Raisins Produced From Grapes Grown in California; Borrowing Authority Under Marketing Order 989, 26347-26348 [2021-10148]

Agencies

• Agricultural Marketing Service
• DEPARTMENT OF AGRICULTURE

[Federal Register Volume 86, Number 92 (Friday, May 14, 2021)]
[Rules and Regulations]
[Pages 26347-26348]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-10148]



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Rules and Regulations
                                                Federal Register
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Federal Register / Vol. 86, No. 92 / Friday, May 14, 2021 / Rules and 
Regulations

[[Page 26347]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 989

[AMS-SC-21-0027; SC21-989-1]


Raisins Produced From Grapes Grown in California; Borrowing 
Authority Under Marketing Order 989

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Direct final rule.

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SUMMARY: This rule amends Marketing Order 989 (referred to as the 
``Order''), which regulates the handling of raisins produced from 
grapes grown in California. This action reinserts Order language that 
authorizes the Raisin Administrative Committee (RAC) to borrow from 
commercial lending institutions. The publication on October 26, 2018, 
of a final rule to amend the marketing order unintentionally removed 
this borrowing authority. This document is necessary to inform the 
public of this amendment.

DATES: This direct final rule is effective June 14, 2021, without 
further action or notice, unless significant adverse comments are 
received by June 1, 2021. If significant adverse comments are received, 
the Agricultural Marketing Service (AMS) will publish a timely 
withdrawal of the amendment in the Federal Register.

ADDRESSES: Interested persons are invited to submit written comments 
concerning this direct final rule. Comments must be sent to the Docket 
Clerk, Marketing Order and Agreement Division, Specialty Crops Program, 
AMS, USDA, 1400 Independence Avenue SW, STOP 0237, Washington, DC 
20250-0237; or internet: https://www.regulations.gov. Comments should 
reference the document number and the date and page number of this 
issue of the Federal Register and will be 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: Kathie Notoro, Marketing Specialist or 
Andrea Ricci, Regional Director, California Marketing Field Office, 
Marketing Order and Agreement Division, Specialty Crops Program, AMS, 
USDA; Telephone: (559) 514-1275, Fax: (559) 487-5906, or Email: 
[email protected] or [email protected].
    Small businesses may request information on complying with this 
regulation by contacting Richard Lower, Marketing Order and Agreement 
Division, Specialty Crops Program, AMS, USDA, 1400 Independence Avenue 
SW, STOP 0237, Washington, DC 20250-0237; Telephone: (202) 720-2491, or 
Email: [email protected].

SUPPLEMENTARY INFORMATION: The Department of Agriculture (USDA) is 
issuing this rule in conformance with Executive Orders 13563 and 13175. 
In accordance with Executive Order 13175, AMS has not identified any 
tribal implications as a result of this rule. This rule falls within a 
category of regulatory actions that the Office of Management and Budget 
exempted from Executive Order 12866 review.
    This rule has been reviewed under Executive Order 12988, Civil 
Justice Reform.
    Borrowing authority was originally added to the Order as a result 
of an amendatory rulemaking in a 2016 final rule (81 FR 44761, July 11, 
2016) with unanimous support of RAC members and overwhelming support 
from industry members. This support is indicated by the results of the 
producer referendum (81 FR 11678) conducted March 9-16, 2016, with 93 
percent of voters in support of this provision.
    In 2018, a final rule amending the Order was published in the 
Federal Register (83 FR 53965). The 2018 amendments established and 
revised several provisions of the Order; however, AMS inadvertently 
omitted a provision in 7 CFR 989.80(c) that authorizes RAC to borrow 
money from financial institutions. AMS identified the missing provision 
during a routine file review of the Order and through this action will 
reinstate the omitted provision.
    During the referendum on the 2018 amendments conducted by AMS 
December 4-15, 2017 (82 FR45517), voters did not notice the borrowing 
authority provision was missing from Sec.  989.80(c). AMS reviewed 
administrative records from 2016-2018 and reaffirmed that no comments 
from industry or RAC members addressed the missing provision or 
expressed the desire to remove borrowing authority from the Order. As 
well, AMS confirmed that removal of borrowing authority was not 
discussed at the hearing for the 2018 rulemaking and did not appear as 
a question on the referendum ballot. RAC confirmed to AMS that having 
borrowing authority in the Order is in the best interest of the raisin 
industry and asked for this error to be rectified as soon as possible.
    Accordingly, this action restores the borrowing authority 
provision, which provides the RAC operational flexibility to continue 
conducting business affairs in the event of interrupted cash flow due 
to circumstances affecting the collection of assessments.
    This correction does not require action by any person or entity 
regulated by the Order.

Overview of Changes

    Currently, as a result of the inadvertent omission, the Order does 
not authorize RAC to borrow from a commercial lending institution. This 
final rule reinserts the following language into Sec.  989.80(c): ``In 
the event cash flow needs of the committee are above cash available 
generated by handler assessments, the committee may borrow from a 
commercial lending institution.'' This action restores RAC borrowing 
authority to the Order.

Classification

    This final rule reflects an amendatory change to the Order 
following an unintentional error. This final rule restores language 
that was added in a 2016 rulemaking and that was inadvertently omitted 
in a subsequent rulemaking. AMS believes that this action is not 
controversial and will not generate adverse comments. However, if AMS 
does receive significant adverse comments during the comment period,

[[Page 26348]]

it will publish, in a timely manner, a document in the Federal Register 
withdrawing this direct final rule.

Regulatory Flexibility Analysis

    Pursuant to requirements set forth in the Regulatory Flexibility 
Act (RFA) (5 U.S.C. 601-612), AMS considered the economic impact of 
this action on small entities. Accordingly, AMS prepared this 
regulatory flexibility analysis.
    The purpose of the RFA is to fit regulatory actions to the scale of 
businesses that are subject to such actions so that small businesses 
will not be unduly or disproportionately burdened by the action. 
Marketing orders issued pursuant to the Act, and the rules issued 
thereunder, are unique in that they are brought through group action of 
essentially small entities acting on their own behalf.
    Presently, there are approximately 22 handlers of raisins subject 
to regulation under the Order and approximately 2,000 raisin producers 
in the regulated area.
    Small agricultural service firms are defined by the Small Business 
Administration (SBA) as those having annual receipts of less than 
$30,000,000, and small agricultural producers are defined as those 
having annual receipts of less than $1,000,000 (13 CFR 121.201).
    AMS multiplied RAC estimated shipments of 327,323 tons for the 2020 
season by the average handler price of $2,000 per ton to derive total 
estimated annual handler receipts of $474,646,000. Dividing the total 
estimated handler receipts by the number of handlers (22) results in 
estimated average handler receipts of $21,574,818.
    According to RAC estimates for the most recent year, the average 
raisin grower price was $1,300 per ton. Multiplying the average grower 
price by total 2020 production of 211,115 tons results in $274,449,500 
estimated returns to growers. Dividing estimated grower returns by the 
total number of growers (2,000) provides an estimated return per grower 
of $137,225 for the 2020 season. Thus, the majority of raisin handlers 
and growers may be classified as small entities according to SBA 
definitions.
    There are no known negative impacts or additional costs incurred by 
small handlers because of this action.
    This rule contains no information collection or recordkeeping 
requirements under the Paperwork Reduction Act of 1995 (44 U.S.C. 3501 
et seq.).
    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.
    USDA has not identified any relevant Federal rules that duplicate, 
overlap, or conflict with this final 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 as follows:

PART 989--RAISINS PRODUCED FROM GRAPES GROWN IN CALIFORNIA

0
1. The authority citation for 7 CFR part 989 continues to read as 
follows:

    Authority:  7 U.S.C. 601-674.


0
2. In Sec.  989.80, revise paragraph (c) to read as follows:


Sec.  989.80   Assessments.

* * * * *
    (c) The Secretary shall fix the rate of assessment to be paid by 
all handlers on the basis of a specified rate per ton. At any time 
during or after a crop year, the Secretary may increase the rate of 
assessment to obtain sufficient funds to cover any later finding by the 
Secretary relative to the expenses of the committee. Each handler shall 
pay such additional assessment to the committee upon demand. In order 
to provide funds to carry out the functions of the committee, the 
committee may accept advance payments from any handler to be credited 
toward such assessments as may be levied pursuant to this section 
against such handler during the crop year. In the event cash flow needs 
of the committee are above cash available generated by handler 
assessments, the committee may borrow from a commercial lending 
institution. The payment of assessments for the maintenance and 
functioning of the committee, and for such purposes as the Secretary 
may pursuant to this subpart determine to be appropriate, may be 
required under this part throughout the period it is in effect, 
irrespective of whether particular provisions thereof are suspended or 
become inoperative.
* * * * *

Erin Morris,
Associate Administrator, Agricultural Marketing Service.
[FR Doc. 2021-10148 Filed 5-13-21; 8:45 am]
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