofbenefits of this rulemaking are difficultto quantify, the stabilizing effects of thevolume regulations impact both smalland large handlers positively by helpingthem maintain and expand markets

even though raisin supplies fluctuatewidely from season to season. Likewise,price stability positively impacts smalland large producers by allowing them tobetter anticipate the revenues theirraisins will generate.

There are some reporting,recordkeeping and other compliancerequirements under the order. Thereporting and recordkeeping burdensare necessary for compliance purposesand for developing statistical data formaintenance of the program. Therequirements are the same as thoseapplied in past seasons. Thus, thisaction will not impose any additionalreporting or recordkeeping burdens oneither small or large handlers. The formsrequire information which is readilyavailable from handler records andwhich can be provided without dataprocessing equipment or trainedstatistical staff. The informationcollection and recordkeepingrequirements have been previouslyapproved by the Office of Managementand Budget (OMB) under OMB ControlNo. 0581–0178. As with other, similarmarketing order programs, reports andforms are periodically studied to reduceor eliminate duplicate informationcollection burdens by industry andpublic sector agencies. In addition, theDepartment has not identified anyrelevant Federal rules that duplicate,overlap, or conflict with this rule.Finally, interested persons are invited tosubmit information on the regulatory

and informational impacts of this actionon small businesses.


A small business guide on complyingwith fruit, vegetable, and specialty cropmarketing agreements and orders maybe viewed at the following web site:http://www.ams.usda.gov/fv/moab/html. Any questions about thecompliance guide should be sent to JayGuerber at the previously mentionedaddress in the FOR FURTHER INFORMATIONCONTACT section.

After consideration of all relevantmaterial presented, including theCommittee’s recommendation, andother information, it is found that thisinterim final rule, as hereinafter setforth, will tend to effectuate thedeclared policy of the Act.

This rule invites comments for a 60-day period on the establishment of finalvolume regulation percentages for 1999–2000 crop Natural and Zante raisinscovered under the order. All commentsreceived within the comment periodwill be considered prior to finalizationof this rule.

Pursuant to 5 U.S.C. 553, it is alsofound and determined upon good cause


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that it is impracticable, unnecessary,and contrary to the public interest togive preliminary notice prior to puttingthis rule into effect, and that good causeexists for not postponing the effectivedate of this rule until 30 days afterpublication in the Federal Registerbecause: (1) The relevant provisions ofthis part require that the percentagesdesignated herein for the 1999–2000crop year apply to all Natural and Zanteraisins acquired from the beginning ofthat crop year; (2) handlers are currentlymarketing 1999–2000 crop Natural andZante raisins and this action should betaken promptly to achieve the intendedpurpose of making the full tradedemands available to handlers; (3)handlers are aware of this action, whichthe Committee recommended at openmeetings, and need no additional timeto comply with these percentages; and(4) this interim final rule provides a 60-day comment period and any commentsreceived will be considered prior tofinalization of this rule.



For the reasons set forth in thepreamble, 7 CFR part 989 is amended toread as follows:


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


2. Section 989.253 is added toSubpart—Supplementary Regulations toread as follows:

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

§ 989.253 Final free and reservepercentages for the 1999–2000 crop year.

The final percentages for standardNatural (sun-dried) Seedless and ZanteCurrant raisins acquired by handlersduring the crop year beginning onAugust 1, 1999, which shall be freetonnage and reserve tonnage,respectively, are designated as follows:

Varietaltype

Free-percentage

Reserve-percentage

Natural(sun-dried)Seedless 85 15

Zante Cur-rant ........ 51 49

Dated: April 4, 2000.Robert C. Keeney,Deputy Administrator, Fruit and VegetablePrograms.[FR Doc. 00–8728 Filed 4–7–00; 8:45 am]BILLING CODE 3410–02–P


Animal and Plant Health InspectionService

9 CFR Parts 71 and 80[Docket No. 98–037–2]

Johne’s Disease in Domestic Animals;Interstate Movement

AGENCY: Animal and Plant HealthInspection Service, USDA.ACTION: Final rule.

SUMMARY: We are amending theregulations regarding the interstatemovement of domestic animals thathave reacted to a test forparatuberculosis. First, we are replacingall references to ‘‘paratuberculosis’’ withreferences to ‘‘Johne’s disease’’ to reflecta change in nomenclature. Second, weare identifying an official test for thedetection of Johne’s disease in domesticanimals. Third, we are amending therequirements for moving animalsinterstate. These actions will update theregulations and remove restrictions onthe interstate movement of animals thatare positive to an official Johne’s diseasetest that do not appear necessary toprevent the interstate spread of Johne’sdisease.EFFECTIVE DATE: May 10, 2000.FOR FURTHER INFORMATION CONTACT: Dr.Joseph S. VanTiem, Senior StaffVeterinarian, National Animal HealthPrograms, VS, APHIS, 4700 River RoadUnit 43, Riverdale, MD 20737–1231;(301) 734–7716.SUPPLEMENTARY INFORMATION:Background

Paratuberculosis, also known asJohne’s disease, is a disease caused byMycobacterium paratuberculosis. Thisdisease primarily affects cattle, sheep,goats, and other domestic, exotic, andwild ruminants. Paratuberculosis is achronic and contagious enteritis thatresults in progressive wasting andeventual death. Clinical signs are rarelyevident until 2 or 3 years after the initialinfection, which usually occurs soonafter birth. The organism is shed in largenumbers in the feces of infectedanimals, and infection can be acquiredby ingestion of organisms fromcontaminated food and water sources.

The organisms can also be present incolostrum and milk of infected cows.The disease is nearly always introducedinto a clean herd by an infected animalthat does not show symptoms of thedisease. Our regulations are intended tocontrol the interstate spread of thedisease in the United States.

The regulations in subchapter C ofchapter I, title 9, Code of FederalRegulations (CFR), govern the interstatemovement of animals to prevent thedissemination of livestock and poultrydiseases in the United States. Parts 71and 80 (referred to below as theregulations) are included in subchapterC. Part 71 relates to the interstatetransportation of animals, poultry, andanimal products. Part 80 pertains to theinterstate movement of domesticanimals that are paratuberculosisreactors. A paratuberculosis reactor is adomestic animal that has reacted to atest recognized by the Secretary ofAgriculture for paratuberculosis.

On March 22, 1999, we published inthe Federal Register (64 FR 13726–13732, Docket No. 98–037–1) a proposalto amend the regulations regarding theinterstate movement of domesticanimals affected with Johne’s disease.We proposed to replace references to‘‘paratuberculosis’’ with references to‘‘Johne’s disease’’, to identify an officialtest for Johne’s disease, and to allow theinterstate movement of domesticanimals that are positive to the officialJohne’s disease test for slaughterpurposes or the collection of germplasm.

We solicited comments concerningour proposal for 60 days ending May 21,1999. We received six comments by thatdate. They were from a nationalveterinary medical association, a Stateveterinary association, a beefassociation, two dairy associations, anda State advisory committee on Johne’sdisease. Two commenters supported theproposed rule. One commenter statedthat he could not support the proposedrule. This commenter and the remainingcommenters expressed concerns that arediscussed below.

Movement of Animals for the Collectionof Germ Plasm

Several commenters raised concernsrelated to our proposed provisions toallow the interstate movement ofpositive animals for the collection ofgerm plasm (semen, embryos, and ova).We stated in our proposal that artificialinsemination and embryo transfer wereconsidered to present a low risk oftransmitting Johne’s disease, and thatallowing interstate movement ofpositive animals for germ plasmcollection would allow herd owners to


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decided that an assessment rate of lessthan $0.09 would not generate theincome necessary to administer theprogram with an adequate reserve. TheCommittee recommended the decreasedassessment rate to help offset thenegative effects the current depressedspearmint oil market is having on theindustry.

Expenditures recommended by theCommittee for the 2000–2001 marketingyear include $178,500 for Committeeexpenses and $34,400 for administrativeexpenses. For 2000–2001, a total of$156,000 is budgeted for agency fees,$21,000 is budgeted for Committee perdiem and travel, $16,500 is budgeted foragency staff travel, and $10,700 isbudgeted for copying, mail handling,postage, telephone and fax, cellularphone charges, officer liabilityinsurance, and auditing. Actualexpenses for these items in 1999–2000are estimated to total $165,000, $22,133,$16,843, and $10,900. For 2000–2001,funds also are budgeted for marketdevelopment ($5,000) and forcompliance ($1,000). Expenditures forthese items in 1999–2000 are expectedto total $5,000.

Based on 1999 prices, the averageprice paid to producers for both Scotchand Native spearmint oils during the2000–2001 marketing year could beabout $9.80 per pound. Therefore, theestimated assessment revenue for the2000–2001 marketing year as apercentage of total producer revenuecould be about 0.92 percent.

This action continues to decrease theassessment obligation imposed onhandlers. While this rule will imposesome additional costs on handlers, thecosts are minimal and in the form ofuniform assessments on all handlers.Some of the additional costs may bepassed on to producers. However, thesecosts will be offset by the benefitsderived by the operation of the order. Inaddition, the Committee’s meeting waswidely publicized throughout the FarWest spearmint oil industry and allinterested persons were invited toattend the meeting and participate inCommittee deliberations on all issues.Like all Committee meetings, theFebruary 23, 2000, meeting was a publicmeeting and all entities, both large andsmall, were able to express views onthis issue.

This action imposes no additionalreporting or recordkeeping requirementson either small or large spearmint oilhandlers. As with all Federal marketingorder programs, reports and forms areperiodically reviewed to reduceinformation requirements andduplication by industry and publicsector agencies.

The Department has not identifiedany relevant Federal rules thatduplicate, overlap, or conflict with thisrule.

An interim final rule concerning thisaction was published in the FederalRegister on April 5, 2000 (65 FR 17756).A copy of the rule was mailed to theCommittee office, which in turnprovided copies for Committee membersand industry members. Further, theinterim final rule was made available onthe Internet by the Office of the FederalRegister. A 30-day comment period wasprovided for interested persons torespond to the interim final rule. Thecomment period ended on May 5, 2000,and no comments were received.

A small business guide on complyingwith fruit, vegetable, and specialty cropmarketing agreements and orders maybe viewed at: http://www.ams.usda.gov/fv/moab.html. Any questions about thecompliance guide should be sent to JayGuerber at the previously mentionedaddress in the FOR FURTHER INFORMATIONCONTACT section.



Marketing agreements, Oils and fats,Reporting and recordkeepingrequirements, Spearmint oil.

PART 985—MARKETING ORDERREGULATING THE HANDLING OFSPEARMINT OIL PRODUCED IN THEFAR WEST

Accordingly, the interim final ruleamending 7 CFR part 985 which waspublished at 65 FR 17756 on April 5,2000, is adopted as a final rule withoutchange.

Dated: June 27, 2000.

Robert C. Keeney,Deputy Administrator, Fruit and VegetablePrograms.[FR Doc. 00–16738 Filed 6–30–00; 8:45 am]




7 CFR Part 989[Docket No. FV00–989–4 FIR]

Raisins Produced From Grapes GrownIn California; Final Free and ReservePercentages for 1999–2000 CropNatural (Sun-Dried) Seedless andZante Currant RaisinsAGENCY: Agricultural Marketing Service,USDA.ACTION: Final rule.

SUMMARY: The Department ofAgriculture (Department) is adopting, asa final rule, without change, theprovisions of an interim final rule thatestablished final volume regulationpercentages for 1999–2000 crop Natural(sun-dried) Seedless raisins (Naturals)and Zante Currant raisins (Zantes)covered under the Federal marketingorder for California raisins (order). Thevolume regulation percentages are 85percent free and 15 percent reserve forNaturals and 51 percent free and 49percent reserve for Zantes. The orderregulates the handling of raisinsproduced from grapes grown inCalifornia and is administered locallyby the Raisin Administrative Committee(Committee). The volume regulationpercentages are intended to helpstabilize raisin supplies and prices, andstrengthen market conditions.EFFECTIVE DATE: August 2, 2000.FOR FURTHER INFORMATION CONTACT:Maureen T. Pello, Marketing Specialist,California Marketing Field Office,Marketing Order AdministrationBranch, 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, TechnicalAdvisor, Marketing OrderAdministration Branch, Fruit andVegetable Programs, AMS, USDA, room2525–S, P.O. Box 96456, Washington,DC 20090–6456; telephone: (202) 720–2491, or Fax: (202) 720–5698.

Small businesses may requestinformation on complying with thisregulation by contacting Jay Guerber,Marketing Order AdministrationBranch, Fruit and Vegetable Programs,AMS, USDA, P.O. Box 96456, room2525–S, Washington, DC 20090–6456;telephone: (202) 720–2491, Fax: (202)720–5698, or E-mail:[email protected].

SUPPLEMENTARY INFORMATION: This ruleis issued under Marketing Agreementand Order No. 989 (7 CFR part 989),

VerDate 11<MAY>2000 14:05 Jun 30, 2000 Jkt 190000 PO 00000 Frm 00009 Fmt 4700 Sfmt 4700 E:\FR\FM\03JYR1.SGM pfrm03 PsN: 03JYR1

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both as amended, regulating thehandling of raisins produced fromgrapes grown in California, hereinafterreferred to as the ‘‘order.’’ The order iseffective under the AgriculturalMarketing Agreement Act of 1937, asamended (7 U.S.C. 601–674), hereinafterreferred to as the ‘‘Act.’’

The Department is issuing this rule inconformance with Executive Order12866.

This rule has been reviewed underExecutive Order 12988, Civil JusticeReform. Under the order provisions nowin effect, final free and reservepercentages may be established forraisins acquired by handlers during thecrop year. This rule continues in effectfinal free and reserve percentages forNaturals and Zantes for the 1999–2000crop year, which began August 1, 1999,and ends July 31, 2000. This rule willnot preempt any State or local laws,regulations, or policies, unless theypresent an irreconcilable conflict withthis rule.

The Act provides that administrativeproceedings must be exhausted beforeparties may file suit in court. Undersection 608c(15)(A) of the Act, anyhandler subject to an order may filewith the Secretary a petition stating thatthe order, any provision of the order, orany obligation imposed in connectionwith the order is not in accordance withlaw and request a modification of theorder or to be exempted therefrom. Ahandler is afforded the opportunity fora hearing on the petition. After the

hearing, the Secretary would rule on thepetition. The Act provides that thedistrict court of the United States in anydistrict in which the handler is aninhabitant, or has his or her principalplace of business, has jurisdiction inequity to review the Secretary’s rulingon the petition, provided an action isfiled not later than 20 days after the dateof the entry of the ruling.

This rule continues in effect finalvolume regulation percentages for 1999–2000 crop Naturals and Zantes coveredunder the order. The volume regulationpercentages are 85 percent free and 15percent reserve for Naturals and 51percent free and 49 percent reserve forZantes. Free tonnage raisins may be soldby handlers to any market. Reserveraisins must be held in a pool for theaccount of the Committee and aredisposed of through various programsauthorized under the order. Forexample, reserve raisins may be sold bythe Committee to handlers for free useor to replace part of the free tonnageraisins they exported; used in diversionprograms; carried over as a hedgeagainst a short crop the following year;or disposed of in other outlets notcompetitive with those for free tonnageraisins, such as government purchase,distilleries, or animal feed.

The volume regulation percentagesare intended to help stabilize raisinsupplies and prices, and strengthenmarket conditions. Final percentages forZantes were recommended by the

Committee on January 13, 2000, and forNaturals on February 11, 2000.


Section 989.54 of the order prescribesthe procedures and time frames to befollowed in establishing volumeregulation. This includes methodologyused to calculate percentages. Pursuantto § 989.54(a) of the order, theCommittee met on August 12, 1999, toreview shipment and inventory data,and other matters relating to thesupplies of raisins of all varietal types.The Committee computed a tradedemand for each varietal type for whicha free tonnage percentage might berecommended. Trade demand iscomputed using a formula specified inthe order and, for each varietal type, isequal to 90 percent of the prior year’sshipments of free tonnage and reservetonnage raisins sold for free use into allmarket outlets, adjusted by subtractingthe carryin on August 1 of the currentcrop year and by adding the desirablecarryout at the end of that crop year. Asspecified in § 989.154(a), the desirablecarryout for each varietal type is equalto the shipments of free tonnage raisinsof the prior crop year during the monthsof August, September, and one-half ofOctober. In accordance with theseprovisions, the Committee computedand announced 1999–2000 tradedemands for Naturals and Zantes at254,475 and 1,855 tons, respectively, asshown below.


Naturals Zantes

Prior year’s shipments ............................................................................................................................................. 1 314,013 3,542Multiplied by 90 percent .......................................................................................................................................... 0.90 0.90Equals adjusted base .............................................................................................................................................. 282,612 3,188Minus carryin inventory ............................................................................................................................................ 101,946 1,906Plus desirable carryout ............................................................................................................................................ 73,809 573Equals computed trade demand ............................................................................................................................. 254,475 1,855

1Pursuant to § 989.54(a), 1996–97 shipments were utilized to compute trade demand because 1998–99 shipments were limited.


As required under § 989.54(b) of theorder, the Committee met on October 1,1999, and announced a preliminarycrop estimate of 294,519 tons forNaturals. This estimate was almost 15percent lower than the 10-year averageof 346,325 tons. Naturals are the majorvarietal type of California raisins.Combining the carryin inventory of101,946 tons with the 294,519-ton cropestimate resulted in a total availablesupply of 396,465 tons, which wasmuch higher than the 254,475-ton trade

demand. Thus, the Committeedetermined that volume regulation forNaturals was warranted. The Committeeannounced preliminary free and reservepercentages for Naturals which released65 percent of the computed tradedemand since the field price had not yetbeen established. The preliminarypercentages were 56 percent free and 44percent reserve. The Committeeauthorized its staff to modify thepreliminary percentages to release 85percent of the trade demand once thefield price was established. The fieldprice was established on October 22,

1999, and the preliminary percentageswere thus modified to 73 percent freeand 27 percent reserve.

Also at its October 1, 1999, meeting,the Committee announced a preliminarycrop estimate for Zantes at 4,187 tons,which is comparable to the 10-yearaverage of 4,463 tons. Combining thecarryin inventory of 1,906 tons with the4,187-ton crop estimate resulted in atotal available supply of 6,093 tons,which is significantly greater the 1,855-ton trade demand. Thus, the Committeedetermined that volume regulation forZantes was warranted. The Committee


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announced preliminary free and reservepercentages for Zantes which released65 percent of the computed tradedemand since field price had not yetbeen established. The preliminarypercentages were 29 percent free and 71percent reserve. Like Naturals, theCommittee authorized its staff to modifythe preliminary percentages to release85 percent of the trade demand once thefield price was established. The fieldprice was established on October 12,1999, and the preliminary percentageswere thus modified to 38 percent freeand 62 percent reserve. As in pastseasons, the Committee submitted itsmarketing policy to the Department forreview. In addition, the Committee

determined that volume regulation wasnot warranted for the other varietaltypes of raisins covered under the order.


Pursuant to 989.54(c) and (d) of theorder, the Committee met on January 12,2000, and announced interimpercentages for Zantes at 50.75 percentfree and 49.25 percent reserve. Theseinterim percentages were based on arevised Zante crop estimate of 3,650tons. At that meeting, the Committeealso computed final percentages forZantes which, when applied to the final3,650-ton crop estimate, tend to releasethe full Zante trade demand. Final

percentages compute to 51 percent freeand 49 percent reserve.

The Committee met on February 11,2000, and announced interimpercentages for Naturals at 84.75percent free and 15.25 percent reserve.These interim percentages were basedon a revised crop estimate of 298,477tons. The Committee also computedfinal percentages for Naturals which,when applied to the final 298,477-toncrop estimate, tend to release the fulltrade demand. Final percentagescompute to 85 percent free and 15percent reserve. The Committee’scalculations to arrive at finalpercentages for Naturals and Zantes areshown in the table below.

FINAL VOLUME REGULATION PERCENTAGES[Tonnage as natural condition weight]

Naturals Zantes

Trade demand ......................................................................................................................................................... 254,475 1,855Divided by crop estimate ......................................................................................................................................... 298,477 3,650Equals free percentage ........................................................................................................................................... 85 51100 minus free percentage equals reserve percentage ......................................................................................... 15 49

In addition, the Department’s‘‘Guidelines for Fruit, Vegetable, andSpecialty Crop Marketing Orders’’(Guidelines) specify that 110 percent ofrecent years’ sales should be madeavailable to primary markets eachseason for marketing orders utilizingreserve pool authority. This goal wasmet for Naturals and Zantes by theestablishment of final percentages thatreleased 100 percent of the tradedemand and the offer of additionalreserve raisins for sale to handlers underthe ‘‘10 plus 10 offers.’’ As specified in§ 989.54(g), the 10 plus 10 offers are twooffers of reserve pool raisins that aremade available to handlers during eachseason. For each such offer, a quantityof reserve raisins equal to 10 percent ofthe prior year’s shipments is madeavailable for free use. Handlers may selltheir 10 plus 10 raisins to any market.

For Naturals, both 10 plus 10 offerswere held in May 2000 where a total ofabout 44,000 tons of raisins were madeavailable to handlers. This quantity isless than the amount specified in theorder. As previously stated, theCommittee utilized 1996–97 shipmentsof 314,013 tons as a base to computetrade demand because 1998–99shipments were limited. Similarly, asspecified in § 989.54(g), 1996–97shipments were used as a base tocompute the amount of tonnage to bemade available in the 10 plus 10 offers.Thus, 31,402 tons should have beenmade available in each of the 10 plus 10offers (62,804 tons total). However, this

amount was not available in the reserve.Thus, all of the reserve pool raisins weremade available to handlers for free usethrough the 10 plus 10 offers. A total of265 tons of reserve Naturals werepurchased in the offers.

Adding the 265 tons of 10 plus 10raisins to the 254,475-ton trade demandfigure, plus 101,946 tons of 1998–99carryin inventory equates to about356,686 tons natural condition raisins,or 334,835 tons packed raisins, madeavailable for free use, or to the primarymarket thus far this season. This is 121percent of the quantity of Naturalsshipped during the 1998–99 crop year(295,401 natural condition tons or277,305 packed tons).

For Zantes, both Zante 10 plus 10offers were made availablesimultaneously in early February 2000and 708 tons of raisins were purchasedby handlers. Adding the 708 tons of 10plus 10 raisins to the 1,855 ton tradedemand figure, plus 1,906 tons of 1998–99 carryin inventory equates to 4,469tons natural condition raisins, or about3,985 tons packed raisins, madeavailable for free use, or to the primarymarket. This is 126 percent of thequantity of Zantes shipped during the1998–99 crop year (3,542 naturalcondition tons or 3,158 packed tons).

In addition to the 10 plus 10 offers,§ 989.67(j) of the order providesauthority for sales of reserve raisins tohandlers under certain conditions suchas a national emergency, crop failure,change in economic or marketing

conditions, or if free tonnage shipmentsin the current crop year exceedshipments of a comparable period of theprior crop year. Such reserve raisinsmay be sold by handlers to any market.When implemented, these additionaloffers of reserve raisins make even moreraisins available to primary markets,which is consistent with theDepartment’s Guidelines.

Final Regulatory Flexibility AnalysisPursuant to requirements set forth in

the Regulatory Flexibility Act (RFA), theAgricultural Marketing Service (AMS)has considered the economic impact ofthis action on small entities.Accordingly, AMS has prepared thisfinal regulatory flexibility analysis.


There are approximately 20 handlersof California raisins who are subject toregulation under the order andapproximately 4,500 raisin producers inthe regulated area. Small agriculturalservice firms are defined by the SmallBusiness Administration (13 CFR121.201) as those having annual receipts


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of less than $5,000,000, and smallagricultural producers are defined asthose having annual receipts of less than$500,000. Thirteen of the 20 handlerssubject to regulation have annual salesestimated to be at least $5,000,000, andthe remaining 7 handlers have sales lessthan $5,000,000, excluding receiptsfrom any other sources. No more than 7handlers, and a majority of producers, ofCalifornia raisins may be classified assmall entities, excluding receipts fromother sources.

Pursuant to § 989.54(d) of the order,this rule continues in effect finalvolume regulation percentages for 1999–2000 crop Natural and Zante raisins.The volume regulation percentages are85 percent free and 15 percent reservefor Naturals and 51 percent free and 49percent reserve for Zantes. Free tonnageraisins may be sold by handlers to anymarket. Reserve raisins must be held ina pool for the account of the Committeeand are disposed of through certainprograms authorized under the order.

Volume regulation is warranted thisseason for Naturals because the finalcrop estimate of 298,477 tons combinedwith the carryin inventory of 101,946

tons results in a total available supplyof 400,423 tons, which is about 57percent higher than the 254,475-tontrade demand. Volume regulation iswarranted for Zantes this seasonbecause the crop estimate of 3,650 tonscombined with the carryin inventory of1,906 tons results in a total availablesupply of 5,556 tons which is about 200percent higher than the 1,855-ton tradedemand. The volume regulationpercentages are intended to helpstabilize raisin supplies and prices, andstrengthen market conditions.


Raisin-variety grapes can be marketedas fresh grapes, crushed for use in theproduction of wine or juice concentrate,

or dried into raisins. Annualfluctuations in the fresh grape, wine,and concentrate markets, as well asweather-related factors, causefluctuations in raisin supply. Thesesupply fluctuations can cause producerprice instability and disorderly marketconditions. Volume regulation is helpfulto the raisin industry because it lessensthe impact of such fluctuations andcontributes to orderly marketing. Forexample, excluding the 1997–98 seasonfor which complete data is not yetavailable, producer prices for Naturalshave remained fairly steady between the1992–93 through the 1998–99 seasons,although production has varied. Asshown in the table below, productionhas varied from a low of 240,469 tonsin 1998–99 to a high of 387,007 tons in1993–94, or 61 percent. According toCommittee data, during years of Naturalvolume regulation, the total producerreturn per ton, which includes proceedsfrom both free tonnage plus reserve poolraisins, has varied from a low of $901in 1992–93 to a high of $1,049 in 1996–97, or 16 percent.


Crop yearProduction (nat-

ural conditiontons)

Producer prices

1998–99 ....................................................................................................................................................... 240,469 1 $1,2901997–98 ....................................................................................................................................................... 382,448 2 925.501996–97 ....................................................................................................................................................... 272,063 1,0491995–96 ....................................................................................................................................................... 325,911 1,0071994–95 ....................................................................................................................................................... 378,427 9281993–94 ....................................................................................................................................................... 387,007 9041992–93 ....................................................................................................................................................... 371,516 901

1 No volume regulation.2 Return to date, reserve pool still open.

In addition, the Committee isimplementing an export program forNaturals. Through this program, theCommittee hopes to export moreNaturals thereby helping to build andmaintain export markets, and ultimatelyimprove producer returns. Volumeregulation helps the industry not only tomanage its supply of raisins, but alsomaintain market stability.

Regarding Zantes, Zante production ismuch smaller than that of Naturals.Volume regulation has been

implemented for Zantes during the1994–95, 1995–96, 1997–98, and 1998–99 seasons. Various programs to utilizereserve Zantes were implemented whenvolume regulation was in effect duringthose seasons. As shown in the tablefollowing this paragraph, althoughproduction varied during those years,volume regulation helped to reduceinventories, and helped to strengthentotal producer prices (free tonnage plusreserve Zantes) from $412.56 per ton in1994–95 to an estimated high of $730

per ton in 1997–98. The Committee isimplementing an export program forZantes, in addition to Naturals. Throughthis program, the Committee hopes toexport more Zantes, thereby continuingto reduce the industry’s oversupply,helping to build export markets, andultimately improve producer returns.Volume regulation helps the industrynot only to manage oversupplies ofraisins, but also maintain marketstability.

ZANTE CURRANT INVENTORIES AND PRODUCER PRICES DURING YEARS OF VOLUME REGULATION[*Natural condition tons]

Crop year Production*Inventory* Total season



1998–99 ........................................................................................................... 3,880 573 1,906 (1)


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ZANTE CURRANT INVENTORIES AND PRODUCER PRICES DURING YEARS OF VOLUME REGULATION—Continued[*Natural condition tons]

Crop year Production*Inventory* Total season



1997–98 ........................................................................................................... 4,826 694 1,188 2 $730.001996–97 ........................................................................................................... 4,491 987 549 3 1,150.001995–96 ........................................................................................................... 3,294 782 2,890 711.321994–95 ........................................................................................................... 5,377 837 4,364 412.56

1 Data not yet available, reserve pool open.2 Estimate.3 No volume regulation.

Free and reserve percentages areestablished by variety, and usually inyears when the supply exceeds the tradedemand by a large enough margin thatthe Committee believes volumeregulation is necessary to maintainmarket stability. However, volumeregulation may also be utilized in shortcrop years so that the industry mayutilize its export program as describedto maintain its export markets andprovide stability in the domestic market.Accordingly, in assessing whether toapply volume regulation or, as analternative, not to apply such regulation,the Committee recommended only twoof the nine raisin varieties definedunder the order for volume regulationthis season.

The free and reserve percentagesrelease the full trade demands andapply uniformly to all handlers in theindustry, regardless of size. ForNaturals, with the exception of the1998–99 crop year, small and largeraisin producers and handlers have beenoperating under volume regulationpercentages every year since 1983–84.There are no known additional costsincurred by small handlers that are notincurred by large handlers. All handlersare regulated based on the quantity ofraisins that they acquire from producers.While the level of benefits of thisrulemaking are difficult to quantify, thestabilizing effects of the volumeregulations impact both small and largehandlers positively by helping themmaintain and expand markets eventhough raisin supplies fluctuate widelyfrom season to season. Likewise, pricestability positively impacts small andlarge producers by allowing them tobetter anticipate the revenues theirraisins will generate.

There are some reporting,recordkeeping and other compliancerequirements under the order. Thereporting and recordkeeping burdensare necessary for compliance purposesand for developing statistical data formaintenance of the program. Therequirements are the same as those

applied in past seasons. Thus, thisaction will not impose any additionalreporting or recordkeeping burdens oneither small or large handlers. The formsrequire information that is readilyavailable from handler records andwhich can be provided without dataprocessing equipment or trainedstatistical staff. The informationcollection and recordkeepingrequirements have been previouslyapproved by the Office of Managementand Budget (OMB) under OMB ControlNo. 0581–0178. As with other, similarmarketing order programs, reports andforms are periodically studied to reduceor eliminate duplicate informationcollection burdens by industry andpublic sector agencies. In addition, theDepartment has not identified anyrelevant Federal rules that duplicate,overlap, or conflict with this rule.


An interim final rule concerning thisaction was published in the FederalRegister on April 10, 2000 (65 FR18871). Copies of the rule were mailedby the Committee staff to all Committeemembers and alternates, the RaisinBargaining Association, handlers, anddehydrators. In addition, the rule wasmade available through the Internet bythe Office of the Federal Register. Thatrule provided for a 60-day commentperiod, which ended June 9, 2000. Nocomments were received.

A small business guide on complyingwith fruit, vegetable, and specialty cropmarketing agreements and orders maybe viewed at: http://www.ams.usda.gov/fv/moab/html. Any questions about thecompliance guide should be sent to JayGuerber at the previously mentioned

address in the FOR FURTHER INFORMATIONCONTACT section.

After consideration of all relevantmaterial presented, including theCommittee’s recommendation, andother information, it is found that thisfinal rule, as hereinafter set forth, willtend to effectuate the declared policy ofthe Act.




Accordingly, the interim final ruleamending 7 CFR part 989 which waspublished at 69 FR 18871 on April 10,2000, is adopted as a final rule withoutchange.

Dated: June 27, 2000Robert C. Keeney,Deputy Administrator, Fruit and VegetablePrograms.[FR Doc. 00–16739 Filed 6–30–00; 8:45 am]BILLING CODE 3410–02–P

FEDERAL HOUSING FINANCE BOARD

12 CFR Parts 925 and 950[No. 2000–30]

RIN 3069–AA94

Amendment of Membership Regulationand Advances Regulation

AGENCY: Federal Housing FinanceBoard.ACTION: Final rule.

SUMMARY: The Federal Housing FinanceBoard (Finance Board) is adopting asfinal, with several changes, the InterimFinal Rule that: Amended itsMembership Regulation and AdvancesRegulation to conform certainprovisions to the requirements of the


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A 135

AOI1INIS1BlNG THE FB>EML MAAICET1NG AGAW1EHT ~ ~ R.EG\II.ADIG THE HANDUNG 01' CAISOANIA IWSINS

,&isin Administrative Committee 3445 N. First St.. Suite I 0 I

P.O. Box 5217 Fresno. CA 93755

MINUTES OF THE MEETING

November 13, 2001

TB..EPHONE: SSJ.~S20 FAX: SS .. ns.o&Sl

EMAL: lafoCo!s!ntpq wnnlaum

Chairman Norman Engelman called the meeting of the Raisin Administrative Committee to order at 3:50p.m. on Tuesday, November 13,2001 in the RAC/CRMB Conference Center, 3445 North First Street, Fresno, California.

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MEMBER Albrecfi.t; Eddie Bogh~tan, Philip

~~o~arswayne A. Carter, orim J.

§ar~tens, Robert L. ederqutst, Dou_glas hpol.uf\11, GeraRl

~els, Ed ngelman, N rman pperson, Ro~ert D.

Ferg\}SOJh Bernadine aiabedian, Gilbert Brflbedian.. Richard enn~r. R:ichard H. oto,vlen S. mtlun~t Chris

er, parQld ousepJ..an, Dennis

J Jell a,ianhAlan tan,~op Danw.

er, Steven Koligum, Vaughn

, H!W.S ei, B~F.

~ an, Steven E. LlOn B(Uce Marth~dal, !.on ~. Meliktan, !v1arvm

~ilinovi~, Dan 1el~ep, erman A omm, enaM.

Pakchoi!lll, John D. Penner Pet~ J. Pet~rs Dav1d E. Podsa'fc:Qff, ~·u Sahatd)tan, 1ctor Sal'?'asser, eorge

§~JefD. ~Lin Sliva, Yrank .

~ate, Steven. R.

S :eggall~hri.s ~ ennts

Wahlen, enneth C.

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m_g c¥Very ufaite Tom. twa~ Ramind~

f~iJJ:eira, AJ.len K Nte~sen~Mike Bastla JOn McCutcheon, Mike ~~:C~~~r. @

uascnnick, K'iiby occa, Earl a cant

Kasparian, Girard Paboojtan, Ka.y

~ies9n. M1ckey

o ostpnn Nicho1as un unq, J;\.Od

Stark, Rick Salwasser .. Charlotte Bortolqss1, Jeff" Bedrosian, K.rikor Huber, Timothy_R. Petct~ ~arr~ll w. P~C'(llll, em .

~tbzno Johnnie J. eaver lenn mde, Richard

~orton, Vern edr9s1an, Ernie A odrjgue~. Tim.A.

Martmelh, Lorrm.

~ebensdor..f,_Jerald orense~ Mark: omor...,~on

MQles, tuy Bnano"'Kathy

Jsol'\, o~d . tchie~Sihota. Tma ansen, Bob Jr. !ilW{lSse~ Keri tlveua" yen.e orne~ ooarvm alebJiMJ....~Ohn azarott, N;ick J.

Bedrostanl.J. Kenneth TJoehl~, ;)te'{e Yerarruan, Jetl


A 136

Messrs. Junior Kagawa, Tony Giane~ Terry W. Stark, Ron Worthley, Jerry Stiavelli, Ted Consignado, Art Baird, Terry Andersen, Mike Garrett, Patrick Wilson, and Ms. Maureen Pello and Ms. Debbie Pilloud were present along with approximately 40 industry representatives.

The President introduced Messrs. T. Andersen, M. Garrett and P. Wilson, new members of the RAC Staff serving as Dire-ctor of Accounting and Finance, Director of International Programs, and Field Representative, in that order respectively.

The Chairman called for additions or corrections to the minutes of September 20, 2001. Hearing none, he ordered the minutes approved as mailed.

Chairman's Comments

The Chairman welcomed members and guests and briefly reviewed the rules applicable to the conduct of the meeting. He stated that members and guests would have two chances to speak about an issue, and they should respect the opinion of others. He also requested that cellular telephones be turned off.

USDA/Management Report

The Chairman recognized Ms. M. Pello to address the USDA report.

Ms. M. Pello reported the following USDA actions since the RAC's meeting on September 20, 2001:

1) Approval o£2001-2002 ERO Program for Natural (sun-dried) Seedless Raisins effective October 6, 2001 thru December 31, 200 I.

Ms. Pello commented that USDA would extend the program through November 1, 2002, as originally recommended by the Committee considering that reserve raisins are currently available.

2) Approval of2001-2002 ERO Program for Zante Currants effective October 6, 2001 thru November 1, 2002 using 1999 Zante Currants Reserve Pool Assets up to $400,000.

3) Approval of donation to the Church of Latter-Day Saints up to 90 tons to be drawn against the Church's 2001 Natural (sun-dried) Reserve Pool.

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The President reported that the Executive Committee met prior to the meeting to review the draft language pertaining to the creation of "Other Se.edless-Sulfured" varietal type of raisins.

Mr. J. Stiavelli, using an overhead projection, reviewed for members and guests section by section the proposed changes in marketing order 989 to address the establishment of a new raisin varietal class.

Mr. J. Stiavelli added that pertinent RAC reports such as RAC-1 and RAC-3 would be revised accordingly for data reporting purposes on the new varietal.

=> Moved by Mr. P. Penner, seconded by Mr. W. Albrecht, to accept the proposed changes to marketing order 989 addressing the "Other SeedlessSulfured" varietal class.


The President addressed a request by a member to correct Table 5: Natural Seedless Raisins: Monthly Free Tonnage Shipments to Domestic and Canadian Markets, 2000-200Jseason (2001 Marketing Policy). He stated that for the months of August and September, shipments had been under reported, but data were carried forward to the succeeding months.

Mr. V. Koligian stated that the request came from his office. He commented that the error would preclude a genuine comparison of data with previous years; this would be misleading, and such could have an unfavorable impact on price arbitration by the RBA. He also added that the misreporting could throw-off the average in calculating "Trade Demand". He cited the calculation of"Desirable Inventory", which is based on a 5-year average shipment data for the months of August, September and October. Discarding low and high values, as the methodology specifies, would not reflect a true picture of shipment data.

The President stated that Staff would not have any problem correcting Table 5 but he added that reporting the additional tonnage might impinge on proprietary and confidential information on some handlers and would permanently establish the procedure for the correction of all reporting forward.

Some members addressed bow a similar problem could be prevented from happening in the future. The President stated that audit of packers• inventory could be expanded from quarterly to a monthly basis, and assured members that a greater degree of data oversight would be instituted by the Staff if the Committee so directed.

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Discussion followed. The consensus was for staff to encourage and work with the handlers to achieve accurate reporting.

Audit Subcommittee

The Chairman recognized Mr. S. Lehman to address the recommendations of the Audit Subcommittee. Mr. S. Lehman reported that the Audit Subcommittee met on November 8, 2001 to review the Final Audit Report for the Committee's Administrative and Reserve Pools as of, and for the year ended July 31, 2001, as well as to review the following: (1) closing of the 1999-2000 Natural (sun-dried) Reserve Pool (2) progress payment of the 2000-2001 Natural (sun-dried) Seedless Reserve Pool, and (3) RAC cash flow projections and expenses.

Mr. S. Lehman reported that the Subcommittee found the audited financial statements, as presented by Baker, Peterson and Franklin to be in order. He added that the members accepted the financial statements and directed the Staff to close the 1999-2000 Natural (sun-dried) Seedless Reserve Pool with a zero balance, carrying forward the deficit of$7,681 to the 2000-2001 Natural (sun-dried) Reserve Pool; and to proceed with the Progress Pool payment of$47/ton on 100 percent, or $100/ton on Reserve.

=> Moved by Mr. S. Lehman, seconded by Mr. J. Jue, to authorize interaccount transfer of budget items on the 2000-2001 Administrative Budget to adjust budget with actual expenses in specific categories.


=> Moved by Mr. S. Lehman, seconded by Mr. J. Pakcboian, to authorize Staff to expense the amount of$35,290.03 representing purchase of office furniture and equipment during the 2000-2001 fiscal year.


=> Moved by Mr. S. Lehman, seconded by Mr. B. Carter, to authorize Staff to carry forward the 1999-2000 Natural (sun-dried) Seedless Reserve Pool deficit in the amount of $7,681.00 to the 2000-01 Natural (sun-dried) Seedless Reserve Pool.


Mr. S. Lehman stated that the $47/tcn (on 100%) progress payment on the 2000-2001 Natural (sun-dried) Seedless Reserve Pool would be mailed on November 26,2001.

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A 139

Mr. A. Kasparian spoke to clarify that $47/ton would be a second payment, in addition to $20/ton made earlier, for a total of$67/ton cumulative payment. Mr. R. Worthley stated that the 2000.2001 Natural (sun-dried) Seedless Reserve Pool would likely be valued at $120/ton on 100%

Administrative Issues Subcommittee

The Chairman recognized Mr. C. Gunlund to address the recommendations of the Administrative Issues Subcommittee. Mr. C. Gunlund reported that the Subcommittee met prior to the meeting.

=> Moved by Mr. C. Gunhmd, s:econded by Mr. W. Albrecht to authorize an exemption for Fresno State University on 2001-2002 Natural (sun-dried) Seedless Raisins under section 989.72, not to exceed 6 tons.


=> Moved by Mr. C. Gunlund, seconded by Mr. David Peters, to approve a production cap of 2 tons/acre for the 2002 Raisin Diversion Program.


Mr. H. Brar commented that a 2-ton cap per acre was very low. He asked members what the rationale was behind the recommendation, and continued to explain that next year's crop would be larger following the annual alternating bearing cycle of low and high raisin crop. He stated that such recommendation was discriminatory.

=> Moved by Mr. H. Brar, seconded by Mr. V. Sahatdjian, to amend the motion, setting the production cap to 2.5 tons/acre instead of2 tons/acre.


The amendment failed.

Mr. A. Kasparian requested Ms. M. Pello to shed light on how discussions on production caps had been settled in the past or how the cap was addressed in marketing order 989. Ms. M. Pello remarked that it was the industry's prerogative to determine what the appropriate cap would be.

Mr. A. Kasparian stated that 2 tons/acre was low and stated that 2.75 tons/acre was too high. A midpoint between 2.25 and 2.4 would be indicative of the industry average, he stated

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Other members continued to argue for a lower cap, stating that 1.7 or 1.8 tons/acre were the prevailing average. Again, Mr. H. Brar at this point emphasized that the upcoming crop would be bigger, and therefore higher production per acre would be expected.

=> Moved by Mr. A. Kasparian, seconded by Mr. H. Brar, to amend the motion, setting the production cap to 2.3 tons/acre instead of2 tons/acre.

The amendment failed on show of hands vote.

The original motion carried with a "no" vote by Mr. G. Garabedian,

=> Moved by Mr. C. Gunlund, seconded by Mr. A. Teixeira, to approve the 10-pointjustification lowering the production cap from 2.5 tons/acre to 2 tons/acre.


=> Moved by Mr. C. Gunhmd, seconded by Mr. G. Salwasser to authorize Staff to transfer the amount of$600,000 out of the 2000-2001 bin revenues to 2001-2002 Reserve, and to allocate $300,000 for bin repair, storage and handling.


Reserve Sales and Marketing Subcommittee

Chairman G. Goto reported that the Reserve Sales and Marketing Subcommittee met prior to the RAC meeting to review the Staff's report on the overall evaluation of the RAC's export promotion programs, as weli as to address the following: (1) 2002 MIPIIMPF, (2) 2002 IMPFIMIP Program for Western Europe, (3) 2002 MAP Application, and (4) Natural Seedless, Zante Currants, Other Seedless lO + 10 Offers.

Mr. G. Goto, referencing the Staff report, described the value of the export programs to the industry, which generated an average return of $6 for every dollar of promotion expenditures invested. Mr. G. Goto thanked Mr. T. Consignado for his efforts. Mr. G. Goto stated he .bad several recommendations for the RAC.

=> Moved by Mr. G. Goto, seconded by Mr. D. Vartan, to reduce the 2001-2002 Natural (sun-dried) Seedless Raisin ERO base price for Japan by $80/ton, from $750/ton, for a net replacement value of $670/ton, effective January 1, 2002 and retroactive to November 1, 2001.

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The motion carried with the following "no" votes: Messrs: G. Garabedian, R Garabedian, R. Geringer, M. Schafer and S. Spate.

Mr. G. Goto reported that the Subconnnittee denied the funding request by the California Department of Agriculture for the 2001-2002 Grape Acreage and Objective Measurement Surveys.

=> Moved by Mr. G. Goto, seconded by Mr. W. Albrecht, to authorize continuation in 2002 for IMPFIMIP export programs for China/Hong Kong, Japan, Korea, the Philippines and Taiwan, with direction to staff to seek program unifonnity for all countries.


Mr. G. Goto stated that the 2002 Proposal for an IMPF program in Western Europe was denied.

=> Moved by Mr. G. Goto, seconded by Ms. G. Nonini, to authorize Staff to proceed with the 2002 FASIMAP Export Promotion application.


=> Moved by Mr. G. Goto, seconded by Mr. J. Pakcboian, to authorize the 2001-2002 Natural (sun-dried) Seedless Raisins 10 + 10 offer, for a total of 56,096 tons, to be offered on November 15, 2001 at $975/ton.


The President commented that packers participating in the offer would be billed 10 days after the close of the offer.

There being no further business, the Chairman adjourned the meeting at 4:50 p.m. and wished everyone a good Thanksgiving.

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I, the undersigned, do herebf certify that I am the President of The Raisin Administrative Committee and tho the foregoing is a true and correct copy of the Minutes of the Meeting of the Raisin Administrative Committee held on November .U, 2QQ.l.

IN WITNESS THEREOF, I have hereunto set my hand this ....iL day of November. 2QQ1.

DATE /lhv If ~vi erry:stark. President



A 143

FINANCIAL REPORT: 1999-2000 NATURAL (sun-dried) SEEDLESS RESERV~ POOL

Upon establishing the 1999-2000 Natural (sun-dried) Reserve Pool, concern was expressed regarding generating adequate reyenue to cover the expenses of the pool. Pool costs, which include the Receiving. Storage and Handling costs, Inspection fees, Grower Bin reimbursement costs, Industry Promotional Program costs and General and Administrative costs, amount to more money than the sale of the reserve raisins at $1 00 per ton could generate.

With the crop of 299,910 tons and a 15% reserve percentage, the pool was established with just under 45,000 tons. It was evident from the start that if the pool was used exclusively for the Export Replacement Program (the Export Cash-back program had been discontinued) funds to cover the costs of the pool could not be generated

Your Industry leaders traveled to Washington D.C. to seek support from the government through a Government sale for the Needy Persons or School

Lunch programs. They met with great · success and obtained a commitment for up to 20,000 tons for these programs.

The timing of these sales became an issue since the volume of tonnage being released in the Export program was rapidly using up the 45,000 tons in the pool. At the end of December 2000, the Export program sales of pool raisins were switched to the 2000-200 I reserve pool leaving about 6,000 tons in the 1999 pool. The Government purchases did not start until April 200 I, at which time 1999 raisins were used to supply that program. By making this allocation of sales between the I 999 Reserve and the 2000 Reserve, sufficient funds were generated to meet the 1999 Pool obligations. The difference between Export sales from the pool and Government sales is $670 per ton.

1999-2000 NATURAL SEEDLESS RESERVE POOL

GROWER EQUITY STATEMENT

RESERVE POOL SALES

INCOME: 10+10 SALES 284.9750 TONS @ $ 1,530 GOVERNMENT 3,800.0530 TONS @ $ 750 EXPORT SALES 40,905.3000 TONS @ $ 100 DONATION 10.5995 .TONS@ $

44,980.9275

Less: State Advertising Assessment@ $20 Per Ton . OTHER INCOME

BIN RENT

INTEREST AND OTHER

GROSS REVENUE

EXPENSES: RECEIVING STORAGE & HANDUNG INSPECTION FEES BINS & HAULING REIMBURSEMENT RAC BINS AND RAISIN TRANSFER COSTS INTEREST EXPENSE EXPORT PROGRAM EXPENSES EXPORT ADVERTISING EXPORT INCENTIVE PROGRAM GENERAL & ADMINISTRATIVE

GROWERS EQUITY

$

$

$

$

$

$

$

$

PER GROSS RESERVE TON

405,411.75 2,850,044 4,090,534

7,345,989.50

(821,843)

902,800

227,870

163.31

(18.27)

20.07

5.07

1,130,670 25.14

7,654,817 170.18

$2,075,090 46.13 404,828 9.00 899,618 20.00 742,389 16.50 107,481 2.39 589,225 13.10

1,060,546 23.58 958,803 21.32 824,518 18.33 .

7,662,498 170.35

(7,681) * (0.17) ===== *As approved by the Raisin Administrative Committee on November 13, ·2001, the deficit will be charged as an expense against the 2000-2001 Natural (sun-dried) Seedless Reserve Pool.


A 144

IN THE UNITED STATES COURT OF FEDERAL CLAIMS

Bruce Ciapessoni, Elisa Ciapessoni, Bob F. Hansen, Hansen Enterprises, R&H AgriEnterprises, Eldora Rossi, Rossi & Ciapessoni Farms, and Rossi & Rossi, on behalf of themselves and all others similarly situated,

Plaintiffs,

v.

The United States of America,

Defendant.

Case 1 :15-cv-00938-MMS Hon. Margaret M. Sweeney

DECLARATION OF RICHARD K. STARK

I, Richard K. Stark, hereby declare as follows:

1. My name is Richard K. Stark.

2. I am sixty years old and the Secretary and Manager of Grower Relations of Sun-

Maid Growers of California ("Sun-Maid"), where I have worked for twenty-eight years. I am

responsible for providing notices, materials, and records to Sun-Maid's board and members, and

I am very familiar with the operation of and business practices in the California raisin industry. I

make this declaration based upon personal knowledge.

3. Sun-Maid is an agricultural marketing cooperative, and the largest single marketer

of raisins in the world. On behalf of its approximately 650 grower members, Sun-Maid presently

processes and markets about 30% of the California raisin crop. As such, Sun-Maid is a "handler"

under the California Raisin Marketing Order ("Marketing Order"); its grower members are

"producers." Sun-Maid handles raisins for both its own grower members and independent

growers.


A 145

4. Under the Marketing Order, each crop year begins on August 1 and runs through

July 31 of the following calendar year.

5. California growers deliver raisins every week to handlers throughout the crop

year, with the bulk of raisin deliveries occurring between October and December.

6. In the 2009-2010 and earlier crop years in which the United States Department of

Agriculture imposed a reserve, California raisin growers delivered raisins to handlers such as

Sun-Maid, who in turn paid growers only for the percentage of deliveries recommended by the

Raisin Administrative Committee ("RAC") to be free-tonnage.

7. In crop years in which the RAC recommended a reserve, handlers such as Sun-

Maid would separate from grower-delivered raisins the reserve-tonnage percentage

recommended by the RAC. Sun-Maid and other handlers would segregate such separated raisins

in separate stacks and storage areas and await further word from the RAC regarding ultimate

disposition of those separated raisins.

8. In crop years in which the RAC recommended a reserve, the RAC's final

recommended reserve percentage was typically lower than its preliminary recommended

percentage. In such years, Sun-Maid and other handlers transferred a corresponding portion of

previously-separated RAC raisins to free-tonnage storage for unrestricted disposition and paid

growers for the raisins so transferred after the RAC reduced its reserve recommendation.

9. In the 2008-2009 crop year, the RAC announced its preliminary recommended

reserve percentage on October 9, 2008. According to Sun-Maid's records, one of the plaintiffs in

this action, Hansen Enterprises, delivered raisins to Sun-Maid on October 14, 17, 20, 21, 28, 29,

30, 31,2008, as well as on November 4, 12, 13, and 14,2008.

10. In the 2009-2010 crop year, the free-tonnage or field price was $1323 per ton.

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I hereby declare under penalty of perjury that the foregoing is true and correct to

the best of my knowledge, information and belief(2)_,. '_/ /

~~~· &A Richard K. Stark

Date: lf ·19 '2016

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VI: Marketing Policy ·

1: & Industry Statistics 2009


A 148

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OFFICERS Chris Gunlund Chairperson

Monte Schutz Jon Marthedal Vice Chairperson Secretary

Wayne Albrecht Mitch Bagdasarian Kalem Barserian Kenneth Bedrosian Philip Boghosian Jeff Bortolussi Harry Brar Douglas Cederquist Gerald Chooljian Eric Cisneros Richard Crowe Robert Epperson Glen Goto Chris Gunlund Harold Hilker Don Hornor

Tom Bell Jim Berekoff David Blayney Michael Chooljian Tony Cubre Richard Emde Jack Envernizzi David Estermann Ed Fanucchi Linda Geringer George Goehring

Debbie Powell VP of Operations+ Human Res. Noelle Sprinkman- Stat. Rpts Gerti Adair- Stat. Rpts. Karen Haigh- Grower Records Anna Valdivia - Grower Records Murphy Jones- Exec. Assist.Adm. Julie Gray- Export Programs

COMMITTEE MEMBERS 2008/2010

Dennis Housepian Jeff Jue Alan Kasparian Ron Kazarian George Kenneson Steve Kister Michael Koligian Barry Kriebel Jon Marthedal Manuel Medeiros Michael Mikaelian Ray Moles Deni Pacini Pete Penner David Peters Jon Phillips

COMMITTEE ALTERNATES 2008/2010

Michael Kazarian Dan King Vaughn Koligian Hans Koop Paul Locker David Loquaci Jerry Lung Dan Milinovich Herman Nielsen Mike Nielsen Michael O'Brien

STAFF Gary Schulz

President/General Manager

Ron Degiuli VP of Finance/ Acct.

Tami Mars- Dir. of Fin./ Acct. Pat Jones- Accountant

Cynthia Jones- Acct. Assistant

Robert Epperson Treasurer

Jerald Rebensdorf Tim Rodrigues Bill Sahatdjian MargaretSahatdjian Victor Sahatdjian George Salwasser Keri Salwasser Nindy Sandhu Mitch Sangha James Sani Monte Schutz Harvey Singh Rick Stark Chris Steggall Dennis Wilt

Brad Olson Robert Sahatjian Charlotte Salwasser Ken Samarin Ken Shinkawa Steve Spate Allen Teixeira Carsten Tietjen Lynn Williams Alex Zavala Vacant (15)

Larry Blagg Senior VP of Marketing

Christina Trice- Internat'l Prog.

Hector Omapas Dir. of Compliance

Dustin Fuller - Field Rep. Frank Nersesian- Field Rep.


A 149

Table 13

Comparison Of Packer Acquisitions By Week Natural Seedless Raisins

2004-2008

(Sweatbox Tons)

Page 1 of 2

Week of Delivery 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009

1 956 21 672 9,858 2 2,887 0 5,442 63 3 1,248 0 105 60 0 4 471 0 820 0 5

Comparative 4 Week Total 5,562 21 7,039 60 9,926

5 802 4 173 101 604 6 3,156 389 613 932 873 7 14,834 890 3,760 2,993 3,769 8 26,289 3,071 13,251 8,280 9,837 9 33,882 7,838 22,229 13,266 13,417

Comparative 5 Week Total 78,963 12,192 40,026 25,572 28,500

10 32,595 14,496 23,167 22,181 18,962 11 25,543 18,324 32,391 24,766 24,319 12 13,987 23,591 25,798 32,053 42,918 13 20,070 24,063 26,524 32,825 28,560


14 18,856 24,014 21,549 28,623 30,100 15 13,892 22,670 20,755 26,154 25,770 16 10,311 25,146 16,196 21,650 23,219 17 2,106 15,376 10,301 10,763 8,962


18 3,303 19,953 11,070 17,524 14,541 19 2,601 18,417 8,987 11,373 11,542 20 3,428 15,627 4,465 11,561 8,675 21 1,454 10,889 2,453 5,375 1,966 22 333 4,973 2,977 2,895 4,370


23 1,545 6,237 1,502 4,301 7,905 24 1,452 9,087 2,175 7,818 11,856 25 1,150 7,296 1,484 3,048 3,110 26 2,186 4,474 2,179 3,970 4,633


27 1,748 4,112 1,438 3,052 3,666 28 551 4,095 1,189 3,322 5,166 29 736 3,069 (145) 3,618 2,131 30 1,420 2,984 1,726 2,282 2,473


26


A 150

Table 13

Comparison Of Packer Acquisitions By Week Natural Seedless Raisins

2004-2008 (Sweatbox Tons)

Page 2 of 2

Week of Delivery 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009

31 1,687 2,645 1,626 2,700 6,046 32 391 1,678 767 1,587 2,126 33 418 2,097 1,116 2,170 1,378 34 867 1,943 1,346 823 8,329


35 1,326 1,550 486 561 988 36 751 752 476 1,407 203 37 1,495 522 589 1,785 735 38 1,182 4,479 940 1,712 2,141 39 1,324 747 1,011 388 1,605


40 1,050 375 613 1,927 1,530 41 880 733 143 1,510 769 42 993 439 802 1,101 946 43 1,431 480 756 986 1,129


44 1,601 212 175 566 463 45 968 60 2,068 993 300 46 73 149 1,204 495 376 47 578 166 1,616 791 478

Comparative 4 Week Total 3,220 587 5,063 2,845 1,617

48 113 886 776 665 943 49 318 508 437 387 1,736 50 221 356 119 613 1,845 51 1,948 1,115 505 558 3,114 52 1,855 6,129 182 778 3,818


YEARLY TOTAL 265,262 319,126 282,999 329,288 364,268

RAG - September 2009

27
