Raisins Produced From Grapes Grown in California; Final Free and Reserve Percentages for 2006-07 Crop Natural (sun-dried) Seedless Raisins, 17362-17367 [E7-6530]
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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.
List of Subjects in 7 CFR Part 959
Onions, Marketing agreements,
Reporting and recordkeeping
requirements.
I For the reasons set forth in the
preamble, 7 CFR part 959 is amended as
follows:
PART 959—ONIONS GROWN IN
SOUTH TEXAS
1. The authority citation for 7 CFR
part 959 continues to read as follows:
I
Authority: 7 U.S.C. 601–674.
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
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I
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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
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
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
Agricultural Marketing Service,
USDA.
ACTION: Interim final rule with request
for comments.
AGENCY:
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: https://
www.regulations.gov. All comments
should reference the docket number and
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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: https://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:
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, 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 2006–07 crop year, which began
August 1, 2006, and ends 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.
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
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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
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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 ..............
Multiplied by 90 percent ...........
Equals adjusted base ...............
Minus carryin inventory ............
Plus desirable carryout .............
Equals computed NS trade Demand .....................................
301,460
0.90
271,314
111,444
60,000
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
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17363
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:
FINAL VOLUME REGULATION
PERCENTAGES
[Natural condition tons]
NS raisins
Trade demand ..........................
Divided by crop estimate ..........
Equals the free percentage ......
100 minus free percentage
equals the reserve percentage ........................................
219,870
244,300
90.00
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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Federal Register / Vol. 72, No. 67 / Monday, April 9, 2007 / Rules and Regulations
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).
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.
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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
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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 oversupplied with raisins, grower prices
decline substantially.
Pursuant to § 989.54(d) of the order,
this rule establishes 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 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
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market needs, and strengthening market
conditions. The volume regulation
procedures fully supply the domestic
and export markets, provide for market
expansion, and help reduce the burden
of oversupplies in the domestic market.
Raisin grapes are a perennial crop, so
production in any year is dependent
upon plantings made in earlier years.
The sun-drying method of producing
raisins involves considerable risk
because of variable weather patterns.
Even though the product and the
industry are viewed as mature, the
industry has experienced considerable
change over the last several decades.
Before the 1975–76 crop year, more than
50 percent of the raisins were packed
and sold directly to consumers. Now,
about 64 percent of raisins are sold in
bulk. This means that raisins are now
sold to consumers mostly as an
ingredient in another product such as
cereal and baked goods. In addition, for
a few years in the early 1970’s, over 50
percent of the raisin grapes were sold to
the wine market for crushing. Since
then, the percent of raisin-variety grapes
sold to the wine industry has decreased.
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, 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-toback 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
17365
demand stagnated. However, the
producer prices were higher for the
2004–05 and the 2005–06 crop years, as
noted below:
NATURAL SEEDLESS PRODUCER PRICES
Deliveries
(natural condition
tons)
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 .......................................................................................................................................................
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 $998.25
2 1210.00
1 567.00
1 491.20
650.94
603.36
1,211.25
2 1,290.00
946.52
1,049.20
1,007.19
928.27
904.60
1 Return-to-date,
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2 No
reserve pool still open.
volume regulation.
There are essentially two broad
markets for raisins—domestic and
export. Domestic shipments have been
generally increasing in recent years.
Although domestic shipments decreased
from a high of 204,805 packed tons
during the 1990–91 crop year to a low
of 156,325 packed tons in 1999–2000,
they increased from 174,117 packed
tons during the 2000–01 crop year to
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.
The per capita consumption of raisins
has declined from 2.07 pounds in 1988
to 1.44 pounds in 2005. This decrease
is consistent with the decrease in the
per capita consumption of dried fruits
in general, which is due to the
increasing availability of most types of
fresh fruit throughout the year.
While the overall demand for raisins
has increased in 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
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Jkt 211001
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.
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 February 7, 2007,
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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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Federal Register / Vol. 72, No. 67 / Monday, April 9, 2007 / Rules and Regulations
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.
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.
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,
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.
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.
This rule invites comments on the
establishment of final volume regulation
percentages for 2006–07 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 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.
List of Subjects in 7 CFR Part 989
Grapes, Marketing agreements,
Raisins, Reporting and recordkeeping
requirements.
I For the reasons set forth in the
preamble, 7 CFR part 989 is amended as
follows:
PART 989—RAISINS PRODUCED
FROM GRAPES GROWN IN
CALIFORNIA
1. The authority citation for 7 CFR
part 989 continues to read as follows:
I
Authority: 7 U.S.C. 601–674.
2. Section 989.257 is revised to read
as follows:
I
§ 989.257 Final free and reserve
percentages.
(a) The final percentages for the
respective varietal type(s) of raisins
acquired by handlers during the crop
year beginning August 1, which shall be
free tonnage and reserve tonnage,
respectively, are designated as follows:
Free
percentage
rwilkins on PROD1PC63 with RULES
Crop year
Varietal type
2003–2004 ..................................................................
2005–2006 ..................................................................
2006–2007 ..................................................................
Natural (sun-dried) Seedless .....................................
Natural (sun-dried) Seedless .....................................
Natural (sun-dried) Seedless .....................................
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70
82.50
90
Reserve
percentage
30
17.50
10
Federal Register / Vol. 72, No. 67 / Monday, April 9, 2007 / Rules and Regulations
(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 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
U.S. Small Business
Administration (SBA).
ACTION: Direct Final Rule.
AGENCY:
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.
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 https://
www.regulations.gov; (2) e-mail:
lisa.babcock@sba.gov, 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.
rwilkins on PROD1PC63 with RULES
DATES:
VerDate Aug<31>2005
16:25 Apr 06, 2007
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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
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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 courtordered 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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]]>Agencies
[Federal Register Volume 72, Number 67 (Monday, April 9, 2007)]
[Rules and Regulations]
[Pages 17362-17367]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-6530]
-----------------------------------------------------------------------
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
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
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Interim final rule with request for comments.
-----------------------------------------------------------------------
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: https://
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:
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, 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 2006-07 crop year, which
began August 1, 2006, and ends 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.
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
[[Page 17363]]
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 Sec. 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 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 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 Demand............................ 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 Sec. 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 Sec. 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:
Final Volume Regulation Percentages
[Natural condition tons]
------------------------------------------------------------------------
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 percentage.... 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.
[[Page 17364]]
This goal will be met for NS raisins by the establishment of final
percentages, which release 100 percent of the trade demand and the
offer of additional reserve raisins for sale to handlers under the ``10
plus 10 offers.'' As specified in Sec. 989.54(g), the 10 plus 10
offers are two offers of reserve pool raisins which are made available
to handlers during each season. For each such offer, a quantity of
reserve raisins equal to 10 percent of the prior year's shipments is
made available for free use. Handlers may sell their 10 plus 10 raisins
to any market.
For NS raisins, the first 10 plus 10 offer was 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).
In addition to the 10 plus 10 offers, Sec. 989.67(j) of the order
provides authority for sales of reserve raisins to handlers under
certain conditions such as a national emergency, crop failure, change
in economic or marketing conditions, or if free tonnage shipments in
the current crop year exceed shipments during a comparable period of
the prior crop year. Such reserve raisins may be sold by handlers to
any market. When implemented, the additional offers of reserve raisins
make even more raisins available to primary markets, which is
consistent with USDA's Guidelines.
Initial Regulatory Flexibility Analysis
Pursuant to requirements set forth in the Regulatory Flexibility
Act (RFA), the Agricultural Marketing Service (AMS) has considered the
economic impact of this action on small entities. Accordingly, AMS has
prepared this initial regulatory flexibility analysis.
The purpose of the RFA is to fit regulatory actions to the scale of
business subject to such actions in order that small businesses will
not be unduly or disproportionately burdened. Marketing orders issued
pursuant to the Act, and rules issued thereunder, are unique in that
they are brought about through group action of essentially small
entities acting on their own behalf. Thus, both statutes have small
entity orientation and compatibility.
There are approximately 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.
Pursuant to Sec. 989.54(d) of the order, this rule establishes
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 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.
Raisin grapes are a perennial crop, so production in any year is
dependent upon plantings made in earlier years. The sun-drying method
of producing raisins involves considerable risk because of variable
weather patterns.
Even though the product and the industry are viewed as mature, the
industry has experienced considerable change over the last several
decades. Before the 1975-76 crop year, more than 50 percent of the
raisins were packed and sold directly to consumers. Now, about 64
percent of raisins are sold in bulk. This means that raisins are now
sold to consumers mostly as an ingredient in another product such as
cereal and baked goods. In addition, for a few years in the early
1970's, over 50 percent of the raisin grapes were sold to the wine
market for crushing. Since then, the percent of raisin-variety grapes
sold to the wine industry has decreased.
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
[[Page 17365]]
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:
Natural Seedless Producer Prices
------------------------------------------------------------------------
Deliveries
Crop year (natural Producer prices
condition tons) (per ton)
------------------------------------------------------------------------
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
------------------------------------------------------------------------
\1\ Return-to-date, reserve pool still open.
\2\ No volume regulation.
There are essentially two broad markets for raisins--domestic and
export. Domestic shipments have been generally increasing in recent
years. Although domestic shipments decreased from a high of 204,805
packed tons during the 1990-91 crop year to a low of 156,325 packed
tons in 1999-2000, they increased from 174,117 packed tons during the
2000-01 crop year to 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.
The per capita consumption of raisins has declined from 2.07 pounds
in 1988 to 1.44 pounds in 2005. This decrease is consistent with the
decrease in the per capita consumption of dried fruits in general,
which is due to the increasing availability of most types of fresh
fruit throughout the year.
While the overall demand for raisins has increased in 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.
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 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 x 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
[[Page 17366]]
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.
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.
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, 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.
A small business guide on complying with fruit, vegetable, and
specialty crop marketing agreements and orders may be viewed at: http:/
/www.ams.usda.gov/fv/moab.html. Any questions about the compliance
guide should be sent to Jay Guerber at the previously mentioned address
in the FOR FURTHER INFORMATION CONTACT section.
This rule invites comments on the establishment of final volume
regulation percentages for 2006-07 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 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.
List of Subjects in 7 CFR Part 989
Grapes, Marketing agreements, Raisins, Reporting and recordkeeping
requirements.
0
For the reasons set forth in the preamble, 7 CFR part 989 is amended as
follows:
PART 989--RAISINS PRODUCED FROM GRAPES GROWN IN CALIFORNIA
0
1. The authority citation for 7 CFR part 989 continues to read as
follows:
Authority: 7 U.S.C. 601-674.
0
2. Section 989.257 is revised to read as follows:
Sec. 989.257 Final free and reserve percentages.
(a) The final percentages for the respective varietal type(s) of
raisins acquired by handlers during the crop year beginning August 1,
which shall be free tonnage and reserve tonnage, respectively, are
designated as follows:
----------------------------------------------------------------------------------------------------------------
Free Reserve
Crop year Varietal type percentage percentage
----------------------------------------------------------------------------------------------------------------
2003-2004..................................... Natural (sun-dried) Seedless.... 70 30
2005-2006..................................... Natural (sun-dried) Seedless.... 82.50 17.50
2006-2007..................................... Natural (sun-dried) Seedless.... 90 10
----------------------------------------------------------------------------------------------------------------
[[Page 17367]]
(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 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
