Raisins Produced From Grapes Grown in California; Final Free and Reserve Percentages for 2005-06 Crop Natural (Sun-Dried) Seedless Raisins, 2173-2177 [E7-623]
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Federal Register / Vol. 72, No. 11 / Thursday, January 18, 2007 / Rules and Regulations
Branch, Fruit and Vegetable Programs,
AMS, USDA.
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Dated: January 11, 2007.
Lloyd C. Day,
Administrator, Agricultural Marketing
Service.
[FR Doc. E7–593 Filed 1–17–07; 8:45 am]
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 989
[Docket No. AMS–FV–06–0183; FV06–989–
2 FIR]
Raisins Produced From Grapes Grown
in California; Final Free and Reserve
Percentages for 2005–06 Crop Natural
(Sun-Dried) Seedless Raisins
Agricultural Marketing Service,
USDA.
ACTION: Final rule.
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AGENCY:
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:
Rose.Aguayo@usda.gov or
Kurt.Kimmel@usda.gov.
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
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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.’’
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 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
SUPPLEMENTARY INFORMATION:
BILLING CODE 3410–02–P
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Avenue, SW., STOP 0237, Washington
DC 20250–0237; Telephone: (202) 720–
2491; Fax: (202) 720–8938; or E-mail:
Jay.Guerber@usda.gov.
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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.
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 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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Federal Register / Vol. 72, No. 11 / Thursday, January 18, 2007 / Rules and Regulations
tons), interim percentages for NS raisins
were announced at 82.25 percent free
[Natural condition tons]
and 17.75 percent reserve.
Pursuant to § 989.54(d), the
NS
Committee also recommended final
raisins
percentages at its January 26, 2006,
Prior year’s shipments .................... 319,752 meeting to release the full trade demand
Multiplied by 90 percent .................
0.90 for NS raisins. Final percentages were
Equals adjusted base ..................... 287,777
recommended at 82.50 percent free and
Minus carryin inventory .................. 114,792
Plus desirable caryout ....................
60,000 17.50 percent reserve. The Committee’s
calculations and determinations to
Equals computed NS trade Demand ........................................... 232,985 arrive at final percentages for NS raisins
are shown in the table below:
Computation of Preliminary Volume
FINAL VOLUME REGULATION
Regulation Percentages
PERCENTAGES
Section 989.54(b) of the order requires
[Natural condition tons]
that the Committee announce, on or
before October 5, preliminary crop
NS
estimates and determine whether
raisins
volume regulation is warranted for the
varietal types for which it computed a
Trade demand ................................ 232,985
trade demand. That section allows the
Divided by crop estimate ................ 283,000
Committee to extend the October 5 date
Equals the free percentage ............
82.30
100 minus free percentage equals
up to 5 business days if warranted by a
the reserve percentage ...............
17.70
late crop.
The Committee met on October 4,
* * * The Committee recommended
2005, and announced a preliminary
rounding the free percentage to 82.50
crop estimate for NS raisins of 266,227
percent and reducing the reserve
tons, which is about 19 percent lower
percentage to 17.50 percent to
than the 10-year average of 328,088
compensate for the higher than normal
tons. NS raisins are the major varietal
processing shrinkage being experienced
type of California raisin. Adding the
by handlers with the 2005 NS crop.
carry in inventory of 114,792 tons, plus
By the week ending February 11,
the 266,227-ton crop estimate resulted
2006, data showed that deliveries of NS
in a total available supply of 381,019
raisins exceeded the Committee’s crop
tons, which was significantly higher
(164 percent) than the 232,985-ton trade estimate of 283,000 tons. By that date,
deliveries of NS raisins totaled 285,052
demand. Thus, the Committee
tons. Thus, at USDA’s request, the
determined that volume regulation for
Committee met again on March 16,
NS raisins was warranted. The
2006, and reviewed the current
Committee announced preliminary free
available data and the computations
and reserve percentages for NS raisins,
used in arriving at the recommended
which released 85 percent of the
final percentages.
computed trade demand since a
At the March meeting, the Committee
minimum field price (price paid by
continued to support a crop estimate of
handlers to producers for their free
283,000 tons, because of the higher than
tonnage raisins) had been established.
normal processing shrinkage being
The preliminary percentages were 74
experienced with the 2005 NS raisin
percent free and 26 percent reserve.
crop. With a lower crop estimate, more
In addition, preliminary percentages
free tonnage raisins would be made
were announced for Dipped Seedless,
available to handlers for free tonnage
Golden Seedless, Zante Currant, and
Other Seedless raisins. It was ultimately use, but due to the above normal
processing shrinkage the Committee
determined that volume regulation was
expected supplies to be in balance with
only warranted for NS raisins. As in
market needs.
past seasons, the Committee submitted
By the end of the crop year, July 31,
its marketing policy to USDA for
2006, final deliveries of NS raisins
review.
totaled 319,126 tons. Thus, the
Computation of Final Volume
Committee’s recommendation provided
Regulation Percentages
handlers with an additional 30,294 tons
Pursuant to § 989.54(c), at its January
over the computed trade demand, but
26, 2006, meeting, the Committee
the additional tonnage did not appear to
announced interim percentages for NS
impact marketing conditions.
raisins to release slightly less than the
In addition, USDA’s ‘‘Guidelines for
full trade demand. Based on a revised
Fruit, Vegetable, and Specialty Crop
NS crop estimate of 283,000 tons (up
Marketing Orders’’ (Guidelines) specify
from the October estimate of 266,227
that 110 percent of recent years’ sales
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COMPUTED TRADE DEMAND
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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.
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.
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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Federal Register / Vol. 72, No. 11 / Thursday, January 18, 2007 / Rules and Regulations
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.
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 oversupplied 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 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,
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and help reduce the burden of
oversupplies in the domestic market.
Raisin grapes are a perennial crop, so
production in any year is dependent
upon plantings made in earlier years.
The sun-drying method of producing
raisins involves considerable risk
because of variable weather patterns.
Even though the product and the
industry are viewed as mature, the
industry has experienced considerable
change over the last several decades.
Before the 1975–76 crop year, more than
50 percent of the raisins were packed
and sold directly to consumers. Now,
about 65 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 raisinvariety 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, 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
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2175
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:
NATURAL SEEDLESS PRODUCER
PRICES
Crop year
2005–06 ............
2004–05 ............
2003–04 ............
2002–03 ............
2001–02 ............
2000–01 ............
1999–2000 ........
1998–99 ............
1997–98 ............
1996–97 ............
1995–96 ............
1994–95 ............
1993–94 ............
Deliveries
(natural
condition
tons)
319,126
265,262
296,864
388,010
377,328
432,616
299,910
240,469
382,448
272,063
325,911
378,427
387,007
Producer
Prices
(per ton)
1$1210.00
21210.00
1567.00
1491.20
650.94
603.36
1,211.25
21,290.00
946.52
1,049.20
1,007.19
928.27
904.60
1 Return-to-date,
2 No
reserve pool still open.
volume regulation.
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 order permits the industry to
exercise supply control provisions,
which allow for the establishment of
free and reserve percentages, and
establishment of a reserve pool. One of
the primary purposes of establishing
free and reserve percentages is to
equilibrate supply and demand. If raisin
markets are over-supplied with product,
producer prices will decline.
Raisins are generally marketed at
relatively lower price levels in the more
elastic export market than in the more
inelastic domestic market. This results
in a larger volume of raisins being
marketed and enhances producer
returns. In addition, this system allows
the U.S. raisin industry to be more
competitive in export markets.
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
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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.
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 2005–06 season for
only one of the nine raisin varietal types
defined under the order.
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.
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.
There are some reporting,
recordkeeping and other compliance
requirements under the order. The
reporting and recordkeeping burdens
are necessary for compliance purposes
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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
E:\FR\FM\18JAR1.SGM
18JAR1
Federal Register / Vol. 72, No. 11 / Thursday, January 18, 2007 / Rules and Regulations
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.
A small business guide on complying
with fruit, vegetable, and specialty crop
marketing agreements and orders may
be viewed at: https://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 (71 FR 29567, May 23, 2006)
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.
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’’.
I
PART 989—RAISINS PRODUCED
FROM GRAPES GROWN IN
CALIFORNIA
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.
I
Dated: January 12, 2007.
Lloyd C. Day,
Administrator, Agricultural Marketing
Service.
[FR Doc. E7–623 Filed 1–17–07; 8:45 am]
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 3410–02–P
BILLING CODE 4910–13–P
DEPARTMENT OF TRANSPORTATION
Federal Aviation Administration
DEPARTMENT OF TRANSPORTATION
14 CFR Part 39
Federal Aviation Administration
[Docket No. FAA–2006–25584; Directorate
Identifier 2000–NE–62–AD; Amendment 39–
14733; AD 2006–17–12]
14 CFR Part 39
RIN 2120–AA64
Airworthiness Directives; Rolls-Royce
plc RB211 Series Turbofan Engines;
Correction.
Federal Aviation
Administration, DOT.
ACTION: Final rule; correction.
jlentini on PROD1PC65 with RULES
AGENCY:
16:35 Jan 17, 2007
Jkt 211001
RIN 2120–AA64
Airworthiness Directives; Dassault
Model F2000EX Airplanes
Federal Aviation
Administration (FAA), Department of
Transportation (DOT).
ACTION: Final rule; request for
comments.
AGENCY:
SUMMARY: This document makes
corrections to Airworthiness Directive
(AD) 2006–17–12. That AD applies to
VerDate Aug<31>2005
[Docket No. FAA–2007–26855; Directorate
Identifier 2006–NM–264–AD; Amendment
39–14888; AD 2007–02–01]
PO 00000
Frm 00011
Fmt 4700
Sfmt 4700
2177
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
https://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: https://
www.regulations.gov. Follow the
instructions for submitting comments.
Examining the AD Docket
You may examine the AD docket on
the Internet at https://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:
E:\FR\FM\18JAR1.SGM
18JAR1
]]>Agencies
[Federal Register Volume 72, Number 11 (Thursday, January 18, 2007)]
[Rules and Regulations]
[Pages 2173-2177]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-623]
-----------------------------------------------------------------------
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 989
[Docket No. AMS-FV-06-0183; FV06-989-2 FIR]
Raisins Produced From Grapes Grown in California; Final Free and
Reserve Percentages for 2005-06 Crop Natural (Sun-Dried) Seedless
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 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:
Rose.Aguayo@usda.gov or Kurt.Kimmel@usda.gov.
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: Jay.Guerber@usda.gov.
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.''
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 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.
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 percentages. Pursuant to Sec. 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 Sec. 989.154(a), the
desirable carryout for NS raisins shall equal the total shipments of
free tonnage during August and September for each of the past 5 crop
years, converted to a natural condition basis, dropping the high and
low figures, and dividing the remaining sum by three, or 60,000 natural
condition tons, whichever is higher. For all other varietal types, the
desirable carryout shall equal the total shipments of free tonnage
during August, September and one-half of October for each of the past 5
crop years, converted to a natural condition basis, dropping the high
and low figures, and dividing the remaining sum by three. In accordance
with these provisions, the Committee computed and announced the 2005-06
trade demand for NS raisins at 232,985 tons as shown below.
[[Page 2174]]
Computed Trade Demand
[Natural condition tons]
------------------------------------------------------------------------
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 Demand............................... 232,985
------------------------------------------------------------------------
Computation of Preliminary Volume Regulation Percentages
Section 989.54(b) of the order requires that the Committee
announce, on or before October 5, preliminary crop estimates and
determine whether volume regulation is warranted for the varietal types
for which it computed a trade demand. That section allows the Committee
to extend the October 5 date up to 5 business days if warranted by a
late crop.
The Committee met on October 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.
Computation of Final Volume Regulation Percentages
Pursuant to Sec. 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 Sec. 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:
Final Volume Regulation Percentages
[Natural condition tons]
------------------------------------------------------------------------
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 Sec. 989.54(g), the 10 plus 10 offers are two offers
of reserve pool raisins which are made available to handlers during
each season. For each such offer, a quantity of reserve raisins equal
to 10 percent of the prior year's shipments is made available for free
use. Handlers may sell their 10 plus 10 raisins to any market.
For NS raisins, the first 10 plus 10 offer was 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, Sec. 989.67(j) of the order
provides authority for sales of reserve raisins to handlers under
certain conditions such as a national emergency, crop failure, change
in economic or marketing conditions, or if free tonnage shipments in
the current crop year exceed shipments of a comparable period of the
prior crop year. Such reserve raisins may be sold by handlers to any
market. When implemented, the additional offers of reserve raisins make
even more raisins available to primary markets, which is consistent
with USDA's Guidelines.
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.
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
[[Page 2175]]
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.
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.
Pursuant to Sec. 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.
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 65
percent of raisins are sold in bulk. This means that raisins are now
sold to consumers mostly as an ingredient in another product such as
cereal and baked goods. In addition, for a few years in the early
1970's, over 50 percent of the raisin grapes were sold to the wine
market for crushing. Since then, the percent of raisin-variety grapes
sold to the wine industry has decreased.
California's grapes are classified into three groups--table grapes,
wine grapes, and raisin-variety grapes. Raisin-variety grapes are the
most versatile of the three types. They can be marketed as fresh
grapes, crushed for juice in the production of wine or juice
concentrate, or dried into raisins. Annual fluctuations in the fresh
grape, wine, and concentrate markets, as well as weather-related
factors, cause fluctuations in raisin supply. This type of situation
introduces a certain amount of variability into the raisin market.
Although the size of the crop for raisin-variety grapes may be known,
the amount dried for raisins depends on the demand for crushing. This
makes the marketing of raisins a more difficult task. These supply
fluctuations can result in producer price instability and disorderly
market conditions.
Volume regulation is helpful to the raisin industry because it
lessens the impact of such fluctuations and contributes to orderly
marketing. For example, producer prices for NS raisins remained fairly
steady between the 1993-94 through the 1997-98 seasons, although
production varied. As shown in the table below, during those years,
production varied from a low of 272,063 tons in 1996-97 to a high of
387,007 tons in 1993-94.
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:
Natural Seedless Producer Prices
------------------------------------------------------------------------
Deliveries
(natural Producer
Crop year condition Prices
tons) (per ton)
------------------------------------------------------------------------
2005-06....................................... 319,126 \1\$1210.00
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
------------------------------------------------------------------------
\1\ Return-to-date, reserve pool still open.
\2\ No volume regulation.
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
[[Page 2176]]
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 order permits the industry to exercise supply control
provisions, which allow for the establishment of free and reserve
percentages, and establishment of a reserve pool. One of the primary
purposes of establishing free and reserve percentages is to equilibrate
supply and demand. If raisin markets are over-supplied with product,
producer prices will decline.
Raisins are generally marketed at relatively lower price levels in
the more elastic export market than in the more inelastic domestic
market. This results in a larger volume of raisins being marketed and
enhances producer returns. In addition, this system allows the U.S.
raisin industry to be more competitive in export markets.
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.
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 2005-06 season for only one of the nine raisin varietal types
defined under the order.
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.
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.
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
[[Page 2177]]
acquired during the 2005-06 crop year and continue in effect until all
2005-06 reserve raisins are disposed of under the order. Accordingly,
Sec. 989.258 will appear in the Code of Federal Regulations.
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 (71 FR 29567, May 23, 2006) 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--RAISINS PRODUCED FROM GRAPES GROWN IN CALIFORNIA
0
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
