Proposed Rule2025-19203
Grapes Grown in a Designated Area of Southeastern California; Decreased Assessment Rate
Primary source
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Published
October 1, 2025
Issuing agencies
Agriculture DepartmentAgricultural Marketing Service
Abstract
This proposed rule would implement a recommendation from the California Desert Grape Administrative Committee (Committee) to decrease the assessment rate established for the 2025 and subsequent fiscal periods from $0.040 to $0.030 per 18-pound lug of grapes grown in a designated area of southeastern California. The proposed assessment rate would remain in effect indefinitely unless modified, suspended, or terminated.
Full Text
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<title>Federal Register, Volume 90 Issue 188 (Wednesday, October 1, 2025)</title>
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[Federal Register Volume 90, Number 188 (Wednesday, October 1, 2025)]
[Proposed Rules]
[Pages 47243-47245]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-19203]
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DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 925
[Doc. No. AMS-SC-24-0075]
Grapes Grown in a Designated Area of Southeastern California;
Decreased Assessment Rate
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Proposed rule.
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SUMMARY: This proposed rule would implement a recommendation from the
California Desert Grape Administrative Committee (Committee) to
decrease the assessment rate established for the 2025 and subsequent
fiscal periods from $0.040 to $0.030 per 18-pound lug of grapes grown
in a designated area of southeastern California. The proposed
assessment rate would remain in effect indefinitely unless modified,
suspended, or terminated.
DATES: Comments must be received by October 31, 2025.
ADDRESSES: Interested persons are invited to submit written comments
concerning this proposed rule. Comments can be sent to the Docket
Clerk, Market Development Division, Specialty Crops Program, AMS, USDA,
1400 Independence Avenue SW, STOP 0237, Washington, DC 20250-0237.
Comments can also be sent to the Docket Clerk electronically by email:
<a href="/cdn-cgi/l/email-protection#470a26352c22332e2920083523223504282a2a222933073234232669202831"><span class="__cf_email__" data-cfemail="8ac7ebf8e1effee3e4edc5f8eeeff8c9e5e7e7efe4fecafff9eeeba4ede5fc">[email protected]</span></a> or via the 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.
Comments submitted in response to this proposed rule will be included
in the record, will be made available to the public, and can be viewed
at: <a href="https://www.regulations.gov">https://www.regulations.gov</a>. 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:
Bianca Bertrand, Marketing Specialist, or Abigail Maharaj, 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#6d2f040c030e0c20432f081f191f0c03092d181e090c430a021b"><span class="__cf_email__" data-cfemail="86c4efe7e8e5e7cba8c4e3f4f2f4e7e8e2c6f3f5e2e7a8e1e9f0">[email protected]</span></a> or <a href="/cdn-cgi/l/email-protection#6b2a09020c0a020745260a030a190a012b1e180f0a450c041d"><span class="__cf_email__" data-cfemail="3574575c52545c591b78545d5447545f75404651541b525a43">[email protected]</span></a>.
Small businesses may request information on complying with this
regulation by contacting Antoinette Carter, 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#92d3fce6fdfbfcf7e6e6f7bcd1f3e0e6f7e0d2e7e1f6f3bcf5fde4"><span class="__cf_email__" data-cfemail="03426d776c6a6d667777662d40627177667143767067622d646c75">[email protected]</span></a>.
SUPPLEMENTARY INFORMATION: This action, pursuant to 5 U.S.C. 553,
proposes to amend regulations issued to carry out a marketing order as
defined in 7 CFR 900.2(j). This proposed rule is issued under Marketing
Order No. 925, as amended (7 CFR part 925), regulating the handling of
grapes grown in a designated area of southeastern California. Part 925
(referred to as the ``Order'') is effective under the Agricultural
Marketing Agreement Act of 1937, as amended (7 U.S.C. 601-674),
hereinafter referred to as the ``Act.'' The Committee locally
administers the Order and is comprised of producers and handlers of
grapes operating within the area of production, and a public member.
The Agricultural Marketing Service (AMS) is issuing this proposed
rule in conformance with Executive Orders 12866, as amended by
Executive Order 13563. Executive Orders 12866 and 13563 direct agencies
to assess all 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. This proposed action falls within a category of regulatory
actions that the Office of Management and Budget (OMB) exempted from
Executive Order 12866 review.
This proposed rule has been reviewed under Executive Order 13175,
``Consultation and Coordination with Indian Tribal Governments,'' which
requires Federal agencies to consider whether their rulemaking actions
would have Tribal implications. AMS has determined that this proposed
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 proposed rule has been reviewed under Executive Order 12988,
``Civil Justice Reform.'' Under the Order now in effect, California
grape handlers are subject to assessments. Funds to administer the
Order are derived from such assessments. It is intended that the
assessment rate would be applicable to all assessable grapes for the
2025 fiscal period, and continue until amended, suspended, or
terminated.
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 proposed rule would decrease the assessment rate for
California grapes handled under the Order from $0.040 to $0.030 per 18-
pound lug for the 2025 and subsequent fiscal periods.
Sections 925.40, and 925.41 of the Order authorize the Committee,
with the approval of AMS, to formulate an annual budget of expenses and
collect assessments from handlers to administer the program. The
members of the Committee are familiar with the Committee's needs and
with the costs of goods and services in their local area and can
formulate an appropriate budget and assessment rate. The assessment
rate is formulated and discussed in a public meeting, and all directly
affected persons have an opportunity to participate and provide input.
For the 2021 and subsequent fiscal periods, the Committee
recommended, and AMS approved, an assessment rate of $0.040 per 18-
pound lug of California grapes within the production area. That rate
continues in effect from fiscal period to fiscal period until modified,
suspended, or terminated by AMS upon recommendation and information
submitted by the Committee or other information available to AMS.
The Committee met on November 12, 2024, and unanimously recommended
2025 fiscal period expenditures of $88,600 and an assessment rate of
$0.030 per 18-pound lug of California grapes handled for the 2025 and
subsequent fiscal periods. In comparison, last fiscal period's budgeted
expenditures were $77,000. The proposed assessment rate of $0.030 per
18-pound lug is $0.010 lower than
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the rate currently in effect. The Committee recommended decreasing the
assessment rate to draw down its reserve funds to within a level
authorized under the Order. The Committee projects 2,000,000 18-pound
lugs of assessable California grapes for the 2025 fiscal period, the
same amount that the Committee initially projected for the 2024 fiscal
period.
The major category of budgeted expenditures recommended by the
Committee for the 2025 fiscal period include management and
administrative services, office expenses, and a financial audit,
consistent with budgeted expenditures for the 2024 fiscal period.
The Committee derived the recommended assessment rate by reviewing
anticipated expenses, the estimated volume of assessable grapes, and
the amount of funds available in the authorized reserve. The estimated
2,000,000 18-pound lugs of assessable California grapes would generate
$60,000 in assessment revenue at the proposed rate (2,000,000 18-pound
lugs multiplied by the $0.030 assessment rate). The income generated
from handler assessments, along with approximately $28,600 in reserve
funds, would be sufficient to meet the Committee's estimated program
expenditures of $88,600. Funds available in the financial reserve
(currently about $110,000) would be kept within the maximum permitted
by the Order (not to exceed approximately one fiscal period's expenses,
as authorized in Sec. 925.42).
The proposed assessment rate would continue in effect indefinitely
unless modified, suspended, or terminated by AMS upon recommendation
and information submitted by the Committee or other available
information. Although this assessment rate would be in effect for an
indefinite period, the Committee will continue to meet prior to or
during each fiscal period to recommend a budget of expenses and
consider recommendations for modification of the assessment rate. The
dates and times of Committee meetings are available from the Committee
or AMS. Committee meetings are open to the public and interested
persons may express their views at these meetings. AMS will evaluate
Committee recommendations and other available information to determine
whether modification of the assessment rate is needed. Further
rulemaking would be undertaken as necessary. The Committee's 2025
fiscal period budget, and those for subsequent fiscal periods, will be
reviewed and as appropriate, approved by AMS.
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 proposed 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 six handlers of California grapes subject
to regulation under the Order and approximately six producers (separate
from handlers) of California grapes in the production area. At the time
this analysis was prepared, the Small Business Administration (SBA)
defined small agricultural service firms as those having annual
receipts equal to or less than $34,000,000 (North American Industry
Classification System (NAICS) code 115114, Postharvest Crop
Activities), and small agricultural producers of grapes are defined as
those having annual receipts equal to or less than $4,000,000 (NAICS
code 111332, Grape Vineyards) (13 CFR 121.201).
USDA's National Agricultural Statistics Service (NASS) reported a
2023 season average California grape producer price of $1,850 per ton,
equivalent to $16.65 per 18-pound container ([$1,850 per ton divided by
2,000 pounds] multiplied by 18 equals $16.65). The Committee reported a
2023 grape shipment quantity of 2,549,484 18-pound lugs. Multiplying
2,549,484 by the $16.65 average producer price yields an estimated
annual crop value per producer of $7.075 million. Assuming a normal
distribution, the majority of California grape producers subject to the
order have estimated annual receipts of well over $4,000,000 and may be
classified as large entities according to the SBA definition (NAICS
code 111332, Grape Vineyards).
In addition, USDA Market News reported an average terminal market
price of $38.53 per 18-pound container for the 2024 calendar year
(annual average of the weekly low-high price range midpoint, 18-pound
container bagged, California origin, various varieties, non-organic,
all U.S. terminal markets, all grades and sizes). With approximately
2,549,484 18-pound lugs handled, the total value would be $98,221,221
(2,549,484 multiplied by $38.53). With six grape handlers within the
production area, the 2024 average revenue per handler is estimated to
be $16,370,203 ($98,221,221 divided by 6), which is below the $34
million SBA size threshold (NAICS code 115114, Postharvest Crop
Activities) for handlers. Thus, most of the six California grape
handlers subject to the order may be classified as small entities.
This proposed rule would decrease the assessment rate collected
from handlers for the 2025 and subsequent fiscal periods from $0.040 to
$0.030 per 18-pound lug of assessable California grapes ($0.010 lower,
or 25% decrease). The Committee unanimously recommended 2025 fiscal
period expenditures of $88,600 and an assessment rate of $0.030 per 18-
pound lug of California grapes. The Committee expects the industry to
handle 2,000,000 18-pound lugs of assessable California grapes during
the 2025 fiscal period. Thus, the $0.030 per 18-pound lug rate should
provide roughly $60,000 in assessment income (2,000,000 18-pound lugs
multiplied by $0.030 per 18-pound lug). Income derived from handler
assessments along with reserve funds should be sufficient to meet
budgeted expenditures for the 2025 fiscal period.
The major category of budgeted expenditures recommended by the
Committee for the 2025 fiscal period include management and
administrative services, office expenses, and a financial audit,
consistent with budgeted expenditures for the 2024 fiscal period.
The Committee recommended decreasing the assessment rate to utilize
funds from its reserve to meet necessary expenses for the 2025 fiscal
period, and ensure the reserve is maintained at a level in compliance
with order requirements.
Prior to arriving at this budget and assessment rate
recommendation, the Committee discussed various alternatives, including
reducing the assessment rate more and/or less than the rate proposed
herein. However, the Committee determined that the recommended
assessment rate would achieve its goals of both adequately funding
Committee operations and reducing the reserve to an appropriate level.
Consequently, those alternatives were rejected.
A review of historical and preliminary information pertaining to
the 2025 fiscal period indicates the average producer price for the
2025 fiscal period should be approximately $13.11 per 18-pound lug of
California grapes. Therefore, the estimated assessment revenue for the
2025 fiscal period as a percentage of total producer revenue would be
about
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0.23 percent ($0.030 per 18-pound lug assessment rate divided by $13.11
and multiplied by 100).
This proposed action would decrease the assessment obligation
imposed on handlers. Assessments are applied uniformly on all handlers,
and some of the costs may be passed on to producers. However, these
costs are expected to be offset by the benefits derived by the
operation of the Order.
The Committee's meetings are widely publicized throughout the
California grape industry and all interested persons are invited to
attend the meetings and participate in Committee deliberations on all
issues. Like all Committee meetings, the November 12, 2024, meeting was
a public meeting and all entities, both large and small, were able to
express views on this issue. Finally, interested persons are invited to
submit comments on this proposed 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. 0581-0189, Fruit and
Specialty Crops. No changes in those requirements would be necessary as
a result of this proposed rule. Should any changes become necessary,
they would be submitted to OMB for approval.
This proposed rule would not impose any additional reporting or
recordkeeping requirements on either small or large California grape
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 proposed 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 Antoinette
Carter 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, AMS has determined that this proposed rule
is consistent with and would effectuate the purposes of the Act.
A 30-day comment period is provided to allow interested persons to
respond to this proposed rule. All written comments timely received
will be considered before a final determination is made on this
proposed rule.
List of Subjects in 7 CFR Part 925
Grapes, Marketing agreements, Reporting and recordkeeping
requirements.
For the reasons set forth in the preamble, the Agricultural
Marketing Service proposes to amend 7 CFR part 925 as follows:
PART 925--GRAPES GROWN IN A DESIGNATED AREA OFSOUTHEASTERN
CALIFORNIA
0
1. The authority citation for 7 CFR part 925 continues to read as
follows:
Authority: 7 U.S.C. 601-674.
0
2. Revise Sec. 925.215 to read as follows:
Sec. 925.215 Assessment rate.
On and after January 1, 2025, an assessment rate of $0.030 per 18-
pound lug is established for grapes grown in a designated area of
southeastern California.
Erin Morris,
Administrator, Agricultural Marketing Service.
[FR Doc. 2025-19203 Filed 9-30-25; 8:45 am]
BILLING CODE;P
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