Raisins Produced From Grapes Grown in California; Final Free and Reserve Percentages for 2008-09 Crop Natural (Sun-Dried) Seedless Raisins, 9951-9956 [E9-4851]
Download as PDF
<![CDATA[
9951
Rules and Regulations
Federal Register
Vol. 74, No. 44
Monday, March 9, 2009
This section of the FEDERAL REGISTER
contains regulatory documents having general
applicability and legal effect, most of which
are keyed to and codified in the Code of
Federal Regulations, which is published under
50 titles pursuant to 44 U.S.C. 1510.
comments about issues of law and
policy raised by those regulations. As a
result, OPM has delayed the effective
date of the final rule from March 9, 2008
to May 18, 2009. OPM has also opened
a 30-day public comment period.
The Code of Federal Regulations is sold by
the Superintendent of Documents. Prices of
new books are listed in the first FEDERAL
REGISTER issue of each week.
U.S. Office of Personnel Management.
Kathie Ann Whipple,
Acting Director.
[FR Doc. E9–5008 Filed 3–5–09; 11:15 am]
BILLING CODE 6325–39–P
OFFICE OF PERSONNEL
MANAGEMENT
5 CFR Part 300
OFFICE OF PERSONNEL
MANAGEMENT
RIN 3206–AL18
5 CFR Part 532
Time-in-Grade Eliminated, Delay of
Effective Date and Addition of
Comment Period
RIN 3206–AL74
Prevailing Rate Systems; Abolishment
of Santa Clara, CA, as a
Nonappropriated Fund Federal Wage
System Wage Area
U.S. Office of Personnel
Management.
ACTION: Final rule; delay of effective
date and addition of comment period.
AGENCY:
SUMMARY: This document delays the
effective date by 60 days and provides
a 30-day public comment period to run
concurrently for the final rule
eliminating the time-in-grade
requirement for competitive
promotions, as published in the Federal
Register on November 7, 2008.
DATES: The effective date for the final
rule published on November 7, 2008 (73
FR 66157), is delayed until May 18,
2009. Written comments must be
received on or before April 8, 2009.
FOR FURTHER INFORMATION CONTACT: Ms.
Janice Warren by telephone (202) 606–
0960; by FAX (202) 606–2329; by TTY
(202) 418–2134; or by e-mail
janice.warren@opm.gov.
The Office
of Personnel Management published a
Final Rule in the Federal Register on
November 7, 2008 (73 FR 66157).
Pursuant to a January 20, 2009, White
House Memorandum on regulatory
review, agencies are requested to
consider extending for 60 days the
effective date of regulations that have
been published in the Federal Register
but not yet taken effect, for the purpose
of reviewing questions of law and policy
raised by those regulations. Where such
an extension is made, agencies are
requested to immediately reopen the
notice-and-comment period for 30 days
to allow interested parties to provide
dwashington3 on PROD1PC60 with RULES
SUPPLEMENTARY INFORMATION:
VerDate Nov<24>2008
14:42 Mar 06, 2009
Jkt 217001
AGENCY: U.S. Office of Personnel
Management.
ACTION: Final rule.
SUMMARY: The U.S. Office of Personnel
Management is issuing a final rule to
abolish the Santa Clara, California,
nonappropriated fund (NAF) Federal
Wage System (FWS) wage area and
redefine Santa Clara County, CA, to the
Monterey, CA, NAF wage area and
Alameda, Contra Costa, and San
Francisco Counties, CA, to the Solano,
CA, NAF wage area. San Mateo County,
CA, will no longer be defined to a wage
area. These changes are necessary
because the closure of the Moffett
Federal Airfield Navy Exchange left the
Santa Clara wage area without an
activity having the capability to conduct
a local wage survey.
DATES: Effective date: This regulation is
effective on March 9, 2009.
Applicability date: This regulation
applies on the first day of the first
applicable pay period beginning on or
after November 15, 2008.
FOR FURTHER INFORMATION CONTACT:
Madeline Gonzalez, (202) 606–2838; email pay-performance-policy@opm.gov;
or FAX: (202) 606–4264.
SUPPLEMENTARY INFORMATION: On
November 4, 2008, the U.S. Office of
Personnel Management (OPM) issued an
interim rule (73 FR 65495) to abolish the
Santa Clara, California, nonappropriated
fund (NAF) Federal Wage System wage
area, redefine Santa Clara County, CA,
PO 00000
Frm 00001
Fmt 4700
Sfmt 4700
to the Monterey, CA, NAF wage area
and Alameda, Contra Costa, and San
Francisco Counties, CA, to the Solano,
CA, NAF wage area, and remove San
Mateo County, CA, from the wage area
definition. The interim rule had a 30day public comment period, during
which OPM received no comments.
Regulatory Flexibility Act
I certify that these regulations will not
have a significant economic impact on
a substantial number of small entities
because they will affect only Federal
agencies and employees.
List of Subjects in 5 CFR Part 532
Administrative practice and
procedure, Freedom of information,
Government employees, Reporting and
recordkeeping requirements, Wages.
U.S. Office of Personnel Management.
Kathie Ann Whipple,
Acting Director.
Accordingly, under the authority of 5
U.S.C. 5343, the interim rule published
on November 4, 2008, amending 5 CFR
part 532 (73 FR 65495) is adopted as
final with no changes.
■
[FR Doc. E9–4925 Filed 3–6–09; 8:45 am]
BILLING CODE 6325–39–P
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 989
[Doc. No. AMS–FV–08–0114; FV09–989–1
IFR]
Raisins Produced From Grapes Grown
in California; Final Free and Reserve
Percentages for 2008–09 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 2008–
09 crop Natural (sun-dried) Seedless
(NS) raisins covered under the Federal
marketing order for California raisins
(order). The order regulates the handling
of raisins produced from grapes grown
in California and is locally administered
by the Raisin Administrative Committee
(Committee). The volume regulation
percentages are 87 percent free and 13
E:\FR\FM\09MRR1.SGM
09MRR1
9952
Federal Register / Vol. 74, No. 44 / Monday, March 9, 2009 / Rules and Regulations
percent reserve. The percentages are
intended to help stabilize raisin
supplies and prices, and strengthen
market conditions.
DATES: Effective March 10, 2009. The
volume regulation percentages apply to
acquisitions of NS raisins from the
2008–09 crop until the reserve raisins
from that crop are disposed of under the
marketing order. Comments received by
May 8, 2009, will be considered prior to
issuance of a final rule.
ADDRESSES: Interested persons are
invited to submit written comments
concerning this rule. Comments must be
sent to the Docket Clerk, Marketing
Order Administration Branch, Fruit and
Vegetable Programs, AMS, USDA, 1400
Independence Avenue, SW., STOP
0237, Washington, DC 20250–0237; Fax:
(202) 720–8938; or Internet: https://
www.regulations.gov. All comments
should reference the document number
and the date and page number of this
issue of the Federal Register and will be
made available for public inspection in
the Office of the Docket Clerk during
regular business hours, or can be viewed
at: https://www.regulations.gov. All
comments submitted in response to this
rule will be included in the record and
will be made available to the public.
Please be advised that the identity of the
individuals or entities submitting the
comments will be made public on the
Internet at the address provided above.
FOR FURTHER INFORMATION CONTACT: Rose
M. Aguayo, Marketing Specialist, or
Kurt J. Kimmel, Regional Manager,
California Marketing Field Office,
Marketing Order Administration
Branch, Fruit and Vegetable Programs,
AMS, USDA; Telephone: (559) 487–
5901; Fax: (559) 487–5906; or E-mail:
Rose.Aguayo@ams.usda.gov or
Kurt.Kimmel@ams.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@ams.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.’’
dwashington3 on PROD1PC60 with RULES
SUPPLEMENTARY INFORMATION:
VerDate Nov<24>2008
14:42 Mar 06, 2009
Jkt 217001
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 2008–09 crop year, which began
August 1, 2008, and ends July 31, 2009.
This rule will not preempt any State or
local laws, regulations, or policies,
unless they present an irreconcilable
conflict with this rule.
The Act provides that administrative
proceedings must be exhausted before
parties may file suit in court. Under
section 608c(15)(A) of the Act, any
handler subject to an order may file
with USDA a petition stating that the
order, any provision of the order, or any
obligation imposed in connection with
the order is not in accordance with law
and request a modification of the order
or to be exempted therefrom. A handler
is afforded the opportunity for a hearing
on the petition. After the hearing, USDA
would rule on the petition. The Act
provides that the district court of the
United States in any district in which
the handler is an inhabitant, or has his
or her principal place of business, has
jurisdiction to review USDA’s ruling on
the petition, provided an action is filed
not later than 20 days after the date of
the entry of the ruling.
This rule establishes final volume
regulation percentages for the 2008–09
crop year for NS raisins covered under
the order. The volume regulation
percentages are 87 percent free and 13
percent reserve. Free tonnage raisins
may be sold by handlers to any market.
Reserve raisins must be held in a pool
for the account of the Committee and
are disposed of through various
programs authorized under the order.
For example, reserve raisins may be sold
by the Committee to handlers for free
use or to replace part of the free tonnage
raisins they exported; used in diversion
programs; carried over as a hedge
against a short crop; or disposed of in
other outlets not competitive with those
for free tonnage raisins, such as
government purchase, distilleries, or
animal feed.
The volume regulation percentages
are intended to help stabilize raisin
supplies and prices, and strengthen
market conditions. The Committee
unanimously recommended final
percentages for NS raisins on December
18, 2008.
PO 00000
Frm 00002
Fmt 4700
Sfmt 4700
Computation of Trade Demand
Section 989.54 of the order prescribes
procedures and time frames to be
followed in establishing volume
regulation. This includes methodology
used to calculate free and reserve
percentages. Pursuant to § 989.54(a) of
the order, the Committee met on August
15, 2008, to review shipment and
inventory data, and other matters
relating to the supplies of raisins of all
varietal types. The Committee computed
a trade demand for each varietal type for
which a free tonnage percentage might
be recommended. Trade demand is
computed using a formula specified in
the order and, for each varietal type, is
equal to 90 percent of the prior year’s
shipments of free tonnage and reserve
tonnage raisins sold for free use into all
market outlets, adjusted by subtracting
the carryin on August 1 of the current
crop year, and adding the desirable
carryout at the end of that crop year. As
specified in § 989.154(a), the desirable
carryout for NS raisins shall equal the
total shipments of free tonnage during
August and September for each of the
past 5 crop years, converted to a natural
condition basis, dropping the high and
low figures, and dividing the remaining
sum by three, or 60,000 natural
condition tons, whichever is higher. For
all other varietal types, the desirable
carryout shall equal the total shipments
of free tonnage during August,
September and one-half of October for
each of the past 5 crop years, converted
to a natural condition basis, dropping
the high and low figures, and dividing
the remaining sum by three. In
accordance with these provisions, the
Committee computed and announced
the 2008–09 trade demand for NS
raisins at 273,863 tons as shown below.
COMPUTED TRADE DEMAND
[Natural condition tons]
NS Raisins
Prior year’s shipments ..............
Multiplied by 90 percent ...........
Equals adjusted base ...............
Minus carryin inventory ............
Plus desirable carryout .............
Equals computed NS trade Demand .....................................
355,680
0.90
320,112
106,249
60,000
273,863
Computation of Volume Regulation
Percentages
Section 989.54(b) of the order requires
that the Committee announce, on or
before October 5, preliminary crop
estimates and determine whether
volume regulation is warranted for the
varietal types for which it computed a
trade demand. That section allows the
E:\FR\FM\09MRR1.SGM
09MRR1
Federal Register / Vol. 74, No. 44 / Monday, March 9, 2009 / Rules and Regulations
orders utilizing reserve pool authority.
This goal is expected to be met for NS
raisins for the 2008–09 crop year.
Application of the final percentages will
make 273,863 tons of raisins available to
handlers if the crop estimate is realized.
In addition, handlers will be offered
additional reserve raisins for sale under
the ‘‘10 plus 10 offers.’’ As specified in
§ 989.54(g), the 10 plus 10 offers are two
offers of reserve pool raisins which are
made available to handlers during each
season. For each such offer, a quantity
of reserve raisins equal to 10 percent of
the prior year’s shipments is made
available to handlers for free use.
Handlers may sell their 10 plus 10
raisins to any market.
Based on 2007–08 NS shipments of
355,680 natural condition tons, 71,136
tons should be made available in the 10
plus 10 offers. However, based on the
313,231-ton crop estimate and the
273,863-ton trade demand, only 39,368
tons of 2008–09 reserve raisins would
be available. There is no tonnage
available from prior pools. Thus, all
available reserve pool raisins should be
offered to handlers for free use through
the 10 plus 10 offers. Raisins that are
not purchased by handlers through the
10 plus 10 offers may be used for other
programs authorized under the order.
In addition to the 10 plus 10 offers,
§ 989.67(j) of the order provides
authority for sales of reserve raisins to
handlers under certain conditions such
as a national emergency, crop failure,
change in economic or marketing
conditions, or if free tonnage shipments
in the current crop year exceed
shipments during a comparable period
of the prior crop year. Pursuant to
§ 989.67(j), 643 tons of 2007–08 reserve
raisins were sold to handlers in August
2008.
Adding the estimated figure of 39,368
tons of 10 plus 10 raisins to the 273,863ton trade demand, plus 106,249 tons of
carryin inventory, plus 643 tons of
reserve raisins sold pursuant to
FINAL VOLUME REGULATION
§ 989.67(j) results in a total supply of
PERCENTAGES
420,123 tons of natural condition
[Natural condition tons]
raisins, or 397,054 packed tons. This
equates to 118 percent of the 2007–08
NS Raisins
shipments of 355,680 natural condition
Trade demand ..........................
273,863 tons or 336,150 packed tons.
Divided by crop estimate ..........
313,231 Initial Regulatory Flexibility Analysis
Equals the free percentage ......
87.00
Pursuant to requirements set forth in
100 minus free percentage
the Regulatory Flexibility Act (RFA) (5
equals the reserve percentage ........................................
13.00 U.S.C. 601–612), the Agricultural
Marketing Service (AMS) has
USDA’s ‘‘Guidelines for Fruit,
considered the economic impact of this
Vegetable, and Specialty Crop
action on small entities. Accordingly,
Marketing Orders’’ (Guidelines) specify
AMS has prepared this initial regulatory
that 110 percent of recent years’ sales
flexibility analysis.
should be made available to primary
The purpose of the RFA is to fit
markets each season for marketing
regulatory actions to the scale of
dwashington3 on PROD1PC60 with RULES
Committee to extend the October 5 date
up to 5 business days if warranted by a
late crop. If the Committee determines
that volume regulation is warranted, it
must also compute and announce
preliminary free and reserve
percentages. Section 989.54(c) provides
that the Committee may modify the
preliminary free and reserve percentages
prior to February 15 by announcing
interim percentages which release less
than the trade demand. Section
989.54(d) requires the Committee to
recommend final percentages no later
than February 15 which will tend to
release the full trade demand. Final
percentages are established by USDA
through informal rulemaking.
The Committee met on October 9,
2008, and announced a 2008–09 crop
estimate of 300,000 tons for NS raisins
pursuant to § 989.54(b). NS raisins are
the major varietal type of California
raisin. The crop estimate of 300,000 tons
was higher than the computed trade
demand of 273,863 tons. Thus, it was
determined that volume regulation for
NS raisins was warranted. Preliminary
volume regulation percentages
computed to 78 percent free and 22
percent reserve to release 85 percent of
the computed trade demand.
Pursuant to § 989.54(c), at its
December 18, 2008, meeting, the
Committee announced a revised crop
estimate of 313,231 tons of NS raisins
(up from the October estimate of
300,000 tons). The Committee
announced interim volume regulation
percentages for NS raisins to release
slightly less than the full trade demand
at 86.75 percent free and 13.25 percent
reserve and recommended final volume
regulation percentages of 87 percent free
and 13 percent reserve pursuant to
§ 989.54(d). The Committee’s
calculations and determinations to
arrive at final percentages for NS raisins
are shown in the table below:
VerDate Nov<24>2008
14:42 Mar 06, 2009
Jkt 217001
PO 00000
Frm 00003
Fmt 4700
Sfmt 4700
9953
business subject to such actions in order
that small businesses will not be unduly
or disproportionately burdened.
Marketing orders issued pursuant to the
Act, and rules issued thereunder, are
unique in that they are brought about
through group action of essentially
small entities acting on their own
behalf. Thus, both statutes have small
entity orientation and compatibility.
There are approximately 18 handlers
of California raisins who are subject to
regulation under the order and
approximately 3,000 raisin producers in
the regulated area. Small agricultural
firms are defined by the Small Business
Administration (SBA) (13 CFR 121.201)
as those having annual receipts of less
than $7,000,000, and small agricultural
producers are defined as those having
annual receipts of less than $750,000.
No more than 7 handlers and a majority
of producers of California raisins may be
classified as small entities.
Since 1949, the California raisin
industry has operated under a Federal
marketing order. The order contains
authority to, among other things, limit
the portion of a given year’s crop that
can be marketed freely in any outlet by
raisin handlers. This volume regulation
mechanism is used to stabilize supplies
and prices and strengthen market
conditions. If the primary market (the
normal domestic market) is oversupplied with raisins, grower prices
decline substantially.
Pursuant to § 989.54(d) of the order,
this rule establishes final volume
regulation percentages for the 2008–09
crop year for NS raisins. The volume
regulation percentages are 87 percent
free and 13 percent reserve. Free
tonnage raisins may be sold by handlers
to any market. Reserve raisins must be
held in a pool for the account of the
Committee and are disposed of through
certain programs authorized under the
order. Volume regulation is warranted
this season because the crop estimate of
313,231 tons is significantly higher than
the 273,863 ton trade demand.
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.
E:\FR\FM\09MRR1.SGM
09MRR1
9954
Federal Register / Vol. 74, No. 44 / Monday, March 9, 2009 / Rules and Regulations
Even though the product and the
industry are viewed as mature, the
industry has experienced considerable
change over the last several decades.
Before the 1975–76 crop year, more than
50 percent of the raisins were packed
and sold directly to consumers. Now,
about 62 percent of raisins are sold in
bulk. This means that raisins are now
sold to consumers mostly as an
ingredient in another product such as
cereal and baked goods. In addition, for
a few years in the early 1970’s, over 50
percent of the raisin grapes were sold to
the wine market for crushing. Since
then, the percent of raisin-variety grapes
sold to the wine industry has decreased.
California’s grapes are classified into
three groups—table grapes, wine grapes,
and raisin-variety grapes. Raisin-variety
grapes are the most versatile of the three
types. They can be marketed as fresh
grapes, crushed for juice in the
production of wine or juice concentrate,
or dried into raisins. Annual
fluctuations in the fresh grape, wine,
and concentrate markets, as well as
weather-related factors, cause
fluctuations in raisin supply. This type
of situation introduces a certain amount
of variability into the raisin market.
Although the size of the crop for 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 crop
years, although production varied. As
shown in the table below, during those
years, production varied from a low of
272,063 tons in 1996–97 to a high of
387,007 tons in 1993–94.
According to Committee data, the
total producer return per ton during
those years, which includes proceeds
from both free tonnage plus reserve pool
raisins, has varied from a low of $904.60
in 1993–94 to a high of $1,049.20 in
1996–97. Producer prices for the 1998–
99 and 1999–2000 crop years increased
significantly due to back-to-back short
crops during those years. Record large
crops followed and producer prices
dropped dramatically for the 2000–01
through 2003–04 crop years, as
inventories grew while demand
stagnated. However, as noted below,
producer prices were higher for the
2004–05 through the 2007–08 crop
years:
NATURAL SEEDLESS (NATURAL CONDITION) DELIVERIES, FIELD PRICES AND PRODUCER PRICES
Deliveries
(tons)
Crop year
2007–08 ...................................................................................................................
2006–07 ...................................................................................................................
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 ...................................................................................................................
Field prices
(per ton) 1
329,288
282,999
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
$1,210.00
1,210.00
1,210.00
1,210.00
810.00
745.00
880.00
877.50
1,425.00
1,290.00
1,250.00
1,220.00
1,160.00
1,160.00
1,155.00
Producer prices
(per ton)
1 $1,028.50
2 1,089.00
2 998.25
3 1,210.00
567.00
491.20
650.94
603.36
1,211.25
3 1,290.00
946.52
1,049.20
1,007.19
928.27
904.60
dwashington3 on PROD1PC60 with RULES
1 Field prices for NS raisins are established by the Raisin Bargaining Association, and are also referred to in the industry as the free tonnage
price for raisins.
2 Return-to-date, reserve pool still open.
3 No volume regulation.
There are essentially two broad
markets for raisins—domestic and
export. Domestic shipments generally
increased over the years. Although
domestic shipments decreased from a
high of 204,805 packed tons during the
1990–91 crop year to a low of 156,325
packed tons in 1999–2000 crop year,
they increased from 174,117 packed
tons during the 2000–01 crop year to
193,609 packed tons during the 2007–08
crop year. Export shipments ranged
from a high of 107,931 packed tons in
1991–92 crop year to a low of 91,599
packed tons in the 1999–2000 crop year.
Since that time, export shipments
increased to 106,755 tons of raisins
during the 2004–05 crop year, fell to
101,684 tons in 2006–07 crop year, and
again increased to 142,541 tons in 2007–
VerDate Nov<24>2008
14:42 Mar 06, 2009
Jkt 217001
08 crop year. This significant increase
was due to a short crop in Turkey.
The per capita consumption of raisins
has declined from 2.07 pounds in 1988
to 1.51 pounds in 2006. This decrease
is consistent with the decrease in the
per capita consumption of dried fruits
in general, which is due to the
increasing availability of most types of
fresh fruit throughout the year.
While the overall demand for raisins
has increased in four of the last five
years (as reflected in increased
commercial shipments), production has
been decreasing. Deliveries of NS dried
raisins from producers to handlers
reached an all-time high of 432,616 tons
in the 2000–01 crop year. This large
crop was preceded by two short crop
years; deliveries were 240,469 tons in
1998–99 crop year and 299,910 tons in
PO 00000
Frm 00004
Fmt 4700
Sfmt 4700
1999–2000 crop year. Deliveries for the
2000–01 crop year soared to a record
level because of increased bearing
acreage and yields. Deliveries for the
2001–02 crop year were at 377,328 tons,
388,010 tons for the 2002–03 crop year,
296,864 for the 2003–04 crop year, and
265,262 tons for the 2004–05 crop year.
After three crop years of high
production and a large 2001–02 carryin
inventory, the industry diverted raisin
production to other uses or removed
bearing vines. Diversions/removals
totaled 38,000 acres in 2001; 27,000
acres in 2002; and 8,000 acres of vines
in 2003. These actions resulted in
declining deliveries of 296,864 tons for
the 2003–04 crop year and 265,262 tons
for the 2004–05 crop year. Although
deliveries increased in 2005–06 crop
E:\FR\FM\09MRR1.SGM
09MRR1
dwashington3 on PROD1PC60 with RULES
Federal Register / Vol. 74, No. 44 / Monday, March 9, 2009 / Rules and Regulations
year to 319,126 tons, this may have been
because fewer growers opted to contract
with wineries, as raisin variety grapes
crushed in 2005–06 crop year decreased
by 161,000 green tons, the equivalent of
over 40,000 tons of raisins. In the 2006–
07 crop year, raisin deliveries were
again less than 300,000 tons at 282,999
tons and increased to 329,288 tons in
2007–08 crop year. The 2007–08 crop
year was considered to be a good crop
and the quality of the crop has a direct
bearing on the overall production.
The order permits the industry to
exercise volume regulation provisions,
which allow for the establishment of
free and reserve percentages, and
establishment of a reserve pool. One of
the primary purposes of establishing
free and reserve percentages is to
balance supply and demand. If raisin
markets are over-supplied with product,
producer prices will decline.
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 2008–09 crop year
estimate of 313,231 tons, the 13 percent
reserve would limit the total free
tonnage to 273,863 natural condition
tons (.87 × the 313,231 ton crop).
Adding the 273,863 ton figure to the
carryin of 106,249 tons, plus 39,368 tons
of 2008–09 crop year reserve raisins
anticipated for sale to handlers during
the 2008–09 crop year under the 10 plus
10 offers, and 643 tons of 2007–08 crop
year reserve raisins available to handlers
in the 2008–09 crop year results in a
total free supply of 420,123 natural
condition tons.
With volume regulation, producer
prices are expected to be higher than
without volume regulation. This price
increase is beneficial to all producers
regardless of size and enhances
producers’ total revenues in comparison
to no volume regulation. Establishing a
reserve allows the industry to help
stabilize supplies in both domestic and
export markets, while improving returns
to producers.
Free and reserve percentages are
established by varietal type, and usually
in years when the supply exceeds the
trade demand by a large enough margin
that the Committee believes volume
regulation is necessary to maintain
market stability. Accordingly, in
assessing whether to apply volume
regulation or, as an alternative, not to
VerDate Nov<24>2008
14:42 Mar 06, 2009
Jkt 217001
apply such regulation, it was
determined that volume regulation is
warranted this season for only one of
the nine raisin varietal types defined
under the order.
The free and reserve percentages
established by this rule release the full
trade demand and apply uniformly to
all handlers in the industry, regardless
of size. For NS raisins, with the
exception of the 1998–99 and 2004–05
crop years, small and large raisin
producers and handlers have been
operating under volume regulation
percentages every year since the 1983–
84 crop year. There are no known
additional costs incurred by small
handlers that are not incurred by large
handlers. While the level of benefits of
this rulemaking are difficult to quantify,
the stabilizing effects of the volume
regulations impact small and large
handlers positively by helping them
maintain and expand markets even
though raisin supplies fluctuate widely
from season to season. Likewise, price
stability positively impacts small and
large producers by allowing them to
better anticipate the revenues their
raisins will generate.
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
PO 00000
Frm 00005
Fmt 4700
Sfmt 4700
9955
duplicate, overlap, or conflict with this
rule.
Further, the Committee’s meetings
were widely publicized throughout the
raisin industry and all interested
persons were invited to attend the
meetings and participate in the
Committee’s deliberations. Like all
Committee meetings, the August 15,
2008, October 9, 2008, and December
18, 2008, meetings were public meetings
and all entities, both large and small,
were able to express their views on this
issue.
Also, the Committee has a number of
appointed subcommittees to review
certain issues and make
recommendations to the Committee.
The Committee’s Reserve Sales and
Marketing Subcommittee met on August
15, 2008, October 9, 2008, and
December 18 2008, and discussed these
issues in detail. Those meetings were
also public meetings and both large and
small entities were able to participate
and express their views. Finally,
interested persons are invited to submit
comments on this interim final rule,
including the regulatory and
informational impacts of this action on
small businesses.
A small business guide on complying
with fruit, vegetable, and specialty crop
marketing agreements and orders may
be viewed at: https://www.ams.usda.gov/
AMSv1.0/ams.fetchTemplate
Data.do?template=TemplateN&
page=MarketingOrders
SmallBusinessGuide. Any questions
about the compliance guide should be
sent to Jay Guerber at the previously
mentioned address in the FOR FURTHER
INFORMATION CONTACT section.
This rule invites comments on the
establishment of final volume regulation
percentages for the 2008–09 crop year
for NS raisins covered under the order.
Any comments received will be
considered prior to finalization of this
rule.
After consideration of all relevant
material presented, including the
information and recommendation
submitted by the Committee and other
available information, it is hereby found
that this rule, as hereinafter set forth,
will tend to effectuate the declared
policy of the Act.
Pursuant to 5 U.S.C. 553, it is also
found and determined upon good cause
that it is impracticable, unnecessary,
and contrary to the public interest to
give preliminary notice prior to putting
this rule into effect, and that good cause
exists for not postponing the effective
date of this rule until 30 days after
publication in the Federal Register
because: (1) The relevant provisions of
this part require that the percentages
E:\FR\FM\09MRR1.SGM
09MRR1
9956
Federal Register / Vol. 74, No. 44 / Monday, March 9, 2009 / Rules and Regulations
designated herein for the 2008–09 crop
year apply to all NS raisins acquired
during the crop year; (2) handlers are
aware of this action, which was
unanimously recommended at a public
meeting, and need no additional time to
comply with these percentages; and (3)
this interim final rule provides a 60-day
comment period, and all comments
timely received will be considered prior
to finalization of this rule.
List of Subjects in 7 CFR Part 989
Grapes, Marketing agreements,
Raisins, Reporting and recordkeeping
requirements.
■ For the reasons set forth in the
preamble, 7 CFR part 989 is amended to
read as followed:
PART 989—RAISINS PRODUCED
FROM GRAPES GROWN IN
CALIFORNIA
1. The authority citation for 7 CFR
part 989 continues to read as follows:
■
Crop year
2003–04
2005–06
2006–07
2007–08
2008–09
......................................................................
......................................................................
......................................................................
......................................................................
......................................................................
Dated: March 3, 2009.
Robert C. Keeney,
Acting Associate Administrator.
[FR Doc. E9–4851 Filed 3–6–09; 8:45 am]
BILLING CODE 3410–02–P
DEPARTMENT OF HOMELAND
SECURITY
Coast Guard
33 CFR Part 165
[Docket No. USCG–2009–0063]
RIN 1625–AA00
Safety Zone; Coast Guard Air Station
San Francisco Airborne Use of Force
Judgmental Training Flights
Coast Guard, DHS.
Temporary final rule.
AGENCY:
The Coast Guard is
establishing a temporary safety zone in
the navigable waters of the San Pablo
Bay, CA for training purposes. This
safety zone is established to ensure the
safety of the public and participating
crews from potential hazards associated
with fast-moving Coast Guard
smallboats taking part in the exercise.
Unauthorized persons or vessels are
prohibited from entering into, transiting
through, or remaining in the safety zone
without permission of the Captain of the
Port San Francisco or his designated
representative.
dwashington3 on PROD1PC60 with RULES
SUMMARY:
VerDate Nov<24>2008
14:42 Mar 06, 2009
2. Section 989.257 is revised to read
as follows:
■
§ 989.257 Final free and reserve
percentages.
(a) The final percentages for the
respective varietal type(s) of raisins
acquired by handlers during the crop
year beginning August 1, which shall be
free tonnage and reserve tonnage,
respectively, are designated as follows:
Free
percentage
Varietal type
(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.
ACTION:
Authority: 7 U.S.C. 601–674.
Jkt 217001
Natural
Natural
Natural
Natural
Natural
(sun-dried)
(sun-dried)
(sun-dried)
(sun-dried)
(sun-dried)
Seedless
Seedless
Seedless
Seedless
Seedless
.....................................
.....................................
.....................................
.....................................
.....................................
DATES: This safety zone is effective from
9 a.m. on February 10, 2009, until 10
p.m. on March 20, 2009.
ADDRESSES: Comments and materials
received from the public, as well as
documents indicated in this preamble as
being available in the docket, are part of
docket USCG–2009–0063 and are
available online at https://
www.regulations.gov, selecting the
Advanced Docket Search option on the
right side of the screen, inserting USCG–
2009–0063 in the Docket ID box,
pressing Enter, and then clicking on the
item in the Docket ID column. This
material is also available for inspection
or copying at two locations: The Docket
Management Facility (M–30), U.S.
Department of Transportation, West
Building Ground Floor, Room W12–140,
1200 New Jersey Avenue, SE.,
Washington, DC 20590, between 9 a.m.
and 5 p.m., Monday through Friday,
except Federal holidays, and Coast
Guard Sector San Francisco, 1 Yerba
Buena Island, San Francisco, California
94130, between 9 a.m. and 4 p.m.,
Monday through Friday, except Federal
holidays.
FOR FURTHER INFORMATION CONTACT: If
you have questions on this temporary
rule, call Lieutenant Junior Grade
Megan Clifford, U.S. Coast Guard Sector
San Francisco, at (415) 399–7436. If you
have questions on viewing the docket,
call Renee V. Wright, Program Manager,
Docket Operations, telephone 202–366–
9826.
SUPPLEMENTARY INFORMATION:
Regulatory Information
Due to the dynamic availability of
Coast Guard assets to conduct this
training, the Coast Guard is issuing this
PO 00000
Frm 00006
Fmt 4700
Sfmt 4700
70
82.50
90
85
87
Reserve
percentage
30
17.50
10
15
13
final rule without prior notice and
opportunity to comment pursuant to
authority under section (a)(1) of the
Administrative Procedure Act (APA) (5
U.S.C. 553). This provision creates a
military function exception to the
advance publication requirements.
Because of the potential hazards posed
by this exercise, the safety zone is
necessary to provide for the safety of the
public, participating vessels and crews,
and other vessels transiting the area. For
the safety concerns noted, it is in the
public interest to have these regulations
in effect during the event.
Under 5 U.S.C. 553(b)(B), the Coast
Guard finds that good cause exists for
not publishing a notice of proposed
rulemaking (NPRM) with respect to this
rule because any delay in the effective
date of this rule would expose mariners
to the potential hazards posed by the
exercises. For the same reasons as
above, under 5 U.S.C. 553(d)(3), the
Coast Guard finds that good cause exists
for making this rule effective less than
30 days after publication in the Federal
Register.
Background and Purpose
U.S. Coast Guard Air Station San
Francisco will be conducting airborne
use of force judgmental training flights
with observers from the Coast Guard
Aviation Training Center and Coast
Guard Headquarters, on February 10,
and March 5 through 20, 2009
(excluding Saturdays and Sundays), in
the waters of San Pablo Bay. The
exercises are designed to train and test
Coast Guard aviation personnel in the
judgmental decision-making process
necessary to safely and effectively
employ use of force from a helicopter
E:\FR\FM\09MRR1.SGM
09MRR1
]]>Agencies
[Federal Register Volume 74, Number 44 (Monday, March 9, 2009)]
[Rules and Regulations]
[Pages 9951-9956]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-4851]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 989
[Doc. No. AMS-FV-08-0114; FV09-989-1 IFR]
Raisins Produced From Grapes Grown in California; Final Free and
Reserve Percentages for 2008-09 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
2008-09 crop Natural (sun-dried) Seedless (NS) raisins covered under
the Federal marketing order for California raisins (order). The order
regulates the handling of raisins produced from grapes grown in
California and is locally administered by the Raisin Administrative
Committee (Committee). The volume regulation percentages are 87 percent
free and 13
[[Page 9952]]
percent reserve. The percentages are intended to help stabilize raisin
supplies and prices, and strengthen market conditions.
DATES: Effective March 10, 2009. The volume regulation percentages
apply to acquisitions of NS raisins from the 2008-09 crop until the
reserve raisins from that crop are disposed of under the marketing
order. Comments received by May 8, 2009, will be considered prior to
issuance of a final rule.
ADDRESSES: Interested persons are invited to submit written comments
concerning this rule. Comments must be sent to the Docket Clerk,
Marketing Order Administration Branch, Fruit and Vegetable Programs,
AMS, USDA, 1400 Independence Avenue, SW., STOP 0237, Washington, DC
20250-0237; Fax: (202) 720-8938; or Internet: https://
www.regulations.gov. All comments should reference the document number
and the date and page number of this issue of the Federal Register and
will be made available for public inspection in the Office of the
Docket Clerk during regular business hours, or can be viewed at: http:/
/www.regulations.gov. All comments submitted in response to this rule
will be included in the record and will be made available to the
public. Please be advised that the identity of the individuals or
entities submitting the comments will be made public on the Internet at
the address provided above.
FOR FURTHER INFORMATION CONTACT: Rose M. Aguayo, Marketing Specialist,
or Kurt J. Kimmel, Regional Manager, California Marketing Field Office,
Marketing Order Administration Branch, Fruit and Vegetable Programs,
AMS, USDA; Telephone: (559) 487-5901; Fax: (559) 487-5906; or E-mail:
Rose.Aguayo@ams.usda.gov or Kurt.Kimmel@ams.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@ams.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 2008-09 crop year, which
began August 1, 2008, and ends July 31, 2009. This rule will not
preempt any State or local laws, regulations, or policies, unless they
present an irreconcilable conflict with this rule.
The Act provides that administrative proceedings must be exhausted
before parties may file suit in court. Under section 608c(15)(A) of the
Act, any handler subject to an order may file with USDA a petition
stating that the order, any provision of the order, or any obligation
imposed in connection with the order is not in accordance with law and
request a modification of the order or to be exempted therefrom. A
handler is afforded the opportunity for a hearing on the petition.
After the hearing, USDA would rule on the petition. The Act provides
that the district court of the United States in any district in which
the handler is an inhabitant, or has his or her principal place of
business, has jurisdiction to review USDA's ruling on the petition,
provided an action is filed not later than 20 days after the date of
the entry of the ruling.
This rule establishes final volume regulation percentages for the
2008-09 crop year for NS raisins covered under the order. The volume
regulation percentages are 87 percent free and 13 percent reserve. Free
tonnage raisins may be sold by handlers to any market. Reserve raisins
must be held in a pool for the account of the Committee and are
disposed of through various programs authorized under the order. For
example, reserve raisins may be sold by the Committee to handlers for
free use or to replace part of the free tonnage raisins they exported;
used in diversion programs; carried over as a hedge against a short
crop; or disposed of in other outlets not competitive with those for
free tonnage raisins, such as government purchase, distilleries, or
animal feed.
The volume regulation percentages are intended to help stabilize
raisin supplies and prices, and strengthen market conditions. The
Committee unanimously recommended final percentages for NS raisins on
December 18, 2008.
Computation of Trade Demand
Section 989.54 of the order prescribes procedures and time frames
to be followed in establishing volume regulation. This includes
methodology used to calculate free and reserve percentages. Pursuant to
Sec. 989.54(a) of the order, the Committee met on August 15, 2008, to
review shipment and inventory data, and other matters relating to the
supplies of raisins of all varietal types. The Committee computed a
trade demand for each varietal type for which a free tonnage percentage
might be recommended. Trade demand is computed using a formula
specified in the order and, for each varietal type, is equal to 90
percent of the prior year's shipments of free tonnage and reserve
tonnage raisins sold for free use into all market outlets, adjusted by
subtracting the carryin on August 1 of the current crop year, and
adding the desirable carryout at the end of that crop year. As
specified in 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 2008-09 trade
demand for NS raisins at 273,863 tons as shown below.
Computed Trade Demand
[Natural condition tons]
------------------------------------------------------------------------
NS Raisins
------------------------------------------------------------------------
Prior year's shipments..................................... 355,680
Multiplied by 90 percent................................... 0.90
Equals adjusted base....................................... 320,112
Minus carryin inventory.................................... 106,249
Plus desirable carryout.................................... 60,000
Equals computed NS trade Demand............................ 273,863
------------------------------------------------------------------------
Computation of Volume Regulation Percentages
Section 989.54(b) of the order requires that the Committee
announce, on or before October 5, preliminary crop estimates and
determine whether volume regulation is warranted for the varietal types
for which it computed a trade demand. That section allows the
[[Page 9953]]
Committee to extend the October 5 date up to 5 business days if
warranted by a late crop. If the Committee determines that volume
regulation is warranted, it must also compute and announce preliminary
free and reserve percentages. Section 989.54(c) provides that the
Committee may modify the preliminary free and reserve percentages prior
to February 15 by announcing interim percentages which release less
than the trade demand. Section 989.54(d) requires the Committee to
recommend final percentages no later than February 15 which will tend
to release the full trade demand. Final percentages are established by
USDA through informal rulemaking.
The Committee met on October 9, 2008, and announced a 2008-09 crop
estimate of 300,000 tons for NS raisins pursuant to Sec. 989.54(b). NS
raisins are the major varietal type of California raisin. The crop
estimate of 300,000 tons was higher than the computed trade demand of
273,863 tons. Thus, it was determined that volume regulation for NS
raisins was warranted. Preliminary volume regulation percentages
computed to 78 percent free and 22 percent reserve to release 85
percent of the computed trade demand.
Pursuant to Sec. 989.54(c), at its December 18, 2008, meeting, the
Committee announced a revised crop estimate of 313,231 tons of NS
raisins (up from the October estimate of 300,000 tons). The Committee
announced interim volume regulation percentages for NS raisins to
release slightly less than the full trade demand at 86.75 percent free
and 13.25 percent reserve and recommended final volume regulation
percentages of 87 percent free and 13 percent reserve pursuant to 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............................................... 273,863
Divided by crop estimate................................... 313,231
Equals the free percentage................................. 87.00
100 minus free percentage equals the reserve percentage.... 13.00
------------------------------------------------------------------------
USDA's ``Guidelines for Fruit, Vegetable, and Specialty Crop
Marketing Orders'' (Guidelines) specify that 110 percent of recent
years' sales should be made available to primary markets each season
for marketing orders utilizing reserve pool authority. This goal is
expected to be met for NS raisins for the 2008-09 crop year.
Application of the final percentages will make 273,863 tons of raisins
available to handlers if the crop estimate is realized. In addition,
handlers will be offered additional reserve raisins for sale under the
``10 plus 10 offers.'' As specified in 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 2007-08 NS shipments of 355,680 natural condition tons,
71,136 tons should be made available in the 10 plus 10 offers. However,
based on the 313,231-ton crop estimate and the 273,863-ton trade
demand, only 39,368 tons of 2008-09 reserve raisins would be available.
There is no tonnage available from prior pools. Thus, all available
reserve pool raisins should be offered to handlers for free use through
the 10 plus 10 offers. Raisins that are not purchased by handlers
through the 10 plus 10 offers may be used for other programs authorized
under the order.
In addition to the 10 plus 10 offers, 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. Pursuant to Sec. 989.67(j), 643 tons of 2007-08
reserve raisins were sold to handlers in August 2008.
Adding the estimated figure of 39,368 tons of 10 plus 10 raisins to
the 273,863-ton trade demand, plus 106,249 tons of carryin inventory,
plus 643 tons of reserve raisins sold pursuant to Sec. 989.67(j)
results in a total supply of 420,123 tons of natural condition raisins,
or 397,054 packed tons. This equates to 118 percent of the 2007-08
shipments of 355,680 natural condition tons or 336,150 packed tons.
Initial Regulatory Flexibility Analysis
Pursuant to requirements set forth in the Regulatory Flexibility
Act (RFA) (5 U.S.C. 601-612), the Agricultural Marketing Service (AMS)
has considered the economic impact of this action on small entities.
Accordingly, AMS has prepared this initial regulatory flexibility
analysis.
The purpose of the RFA is to fit regulatory actions to the scale of
business subject to such actions in order that small businesses will
not be unduly or disproportionately burdened. Marketing orders issued
pursuant to the Act, and rules issued thereunder, are unique in that
they are brought about through group action of essentially small
entities acting on their own behalf. Thus, both statutes have small
entity orientation and compatibility.
There are approximately 18 handlers of California raisins who are
subject to regulation under the order and approximately 3,000 raisin
producers in the regulated area. Small agricultural firms are defined
by the Small Business Administration (SBA) (13 CFR 121.201) as those
having annual receipts of less than $7,000,000, and small agricultural
producers are defined as those having annual receipts of less than
$750,000. No more than 7 handlers and a majority of producers of
California raisins may be classified as small entities.
Since 1949, the California raisin industry has operated under a
Federal marketing order. The order contains authority to, among other
things, limit the portion of a given year's crop that can be marketed
freely in any outlet by raisin handlers. This volume regulation
mechanism is used to stabilize supplies and prices and strengthen
market conditions. If the primary market (the normal domestic market)
is over-supplied with raisins, grower prices decline substantially.
Pursuant to Sec. 989.54(d) of the order, this rule establishes
final volume regulation percentages for the 2008-09 crop year for NS
raisins. The volume regulation percentages are 87 percent free and 13
percent reserve. Free tonnage raisins may be sold by handlers to any
market. Reserve raisins must be held in a pool for the account of the
Committee and are disposed of through certain programs authorized under
the order. Volume regulation is warranted this season because the crop
estimate of 313,231 tons is significantly higher than the 273,863 ton
trade demand.
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.
[[Page 9954]]
Even though the product and the industry are viewed as mature, the
industry has experienced considerable change over the last several
decades. Before the 1975-76 crop year, more than 50 percent of the
raisins were packed and sold directly to consumers. Now, about 62
percent of raisins are sold in bulk. This means that raisins are now
sold to consumers mostly as an ingredient in another product such as
cereal and baked goods. In addition, for a few years in the early
1970's, over 50 percent of the raisin grapes were sold to the wine
market for crushing. Since then, the percent of raisin-variety grapes
sold to the wine industry has decreased.
California's grapes are classified into three groups--table grapes,
wine grapes, and raisin-variety grapes. Raisin-variety grapes are the
most versatile of the three types. They can be marketed as fresh
grapes, crushed for juice in the production of wine or juice
concentrate, or dried into raisins. Annual fluctuations in the fresh
grape, wine, and concentrate markets, as well as weather-related
factors, cause fluctuations in raisin supply. This type of situation
introduces a certain amount of variability into the raisin market.
Although the size of the crop for raisin-variety grapes may be known,
the amount dried for raisins depends on the demand for crushing. This
makes the marketing of raisins a more difficult task. These supply
fluctuations can result in producer price instability and disorderly
market conditions.
Volume regulation is helpful to the raisin industry because it
lessens the impact of such fluctuations and contributes to orderly
marketing. For example, producer prices for NS raisins remained fairly
steady between the 1993-94 through the 1997-98 crop years, although
production varied. As shown in the table below, during those years,
production varied from a low of 272,063 tons in 1996-97 to a high of
387,007 tons in 1993-94.
According to Committee data, the total producer return per ton
during those years, which includes proceeds from both free tonnage plus
reserve pool raisins, has varied from a low of $904.60 in 1993-94 to a
high of $1,049.20 in 1996-97. Producer prices for the 1998-99 and 1999-
2000 crop years increased significantly due to back-to-back short crops
during those years. Record large crops followed and producer prices
dropped dramatically for the 2000-01 through 2003-04 crop years, as
inventories grew while demand stagnated. However, as noted below,
producer prices were higher for the 2004-05 through the 2007-08 crop
years:
Natural Seedless (Natural Condition) Deliveries, Field Prices and Producer Prices
----------------------------------------------------------------------------------------------------------------
Deliveries Field prices Producer prices
Crop year (tons) (per ton) \1\ (per ton)
----------------------------------------------------------------------------------------------------------------
2007-08............................................... 329,288 $1,210.00 \1\ $1,028.50
2006-07............................................... 282,999 1,210.00 \2\ 1,089.00
2005-06............................................... 319,126 1,210.00 \2\ 998.25
2004-05............................................... 265,262 1,210.00 \3\ 1,210.00
2003-04............................................... 296,864 810.00 567.00
2002-03............................................... 388,010 745.00 491.20
2001-02............................................... 377,328 880.00 650.94
2000-01............................................... 432,616 877.50 603.36
1999-2000............................................. 299,910 1,425.00 1,211.25
1998-99............................................... 240,469 1,290.00 \3\ 1,290.00
1997-98............................................... 382,448 1,250.00 946.52
1996-97............................................... 272,063 1,220.00 1,049.20
1995-96............................................... 325,911 1,160.00 1,007.19
1994-95............................................... 378,427 1,160.00 928.27
1993-94............................................... 387,007 1,155.00 904.60
----------------------------------------------------------------------------------------------------------------
\1\ Field prices for NS raisins are established by the Raisin Bargaining Association, and are also referred to
in the industry as the free tonnage price for raisins.
\2\ Return-to-date, reserve pool still open.
\3\ No volume regulation.
There are essentially two broad markets for raisins--domestic and
export. Domestic shipments generally increased over the years. Although
domestic shipments decreased from a high of 204,805 packed tons during
the 1990-91 crop year to a low of 156,325 packed tons in 1999-2000 crop
year, they increased from 174,117 packed tons during the 2000-01 crop
year to 193,609 packed tons during the 2007-08 crop year. Export
shipments ranged from a high of 107,931 packed tons in 1991-92 crop
year to a low of 91,599 packed tons in the 1999-2000 crop year. Since
that time, export shipments increased to 106,755 tons of raisins during
the 2004-05 crop year, fell to 101,684 tons in 2006-07 crop year, and
again increased to 142,541 tons in 2007-08 crop year. This significant
increase was due to a short crop in Turkey.
The per capita consumption of raisins has declined from 2.07 pounds
in 1988 to 1.51 pounds in 2006. This decrease is consistent with the
decrease in the per capita consumption of dried fruits in general,
which is due to the increasing availability of most types of fresh
fruit throughout the year.
While the overall demand for raisins has increased in four of the
last five years (as reflected in increased commercial shipments),
production has been decreasing. Deliveries of NS dried raisins from
producers to handlers reached an all-time high of 432,616 tons in the
2000-01 crop year. This large crop was preceded by two short crop
years; deliveries were 240,469 tons in 1998-99 crop year and 299,910
tons in 1999-2000 crop year. Deliveries for the 2000-01 crop year
soared to a record level because of increased bearing acreage and
yields. Deliveries for the 2001-02 crop year were at 377,328 tons,
388,010 tons for the 2002-03 crop year, 296,864 for the 2003-04 crop
year, and 265,262 tons for the 2004-05 crop year. After three crop
years of high production and a large 2001-02 carryin inventory, the
industry diverted raisin production to other uses or removed bearing
vines. Diversions/removals totaled 38,000 acres in 2001; 27,000 acres
in 2002; and 8,000 acres of vines in 2003. These actions resulted in
declining deliveries of 296,864 tons for the 2003-04 crop year and
265,262 tons for the 2004-05 crop year. Although deliveries increased
in 2005-06 crop
[[Page 9955]]
year to 319,126 tons, this may have been because fewer growers opted to
contract with wineries, as raisin variety grapes crushed in 2005-06
crop year decreased by 161,000 green tons, the equivalent of over
40,000 tons of raisins. In the 2006-07 crop year, raisin deliveries
were again less than 300,000 tons at 282,999 tons and increased to
329,288 tons in 2007-08 crop year. The 2007-08 crop year was considered
to be a good crop and the quality of the crop has a direct bearing on
the overall production.
The order permits the industry to exercise volume regulation
provisions, which allow for the establishment of free and reserve
percentages, and establishment of a reserve pool. One of the primary
purposes of establishing free and reserve percentages is to balance
supply and demand. If raisin markets are over-supplied with product,
producer prices will decline.
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 2008-09 crop year estimate of 313,231 tons, the
13 percent reserve would limit the total free tonnage to 273,863
natural condition tons (.87 x the 313,231 ton crop). Adding the 273,863
ton figure to the carryin of 106,249 tons, plus 39,368 tons of 2008-09
crop year reserve raisins anticipated for sale to handlers during the
2008-09 crop year under the 10 plus 10 offers, and 643 tons of 2007-08
crop year reserve raisins available to handlers in the 2008-09 crop
year results in a total free supply of 420,123 natural condition tons.
With volume regulation, producer prices are expected to be higher
than without volume regulation. This price increase is beneficial to
all producers regardless of size and enhances producers' total revenues
in comparison to no volume regulation. Establishing a reserve allows
the industry to help stabilize supplies in both domestic and export
markets, while improving returns to producers.
Free and reserve percentages are established by varietal type, and
usually in years when the supply exceeds the trade demand by a large
enough margin that the Committee believes volume regulation is
necessary to maintain market stability. Accordingly, in assessing
whether to apply volume regulation or, as an alternative, not to apply
such regulation, it was determined that volume regulation is warranted
this season for only one of the nine raisin varietal types defined
under the order.
The free and reserve percentages established by this rule release
the full trade demand and apply uniformly to all handlers in the
industry, regardless of size. For NS raisins, with the exception of the
1998-99 and 2004-05 crop years, small and large raisin producers and
handlers have been operating under volume regulation percentages every
year since the 1983-84 crop year. There are no known additional costs
incurred by small handlers that are not incurred by large handlers.
While the level of benefits of this rulemaking are difficult to
quantify, the stabilizing effects of the volume regulations impact
small and large handlers positively by helping them maintain and expand
markets even though raisin supplies fluctuate widely from season to
season. Likewise, price stability positively impacts small and large
producers by allowing them to better anticipate the revenues their
raisins will generate.
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 15, 2008, October 9, 2008, and December
18, 2008, meetings were public meetings and all entities, both large
and small, were able to express their views on this issue.
Also, the Committee has a number of appointed subcommittees to
review certain issues and make recommendations to the Committee. The
Committee's Reserve Sales and Marketing Subcommittee met on August 15,
2008, October 9, 2008, and December 18 2008, and discussed these issues
in detail. Those meetings were also public meetings and both large and
small entities were able to participate and express their views.
Finally, interested persons are invited to submit comments on this
interim final rule, including the regulatory and informational impacts
of this action on small businesses.
A small business guide on complying with fruit, vegetable, and
specialty crop marketing agreements and orders may be viewed at: http:/
/www.ams.usda.gov/AMSv1.0/
ams.fetchTemplateData.do?template=TemplateN&page=MarketingOrdersSmallBus
inessGuide. Any questions about the compliance guide should be sent to
Jay Guerber at the previously mentioned address in the FOR FURTHER
INFORMATION CONTACT section.
This rule invites comments on the establishment of final volume
regulation percentages for the 2008-09 crop year for NS raisins covered
under the order. Any comments received will be considered prior to
finalization of this rule.
After consideration of all relevant material presented, including
the information and recommendation submitted by the Committee and other
available information, it is hereby found that this rule, as
hereinafter set forth, will tend to effectuate the declared policy of
the Act.
Pursuant to 5 U.S.C. 553, it is also found and determined upon good
cause that it is impracticable, unnecessary, and contrary to the public
interest to give preliminary notice prior to putting this rule into
effect, and that good cause exists for not postponing the effective
date of this rule until 30 days after publication in the Federal
Register because: (1) The relevant provisions of this part require that
the percentages
[[Page 9956]]
designated herein for the 2008-09 crop year apply to all NS raisins
acquired during the crop year; (2) handlers are aware of this action,
which was unanimously recommended at a public meeting, and need no
additional time to comply with these percentages; and (3) this interim
final rule provides a 60-day comment period, and all comments timely
received will be considered prior to finalization of this rule.
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
2008-09....................................... Natural (sun-dried) Seedless.... 87 13
----------------------------------------------------------------------------------------------------------------
(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: March 3, 2009.
Robert C. Keeney,
Acting Associate Administrator.
[FR Doc. E9-4851 Filed 3-6-09; 8:45 am]
BILLING CODE 3410-02-P
