[Federal Register: July 15, 2003 (Volume 68, Number 135)]
[Rules and Regulations]
[Page 41686-41691]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr15jy03-3]
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DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 989
[Docket No. FV03-989-4 FIR]
Raisins Produced From Grapes Grown in California; Final Free and
Reserve Percentages for 2002-03 Crop Natural (Sun-dried) Seedless and
Zante Currant Raisins
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Final rule.
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SUMMARY: The Department of Agriculture (USDA) is adopting, as a final
rule, without change, an interim final rule that established final
volume regulation percentages for 2002-03 crop Natural (sun-dried)
Seedless (NS) and Zante Currant (ZC) 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 53 percent free and
47 percent reserve for NS raisins, and 80 percent free and 20 percent
reserve for ZC raisins. The percentages are intended to help stabilize
raisin supplies and prices, and strengthen market conditions.
EFFECTIVE DATE: Effective August 14, 2003. This rule applies to
acquisitions of NS and ZC raisins from the 2002-2003 crop until the
reserve raisins from that crop are disposed of under the order.
FOR FURTHER INFORMATION CONTACT: Maureen T. Pello, Senior Marketing
Specialist, California Marketing Field Office, Marketing Order
Administration Branch, Fruit and Vegetable Programs, AMS, USDA, 2202
Monterey Street, suite 102B, Fresno, California 93721; telephone: (559)
487-5901, Fax: (559) 487-5906; or George Kelhart, Technical Advisor,
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.
Small businesses may request information on complying with this
regulation by contacting Jay Guerber, Marketing Order Administration
Branch, Fruit and Vegetable Programs, AMS, USDA, 1400 Independence
Avenue, SW., STOP 0237, Washington DC 20250-0237; telephone: (202) 720-
2491, Fax: (202) 720-8938, or E-mail: Jay.Guerber@usda.gov.
SUPPLEMENTARY INFORMATION: This rule is issued under Marketing
Agreement and Order No. 989 (7 CFR part 989), both as amended,
regulating the handling of raisins produced from grapes grown in
California, hereinafter referred to as the ``order.'' The order is
effective under the Agricultural Marketing Agreement Act of 1937, as
amended (7 U.S.C. 601-674), hereinafter referred to as the ``Act.''
USDA is issuing this rule in conformance with Executive Order
12866.
This rule has been reviewed under Executive Order 12988, Civil
Justice Reform. Under the order provisions now in effect, final free
and reserve percentages may be established for raisins acquired by
handlers during the crop year. This rule continues in effect final free
and reserve percentages for NS and ZC raisins for the 2002-03 crop
year, which began August 1, 2002, and ends July 31, 2003. 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. Such
handler is afforded the opportunity for a hearing on the petition.
After the hearing USDA would rule on the petition. The Act provides
that the district court of the United States in any district in which
the handler is an inhabitant, or has his or her principal place of
business, has jurisdiction to review USDA's ruling on the petition,
provided an action is filed not later than 20 days after the date of
the entry of the ruling.
This rule continues in effect final volume regulation percentages
for 2002-03 crop NS and ZC raisins covered under the order. The
percentages were established through an interim final rule published on
April 2, 2003 (68 FR 15926). The volume regulation percentages are 53
percent free and 47 percent reserve for NS raisins, and 80 percent free
and 20 percent reserve for ZC raisins. 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 ZC final percentages on January 29,
2003, and NS final percentages on February 13, 2003.
Computation of Trade Demands
Section 989.54 of the order prescribes procedures and time frames
to be followed in establishing volume regulation. This includes
methodology used to calculate percentages. Pursuant to Sec. 989.54(a)
of the order, the Committee met on August 14, 2002, 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
[[Page 41687]]
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,
including ZC raisins, 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 2002-03 trade demands for NS and ZC
raisins at 196,185 tons and 2,166 tons, respectively, as shown below.
Computed Trade Demands
[Natural condition tons]
------------------------------------------------------------------------
NS Raisins ZC Raisins
------------------------------------------------------------------------
Prior year's shipments.................. 298,133 3,441
Multiplied by 90 percent................ 0.90 0.90
Equals adjusted base.................... 268,320 3,097
Minus carryin inventory................. 132,135 1,910
Plus desirable carryout................. 60,000 978
Equals computed trade demand............ 196,185 2,166
------------------------------------------------------------------------
Computation of Preliminary Volume Regulation Percentages
Section 989.54(b) of the order requires that the Committee
announce, on or before October 5, preliminary crop estimates and
determine whether volume regulation is warranted for the varietal types
for which it computed a trade demand. That section allows the Committee
to extend the October 5 date up to 5 business days if warranted by a
late crop.
Due to a late 2002 crop, the Committee met on October 8, 2002, and
announced a preliminary crop estimate for NS raisins of 407,996 tons,
which is almost 18 percent higher than the 10-year average of 346,770
tons. NS raisins are the major varietal type of California raisin.
Adding the carryin inventory of 132,135 tons, plus 18,000 tons of
reserve raisins expected to be released to handlers this season for
free use in an export program, plus the 407,996-ton crop estimate
resulted in a total available supply of 558,131 tons, which was
significantly higher (almost 285 percent) than the 196,185-ton trade
demand. Thus, the Committee determined that volume regulation for NS
raisins was warranted. The Committee announced preliminary free and
reserve percentages for NS raisins, which released 65 percent of the
computed trade demand since the field price (price paid by handlers to
producers for their free tonnage raisins) had not been established. The
preliminary percentages were 31 percent free and 69 percent reserve.
Also at its October 8, 2002, meeting, the Committee announced a
preliminary crop estimate for ZC raisins at 4,544 tons, which is
comparable to the 10-year average of 4,494 tons. Combining the carry-in
inventory of 1,910 tons with the 4,544-ton crop estimate resulted in a
total available supply of 6,454 tons. With the estimated supply
significantly higher (almost three times) than the 2,166-ton trade
demand, the Committee determined that volume regulation for ZC raisins
was warranted. The Committee announced preliminary percentages for ZC
raisins, which released 65 percent of the computed trade demand since
field price had not been established. The preliminary percentages were
31 percent free and 69 percent reserve.
Field prices for both NS and ZC raisins were established on January
10, 2003, and preliminary percentages were revised on January 13, 2003,
to 41 percent free and 59 percent reserve for NS and ZC raisins to
release 85 percent of their trade demands.
In addition, preliminary percentages were announced for Other
Seedless, Dipped Seedless, and Oleate and Related Seedless. It was
ultimately determined that volume regulation was only warranted for NS
and ZC raisins. As in past seasons, the Committee submitted its
marketing policy to USDA for review.
Modification To Marketing Policy Regarding ZC Raisins
Pursuant to Sec. 989.54(f) of the order, the Committee met on
January 29, 2003, and revised its marketing policy regarding ZC raisins
due to a major change in economic conditions. The Committee
recommended, and USDA subsequently approved, an increase in the ZC
trade demand from 2,166 to 3,302 tons. The Committee's rationale for
this action was to take advantage of increased demand created by a
short Greek crop. Greece's crop has been reduced due to adverse weather
conditions, and the Committee hopes to be able to sell more California
ZC raisins in world markets.
Computation of Final Volume Regulation Percentages
Pursuant to Sec. 989.54(c), at its January 29, 2003, meeting, the
Committee announced interim percentages for NS and ZC raisins to
release slightly less than their full trade demands. Based on a revised
NS crop estimate of 373,138 tons (down from the October estimate of
407,996 tons), interim percentages for NS raisins were announced at
52.75 percent free and 47.25 percent reserve. Based on a revised ZC
crop estimate of 4,128 tons (down from the October estimate of 4,544
tons), interim percentages for ZC raisins were announced at 79.75
percent free and 20.25 percent reserve.
Pursuant to Sec. 989.54(d), the Committee also recommended final
percentages to release the full trade demands for NS and ZC raisins.
Final percentages were recommended for ZC raisins at the Committee's
January meeting at 80 percent free and 20 percent reserve. Final
percentages for NS raisins were recommended by the Committee at a
meeting on February 13, 2003, at 53 percent free and 47 percent
reserve, based on a revised crop estimate of 373,680 tons (slightly up
from the January estimate of 373,138 tons). The Committee's
calculations to arrive at final percentages for NS and ZS raisins are
shown in the table below:
[[Page 41688]]
Final Volume Regulation Percentages
[Natural condition tons]
------------------------------------------------------------------------
NS Raisins ZC Raisins
------------------------------------------------------------------------
Trade demand............................ 196,185 3,302
Divided by crop estimate................ \1\ 373,680 \2\ 4,128
Equals free percentage.................. 53 80
100 minus free percentage equals reserve 47 20
percentage.............................
------------------------------------------------------------------------
\1\ The crop estimate for NS raisins is underestimated, as acquisitions
through the week ending April 26, 2003, were 385,575 tons.
\2\ The crop estimate for ZC raisins is underestimated, as acquisitions
through the week ending April 26, 2003, were 4,356 tons.
In addition, USDA's ``Guidelines for Fruit, Vegetable, and
Specialty Crop Marketing Orders'' (Guidelines) specify that 110 percent
of recent years' sales should be made available to primary markets each
season for marketing orders utilizing reserve pool authority. This goal
was met for NS and ZS raisins by the establishment of final
percentages, which released 100 percent of the trade demands and the
offer of additional reserve raisins for sale to handlers under the ``10
plus 10 offers.'' As specified in Sec. 989.54(g), the 10 plus 10
offers are two offers of reserve pool raisins, which are made available
to handlers during each season. For each such offer, a quantity of
reserve raisins equal to 10 percent of the prior year's shipments is
made available for free use. Handlers may sell their 10 plus 10 raisins
to any market.
For NS raisins, the first ``10 plus 10 offer'' was made in February
2003, and the second offer was made in May 2003. A total of 59,626 tons
was made available to raisin handlers through these offers, and 56,796
tons were purchased. Adding the total figure of 56,796 tons of 10 plus
10 raisins to the 385,575 tons of free tonnage raisins acquired by
handlers from producers through the week ending April 26, 2003, plus
132,135 tons of 2002-03 carryin inventory, plus 18,000 tons of reserve
raisins released during the season through an export program, equates
to 592,506 tons of natural condition raisins, or 556,108 tons of packed
raisins, that are available to handlers for free use or primary
markets. This is almost 200 percent of the quantity of NS raisins
shipped during the 2001-02 crop year (298,133 natural condition tons or
279,819 packed tons).
For ZC raisins, both ``10 plus 10 offers'' were held simultaneously
in February 2003. A total of 688 tons was made available to handlers,
and all of the raisins were purchased. Adding the 688 tons of 10 plus
10 raisins to the 4,356 tons of free tonnage raisins acquired by
handlers from producers through the week ending April 26, 2003, plus
1,910 tons of 2002-03 carryin inventory equates to 6,954 tons of
natural condition raisins, or 6,147 tons of packed raisins, available
to handlers for free use or primary markets. This is over 200 percent
of the quantity of ZC raisins shipped during the 2001-02 crop year
(3,441 tons natural condition tons or 3,043 packed tons).
In addition to the 10 plus 10 offers, Sec. 989.67(j) of the order
provides authority for sales of reserve raisins to handlers under
certain conditions such as a national emergency, crop failure, change
in economic or marketing conditions, or if free tonnage shipments in
the current crop year exceed shipments of a comparable period of the
prior crop year. Such reserve raisins may be sold by handlers to any
market. When implemented, the additional offers of reserve raisins make
even more raisins available to primary markets, which is consistent
with USDA's Guidelines.
Final Regulatory Flexibility Analysis
Pursuant to requirements set forth in the Regulatory Flexibility
Act (RFA), the Agricultural Marketing Service (AMS) has considered the
economic impact of this action on small entities. Accordingly, AMS has
prepared this final regulatory flexibility analysis.
The purpose of the RFA is to fit regulatory actions to the scale of
business subject to such actions in order that small businesses will
not be unduly or disproportionately burdened. Marketing orders issued
pursuant to the Act, and rules issued thereunder, are unique in that
they are brought about through group action of essentially small
entities acting on their own behalf. Thus, both statutes have small
entity orientation and compatibility.
There are approximately 20 handlers of California raisins who are
subject to regulation under the order and approximately 4,500 raisin
producers in the regulated area. Small agricultural service firms are
defined by the Small Business Administration (13 CFR 121.201) as those
having annual receipts of less than $5,000,000, and small agricultural
producers are defined as those having annual receipts of less than
$750,000. Thirteen of the 20 handlers subject to regulation have annual
sales estimated to be at least $5,000,000, and the remaining 7 handlers
have sales less than $5,000,000. 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 control mechanism
is used to stabilize supplies and prices and strengthen market
conditions.
Pursuant to Sec. 989.54(d) of the order, this rule continues in
effect final volume regulation percentages for 2002-03 crop NS and ZC
raisins. The volume regulation percentages are 53 percent free and 47
percent reserve for NS raisins, and 80 percent free and 20 percent
reserve for ZC raisins. 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 for NS raisins because
acquisitions of 385,575 tons through the week ending April 26, 2003,
combined with the carryin inventory of 132,135 tons, plus 19,700 tons
of reserve raisins released for free use through an export program,
results in a total available supply of 537,410 tons, which is about 274
percent higher than the 196,185-ton trade demand. Volume regulation is
warranted for ZC raisins this season because acquisitions of 4,356 tons
through the week ending April 26, 2003, combined with the carryin
inventory of 1,910 tons results in a total available supply of 6,266
tons, which is almost twice the 3,302-ton trade demand.
Many years of marketing experience led to the development of the
current volume regulation procedures. These procedures have helped the
industry address its marketing problems by keeping supplies in balance
with domestic and export market needs, and
[[Page 41689]]
strengthening market conditions. The current volume regulation
procedures fully supply the domestic and export markets, provide for
market expansion, and help reduce the burden of oversupplies in the
domestic market.
Raisin grapes are a perennial crop, so production in any year is
dependent upon plantings made in earlier years. The sun-drying method
of producing raisins involves considerable risk because of variable
weather patterns.
Even though the product and the industry are viewed as mature, the
industry has experienced considerable change over the last several
decades. Before the 1975-76 crop year, more than 50 percent of the
raisins were packed and sold directly to consumers. Now, over 60
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. In addition, the price
wineries have offered for raisin grapes has dropped to $65 per ton.
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 1992-93 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, or about 114,944 tons. 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 $901 in 1992-93 to a high of $1,049 in 1996-97, or
$148. Total producer prices for the 1998-99 and 1999-2000 seasons
increased significantly due to back-to-back short crops during those
years. Producer prices dropped dramatically for the last two seasons
due to record-size production and large carry-in inventories.
Natural Seedless Producer Prices
------------------------------------------------------------------------
Deliveries
(natural Producer
Crop year condition prices (per
tons) ton)
------------------------------------------------------------------------
2001-02................................. 377,328 \1\ $663.95
2000-01................................. 432,616 570.82
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
1992-93................................. 371,516 901.41
------------------------------------------------------------------------
\1\ Return-to-date, reserve pool still open.
\2\ No volume regulation.
There are essentially two broad markets for raisins--domestic and
export. In recent years, both export and domestic shipments have been
decreasing. 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. In addition, exports decreased from 114,576 packed tons in
1991-92 to a low of 91,600 packed tons in the 1999-2000 crop year.
In addition, the per capita consumption of raisins has declined
from 2.07 pounds in 1988 to 1.46 pounds in 2001. 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 been decreasing (as
reflected in the decline in commercial shipments and per capita
consumption), production has been increasing. 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, increased yields,
and growers drying more grapes for raisins. Deliveries for the 2001-02
crop year were at 377,328 tons, and deliveries through April 26, 2003,
for the current year were at 385,575 tons. Three crop years of high
production and a large 2002-03 carryin inventory has contributed to the
industry's burdensome supply of raisins.
This type of surplus situation leads to serious marketing problems.
Handlers compete against each other in an attempt to sell more raisins
to reduce inventories and to market their crop. This situation puts
downward pressure on growers' prices and incomes.
The order permits the industry to exercise supply control
provisions, which allow for the establishment of free and reserve
percentages, and establishment of a reserve pool. One of the primary
purposes of establishing free and reserve percentages is to equilibrate
supply and demand. If raisin markets are over-supplied with product,
producer prices will decline.
Raisins are generally marketed at relatively lower price levels in
the more elastic export market than in the more
[[Page 41690]]
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.
To assess the impact that volume control has on the prices
producers receive for their product, an econometric model has been
constructed. The model developed is for the purpose of estimating
nominal prices under a number of scenarios using the volume control
authority under the Federal marketing order. The price producers
receive for the harvest and delivery of their crop is largely
determined by the level of production and the volume of carryin
inventories. The Federal marketing order permits the industry to
exercise supply control provisions, which allow for the establishment
of reserve and free percentages for primary markets, and a reserve
pool. The establishment of reserve percentages impacts the production
that is marketed in the primary markets.
The reserve percentage limits what handlers can market as free
tonnage. Assuming the 53 percent reserve limits the total free tonnage
to 204,355 natural condition tons (.53 x 385,575 tons delivered through
April 26, 2003) and carryin is 132,135 natural condition tons, and
purchases from reserve total 79,326 natural condition tons (which
includes anticipated reserve raisins released through the export
program and other purchases), then the total free supply is estimated
at 415,816 natural condition tons. The econometric model estimates
prices to be $142 per ton higher than under an unregulated scenario.
This price increase is beneficial to all producers regardless of size
and enhances producers' total revenues in comparison to no volume
control. Establishing a reserve allows the industry to help stabilize
supplies in both domestic and export markets, while improving returns
to producers.
Regarding ZC raisins, ZC raisin production is much smaller than NS
raisin production. Volume regulation has been implemented for ZC
raisins during the 1994-95, 1995-96, 1997-98, 1998-99, 1999-2000, and
2000-01 seasons. Various programs to utilize reserve pool ZC raisins
were implemented during those years. As shown in the table below,
although production varied during those years, volume regulation helped
to reduce inventories, and helped to strengthen total producer prices
(free tonnage plus reserve ZC raisins) from $412.56 per ton in 1994-95
to a high of $1,034.03 per ton in 1998-99. The Committee is
implementing an export program for ZC raisins, in addition to NS
raisins. Through this program, the Committee plans to continue to
manage its ZC supply, build and maintain export markets, and ultimately
improve producer returns. Volume regulation helps the industry not only
to manage oversupplies of raisins, but also maintain market stability.
ZC Inventories and Producer Prices During Years of Volume Regulation
[Natural condition tons]
----------------------------------------------------------------------------------------------------------------
Inventory Producer
Crop year Deliveries -------------------------------- prices (per
Desirable Physical ton)
----------------------------------------------------------------------------------------------------------------
2001-02......................................... 4,213 1,227 1,395 \1\ $1,000.00
2000-01......................................... 4,848 1,227 1,109 851.55
1999-2000....................................... 3,683 573 1,906 669.14
1998-99......................................... 3,880 694 1,188 1,034.03
1997-98......................................... 4,826 788 1,679 710.08
1996-97......................................... 4,491 987 549 \2\ 1,150.00
1995-96......................................... 3,294 782 2,890 711.32
1994-95......................................... 5,377 837 4,364 412.56
----------------------------------------------------------------------------------------------------------------
\1\ and 2 No volume regulation.
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 has been determined that volume regulation is
warranted this season for only two of the ten raisin varietal types
defined under the order.
The free and reserve percentages established by this rule release
the full trade demands and apply uniformly to all handlers in the
industry, regardless of size. For NS raisins, with the exception of the
1998-99 crop year, small and large raisin producers and handlers have
been operating under volume regulation percentages every year since
1983-84. There are no known additional costs incurred by small handlers
that are not incurred by large handlers. While the level of benefits of
this rulemaking are difficult to quantify, the stabilizing effects of
the volume regulations impact small and large handlers positively by
helping them maintain and expand markets even though raisin supplies
fluctuate widely from season to season. Likewise, price stability
positively impacts small and large producers by allowing them to better
anticipate the revenues their raisins will generate.
There are some reporting, recordkeeping and other compliance
requirements under the order. The reporting and recordkeeping burdens
are necessary for compliance purposes and for developing statistical
data for maintenance of the program. The requirements are the same as
those applied in past seasons. Thus, this action imposes no additional
reporting or recordkeeping burdens on either small or large handlers.
The forms require information which is readily available from handler
records and which can be provided without data processing equipment or
trained statistical staff. The information collection and recordkeeping
requirements have been previously approved by the Office of Management
and Budget (OMB) under OMB Control No. 0581-0178. As with other similar
marketing order programs, reports and forms are periodically studied to
reduce or eliminate duplicate information collection burdens by
industry and public sector agencies. In addition, USDA has not
identified any relevant Federal rules that duplicate, overlap, or
conflict with this rule.
[[Page 41691]]
Further, Committee and subcommittee meetings are widely publicized
in advance and are held in a location central to the production area.
The meetings are open to all industry members, including small business
entities, and other interested persons who are encouraged to
participate in the deliberations and voice their opinions on topics
under discussion.
An interim final rule concerning this action was published in the
Federal Register on April 2, 2003 (68 FR 15926). Copies of the rule
were mailed to all Committee members and alternates, the Raisin
Bargaining Association, handlers, and dehydrators. In addition, the
rule was made available through the Internet by the Office of the
Federal Register and USDA. That rule provided for a 60-day comment
period that ended on June 2, 2003. No comments were received.
A small business guide on complying with fruit, vegetable, and
specialty crop marketing agreements and orders may be viewed at: http://www.ams.usda.gov/fv/moab.html.
Any questions about the compliance
guide should be sent to Jay Guerber at the previously mentioned address
in the FOR FURTHER INFORMATION CONTACT section.
After consideration of all relevant material presented, including
the 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.
List of Subjects in 7 CFR Part 989
Grapes, Marketing agreements, Raisins, Reporting and recordkeeping
requirements.
PART 989--RAISINS PRODUCED FROM GRAPES GROWN IN CALIFORNIA
0
Accordingly, the interim final rule amending 7 CFR part 989 which was
published at 68 FR 15926 on April 2, 2003, is adopted as a final rule
without change.
Dated: July 9, 2003.
A.J. Yates,
Administrator, Agricultural Marketing Service.
[FR Doc. 03-17799 Filed 7-14-03; 8:45 am]
BILLING CODE 3410-02-P