Rule2023-27095
Raisins Produced From Grapes Grown in California; Temporary Relaxation of Substandard and Maturity Dockage Requirements
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
December 11, 2023
Effective
December 12, 2023
Issuing agencies
Agriculture DepartmentAgricultural Marketing Service
Abstract
This rule temporarily changes the substandard and maturity dockage requirements for raisins covered under the Federal marketing order for raisins produced from grapes grown in California (Order). For the 2023-2024 crop year, the minimum requirements for substandard and maturity dockage in the marketing order's handling regulations will be relaxed to accommodate raisins adversely impacted by severe weather conditions.
Full Text
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[Federal Register Volume 88, Number 236 (Monday, December 11, 2023)]
[Rules and Regulations]
[Pages 85819-85824]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-27095]
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Rules and Regulations
Federal Register
________________________________________________________________________
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.
The Code of Federal Regulations is sold by the Superintendent of Documents.
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Federal Register / Vol. 88, No. 236 / Monday, December 11, 2023 /
Rules and Regulations
[[Page 85819]]
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 989
[Doc. No. AMS-SC-23-0062]
Raisins Produced From Grapes Grown in California; Temporary
Relaxation of Substandard and Maturity Dockage Requirements
AGENCY: Agricultural Marketing Service, Department of Agriculture
(USDA).
ACTION: Interim rule.
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SUMMARY: This rule temporarily changes the substandard and maturity
dockage requirements for raisins covered under the Federal marketing
order for raisins produced from grapes grown in California (Order). For
the 2023-2024 crop year, the minimum requirements for substandard and
maturity dockage in the marketing order's handling regulations will be
relaxed to accommodate raisins adversely impacted by severe weather
conditions.
DATES: Effective on December 12, 2023. Comments which are received by
February 9, 2024, will be considered prior to the issuance of any final
rule.
ADDRESSES: Interested persons are invited to submit written comments
concerning this rule. Comments must be sent to the Docket Clerk, Market
Development Division, Specialty Crops Program, AMS, USDA, 1400
Independence Avenue SW, STOP 0237, Washington, DC 20250-0237; Fax:
(202) 720-8938; or via internet at: <a href="https://www.regulations.gov">https://www.regulations.gov</a>.
Comments should reference the document number and the date and page
number of this issue of the Federal Register. All comments submitted in
response to this rule will be included in the record and will be made
available to the public on the internet at the address provided above.
Please be advised that the identity of the individuals or entities
submitting the comments will be made public.
FOR FURTHER INFORMATION CONTACT: Jeremy Sasselli, Marketing Specialist,
or Gary Olson, Chief, West Region Branch, Market Development Division,
Specialty Crops Program, AMS, USDA; Telephone: (559) 487-5901 or Email:
<a href="/cdn-cgi/l/email-protection#b6fcd3c4d3dbcf98e5d7c5c5d3dadadff6c3c5d2d798d1d9c0"><span class="__cf_email__" data-cfemail="42082730272f3b6c11233131272e2e2b02373126236c252d34">[email protected]</span></a> or <a href="/cdn-cgi/l/email-protection#753214070c315b3a19061a1b35000611145b121a03"><span class="__cf_email__" data-cfemail="266147545f6208694a554948665355424708414950">[email protected]</span></a>.
Small businesses may request information on complying with this
regulation by contacting Richard Lower, Assistant to the Director,
Market Development Division, Specialty Crops Program, AMS, USDA, 1400
Independence Avenue SW, STOP 0237, Washington, DC 20250-0237;
Telephone: (202) 720-8085, or Email: <a href="/cdn-cgi/l/email-protection#0b596268636a796f2547647c6e794b7e786f6a256c647d"><span class="__cf_email__" data-cfemail="580a313b30392a3c7614372f3d2a182d2b3c39763f372e">[email protected]</span></a>.
SUPPLEMENTARY INFORMATION: This action, pursuant to 5 U.S.C. 553,
amends regulations issued to carry out a marketing order as defined in
7 CFR 900.2(j). This rule is issued under Marketing Agreement and Order
No. 989, both as amended (7 CFR part 989), hereinafter referred to as
the ``Order,'' and the applicable provisions of the Agricultural
Marketing Agreement Act of 1937, as amended (7 U.S.C. 601-674),
hereinafter referred to as the ``Act.'' The Committee locally
administers the Order and is comprised of growers and handlers of
raisins operating within the area of production, and a public member.
The Agricultural Marketing Service (AMS) is issuing this rule in
conformance with Executive Orders 12866, 13563, and 14094. Executive
Orders 12866, 13563, and 14094 direct agencies to assess costs and
benefits of available regulatory alternatives and, if regulation is
necessary, to select regulatory approaches that maximize net benefits
(including potential economic, environmental, public health and safety
effects, distributive impacts, and equity). Executive Order 13563
emphasizes the importance of quantifying both costs and benefits,
reducing costs, harmonizing rules, and promoting flexibility. Executive
Order 14094 directs agencies to conduct proactive outreach to engage
interested and affected parties through a variety of means, such as
through field offices, and alternative platforms and media. This action
falls within a category of regulatory actions that the Office of
Management and Budget (OMB) exempted from Executive Order 12866 review.
This rule has been reviewed under Executive Order 13175--
Consultation and Coordination with Indian Tribal Governments, which
requires agencies to consider whether their rulemaking actions would
have tribal implications. AMS has determined that this rule is unlikely
to have substantial direct effects on one or more Indian tribes, on the
relationship between the Federal Government and Indian tribes, or on
the distribution of power and responsibilities between the Federal
Government and Indian tribes.
This rule has been reviewed under Executive Order 12988, Civil
Justice Reform. This rule is not intended to have a retroactive effect.
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 the Department of
Agriculture (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 no later than 20
days after the date of the entry of the ruling.
This interim rule temporarily relaxes the substandard and maturity
dockage minimum requirements for incoming raisins covered under the
Order for the 2023-2024 crop year. Section 989.58 requires natural
condition raisins that do not meet the minimum requirements must be
returned by handlers to producers, reconditioned by handlers at the
producers' expense, or disposed of in a non-normal outlet such as
animal feed at a much-reduced producer price. Provided, that handlers
may acquire natural condition raisins which exceed the tolerance
established for maturity under a weight dockage system. Under the
Order, handlers acquire raisins from producers under a weight dockage
system and adjust the creditable fruit weight acquired according to the
[[Page 85820]]
percentage of substandard raisins in the lot and/or the percentage of
raisins that fall below certain levels of maturity in the lot. Handler
payments to producers, and the payment of handler assessments, are
based on the creditable weight of raisins acquired by handlers. Due to
unusual crop conditions created by extreme weather events which
adversely affected the growing conditions of California raisin grape
vines, producers and handlers in the industry are seeing a relatively
high percentage of the 2023-2024 crop year deliveries of raisins fall
outside the minimum requirements of the substandard and maturity
dockage system. The situation is the result of unforeseen environmental
factors that are showing effects on raisin grapes now after harvest and
drying. The temporary relaxation of the substandard and maturity
requirements effectuated by this interim rule is expected to mitigate
the disruption of the marketing of California raisins caused by adverse
environmental conditions on the California raisin industry and provide
a cost savings for producers by reducing reconditioning and
reinspection costs.
Prior to the 2022-2023 winter, the raisin growing region in
California suffered multiple years of extreme drought, which had long-
term detrimental effects on California grape vineyards. Further, over
the course of the 2022-2023 winter, temperatures across California were
colder than average, rainfall in the San Joaquin Valley exceeded normal
levels, and snowfall in the Sierra Nevada greatly exceeded normal
levels, leading to one of the largest snowpacks on record.
Additionally, in 2023 a series of intense storms brought rain onto the
record snowpack, causing rapid snowmelt which had disastrous flooding
effects in parts of the San Joaquin Valley, including the historic
filling of the Tulare Lake Basin. However, the full effect of such
severe weather conditions on raisin grape production only became
apparent to producers when dehydrators began their grape dehydrating
activities in mid to late August 2023.
During its October 5, 2023, meeting, the Committee determined that
rain and cold temperatures into late spring and early summer delayed
crop maturity and that record rain and snowmelt created exceptionally
high humidity levels throughout the production area, causing some bunch
rot and mildew issues. In addition, hurricane Hillary perpetuated these
conditions at the end of August 2023 by bringing unseasonal and
substantial rainfall throughout the raisin growing region. The crop was
also late by at least three weeks, and temperatures in September and
into October were below average, which extended the raisin drying
period and has delayed deliveries to handlers. Thus, raisins delivered
to handlers by producers are failing to meet the Order's minimum
requirements. This is evident by incoming inspections reported to the
Committee since the beginning of the 2023-2024 crop year (August 1)
having shown an increase of approximately 160 percent in off-grade
natural condition raisins over the average of the past 4 years (29.1
percent versus 11.2 percent). All other varieties of raisins have also
shown a 155 percent increase in off-grade over the previous 4-year
average (26.0 percent versus 10.2 percent). Relaxing the limits for the
2023-2024 crop year will reduce the number of failing lots of raisins
that must either be returned by handlers to producers, reconditioned by
handlers at the producers' expense, or disposed of through non-normal
outlets. This rule will provide cost savings to producers by minimizing
reconditioning and reinspection costs and avoid further delays
affecting producer deliveries in the 2023-2024 crop year. The Committee
unanimously recommended this action during its October 5, 2023,
meeting.
Section 989.58(a) of the Order provides authority for the
establishment of incoming grade, quality, and condition requirements
for natural condition raisins that are delivered from producers to
handlers. This section also contains authority for handlers to acquire
natural condition raisins which fall outside the tolerance established
for maturity, which includes substandard raisins, under a weight
dockage system.
Section 989.701 of the Order establishes the minimum grade and
condition standards for natural condition raisins. Product that does
not meet those requirements is considered substandard. Handlers may
acquire product that is determined to be substandard under a weight
dockage system. The regulations delineating the Order's weight dockage
system are contained in Sec. Sec. 989.212 and 989.213. Under those
provisions, handler acquisitions of raisins, and payments to producers
for such raisins, are adjusted according to the percentage of
substandard raisins in each lot and/or the percentage of raisins that
fall below certain levels of maturity of each lot. Product that does
not meet the minimum requirements under the weight dockage system is
considered off-grade and must be returned to producers, reconditioned,
or disposed of in an eligible non-normal market outlet that does not
compete with standard raisins.
Tolerances for Substandard Raisins
Section 989.701 of the Order's regulations specifies the minimum
quality requirements for natural condition raisins. Lots of raisins may
contain a maximum percentage, depending on varietal type, of
substandard raisins (raisins that show development less than that
characteristic of raisins prepared from fairly well-matured grapes).
Specifically, lots of Natural (sun-dried) Seedless, Monukka, Other
Seedless, Dipped Seedless, Oleate and Related Seedless, Other Seedless-
Sulfured, and Golden Seedless raisins may contain no more than 5
percent, by weight, of substandard raisins. Lots of Muscat, Sultana,
and Zante Currant raisins may contain no more than 12 percent, by
weight, of substandard raisins.
Dockage System for Substandard Raisins
Section 989.212 provides that handlers may acquire, under an
agreement with a producer, raisins that fall outside the tolerance for
substandard raisins specified in Sec. 989.701. Specifically, handlers
may acquire any lot of Natural (sun-dried) Seedless, Golden Seedless,
Dipped Seedless, Monukka, Other Seedless, and Other Seedless-Sulfured
raisins which contain from 5.1 through 17.0 percent, by weight, of
substandard raisins under a weight dockage system. A handler may also
acquire, subject to prior agreement, any lot of Muscat (including other
raisins with seeds), Sultana, and Zante Currant raisins containing from
12.1 through 20.0 percent, by weight, of substandard raisins under a
weight dockage system. The creditable weight of each lot of raisins
acquired by handlers under the substandard dockage system is obtained
by multiplying the applicable net weight of the lot of raisins by the
applicable dockage factor from the tables in Sec. 989.212. The dockage
factor reduces the weight of the raisin lot by an amount approximating
the weight of the raisins needed to be removed for the remainder of the
lot to meet minimum grade requirements after processing and packing.
The weight determined in this manner represents the creditable weight
of the raisins which is used as a basis for applicable handler
assessments and handler payments to producers for product received.
However, those raisins failing to meet the established substandard
tolerance levels (17.0 or 20.0 percent, depending on varietal type)
must be returned to the producer or
[[Page 85821]]
reconditioned by the handler (at the producer's expense) to bring the
lot up to acceptable quality standards or disposed of in an eligible
non-normal market outlet that does not compete with standard raisins.
Because of the adverse crop conditions described above, the
industry producers and handlers are dealing with a relatively high
percentage of the 2023 crop (marketed over the 2023-2024 crop year)
that is falling outside the limits of the substandard dockage systems
when delivered to handlers. Further, the Committee has reported that,
to date, approximately 29.1 percent of natural condition raisins
delivered to handlers, and approximately 26.0 percent of all other
varieties of raisins, have been off-grade, requiring reworking or
disposition into non-normal market outlets. In comparison, the average
percentages for off-grade deliveries for the 4 years prior to the 2023-
2024 crop year shows approximately 11.2 percent and 10.2 percent,
respectively.
The Committee recommended that the allowable maximum percentage of
substandard raisins in producer deliveries that can be acquired under
the dockage system be increased, from 17.0 to 21.0 percent for Natural
(sun-dried) Seedless, Golden Seedless, Dipped Seedless, Monukka, Other
Seedless, and Other Seedless-Sulfured raisins, and from 20.0 to 25.0
percent for Muscat (including other raisins with seeds), Sultana, and
Zante Currant raisins. Lots containing more than 21.0 or 25.0 percent,
depending on varietal type, of substandard raisins will be considered
off-grade and require reconditioning before they can be acquired by
handlers. This rule makes appropriate changes to Sec. 989.212 to
incorporate the Committee's recommendations. The changes will apply for
the 2023-2024 crop year only.
Increasing the percentage allowed for substandard raisins in
incoming fruit is expected to reduce the number of failed lots of
raisins returned by handlers to producers or reconditioned by handers
at the producers' expense or disposed of in a non-normal outlet such as
animal feed at a much-reduced producer price. Under the relaxation,
handlers will be able to acquire more lots of raisins upon first
inspection and not experience the potential delay of waiting for
failing lots to be reconditioned. The ability to acquire more raisins
upon first inspection will help handlers better meet the needs of the
market and save producers the cost of reconditioning and reinspecting
failed fruit that would otherwise have passed incoming inspections and
be received by handlers.
Tolerance for Maturity
Section 989.701 of the Order's regulations specifies that lots of
certain varietal types of natural condition raisins must contain a
minimum percentage of raisins that are well-matured or reasonably well-
matured. Specifically, lots of Natural (sun-dried) Seedless, Golden
Seedless, Dipped Seedless, Monukka, Other Seedless, and Other Seedless-
Sulfured raisins must contain at least 50 percent, by weight, of
raisins that are well-matured or reasonable well-matured, or what is
commonly referred to by the industry as the ``B or better'' maturity
standard.
Dockage System for Maturity
Section 989.213 provides that handlers may acquire, under an
agreement with a producer, raisins falling outside the tolerance for
maturity specified in Sec. 989.701. Specifically, handlers may acquire
any lot of Natural (sun-dried) Seedless, Golden Seedless, Dipped
Seedless, Monukka, Other Seedless, Other Seedless-Sulfured raisins
which contain from 35.0 to 49.9 percent, by weight, of well-matured or
reasonable well-matured raisins under a weight dockage system. The
dockage system is applied similarly to the substandard dockage system
previously described. The creditable weight of each lot of raisins
acquired by handlers under the maturity dockage system is obtained by
multiplying the applicable net weight of the lot of raisins by the
applicable dockage factor in the tables in Sec. 989.213. The dockage
factor reduces the weight of the raisins needed to be removed for the
remainder of the lot to meet minimum maturity requirements after
processing and packing. The weight determined in this manner represents
the creditable weight of the raisins which is used as a basis for
payment of handler assessments and handler payments to producers for
product received. Those raisins failing to meet the maturity tolerance
level of 35.0 percent are returned to the producer or reconditioned by
the handler (at the producer's expense) to bring the lot up to
acceptable quality standards. If a lot of raisins is subject to both a
maturity and substandard dockage factor, only the highest of the two
dockage factors is applied, as stated in Sec. 989.210(d).
In addition, the maturity dockage system is divided into three
categories depending on the percentage of well-matured or reasonably
well-matured raisins in the lot. The creditable fruit weight of raisins
delivered by producers to handlers in the first category, which
includes lots containing between 45.0 to 49.9 percent well-matured or
reasonably well-matured raisins, is reduced .05 percent for each 0.1
percent the lot is below 50.0 percent down to 45.0 percent. The
creditable fruit weight of raisins delivered by producers to handlers
in the second category, which includes lots containing between 40.0 to
44.9 percent well-matured or reasonably well-matured raisins, is
reduced 0.1 percent for each 0.1 percent the lot is below 44.9 percent
down to 40.0 percent. The creditable fruit weight of raisins delivered
by producers to handlers in the third category, which includes lots
containing between 35.0 to 39.9 percent well-matured or reasonably
well-matured raisins is reduced 0.15 percent for each 0.1 percent the
lot is below 39.9 percent down to 35.0 percent. Applicable handler
assessments and producer payments for product received are reduced
accordingly. Because of the adverse crop conditions described above,
the industry predicts that a relatively high percentage of the 2023
crop will fall below the 35.0 percent tolerance level for maturity when
product is delivered to handlers. So far this crop year, approximately
29.1 percent of natural condition raisins have been off-grade and
require reconditioning to enter the market. In addition, approximately
26.0 percent of all other varieties have been off-grade.
The Committee recommended that the minimum allowable level for
maturity of raisins delivered by producers that can be acquired under
the dockage system be reduced, for the 2023-2024 crop year only, from
35.0 to 30.0 percent under a fourth category in the regulation. The
Committee also recommended that the creditable fruit weight of raisin
deliveries in this fourth category created for the 2023-2024 crop year,
or lots containing between 30.0 to 34.9 percent well-matured or
reasonably well-matured raisins, be reduced by 0.2 percent for each 0.1
percent the lot is below 34.9 percent down to 30.0 percent. Applicable
handler assessments and producer payments for product received will be
reduced accordingly. Lots containing 29.9 percent or less raisins which
are well-matured or reasonably well-matured raisins will be considered
off-grade and require reconditioning before they can be acquired by
handlers. A new paragraph (e) is added to Sec. 989.213 for this fourth
category and applies only to product handled during the 2023-2024 crop
year.
Similar to relaxing the requirements under the substandard dockage
system,
[[Page 85822]]
reducing the minimum allowable level for maturity for the 2023-2024
crop year is expected to reduce the number of failed lots of raisins
returned by handlers to producers or reconditioned by handlers at the
producers' expense or disposed of in non-normal outlets. Under this
relaxation, handlers will be able to acquire more lots of raisins upon
first inspection and not continue to experience further delay waiting
for failed lots to be reconditioned and reinspected. The ability to
acquire more raisins upon first inspection will help handlers better
meet the needs of the market and save producers the cost of
reconditioning failed fruit that would otherwise have been acquired by
handlers under the weight dockage system. In addition, the industry has
indicated that there is strong market demand for raisins and requiring
a large percentage of the crop to be reconditioned and reinspected will
hinder the handlers' ability to fulfill that demand, disrupting the
orderly marketing of California raisins. Further, the cost of
reconditioning and reinspection is expected to be passed on to the
consumer. This rule will allow better movement of product through
market channels and is expected to reduce costs for producers,
handlers, and possibly consumers.
Initial Regulatory Flexibility Analysis
Pursuant to requirements set forth in the Regulatory Flexibility
Act (RFA) (5 U.S.C. 601-612), AMS has considered the economic impact of
this interim rule 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
businesses subject to such actions in order that small businesses will
not be unduly or disproportionately burdened. Marketing orders issued
pursuant to the Act, and the rules issued thereunder, are unique in
that they are brought about through group action of essentially small
entities acting on their own behalf.
There are approximately 1,700 producers of California raisins and
approximately 17 handlers subject to regulation under the Order. Small
agricultural producers of raisins are defined by the Small Business
Administration (SBA) as those having annual receipts equal to or less
than $4.0 million (NAICS code 111332, Grape Vineyards) and small
agricultural service firms are defined as those whose annual receipts
are equal to or less than $34.0 million (NAICS code 115114, Postharvest
Crop Activities) (13 CFR 121.201).
Using USDA National Agricultural Statistics Service (NASS) data,
the 2022 season average value of utilized production of California
processed raisin-type grapes (most of which are dried into raisins) is
$376.6 million. Dividing that figure by 1,700 producers yields an
annual average revenue per producer of $221,530, well below the SBA
large farm size threshold of $4.0 million. Therefore, in terms of
average annual sales of processed raisin-type grapes, the majority of
California raisin producers may be classified as small entities.
To make a similar computation for handlers, the first step is to
estimate a representative handler price received per pound for packaged
raisins. Recent USDA purchases under the Commodity Procurement Program
provide such an estimate. For the most recent raisin crop year used by
the RAC (August 2022-July 2023) the average price paid for packaged
raisins purchased by the USDA for feeding programs was $1.56 per pound.
For that time period, the RAC provided a list of quantities delivered
by handlers. When multiplied by the $1.56 price per pound, the results
showed that 5 handlers had annual raisin receipts greater than $34.0
million, the SBA threshold level for a large handler. The remaining 12
handlers out of 17 are small handlers, using the SBA criterion.
This rule relaxes the substandard and maturity dockage requirements
specified in Sec. Sec. 989.212 and 989.213, respectively, of the
Order's handling regulations. These sections allow handlers to acquire
raisins from producers that do not meet the Order's minimum quality
requirements under a weight dockage system. Under the system, handlers
adjust their payments to producers for product received, and the
payment of Order assessments, according to the percentage of
substandard raisins in the lot and/or the percentage of raisins falling
below certain levels of maturity. Because of extreme weather issues
which adversely affected the growing conditions of the raisin grape
vines for the 2023 crop, the industry predicts that a high percentage
of the 2023-2024 crop year delivers by producers to handlers will
continue to fall outside the current limits of the dockage systems in
the handling regulations. Relaxing the minimum requirements under the
dockage systems is expected to reduce the number of lots of raisins
returned by handlers to producers or reconditioned by handlers at the
producers' expense or disposed of in a non-normal outlet such as animal
feed at a much-reduced producer price.
Relaxing the dockage limits for the 2023-2024 crop year will allow
handlers to acquire more lots of raisins that would otherwise fail
specified tolerances for substandard raisins and maturity. Thus, fewer
lots are expected to be returned to producers for reconditioning. Under
the revised requirements, transportation costs for hauling raisins to
and from the handler's premises, estimated at $24 per ton one way, for
reconditioning and reinspection may be eliminated. Producers are also
expected to save on reconditioning costs. Producer costs for
reconditioning raisins falling below certain maturity levels (usually a
``wash and dry'' process) are estimated at $275-$300 per ton. Producers
may also save on reinspection costs at $15.50 per ton because more of
their raisins will meet the relaxed incoming substandard and maturity
requirements upon first inspection. In addition, producers whose lots
of raisins fall into the extended dockage limits for substandard
raisins will not have to incur $60 per ton in costs for ``dry
reconditioning'' expenses.
Relaxing the dockage limits may cause handlers to incur some
additional costs; however, such costs are minimal when considering the
alternative, that is to receive significantly less product for the
2023-2024 crop year and to not meet market demand. Thus, the benefits
of this rule outweigh such costs. While the incoming quality
requirements are relaxed, the outgoing quality requirements under the
Order will remain unchanged. The burden of removing substandard raisins
or raisins falling below certain levels of maturity will be shifted
from producers to handlers. However, although handlers will have to
undertake the additional burden of cleaning up the fruit, handlers are
better prepared than producers to manage the lower quality raisins
efficiently and economically because they already have the processing
equipment designed to remove the undesirable fruit. Moreover, without
this rule handlers would likely have less fruit available to meet
market needs.
The Committee considered several alternatives to the recommended
action. An Administrative Subcommittee (Subcommittee) convened on
October 3, 2023, to discuss the current crop situation and to submit
remediation recommendations to the full Committee. At the meeting, the
Subcommittee discussed increasing the allowable amount of substandard
fruit from 17.0 to 25.0 percent for Natural (sun-dried) Seedless,
Golden Seedless, Dipped Seedless, Monukka, Other Seedless, and Other
Seedless-Sulfured. However,
[[Page 85823]]
many industry members felt that the 25.0 percent was too high for the
current conditions in the market, and ultimately the Subcommittee
approved recommending a maximum 21.0 percent allowable tolerance for
those varieties of substandard incoming fruit. The Subcommittee also
considered whether to maintain the dockage for maturity for percentages
between 30 and 35 percent at 0.15 percent or to increase it. There were
also discussions regarding revising the tolerance for mold under the
quality requirements. The majority of the Subcommittee did not favor
any changes for mold tolerances. Ultimately, the Subcommittee voted to
recommend to the Committee the changes as contained herein, and the
full Committee subsequently voted unanimously to recommend this action
to AMS.
The Committee's meetings are widely publicized throughout the
production area. The raisin industry and all interested persons are
invited to attend the meetings and participate in Committee
deliberations on all issues. The Subcommittee meeting on October 3,
2023, and subsequent full Committee meeting on October 5, 2023, were
each open to the public where any interested parties was able to
express views on this issue. In addition, interested persons are
invited to submit comments on this interim rule, including the
regulatory and information collection impacts of this action on small
businesses.
In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C.
Chapter 35), the Order's information collection requirements have been
previously approved by OMB and assigned OMB No. 0581-0178, Vegetable
and Specialty Crops. No changes in those requirements are necessary as
a result of this action. Should any changes become necessary, they
would be submitted to OMB for approval.
This interim rule would not impose any additional reporting or
recordkeeping requirements on either small or large California raisin
handlers. 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.
AMS has not identified any relevant Federal rules that duplicate,
overlap, or conflict with this interim rule.
A small business guide on complying with fruit, vegetable, and
specialty crop marketing agreements and orders may be viewed at:
<a href="https://www.ams.usda.gov/rules-regulations/moa/small-businesses">https://www.ams.usda.gov/rules-regulations/moa/small-businesses</a>. Any
questions about the compliance guide should be sent to Richard Lower at
the previously mentioned address in the FOR FURTHER INFORMATION CONTACT
section.
After consideration of all relevant material presented, including
the information and recommendations submitted by the Committee and
other available information, USDA has determined that this interim rule
is consistent with and will effectuate the purposes of the Act.
A 60-day comment period is provided to allow interested persons to
respond to this interim rule. All written comments timely received will
be considered before a final determination is made on this interim
rule.
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) Raisin producers are facing an unexpected hardship based
on unusual crop conditions created by unforeseen extreme weather events
that affected the growing conditions of grape vines, causing a high
percentage of the 2023-2024 crop year deliveries of raisins to fall
outside the minimum requirements of the substandard and maturity
dockage system. The effects of the unusual combination of weather-
related issues did not show its detrimental effects on the raisin
grapes until the harvest and drying process during mid to end of August
2023. (2) Relaxing the limits for the 2023-2024 crop year will reduce
the number of failing lots of raisins that must be reconditioned (or
disposed of), thus providing relief to producers of the costs they
would pay to recondition and reinspect and helps to avoid further
disruptions to the orderly marketing of California raisins from the
2023-2024 crop that are currently being delivered to handlers. (3)
Handlers are incurring costs for storing raisins that are tagged as
off-grade because they fail to meet the current dockage system limits.
Handlers would, however, meet the relaxed dockage limits and are
looking for current-year relief to these unforeseen issues. (4)
Handlers are in immediate need of raisins to meet their seasonal market
demand. (5) This action relaxes requirements currently in effect. (6)
Producers and handlers are aware of this action which was unanimously
recommended by the Committee at a public meeting on October 5, 2023,
and need no preparation time to comply. And finally, (7) this rule
provides a 60-day comment period and any comments 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, the Agricultural
Marketing Service amends 7 CFR part 989 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. 989.212, revise paragraph (a) and the notes following
paragraphs (b) and (c) to read as follows:
Sec. 989.212 Substandard dockage.
(a) General. Subject to prior agreement between handler and
tenderer, Natural (sun-dried) Seedless, Golden Seedless, Dipped
Seedless, Monukka, Other Seedless, and Other Seedless-Sulfured raisins
containing from 5.1 through 17.0 percent, by weight, of substandard
raisins may be acquired by a handler under a weight dockage system:
Provided, That, for the 2023-2024 crop year, such raisins containing
from 5.1 through 21.0 percent, by weight, of substandard raisins may be
acquired by a handler under a weight dockage system. A handler may
also, subject to prior agreement, acquire as standard raisins any lot
of Muscat (including other raisins with seeds), Sultana, and Zante
Currant raisins containing from 12.1 through 20.0 percent, by weight,
of substandard raisins under a weight dockage system: Provided, That,
for the 2023-2024 crop year, a handler may acquire such raisins
containing from 12.1 through 25.0 percent, by weight, of substandard
raisins under a weight dockage system. The creditable weight of each
lot of raisins acquired under the substandard dockage system shall be
obtained by multiplying the net weight of the lot of raisins by the
applicable dockage factor from the appropriate dockage table prescribed
in paragraph (b) or (c) of this section.
[[Page 85824]]
(b) * * *
Note to paragraph (b): Percentages in excess of the last
percentage shown in the table shall be expressed in the same
increments as the foregoing, and the dockage factor for each such
increment shall be .001 less than the dockage factor for the
preceding increment. Deliveries in excess of 17.0 percent would be
off-grade; therefore, the dockage factor does not apply: Provided,
That, for the 2023-2024 crop year, deliveries in excess of 21.0
percent would be off-grade; therefore, the dockage factor does not
apply.
(c) * * *
Note to paragraph (c): Percentages in excess of the last
percentage shown in the table shall be expressed in the same
increments as the foregoing, and the dockage factor for each
increment shall be .001 less than the dockage factor for the
preceding increment. Deliveries in excess of 20.0 percent would be
off grade; therefore, the dockage factor does not apply. Provided,
That, for the 2023-2024 crop year, deliveries in excess of 25.0
percent would be off-grade; therefore, the dockage factor does not
apply.
0
3. In Sec. 989.213, revise paragraph (a) and add a new paragraph (e)
to read as follows:
Sec. 989.213 Maturity Dockage.
(a) General. Subject to prior agreement between handler and
tenderer, Natural (sun-dried) Seedless, Golden Seedless, Dipped
Seedless, Monukka, Other Seedless, and Other Seedless-Sulfured raisins
containing from 35.0 percent through 49.9 percent, by weight, of well-
matured or reasonably well-matured raisins may be acquired by a handler
under a weight dockage system. Provided, That, for the 2023-2024 crop
year, such raisins containing from 30.0 through 49.9 percent, by
weight, of well-matured or reasonably well-matured raisins may be
acquired by a handler under a weight dockage system. The creditable
weight of each lot of raisins acquired under the maturity dockage
system shall be obtained by multiplying the net weight of the lot of
raisins by the applicable dockage factor from the dockage table
prescribed in paragraphs (b), (c), (d), and (e) of this section.
* * * * *
(e) For the 2023-2024 crop year, maturity dockage table applicable
to lots of Natural (sun-dried) Seedless, Golden Seedless, Dipped
Seedless, Monukka, Other Seedless, and Other Seedless-Sulfured raisins
which contain 30.0 percent through 34.9 percent well-matured or
reasonably well-matured raisins:
------------------------------------------------------------------------
Dockage
Percent well-matured or reasonably well-matured factor
------------------------------------------------------------------------
34.9......................................................... .8480
34.8......................................................... .8460
34.7......................................................... .8440
34.6......................................................... .8420
34.5......................................................... .8400
34.4......................................................... .8380
------------------------------------------------------------------------
Note to paragraph (e): Percentages less than the last percentage
shown in the table shall be expressed in the same increments as the
foregoing, and the dockage factor for each such increment shall be
.002 less than the dockage factor for the preceding increment.
Erin Morris,
Associate Administrator, Agricultural Marketing Service.
[FR Doc. 2023-27095 Filed 12-8-23; 8:45 am]
BILLING CODE 3410-02-P
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</html>Indexed from Federal Register on December 11, 2023.
This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.