Raisins Produced from Grapes Grown in California; Final Free and Reserve Percentages for 2007-08 Crop Natural (sun-dried) Seedless Raisins, 9005-9010 [E8-2960]
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Federal Register / Vol. 73, No. 33 / Tuesday, February 19, 2008 / Rules and Regulations
continues to pursue export
opportunities.
There are some reporting,
recordkeeping, and other compliance
requirements under the order. The
reporting and recordkeeping burdens
are necessary for compliance purposes
and for developing statistical data for
maintenance of the program. The
information collection requirements
have been previously approved by the
Office of Management and Budget under
OMB No. 0581–0178, Vegetable and
Specialty Crops. The forms require
information which is readily available
from handler records and which can be
provided without data processing
equipment or trained statistical staff. As
with all Federal marketing order
programs, reports and forms are
periodically reviewed to reduce
information requirements and
duplication by industry and public
sector agencies. This rule does not
change those requirements.
The AMS is committed to complying
with the E-Government Act, to promote
the use of the Internet and other
information technologies to provide
increased opportunities for citizen
access to Government information and
services, and for other purposes.
In addition, USDA has not identified
any relevant Federal rules that
duplicate, overlap, or conflict with this
rule.
Further, the Board’s meetings were
widely publicized throughout the
hazelnut industry and all interested
persons were invited to attend the
meetings and participate in Board
deliberations. Like all Board meetings,
those held on August 23, 2007, and
November 15, 2007, were public
meetings and all entities, both large and
small, were able to express their views
on this issue. Finally, interested persons
are invited to submit information on the
regulatory and informational impacts of
this action on small businesses.
A small business guide on complying
with fruit, vegetable, and specialty crop
marketing agreements and orders may
be viewed at: 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 interim final and final
free and restricted percentages for the
2007–2008 marketing year under the
hazelnut marketing order. Any
comments received will be considered
prior to finalization of this rule.
After consideration of all relevant
material presented, including the
Board’s recommendation, and other
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information, it is found that this interim
final rule, as hereinafter set forth, will
tend to effectuate the declared policy of
the Act.
Pursuant to 5 U.S.C. 553, it is also
found and determined upon good cause
that it is impracticable, unnecessary,
and contrary to the public interest to
give preliminary notice prior to putting
this rule into effect and that good cause
exists for not postponing the effective
date of this action until 30 days after
publication in the Federal Register
because: (1) The 2007–2008 marketing
year began July 1, 2007, and the
percentages established herein apply to
all merchantable hazelnuts handled
from the beginning of the crop year; (2)
the percentages make the full trade
demand available so handlers can take
advantage of inshell marketing
opportunities; (3) handlers are aware of
this rule, which was recommended at an
open Board meeting, and need no
additional time to comply with this
rule; and (4) interested persons are
provided a 60-day comment period in
which to respond, and all comments
timely received will be considered prior
to finalization of this action.
List of Subjects in 7 CFR Part 982
Filberts, Hazelnuts, Marketing
agreements, Nuts, Reporting and
recordkeeping requirements.
For the reasons set forth in the
preamble, 7 CFR Part 982 is amended as
follows:
I
PART 982—HAZELNUTS GROWN IN
OREGON AND WASHINGTON
1. The authority citation for 7 CFR
Part 982 continues to read as follows:
I
Authority: 7 U.S.C. 601–674.
2. A new section 982.255 is added to
read as follows:
I
§ 982.255 Free and restricted
percentages—2007–2008 marketing year.
(a) The interim final free and
restricted percentages for merchantable
hazelnuts for the 2007–2008 marketing
year shall be 8.1863 and 91.8137
percent, respectively.
(b) On May 1, 2008, the final free and
restricted percentages for merchantable
hazelnuts for the 2007–2008 marketing
year shall be 9.2671 and 90.7329
percent, respectively.
Dated: February 12, 2008.
Lloyd C. Day,
Administrator, Agricultural Marketing
Service.
[FR Doc. 08–739 Filed 2–15–08; 8:45 am]
BILLING CODE 3410–02–P
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9005
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 989
[Docket No. AMS–FV–07–0130; FV08–989–
1 IFR]
Raisins Produced from Grapes Grown
in California; Final Free and Reserve
Percentages for 2007–08 Crop Natural
(sun-dried) Seedless Raisins
Agricultural Marketing Service,
USDA.
ACTION: Interim final rule with request
for comments.
AGENCY:
SUMMARY: This rule establishes final
volume regulation percentages for 2007–
08 crop Natural (sun-dried) Seedless
(NS) raisins covered under the Federal
marketing order for California raisins
(order). The order regulates the handling
of raisins produced from grapes grown
in California and is locally administered
by the Raisin Administrative Committee
(Committee). The volume regulation
percentages are 85 percent free and 15
percent reserve. The percentages are
intended to help stabilize raisin
supplies and prices, and strengthen
market conditions.
DATES: Effective February 20, 2008. The
volume regulation percentages apply to
acquisitions of NS raisins from the
2007–08 crop until the reserve raisins
from that crop are disposed of under the
marketing order. Comments received by
April 21, 2008, will be considered prior
to issuance of a final rule.
ADDRESSES: Interested persons are
invited to submit written comments
concerning this rule. Comments must be
sent to the Docket Clerk, Marketing
Order Administration Branch, Fruit and
Vegetable Programs, AMS, USDA, 1400
Independence Avenue, SW., STOP
0237, Washington, DC 20250–0237; Fax:
(202) 720–8938; or Internet: 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: 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.
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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.
This rule
is issued under Marketing Agreement
and Order No. 989, both as amended (7
CFR part 989), regulating the handling
of raisins produced from grapes grown
in California, hereinafter referred to as
the ‘‘order.’’ The order is effective under
the Agricultural Marketing Agreement
Act of 1937, as amended (7 U.S.C. 601–
674), hereinafter referred to as the
‘‘Act.’’
The Department of Agriculture
(USDA) is issuing this rule in
conformance with Executive Order
12866.
This rule has been reviewed under
Executive Order 12988, Civil Justice
Reform. Under the order provisions now
in effect, final free and reserve
percentages may be established for
raisins acquired by handlers during the
crop year. This rule establishes final free
and reserve percentages for NS raisins
for the 2007–08 crop year, which began
August 1, 2007, and ends July 31, 2008.
This rule will not preempt any State or
local laws, regulations, or policies,
unless they present an irreconcilable
conflict with this rule.
The Act provides that administrative
proceedings must be exhausted before
parties may file suit in court. Under
section 608c(15)(A) of the Act, any
handler subject to an order may file
with USDA a petition stating that the
order, any provision of the order, or any
obligation imposed in connection with
the order is not in accordance with law
and request a modification of the order
or to be exempted therefrom. A handler
is afforded the opportunity for a hearing
on the petition. After the hearing, USDA
would rule on the petition. The Act
provides that the district court of the
United States in any district in which
the handler is an inhabitant, or has his
or her principal place of business, has
jurisdiction to review USDA’s ruling on
the petition, provided an action is filed
not later than 20 days after the date of
the entry of the ruling.
This rule establishes final volume
regulation percentages for 2007–08 crop
NS raisins covered under the order. The
volume regulation percentages are 85
percent free and 15 percent reserve. Free
tonnage raisins may be sold by handlers
to any market. Reserve raisins must be
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SUPPLEMENTARY INFORMATION:
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held in a pool for the account of the
Committee and are disposed of through
various programs authorized under the
order. For example, reserve raisins may
be sold by the Committee to handlers for
free use or to replace part of the free
tonnage raisins they exported; used in
diversion programs; carried over as a
hedge against a short crop; or disposed
of in other outlets not competitive with
those for free tonnage raisins, such as
government purchase, distilleries, or
animal feed.
The volume regulation percentages
are intended to help stabilize raisin
supplies and prices, and strengthen
market conditions. The Committee
unanimously recommended final
percentages for NS raisins on October 4,
2007, and October 11, 2007.
Computation of Trade Demands
Section 989.54 of the order prescribes
procedures and time frames to be
followed in establishing volume
regulation. This includes methodology
used to calculate free and reserve
percentages. Pursuant to § 989.54(a) of
the order, the Committee met on August
14, 2007, to review shipment and
inventory data, and other matters
relating to the supplies of raisins of all
varietal types. The Committee computed
a trade demand for each varietal type for
which a free tonnage percentage might
be recommended. Trade demand is
computed using a formula specified in
the order and, for each varietal type, is
equal to 90 percent of the prior year’s
shipments of free tonnage and reserve
tonnage raisins sold for free use into all
market outlets, adjusted by subtracting
the carryin on August 1 of the current
crop year, and adding the desirable
carryout at the end of that crop year. As
specified in § 989.154(a), the desirable
carryout for NS raisins shall equal the
total shipments of free tonnage during
August and September for each of the
past 5 crop years, converted to a natural
condition basis, dropping the high and
low figures, and dividing the remaining
sum by three, or 60,000 natural
condition tons, whichever is higher. For
all other varietal types, the desirable
carryout shall equal the total shipments
of free tonnage during August,
September and one-half of October for
each of the past 5 crop years, converted
to a natural condition basis, dropping
the high and low figures, and dividing
the remaining sum by three. In
accordance with these provisions, the
Committee computed and announced
the 2007–08 trade demand for NS
raisins at 232,822 tons as shown below.
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COMPUTED TRADE DEMAND
[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 .....................................
309,169
0.90
278,252
105,430
60,000
232,822
Computation of Volume Regulation
Percentages
Section 989.54(b) of the order requires
that the Committee announce crop
estimates and determine whether
volume regulation is warranted for the
varietal types for which it computed a
trade demand. If the Committee
determines that volume regulation is
warranted, it must also compute and
announce preliminary free and reserve
percentages. Section 989.54(c) provides
that the Committee may modify the
preliminary free and reserve percentages
prior to February 15 by announcing
interim percentages which release less
than the trade demand. Section
989.54(d) requires the Committee to
recommend final percentages no later
than February 15 which will tend to
release the full trade demand. Final
percentages are established by USDA
through informal rulemaking.
The Committee met on October 4 and
October 11, 2007, and announced a
2007–08 crop estimate of 273,908 tons
for NS raisins pursuant to § 989.54(b).
NS raisins are the major varietal type of
California raisin. The crop estimate of
273,908 tons is significantly higher than
the computed trade demand of 232,822
tons. Thus, the Committee determined
that volume regulation for NS raisins
was warranted. The Committee
therefore announced preliminary
volume regulation percentages of 72
percent free and 28 percent reserve for
NS raisins. As required by the order,
these percentages would release 85
percent of the computed trade demand.
The Committee also announced interim
volume regulation percentages of 84.75
percent free and 15.25 percent reserve,
and recommended final volume
regulation percentages of 85 percent free
and 15 percent reserve pursuant to
§ 989.54(d).
The Committee has historically
recommended interim and final volume
regulation percentages later in the
season. However, the Committee
determined it was in the best interest of
producers and handlers to establish
interim and final percentages as soon as
possible for the 2007–08 crop year.
Rains during the harvest period this
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season while grapes were lying on the
ground to dry caused a problem with
embedded sand particles on a portion of
the crop. To remedy this situation,
growers must subject the raisins to a
process known as reconditioning to
remove the sand in order for the raisins
to be acceptable for acquisition by
handlers. This process results in
additional costs to growers. Establishing
interim and final percentages early in
the season will allow growers to be paid
on a higher percentage of their crop
earlier in the season. This will help
growers meet the costs of
reconditioning, and the reconditioned
product will then be suitable for
acquisition and processing by handlers.
Pursuant to § 989.54(d), the
Committee’s calculations and
determinations to arrive at final
percentages for NS raisins are shown in
the table below:
FINAL VOLUME REGULATION
PERCENTAGES
[Natural condition tons]
NS raisins
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Trade demand ........................
Divided by crop estimate ........
Equals the free percentage ....
100 minus free percentage
equals the reserve percentage ......................................
232,822
273,908
85.00
15.00
USDA’s ‘‘Guidelines for Fruit,
Vegetable, and Specialty Crop
Marketing Orders’’ (Guidelines) specify
that 110 percent of recent years’ sales
should be made available to primary
markets each season for marketing
orders utilizing reserve pool authority.
This goal is expected to be met for NS
raisins for the 2007–08 crop year.
Application of the final percentages will
make 232,822 tons of raisins available to
handlers if the crop estimate is realized.
In addition, handlers will be offered
additional reserve raisins for sale under
the ‘‘10 plus 10 offers.’’ As specified in
§ 989.54(g), the 10 plus 10 offers are two
offers of reserve pool raisins which are
made available to handlers during each
season. For each such offer, a quantity
of reserve raisins equal to 10 percent of
the prior year’s shipments is made
available to handlers for free use.
Handlers may sell their 10 plus 10
raisins to any market.
Based on 2006–07 NS shipments of
309,169 natural condition tons, 61,833.8
tons should be made available in the 10
plus 10 offers. However, based on the
273,908-ton crop estimate and the
232,822-ton trade demand, only 41,086
tons of 2007–08 reserve raisins would
be available. This tonnage combined
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with the 6,064 tons of remaining 2006–
07 reserve raisins should be available
for the 10 plus 10 offers (a total of
47,150 tons). Thus, all available reserve
pool raisins should be offered to
handlers for free use through the 10 plus
10 offers.
In addition to these anticipated 10
plus 10 purchases, 14,793 tons of 2006–
07 reserve raisins were sold to handlers
through 10 plus 10 offers in July 2007
and released to handlers in the 2007–08
crop year (August 2007). Finally,
105,430 tons of free tonnage raisins
were carried in to the 2007–08 crop year
in handler’s inventories. Combining all
the raisins available to handlers for use
as free tonnage for the 2007–08 crop
year (including the 232,822-ton trade
demand) results in a total supply of
400,195 tons of natural condition
raisins, or 376,195 packed tons. This
equates to 129 percent of the 2006–07
shipments of 309,169 natural condition
tons or 290,628 packed tons.
In addition to the 10 plus 10 offers,
§ 989.67(j) of the order provides
authority for sales of reserve raisins to
handlers under certain conditions such
as a national emergency, crop failure,
change in economic or marketing
conditions, or if free tonnage shipments
in the current crop year exceed
shipments during a comparable period
of the prior crop year. Such reserve
raisins may be sold by handlers to any
market. When implemented, the
additional offers of reserve raisins make
even more raisins available to primary
markets, which is consistent with
USDA’s Guidelines.
Initial Regulatory Flexibility Analysis
Pursuant to requirements set forth in
the Regulatory Flexibility Act (RFA), the
Agricultural Marketing Service (AMS)
has considered the economic impact of
this action on small entities.
Accordingly, AMS has prepared this
initial regulatory flexibility analysis.
The purpose of the RFA is to fit
regulatory actions to the scale of
business subject to such actions in order
that small businesses will not be unduly
or disproportionately burdened.
Marketing orders issued pursuant to the
Act, and rules issued thereunder, are
unique in that they are brought about
through group action of essentially
small entities acting on their own
behalf. Thus, both statutes have small
entity orientation and compatibility.
There are approximately 23 handlers
of California raisins who are subject to
regulation under the order and
approximately 4,000 raisin producers in
the regulated area. Small agricultural
firms are defined by the Small Business
Administration (SBA)(13 CFR 121.201)
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9007
as those having annual receipts of less
than $6,500,000, and small agricultural
producers are defined as those having
annual receipts of less than $750,000.
No more than 10 handlers and a
majority of producers of California
raisins may be classified as small
entities.
Since 1949, the California raisin
industry has operated under a Federal
marketing order. The order contains
authority to, among other things, limit
the portion of a given year’s crop that
can be marketed freely in any outlet by
raisin handlers. This volume regulation
mechanism is used to stabilize supplies
and prices and strengthen market
conditions. If the primary market (the
normal domestic market) is oversupplied with raisins, grower prices
decline substantially.
Pursuant to § 989.54(d) of the order,
this rule establishes final volume
regulation percentages for 2007–08 crop
NS raisins. The volume regulation
percentages are 85 percent free and 15
percent reserve. Free tonnage raisins
may be sold by handlers to any market.
Reserve raisins must be held in a pool
for the account of the Committee and
are disposed of through certain
programs authorized under the order.
Volume regulation is warranted this
season because the crop estimate of
273,908 tons is significantly higher than
the 232,822 ton trade demand.
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.
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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
Deliveries
Producer
(natural
with wineries, as raisin variety grapes
Crop year
prices
condition
crushed in 2005–06 decreased by
(per ton)
tons)
161,000 green tons, the equivalent of
1996–97 ............
272,063
1,049.20 over 40,000 tons of raisins. In 2006–07,
1995–96 ............
325,911
1,007.19 raisin deliveries were again less than
1994–95 ............
378,427
928.27 300,000 tons, at 282,999 tons.
1993–94 ............
387,007
904.60
The order permits the industry to
exercise volume regulation provisions,
1 Return-to-date, reserve pool still open.
2 No volume regulation.
which allow for the establishment of
free and reserve percentages, and
There are essentially two broad
establishment of a reserve pool. One of
markets for raisins—domestic and
the primary purposes of establishing
export. Domestic shipments have been
free and reserve percentages is to
generally increasing in recent years.
Although domestic shipments decreased equilibrate supply and demand. If raisin
markets are over-supplied with product,
from a high of 204,805 packed tons
producer prices will decline.
during the 1990–91 crop year to a low
Raisins are generally marketed at
of 156,325 packed tons in 1999–2000,
relatively lower price levels in the more
they increased from 174,117 packed
elastic export market than in the more
tons during the 2000–01 crop year to
inelastic domestic market. This results
188,944 tons during the 2006–07 crop
in a larger volume of raisins being
year. Export shipments ranged from a
high of 107,931 packed tons in 1991–92 marketed and enhances producer
returns. In addition, this system allows
to a low of 91,599 packed tons in the
the U.S. raisin industry to be more
1999–2000 crop year. Since that time,
competitive in export markets.
export shipments increased to 106,755
The reserve percentage limits what
tons of raisins during the 2004–05 crop
handlers can market as free tonnage.
year, but fell to 101,684 tons in 2006–
Based on the 2007–08 crop estimate of
07.
The per capita consumption of raisins 273,908 tons, the 15 percent reserve
would limit the total free tonnage to
has declined from 2.07 pounds in 1988
232,822 natural condition tons (.85 × the
to 1.44 pounds in 2005. This decrease
273,908 ton crop). Adding the 232,822
is consistent with the decrease in the
ton figure to the carryin of 105,430 tons,
per capita consumption of dried fruits
plus 41,086 tons of 2007–08 of reserve
in general, which is due to the
raisins anticipated for sale to handlers
increasing availability of most types of
during the 2006–07 crop year under the
fresh fruit throughout the year.
10 plus 10 offers, and 20,857 tons of
While the overall demand for raisins
2006–07 reserve raisins available to
has increased in three of the last four
handlers in the 2007–08 crop year
years (as reflected in increased
commercial shipments), production has results in a total free supply of 400,195
natural condition tons.
been decreasing. Deliveries of NS dried
With volume regulation, producer
raisins from producers to handlers
reached an all-time high of 432,616 tons prices are expected to be higher than
without volume regulation. This price
in the 2000–01 crop year. This large
increase is beneficial to all producers
crop was preceded by two short crop
regardless of size and enhances
years; deliveries were 240,469 tons in
producers’ total revenues in comparison
1998–99 and 299,910 tons in 1999–
to no volume regulation. Establishing a
2000. Deliveries for the 2000–01 crop
NATURAL SEEDLESS PRODUCER
reserve allows the industry to help
year soared to a record level because of
PRICES
stabilize supplies in both domestic and
increased bearing acreage and yields.
export markets, while improving returns
Deliveries for the 2001–02 crop year
Deliveries
to producers.
were at 377,328 tons, 388,010 tons for
Producer
(natural
Crop year
prices
the 2002–03 crop year, 296,864 for the
Free and reserve percentages are
condition
(per ton)
2003–04 crop year, and 265,262 tons for established by varietal type, and usually
tons)
the 2004–05 crop year. After three crop
in years when the supply exceeds the
1 $1,089.00
2006–07 ............
282,999
years of high production and a large
trade demand by a large enough margin
1 998.25
2005–06 ............
319,126
2001–02 carryin inventory, the industry that the Committee believes volume
2 1,210.00
2004–05 ............
265,262
diverted raisin production to other uses regulation is necessary to maintain
2003–04 ............
296,864
567.00 or removed bearing vines. Diversions/
market stability. Accordingly, in
2002–03 ............
388,010
491.20
removals totaled 38,000 acres in 2001;
assessing whether to apply volume
2001–02 ............
377,328
650.94
regulation or, as an alternative, not to
2000–01 ............
432,616
603.36 27,000 acres in 2002; and 8,000 acres of
apply such regulation, it was
1999–2000 ........
299,910
1,211.25 vines in 2003. These actions resulted in
2 1,290.00
declining deliveries of 296,864 tons for
determined that volume regulation is
1998–99 ............
240,469
1997–98 ............
382,448
946.52 the 2003–04 crop year and 265,262 tons
warranted this season for only one of
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California’s grapes are classified into
three groups—table grapes, wine grapes,
and raisin-variety grapes. Raisin-variety
grapes are the most versatile of the three
types. They can be marketed as fresh
grapes, crushed for juice in the
production of wine or juice concentrate,
or dried into raisins. Annual
fluctuations in the fresh grape, wine,
and concentrate markets, as well as
weather-related factors, cause
fluctuations in raisin supply. This type
of situation introduces a certain amount
of variability into the raisin market.
Although the size of the crop for 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
1996–97. Producer prices for the 1998–
99 and 1999–2000 seasons increased
significantly due to back-to-back short
crops during those years. Record large
crops followed and producer prices
dropped dramatically for the 2000–01
through 2003–04 crop years, as
inventories grew while demand
stagnated. However, producer prices
were higher for the 2004–05, 2005–06,
and 2006–07 crop years, as noted below:
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Federal Register / Vol. 73, No. 33 / Tuesday, February 19, 2008 / Rules and Regulations
the nine raisin varietal types defined
under the order.
The free and reserve percentages
established by this rule release the full
trade demand and apply uniformly to
all handlers in the industry, regardless
of size. For NS raisins, with the
exception of the 1998–99 and 2004–05
crop years, small and large raisin
producers and handlers have been
operating under volume regulation
percentages every year since 1983–84.
There are no known additional costs
incurred by small handlers that are not
incurred by large handlers. While the
level of benefits of this rulemaking are
difficult to quantify, the stabilizing
effects of the volume regulations impact
small and large handlers positively by
helping them maintain and expand
markets even though raisin supplies
fluctuate widely from season to season.
Likewise, price stability positively
impacts small and large producers by
allowing them to better anticipate the
revenues their raisins will generate.
There are some reporting,
recordkeeping and other compliance
requirements under the order. The
reporting and recordkeeping
requirements are necessary for
compliance purposes and for
developing statistical data for
maintenance of the program. The
requirements are the same as those
applied in past seasons. Thus, this
action imposes no additional reporting
or recordkeeping requirements on either
small or large raisin handlers. The forms
require information which is readily
available from handler records and
which can be provided without data
processing equipment or trained
statistical staff. The information
collection and recordkeeping
requirements have been previously
approved by the Office of Management
and Budget (OMB) under OMB Control
No. 0581–0178, Vegetable and Specialty
Crops. As with all Federal marketing
order programs, reports and forms are
periodically reviewed to reduce
information requirements and
duplication by industry and public
sector agencies.
AMS is committed to complying with
the E-Government Act, to promote the
use of the Internet and other
information technologies to provide
increased opportunities for citizen
access to Government information and
services, and for other purposes.
In addition, USDA has not identified
any relevant Federal rules that
duplicate, overlap, or conflict with this
rule.
Further, the Committee’s meetings
were widely publicized throughout the
raisin industry and all interested
persons were invited to attend the
meetings and participate in the
Committee’s deliberations. Like all
Committee meetings, the August 14,
2007, October 4, 2007, and October 11,
2007, meetings were public meetings
and all entities, both large and small,
were able to express their views on this
issue.
Also, the Committee has a number of
appointed subcommittees to review
certain issues and make
recommendations to the Committee.
The Committee’s Reserve Sales and
Marketing Subcommittee met on August
14, 2007, and October 4, 2007, and
discussed these issues in detail. Those
meetings were also public meetings and
both large and small entities were able
to participate and express their views.
Finally, interested persons are invited to
submit comments on this interim final
rule, including the regulatory and
informational impacts of this action on
small businesses.
A small business guide on complying
with fruit, vegetable, and specialty crop
marketing agreements and orders may
be viewed at: 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 2007–08 crop NS raisins
covered under the order. Any comments
received will be considered prior to
finalization of this rule.
After consideration of all relevant
material presented, including the
Crop year
rwilkins on PROD1PC63 with RULES
2003–04
2005–06
2006–07
2007–08
16:30 Feb 15, 2008
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 to
read as followed:
PART 989—RAISINS PRODUCED
FROM GRAPES GROWN IN
CALIFORNIA
1. The authority citation for 7 CFR
part 989 continues to read as follows:
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
Varietal type
......................................................
......................................................
......................................................
......................................................
VerDate Aug<31>2005
information and recommendation
submitted by the Committee and other
available information, it is hereby found
that this rule, as hereinafter set forth,
will tend to effectuate the declared
policy of the Act.
Pursuant to 5 U.S.C. 553, it is also
found and determined upon good cause
that it is impracticable, unnecessary,
and contrary to the public interest to
give preliminary notice prior to putting
this rule into effect, and that good cause
exists for not postponing the effective
date of this rule until 30 days after
publication in the Federal Register
because: (1) The relevant provisions of
this part require that the percentages
designated herein for the 2007–08 crop
year apply to all NS raisins acquired
during the crop year; (2) handlers are
aware of this action, which was
unanimously recommended at a public
meeting, and need no additional time to
comply with these percentages; and (3)
this interim final rule provides a 60-day
comment period, and all comments
timely received will be considered prior
to finalization of this rule.
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Natural
Natural
Natural
Natural
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(sun-dried)
(sun-dried)
(sun-dried)
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Seedless
Seedless
Seedless
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82.50
90
85
Reserve
percentage
30
17.50
10
15
9010
Federal Register / Vol. 73, No. 33 / Tuesday, February 19, 2008 / 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: February 12, 2008.
Lloyd C. Day,
Administrator, Agricultural Marketing
Service.
[FR Doc. E8–2960 Filed 2–15–08; 8:45 am]
BILLING CODE 3410–02–P
DEPARTMENT OF HOMELAND
SECURITY
Office of the Secretary
8 CFR Part 274
19 CFR Part 162
[USCBP–2006–0122]
without change to https://
www.regulations.gov, including any
personal information provided.
Docket: For access to the docket to
read background documents or
comments received, go to https://
www.regulations.gov. Submitted
comments may also be inspected on
regular business days between the hours
of 9 a.m. and 4:30 p.m. at the Office of
Regulations and Rulings, U.S. Customs
and Border Protection, 799 9th Street,
NW., 5th Floor, Washington, DC.
Arrangements to inspect submitted
comments should be made in advance
by calling Mr. Joseph Clark, U.S.
Customs and Border Protection, at (202)
572–8768.
FOR FURTHER INFORMATION CONTACT:
Jeremy Baskin, Office of Regulations
and Rulings, U.S. Customs and Border
Protection (202) 572–8700.
SUPPLEMENTARY INFORMATION:
RIN 1651–AA58
Public Participation
Administrative Process for Seizures
and Forfeitures Under the Immigration
and Nationality Act and Other
Authorities
Interested persons are invited to
participate in this rulemaking by
submitting written data, views, or
arguments on all aspects of the interim
rule. DHS also invites comments that
relate to the economic, environmental,
or federalism effects that might result
from this interim rule. Comments that
will provide the most assistance to the
Department of Homeland Security
(DHS) in developing these procedures
will reference a specific portion of the
interim rule, explain the reason for any
recommended change, and include data,
information, and authority that support
such recommended change.
Office of the Secretary, DHS.
Interim rule with request for
comments.
AGENCY:
ACTION:
SUMMARY: This interim rule amends
Department of Homeland Security
regulations, to consolidate the
procedures for administrative seizure
and forfeiture process. The interim rule
also permits earlier consideration of
petitions for the remission of seized
assets in cases that would otherwise be
brought under the procedures in title 8
of the Code of Federal Regulations. The
interim rule also makes technical and
conforming changes to update the
regulations.
This interim rule is effective
February 19, 2008. Written comments
must be submitted on or before April 21,
2008.
ADDRESSES: You may submit comments,
identified by docket number, by one of
the following methods:
• Federal eRulemaking Portal: https://
www.regulations.gov. Follow the
instructions for submitting comments
via docket number USCBP–2006–0122.
• Mail: Border Security Regulations
Branch, Office of Regulations and
Rulings, U.S. Customs and Border
Protection, 1300 Pennsylvania Avenue,
NW. (Mint Annex), Washington, DC
20229.
Instructions: All submissions received
must include the agency name and
document number for this rulemaking.
All comments received will be posted
rwilkins on PROD1PC63 with RULES
DATES:
VerDate Aug<31>2005
16:30 Feb 15, 2008
Jkt 214001
Background
On November 25, 2002, the President
signed into law the Homeland Security
Act of 2002, Public Law 107–296, 116
Stat. 2135 (HSA). Accordingly, as of
March 1, 2003, the former Immigration
and Nationalization Service (INS) of the
Department of Justice and the former
U.S. Customs Service of the Department
of the Treasury were transferred to DHS
and reorganized to become U.S.
Customs and Border Protection (CBP),
U.S. Immigration and Customs
Enforcement (ICE), and U.S. Citizenship
and Immigration Services (USCIS).
After passage of the HSA, both CBP
and ICE retained authority to perform
asset seizures and forfeitures under the
provisions of 8 CFR part 274 and 19
CFR parts 162 and 171. DHS, for the
purpose of improved efficiency, has
consolidated the processing of asset
forfeitures into CBP’s operations. The
regulations in Titles 8 and 19, however,
currently provide two different
procedures. This interim rule
PO 00000
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consolidates the procedures for
administrative seizure and forfeiture
process by altering the text of 8 CFR
274.1 to refer to 19 CFR parts 162 and
171. This rule also makes technical
conforming changes to update
references from INS and U.S. Customs
Service to CBP and ICE where
applicable.
Interim Rule Changes
Pursuant to the provisions of section
618 of the Tariff Act of 1930, as
amended (19 U.S.C. 1618), petitions for
remission of forfeitures were accepted
by the former U.S. Customs Service, and
now accepted by CBP, prior to initiation
of any administrative or judicial
forfeiture process. Under the regulations
adopted under section 274(b) of the
Immigration and Nationality Act of
1952, as amended (8 U.S.C. 1324(b)
(INA)), the remission or mitigation of
such forfeitures could occur only after
completion of the forfeiture process. No
statute, however, requires this
restriction. Under this interim rule, the
procedures previously used for
immigration-related forfeitures will be
eliminated and all asset forfeiture
proceedings will be conducted under a
consolidated procedure. This interim
rule revises 8 CFR part 274 in its
entirety to bring seizures and forfeitures
effected under section 274(b) of the INA,
as amended, and other forfeiture
authorities, into conformity with
procedures under 19 CFR parts 162 and
171. This change permits CBP to
entertain petitions for remission and
return of seized property prior to
completing the forfeiture process,
whether the seizure was effected under
the customs laws or the immigration
laws, and whether the seizure was made
by CBP or ICE.
Accordingly, 8 CFR part 274 is
amended to reference Title 19
administrative seizure and forfeiture
processes. This is the only significant
difference between the provisions and
DHS through this interim rule adopts
the procedure that provides greater
flexibility and is more favorable to
petitioners for remission.
Other Changes
The provisions of current 19 CFR
162.21 reference the former U.S.
Customs Service and U.S. Customs
Officers. The interim rule updates these
references to reflect U.S. Customs and
Border Protection and CBP Officers as
applicable.
Currently, 19 CFR 162.22(d)
references retention of vessels or
vehicles pending penalty payment and
specifically references section 460 of the
Tariff Act of 1930, as amended (19
E:\FR\FM\19FER1.SGM
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]]>Agencies
[Federal Register Volume 73, Number 33 (Tuesday, February 19, 2008)]
[Rules and Regulations]
[Pages 9005-9010]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-2960]
-----------------------------------------------------------------------
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 989
[Docket No. AMS-FV-07-0130; FV08-989-1 IFR]
Raisins Produced from Grapes Grown in California; Final Free and
Reserve Percentages for 2007-08 Crop Natural (sun-dried) Seedless
Raisins
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Interim final rule with request for comments.
-----------------------------------------------------------------------
SUMMARY: This rule establishes final volume regulation percentages for
2007-08 crop Natural (sun-dried) Seedless (NS) raisins covered under
the Federal marketing order for California raisins (order). The order
regulates the handling of raisins produced from grapes grown in
California and is locally administered by the Raisin Administrative
Committee (Committee). The volume regulation percentages are 85 percent
free and 15 percent reserve. The percentages are intended to help
stabilize raisin supplies and prices, and strengthen market conditions.
DATES: Effective February 20, 2008. The volume regulation percentages
apply to acquisitions of NS raisins from the 2007-08 crop until the
reserve raisins from that crop are disposed of under the marketing
order. Comments received by April 21, 2008, will be considered prior to
issuance of a final rule.
ADDRESSES: Interested persons are invited to submit written comments
concerning this rule. Comments must be sent to the Docket Clerk,
Marketing Order Administration Branch, Fruit and Vegetable Programs,
AMS, USDA, 1400 Independence Avenue, SW., STOP 0237, Washington, DC
20250-0237; Fax: (202) 720-8938; or Internet: 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.
[[Page 9006]]
Small businesses may request information on complying with this
regulation by contacting Jay Guerber, Marketing Order Administration
Branch, Fruit and Vegetable Programs, AMS, USDA, 1400 Independence
Avenue, SW., STOP 0237, Washington, DC 20250-0237; Telephone: (202)
720-2491; Fax: (202) 720-8938; or E-mail: 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 2007-08 crop year, which
began August 1, 2007, and ends July 31, 2008. This rule will not
preempt any State or local laws, regulations, or policies, unless they
present an irreconcilable conflict with this rule.
The Act provides that administrative proceedings must be exhausted
before parties may file suit in court. Under section 608c(15)(A) of the
Act, any handler subject to an order may file with USDA a petition
stating that the order, any provision of the order, or any obligation
imposed in connection with the order is not in accordance with law and
request a modification of the order or to be exempted therefrom. A
handler is afforded the opportunity for a hearing on the petition.
After the hearing, USDA would rule on the petition. The Act provides
that the district court of the United States in any district in which
the handler is an inhabitant, or has his or her principal place of
business, has jurisdiction to review USDA's ruling on the petition,
provided an action is filed not later than 20 days after the date of
the entry of the ruling.
This rule establishes final volume regulation percentages for 2007-
08 crop NS raisins covered under the order. The volume regulation
percentages are 85 percent free and 15 percent reserve. Free tonnage
raisins may be sold by handlers to any market. Reserve raisins must be
held in a pool for the account of the Committee and are disposed of
through various programs authorized under the order. For example,
reserve raisins may be sold by the Committee to handlers for free use
or to replace part of the free tonnage raisins they exported; used in
diversion programs; carried over as a hedge against a short crop; or
disposed of in other outlets not competitive with those for free
tonnage raisins, such as government purchase, distilleries, or animal
feed.
The volume regulation percentages are intended to help stabilize
raisin supplies and prices, and strengthen market conditions. The
Committee unanimously recommended final percentages for NS raisins on
October 4, 2007, and October 11, 2007.
Computation of Trade Demands
Section 989.54 of the order prescribes procedures and time frames
to be followed in establishing volume regulation. This includes
methodology used to calculate free and reserve percentages. Pursuant to
Sec. 989.54(a) of the order, the Committee met on August 14, 2007, to
review shipment and inventory data, and other matters relating to the
supplies of raisins of all varietal types. The Committee computed a
trade demand for each varietal type for which a free tonnage percentage
might be recommended. Trade demand is computed using a formula
specified in the order and, for each varietal type, is equal to 90
percent of the prior year's shipments of free tonnage and reserve
tonnage raisins sold for free use into all market outlets, adjusted by
subtracting the carryin on August 1 of the current crop year, and
adding the desirable carryout at the end of that crop year. As
specified in Sec. 989.154(a), the desirable carryout for NS raisins
shall equal the total shipments of free tonnage during August and
September for each of the past 5 crop years, converted to a natural
condition basis, dropping the high and low figures, and dividing the
remaining sum by three, or 60,000 natural condition tons, whichever is
higher. For all other varietal types, the desirable carryout shall
equal the total shipments of free tonnage during August, September and
one-half of October for each of the past 5 crop years, converted to a
natural condition basis, dropping the high and low figures, and
dividing the remaining sum by three. In accordance with these
provisions, the Committee computed and announced the 2007-08 trade
demand for NS raisins at 232,822 tons as shown below.
Computed Trade Demand
[Natural condition tons]
------------------------------------------------------------------------
NS raisins
------------------------------------------------------------------------
Prior year's shipments..................................... 309,169
Multiplied by 90 percent................................... 0.90
Equals adjusted base....................................... 278,252
Minus carryin inventory.................................... 105,430
Plus desirable carryout.................................... 60,000
Equals computed NS trade demand............................ 232,822
------------------------------------------------------------------------
Computation of Volume Regulation Percentages
Section 989.54(b) of the order requires that the Committee announce
crop estimates and determine whether volume regulation is warranted for
the varietal types for which it computed a trade demand. If the
Committee determines that volume regulation is warranted, it must also
compute and announce preliminary free and reserve percentages. Section
989.54(c) provides that the Committee may modify the preliminary free
and reserve percentages prior to February 15 by announcing interim
percentages which release less than the trade demand. Section 989.54(d)
requires the Committee to recommend final percentages no later than
February 15 which will tend to release the full trade demand. Final
percentages are established by USDA through informal rulemaking.
The Committee met on October 4 and October 11, 2007, and announced
a 2007-08 crop estimate of 273,908 tons for NS raisins pursuant to
Sec. 989.54(b). NS raisins are the major varietal type of California
raisin. The crop estimate of 273,908 tons is significantly higher than
the computed trade demand of 232,822 tons. Thus, the Committee
determined that volume regulation for NS raisins was warranted. The
Committee therefore announced preliminary volume regulation percentages
of 72 percent free and 28 percent reserve for NS raisins. As required
by the order, these percentages would release 85 percent of the
computed trade demand. The Committee also announced interim volume
regulation percentages of 84.75 percent free and 15.25 percent reserve,
and recommended final volume regulation percentages of 85 percent free
and 15 percent reserve pursuant to Sec. 989.54(d).
The Committee has historically recommended interim and final volume
regulation percentages later in the season. However, the Committee
determined it was in the best interest of producers and handlers to
establish interim and final percentages as soon as possible for the
2007-08 crop year. Rains during the harvest period this
[[Page 9007]]
season while grapes were lying on the ground to dry caused a problem
with embedded sand particles on a portion of the crop. To remedy this
situation, growers must subject the raisins to a process known as
reconditioning to remove the sand in order for the raisins to be
acceptable for acquisition by handlers. This process results in
additional costs to growers. Establishing interim and final percentages
early in the season will allow growers to be paid on a higher
percentage of their crop earlier in the season. This will help growers
meet the costs of reconditioning, and the reconditioned product will
then be suitable for acquisition and processing by handlers.
Pursuant to Sec. 989.54(d), the Committee's calculations and
determinations to arrive at final percentages for NS raisins are shown
in the table below:
Final Volume Regulation Percentages
[Natural condition tons]
------------------------------------------------------------------------
NS raisins
------------------------------------------------------------------------
Trade demand.............................................. 232,822
Divided by crop estimate.................................. 273,908
Equals the free percentage................................ 85.00
100 minus free percentage equals the reserve percentage... 15.00
------------------------------------------------------------------------
USDA's ``Guidelines for Fruit, Vegetable, and Specialty Crop
Marketing Orders'' (Guidelines) specify that 110 percent of recent
years' sales should be made available to primary markets each season
for marketing orders utilizing reserve pool authority. This goal is
expected to be met for NS raisins for the 2007-08 crop year.
Application of the final percentages will make 232,822 tons of raisins
available to handlers if the crop estimate is realized. In addition,
handlers will be offered additional reserve raisins for sale under the
``10 plus 10 offers.'' As specified in Sec. 989.54(g), the 10 plus 10
offers are two offers of reserve pool raisins which are made available
to handlers during each season. For each such offer, a quantity of
reserve raisins equal to 10 percent of the prior year's shipments is
made available to handlers for free use. Handlers may sell their 10
plus 10 raisins to any market.
Based on 2006-07 NS shipments of 309,169 natural condition tons,
61,833.8 tons should be made available in the 10 plus 10 offers.
However, based on the 273,908-ton crop estimate and the 232,822-ton
trade demand, only 41,086 tons of 2007-08 reserve raisins would be
available. This tonnage combined with the 6,064 tons of remaining 2006-
07 reserve raisins should be available for the 10 plus 10 offers (a
total of 47,150 tons). Thus, all available reserve pool raisins should
be offered to handlers for free use through the 10 plus 10 offers.
In addition to these anticipated 10 plus 10 purchases, 14,793 tons
of 2006-07 reserve raisins were sold to handlers through 10 plus 10
offers in July 2007 and released to handlers in the 2007-08 crop year
(August 2007). Finally, 105,430 tons of free tonnage raisins were
carried in to the 2007-08 crop year in handler's inventories. Combining
all the raisins available to handlers for use as free tonnage for the
2007-08 crop year (including the 232,822-ton trade demand) results in a
total supply of 400,195 tons of natural condition raisins, or 376,195
packed tons. This equates to 129 percent of the 2006-07 shipments of
309,169 natural condition tons or 290,628 packed tons.
In addition to the 10 plus 10 offers, Sec. 989.67(j) of the order
provides authority for sales of reserve raisins to handlers under
certain conditions such as a national emergency, crop failure, change
in economic or marketing conditions, or if free tonnage shipments in
the current crop year exceed shipments during a comparable period of
the prior crop year. Such reserve raisins may be sold by handlers to
any market. When implemented, the additional offers of reserve raisins
make even more raisins available to primary markets, which is
consistent with USDA's Guidelines.
Initial Regulatory Flexibility Analysis
Pursuant to requirements set forth in the Regulatory Flexibility
Act (RFA), the Agricultural Marketing Service (AMS) has considered the
economic impact of this action on small entities. Accordingly, AMS has
prepared this initial regulatory flexibility analysis.
The purpose of the RFA is to fit regulatory actions to the scale of
business subject to such actions in order that small businesses will
not be unduly or disproportionately burdened. Marketing orders issued
pursuant to the Act, and rules issued thereunder, are unique in that
they are brought about through group action of essentially small
entities acting on their own behalf. Thus, both statutes have small
entity orientation and compatibility.
There are approximately 23 handlers of California raisins who are
subject to regulation under the order and approximately 4,000 raisin
producers in the regulated area. Small agricultural firms are defined
by the Small Business Administration (SBA)(13 CFR 121.201) as those
having annual receipts of less than $6,500,000, and small agricultural
producers are defined as those having annual receipts of less than
$750,000. No more than 10 handlers and a majority of producers of
California raisins may be classified as small entities.
Since 1949, the California raisin industry has operated under a
Federal marketing order. The order contains authority to, among other
things, limit the portion of a given year's crop that can be marketed
freely in any outlet by raisin handlers. This volume regulation
mechanism is used to stabilize supplies and prices and strengthen
market conditions. If the primary market (the normal domestic market)
is over-supplied with raisins, grower prices decline substantially.
Pursuant to Sec. 989.54(d) of the order, this rule establishes
final volume regulation percentages for 2007-08 crop NS raisins. The
volume regulation percentages are 85 percent free and 15 percent
reserve. Free tonnage raisins may be sold by handlers to any market.
Reserve raisins must be held in a pool for the account of the Committee
and are disposed of through certain programs authorized under the
order.
Volume regulation is warranted this season because the crop
estimate of 273,908 tons is significantly higher than the 232,822 ton
trade demand.
The volume regulation procedures have helped the industry address
its marketing problems by keeping supplies in balance with domestic and
export market needs, and strengthening market conditions. The volume
regulation procedures fully supply the domestic and export markets,
provide for market expansion, and help reduce the burden of
oversupplies in the domestic market.
Raisin grapes are a perennial crop, so production in any year is
dependent upon plantings made in earlier years. The sun-drying method
of producing raisins involves considerable risk because of variable
weather patterns.
Even though the product and the industry are viewed as mature, the
industry has experienced considerable change over the last several
decades. Before the 1975-76 crop year, more than 50 percent of the
raisins were packed and sold directly to consumers. Now, about 64
percent of raisins are sold in bulk. This means that raisins are now
sold to consumers mostly as an ingredient in another product such as
cereal and baked goods. In addition, for a few years in the early
1970's, over 50 percent of the raisin grapes were sold to the wine
market for crushing. Since then, the percent of raisin-variety grapes
sold to the wine industry has decreased.
[[Page 9008]]
California's grapes are classified into three groups--table grapes,
wine grapes, and raisin-variety grapes. Raisin-variety grapes are the
most versatile of the three types. They can be marketed as fresh
grapes, crushed for juice in the production of wine or juice
concentrate, or dried into raisins. Annual fluctuations in the fresh
grape, wine, and concentrate markets, as well as weather-related
factors, cause fluctuations in raisin supply. This type of situation
introduces a certain amount of variability into the raisin market.
Although the size of the crop for raisin-variety grapes may be known,
the amount dried for raisins depends on the demand for crushing. This
makes the marketing of raisins a more difficult task. These supply
fluctuations can result in producer price instability and disorderly
market conditions.
Volume regulation is helpful to the raisin industry because it
lessens the impact of such fluctuations and contributes to orderly
marketing. For example, producer prices for NS raisins remained fairly
steady between the 1993-94 through the 1997-98 seasons, although
production varied. As shown in the table below, during those years,
production varied from a low of 272,063 tons in 1996-97 to a high of
387,007 tons in 1993-94.
According to Committee data, the total producer return per ton
during those years, which includes proceeds from both free tonnage plus
reserve pool raisins, has varied from a low of $904.60 in 1993-94 to a
high of $1,049.20 in 1996-97. Producer prices for the 1998-99 and 1999-
2000 seasons increased significantly due to back-to-back short crops
during those years. Record large crops followed and producer prices
dropped dramatically for the 2000-01 through 2003-04 crop years, as
inventories grew while demand stagnated. However, producer prices were
higher for the 2004-05, 2005-06, and 2006-07 crop years, as noted
below:
Natural Seedless Producer Prices
------------------------------------------------------------------------
Deliveries
(natural Producer
Crop year condition prices
tons) (per ton)
------------------------------------------------------------------------
2006-07....................................... 282,999 \1\
$1,089.00
2005-06....................................... 319,126 \1\ 998.25
2004-05....................................... 265,262 \2\
1,210.00
2003-04....................................... 296,864 567.00
2002-03....................................... 388,010 491.20
2001-02....................................... 377,328 650.94
2000-01....................................... 432,616 603.36
1999-2000..................................... 299,910 1,211.25
1998-99....................................... 240,469 \2\
1,290.00
1997-98....................................... 382,448 946.52
1996-97....................................... 272,063 1,049.20
1995-96....................................... 325,911 1,007.19
1994-95....................................... 378,427 928.27
1993-94....................................... 387,007 904.60
------------------------------------------------------------------------
\1\ Return-to-date, reserve pool still open.
\2\ No volume regulation.
There are essentially two broad markets for raisins--domestic and
export. Domestic shipments have been generally increasing in recent
years. Although domestic shipments decreased from a high of 204,805
packed tons during the 1990-91 crop year to a low of 156,325 packed
tons in 1999-2000, they increased from 174,117 packed tons during the
2000-01 crop year to 188,944 tons during the 2006-07 crop year. Export
shipments ranged from a high of 107,931 packed tons in 1991-92 to a low
of 91,599 packed tons in the 1999-2000 crop year. Since that time,
export shipments increased to 106,755 tons of raisins during the 2004-
05 crop year, but fell to 101,684 tons in 2006-07.
The per capita consumption of raisins has declined from 2.07 pounds
in 1988 to 1.44 pounds in 2005. This decrease is consistent with the
decrease in the per capita consumption of dried fruits in general,
which is due to the increasing availability of most types of fresh
fruit throughout the year.
While the overall demand for raisins has increased in three of the
last four years (as reflected in increased commercial shipments),
production has been decreasing. Deliveries of NS dried raisins from
producers to handlers reached an all-time high of 432,616 tons in the
2000-01 crop year. This large crop was preceded by two short crop
years; deliveries were 240,469 tons in 1998-99 and 299,910 tons in
1999-2000. Deliveries for the 2000-01 crop year soared to a record
level because of increased bearing acreage and yields. Deliveries for
the 2001-02 crop year were at 377,328 tons, 388,010 tons for the 2002-
03 crop year, 296,864 for the 2003-04 crop year, and 265,262 tons for
the 2004-05 crop year. After three crop years of high production and a
large 2001-02 carryin inventory, the industry diverted raisin
production to other uses or removed bearing vines. Diversions/removals
totaled 38,000 acres in 2001; 27,000 acres in 2002; and 8,000 acres of
vines in 2003. These actions resulted in declining deliveries of
296,864 tons for the 2003-04 crop year and 265,262 tons for the 2004-05
crop year. Although deliveries increased in 2005-06 to 319,126 tons,
this may have been because fewer growers opted to contract with
wineries, as raisin variety grapes crushed in 2005-06 decreased by
161,000 green tons, the equivalent of over 40,000 tons of raisins. In
2006-07, raisin deliveries were again less than 300,000 tons, at
282,999 tons.
The order permits the industry to exercise volume regulation
provisions, which allow for the establishment of free and reserve
percentages, and establishment of a reserve pool. One of the primary
purposes of establishing free and reserve percentages is to equilibrate
supply and demand. If raisin markets are over-supplied with product,
producer prices will decline.
Raisins are generally marketed at relatively lower price levels in
the more elastic export market than in the more inelastic domestic
market. This results in a larger volume of raisins being marketed and
enhances producer returns. In addition, this system allows the U.S.
raisin industry to be more competitive in export markets.
The reserve percentage limits what handlers can market as free
tonnage. Based on the 2007-08 crop estimate of 273,908 tons, the 15
percent reserve would limit the total free tonnage to 232,822 natural
condition tons (.85 x the 273,908 ton crop). Adding the 232,822 ton
figure to the carryin of 105,430 tons, plus 41,086 tons of 2007-08 of
reserve raisins anticipated for sale to handlers during the 2006-07
crop year under the 10 plus 10 offers, and 20,857 tons of 2006-07
reserve raisins available to handlers in the 2007-08 crop year results
in a total free supply of 400,195 natural condition tons.
With volume regulation, producer prices are expected to be higher
than without volume regulation. This price increase is beneficial to
all producers regardless of size and enhances producers' total revenues
in comparison to no volume regulation. Establishing a reserve allows
the industry to help stabilize supplies in both domestic and export
markets, while improving returns to producers.
Free and reserve percentages are established by varietal type, and
usually in years when the supply exceeds the trade demand by a large
enough margin that the Committee believes volume regulation is
necessary to maintain market stability. Accordingly, in assessing
whether to apply volume regulation or, as an alternative, not to apply
such regulation, it was determined that volume regulation is warranted
this season for only one of
[[Page 9009]]
the nine raisin varietal types defined under the order.
The free and reserve percentages established by this rule release
the full trade demand and apply uniformly to all handlers in the
industry, regardless of size. For NS raisins, with the exception of the
1998-99 and 2004-05 crop years, small and large raisin producers and
handlers have been operating under volume regulation percentages every
year since 1983-84. There are no known additional costs incurred by
small handlers that are not incurred by large handlers. While the level
of benefits of this rulemaking are difficult to quantify, the
stabilizing effects of the volume regulations impact small and large
handlers positively by helping them maintain and expand markets even
though raisin supplies fluctuate widely from season to season.
Likewise, price stability positively impacts small and large producers
by allowing them to better anticipate the revenues their raisins will
generate.
There are some reporting, recordkeeping and other compliance
requirements under the order. The reporting and recordkeeping
requirements are necessary for compliance purposes and for developing
statistical data for maintenance of the program. The requirements are
the same as those applied in past seasons. Thus, this action imposes no
additional reporting or recordkeeping requirements on either small or
large raisin handlers. The forms require information which is readily
available from handler records and which can be provided without data
processing equipment or trained statistical staff. The information
collection and recordkeeping requirements have been previously approved
by the Office of Management and Budget (OMB) under OMB Control No.
0581-0178, Vegetable and Specialty Crops. As with all Federal marketing
order programs, reports and forms are periodically reviewed to reduce
information requirements and duplication by industry and public sector
agencies.
AMS is committed to complying with the E-Government Act, to promote
the use of the Internet and other information technologies to provide
increased opportunities for citizen access to Government information
and services, and for other purposes.
In addition, USDA has not identified any relevant Federal rules
that duplicate, overlap, or conflict with this rule.
Further, the Committee's meetings were widely publicized throughout
the raisin industry and all interested persons were invited to attend
the meetings and participate in the Committee's deliberations. Like all
Committee meetings, the August 14, 2007, October 4, 2007, and October
11, 2007, meetings were public meetings and all entities, both large
and small, were able to express their views on this issue.
Also, the Committee has a number of appointed subcommittees to
review certain issues and make recommendations to the Committee. The
Committee's Reserve Sales and Marketing Subcommittee met on August 14,
2007, and October 4, 2007, and discussed these issues in detail. Those
meetings were also public meetings and both large and small entities
were able to participate and express their views. Finally, interested
persons are invited to submit comments on this interim final rule,
including the regulatory and informational impacts of this action on
small businesses.
A small business guide on complying with fruit, vegetable, and
specialty crop marketing agreements and orders may be viewed at: http:/
/www.ams.usda.gov/fv/moab.html. Any questions about the compliance
guide should be sent to Jay Guerber at the previously mentioned address
in the FOR FURTHER INFORMATION CONTACT section.
This rule invites comments on the establishment of final volume
regulation percentages for 2007-08 crop NS raisins covered under the
order. Any comments received will be considered prior to finalization
of this rule.
After consideration of all relevant material presented, including
the information and recommendation submitted by the Committee and other
available information, it is hereby found that this rule, as
hereinafter set forth, will tend to effectuate the declared policy of
the Act.
Pursuant to 5 U.S.C. 553, it is also found and determined upon good
cause that it is impracticable, unnecessary, and contrary to the public
interest to give preliminary notice prior to putting this rule into
effect, and that good cause exists for not postponing the effective
date of this rule until 30 days after publication in the Federal
Register because: (1) The relevant provisions of this part require that
the percentages designated herein for the 2007-08 crop year apply to
all NS raisins acquired during the crop year; (2) handlers are aware of
this action, which was unanimously recommended at a public meeting, and
need no additional time to comply with these percentages; and (3) this
interim final rule provides a 60-day comment period, and all comments
timely received will be considered prior to finalization of this rule.
List of Subjects in 7 CFR Part 989
Grapes, Marketing agreements, Raisins, Reporting and recordkeeping
requirements.
0
For the reasons set forth in the preamble, 7 CFR part 989 is amended to
read as followed:
PART 989--RAISINS PRODUCED FROM GRAPES GROWN IN CALIFORNIA
0
1. The authority citation for 7 CFR part 989 continues to read as
follows:
Authority: 7 U.S.C. 601-674.
0
2. Section 989.257 is revised to read as follows:
Sec. 989.257 Final free and reserve percentages.
(a) The final percentages for the respective varietal type(s) of
raisins acquired by handlers during the crop year beginning August 1,
which shall be free tonnage and reserve tonnage, respectively, are
designated as follows:
----------------------------------------------------------------------------------------------------------------
Free Reserve
Crop year Varietal type percentage percentage
----------------------------------------------------------------------------------------------------------------
2003-04........................................ Natural (sun-dried) Seedless....... 70 30
2005-06........................................ Natural (sun-dried) Seedless....... 82.50 17.50
2006-07........................................ Natural (sun-dried) Seedless....... 90 10
2007-08........................................ Natural (sun-dried) Seedless....... 85 15
----------------------------------------------------------------------------------------------------------------
[[Page 9010]]
(b) The volume regulation percentages apply to acquisitions of the
varietal type of raisins for the applicable crop year until the reserve
raisins for that crop are disposed of under the marketing order.
Dated: February 12, 2008.
Lloyd C. Day,
Administrator, Agricultural Marketing Service.
[FR Doc. E8-2960 Filed 2-15-08; 8:45 am]
BILLING CODE 3410-02-P
