[Code of Federal Regulations]
[Title 7, Volume 8]
[Revised as of January 1, 2007]
From the U.S. Government Printing Office via GPO Access
[CITE: 7CFR929.56]

[Page 254-256]
 
                          TITLE 7--AGRICULTURE
 
  CHAPTER IX--AGRICULTURAL MARKETING SERVICE (Marketing Agreements and 
      Orders; Fruits, Vegetables, Nuts), DEPARTMENT OF AGRICULTURE
 
   PART 929_CRANBERRIES GROWN IN STATES OF MASSACHUSETTS, RHODE ISLAND,
 
                    Subpart_Order Regulating Handling
 
Sec.  929.56  Special provisions relating to withheld (restricted) 

cranberries.

    (a) A handler shall make a written request to the committee for the 
release of all or part of the cranberries that the handler is 
withholding from handling pursuant to Sec.  929.54(a). Each request 
shall state the quantity of cranberries for which release is requested 
and shall provide such additional information as the committee may 
require. Handlers may replace the quantity of withheld cranberries 
requested for release as provided under either paragraph (b) or (c) of 
this section.
    (b) The handler may contract with another handler for an amount of 
free cranberries to be converted to restricted cranberries that is equal 
to the volume of cranberries that the handler wishes to have converted 
from his own restricted cranberries to free cranberries.

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    (1) The handlers involved in such an agreement shall provide the 
committee with such information as may be requested prior to the release 
of any restricted cranberries.
    (2) The committee shall establish guidelines to ensure that all 
necessary documentation is provided to the committee, including but not 
limited to, the amount of cranberries being converted and the identities 
of the handlers assuming the responsibility for withholding and 
disposing of the free cranberries being converted to restricted 
cranberries.
    (3) Cranberries converted to replace released cranberries may be 
required to be inspected and meet such standards as may be prescribed 
for withheld cranberries prior to disposal.
    (4) Transactions and agreements negotiated between handlers shall 
include all costs associated with such transactions including the 
purchase of the free cranberries to be converted to restricted 
cranberries and all costs associated with inspection (if applicable) and 
disposal of such restricted cranberries. No costs shall be incurred by 
the committee other than for the normal activities associated with the 
implementation and operation of a volume regulation program.
    (5) Free cranberries belonging to one handler and converted to 
restricted cranberries on the behalf of another handler shall be 
reported to the committee in such manner as prescribed by the committee.
    (c) Except as otherwise directed by the Secretary, as near as 
practicable to the beginning of the marketing season of each fiscal 
period with respect to which the marketing policy proposes regulation 
pursuant to Sec.  929.52(a), the committee shall determine the amount 
per barrel each handler shall deposit with the committee for it to 
release to him, in accordance with this section, all or part of the 
cranberries he is withholding; and the committee shall give notice of 
such amount of deposit to handlers. Such notice shall state the period 
during which such amount of deposit shall be in effect. Whenever the 
committee determines that, by reason of changed conditions or other 
factors, a different amount should therefore be deposited for the 
release of withheld cranberries, it shall give notice to handlers of the 
new amount and the effective period thereof. Each determination as to 
the amount of deposit shall be on the basis of the committee's 
evaluation of the following factors:
    (1) The prices at which growers are selling cranberries to handlers,
    (2) The prices at which handlers are selling fresh market 
cranberries to dealers,
    (3) The prices at which cranberries are being sold for processing in 
products,
    (4) The prices at which handlers are selling cranberry concentrate,
    (5) The prices the committee has paid to purchase cranberries to 
replace released cranberries in accordance with this section, and
    (6) The costs incurred by growers in producing cranberries.
    (7) Each request for release of withheld cranberries shall include, 
in addition to all other information as may be prescribed by the 
committee, the quantity of cranberries the release is requested and 
shall be accompanied by a deposit (a cashier's or certified check made 
payable to the Cranberry Marketing Committee) in an amount equal to the 
twenty percent of the amount determined by multiplying the number of 
barrels stated in the request by the then effective amount per barrel as 
determined in paragraph (c).
    (8) Subsequent deposits equal to, but not less than, the ten percent 
of the remaining outstanding balance shall be payable to the committee 
on a monthly basis commencing on January 1, and concluding by no later 
than August 31 of the fiscal period.
    (9) If the committee determines such a release request is properly 
filled out, is accompanied by the required deposit, and contains a 
certification that the handler is withholding such cranberries, it shall 
release to such handler the quantity of cranberries specified in his 
request.
    (d) Funds deposited for the release of withheld cranberries, 
pursuant to paragraph (c) of this section, shall be used by the 
committee to purchase from handlers unrestricted (free percentage) 
cranberries in an aggregate amount as nearly equal to, but not in excess 
of,

[[Page 256]]

the total quantity of the released cranberries as it is possible to 
purchase to replace the released cranberries.
    (e) All handlers shall be given an equal opportunity to participate 
in such purchase of unrestricted (free percentage) cranberries. If a 
larger quantity is offered than can be purchased, the purchases shall be 
made at the lowest price possible. If two or more handlers offer 
unrestricted (free percentage) cranberries at the same price, purchases 
from such handlers shall be in proportion to the quantity of their 
respective offerings insofar as such division is practicable. The 
committee shall dispose of cranberries purchased as restricted 
cranberries in accordance with Sec.  929.57. Any funds received by the 
committee for cranberries so disposed of, which are in excess of the 
costs incurred by the committee in making such disposition, will accrue 
to the committee's general fund.
    (f) In the event any portion of the funds deposited with the 
committee pursuant to paragraph (c) of this section cannot, for reasons 
beyond the committee's control, be expended to purchase unrestricted 
(free percentage) cranberries to replace those withheld cranberries 
requested to be released, such unexpended funds shall, after deducting 
expenses incurred by the committee, be refunded to the handler who 
deposited the funds. The handler shall equitably distribute such refund 
among the growers delivering to such handler.
    (g) Inspection for restricted (withheld) cranberries released to a 
handler is not required.
    (h) The committee may establish, with the approval of the Secretary, 
rules and regulations for the implementation of this section. Such rules 
and regulations may include, but are not limited to, revisions in the 
payment schedule specified in paragraphs (c)(7) and (c)(8) of this 
section.

[70 FR 7643, Feb. 15, 2005]