Proposed Rule2025-20214
Tart Cherries Grown in the States of Michigan, et al.; Free and Restricted Percentages for the 2024-25 Crop Year
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Published
November 18, 2025
Issuing agencies
Agriculture DepartmentAgricultural Marketing Service
Abstract
This proposed rule would implement a recommendation from the Cherry Industry Administrative Board (Board) to establish free market tonnage percentages (free percentages) and restricted percentages for the 2024-25 crop year under the Federal marketing order for tart cherries grown in the states of Michigan, New York, Pennsylvania, Oregon, Utah, Washington, and Wisconsin. This action would establish the proportion of tart cherries from the 2024-25 crop which may be handled in commercial outlets. This action should stabilize marketing conditions by adjusting supply to meet market demand and help improve grower returns.
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[Federal Register Volume 90, Number 220 (Tuesday, November 18, 2025)]
[Proposed Rules]
[Pages 51572-51577]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-20214]
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Proposed Rules
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains notices to the public of
the proposed issuance of rules and regulations. The purpose of these
notices is to give interested persons an opportunity to participate in
the rule making prior to the adoption of the final rules.
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Federal Register / Vol. 90, No. 220 / Tuesday, November 18, 2025 /
Proposed Rules
[[Page 51572]]
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 930
[Doc. No. AMS-SC-24-0061]
Tart Cherries Grown in the States of Michigan, et al.; Free and
Restricted Percentages for the 2024-25 Crop Year
AGENCY: Agricultural Marketing Service, Department of Agriculture
(USDA).
ACTION: Proposed rule.
-----------------------------------------------------------------------
SUMMARY: This proposed rule would implement a recommendation from the
Cherry Industry Administrative Board (Board) to establish free market
tonnage percentages (free percentages) and restricted percentages for
the 2024-25 crop year under the Federal marketing order for tart
cherries grown in the states of Michigan, New York, Pennsylvania,
Oregon, Utah, Washington, and Wisconsin. This action would establish
the proportion of tart cherries from the 2024-25 crop which may be
handled in commercial outlets. This action should stabilize marketing
conditions by adjusting supply to meet market demand and help improve
grower returns.
DATES: Comments must be received by December 18, 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#3d705c4f56584954535a724f59584f7e5250505853497d484e595c135a524b"><span class="__cf_email__" data-cfemail="8dc0ecffe6e8f9e4e3eac2ffe9e8ffcee2e0e0e8e3f9cdf8fee9eca3eae2fb">[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, the
date, and the 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: Steven W. Kauffman, Marketing
Specialist, or Christian D. Nissen, Chief, Southeast Region Branch,
Market Development Division, Specialty Crops Program, AMS, USDA;
telephone: (863) 324-3375; or email: <a href="/cdn-cgi/l/email-protection#3e6d4a5b485b5010755f4b5858535f507e4b4d5a5f10595148"><span class="__cf_email__" data-cfemail="67341302110209492c061201010a0609271214030649000811">[email protected]</span></a> or
<a href="/cdn-cgi/l/email-protection#5112392338222538303f7f1f382222343f11242235307f363e27"><span class="__cf_email__" data-cfemail="b3f0dbc1dac0c7dad2dd9dfddac0c0d6ddf3c6c0d7d29dd4dcc5">[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#77361903181e191203031259341605031205370204131659101801"><span class="__cf_email__" data-cfemail="51103f253e383f342525347f12302325342311242235307f363e27">[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. 930, as amended (7 CFR part 930), regulating the handling of
tart cherries produced in the states of Michigan, New York,
Pennsylvania, Oregon, Utah, Washington, and Wisconsin. Part 930
(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 Board locally administers
the Order and is comprised of growers and handlers of tart cherries
operating within the production area, and a public member.
The Agricultural Marketing Service (AMS) is issuing this proposed
rule in conformance with Executive Order 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 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 provisions now in effect,
free and restricted percentages may be established for tart cherries
for the 2024-25 crop year. This proposed rule would establish free and
restricted percentages for the 2024-2025 crop year, beginning July 1,
2024, through June 30, 2025.
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 U.S. 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 not later than 20
days after the date of the entry of the ruling.
This proposed rule would establish the proportion of tart cherries
from the 2024-25 crop year which may be handled at 81 percent free and
19 percent restricted. The Secretary of Agriculture (Secretary) has
determined that designating free and restricted percentages of tart
cherries for the 2024-25 crop year would effectuate the
[[Page 51573]]
declared policy of the Act to stabilize marketing conditions by
adjusting supply to meet market demand and help improve grower returns.
These recommendations were made by the Board at a meeting on September
12, 2024.
Section 930.51(a) of the Order provides the Secretary authority to
regulate volume by designating free and restricted percentages for any
tart cherries acquired by handlers in a given crop year. Section 930.50
prescribes procedures for computing an optimum supply based on sales
history and for calculating these free and restricted percentages. Free
percentage volume may be shipped to any market, while restricted
percentage volume must be held by handlers in a primary or secondary
reserve, be diverted, or used for exempt purposes as prescribed in
Sec. Sec. 930.159 and 930.162. Exempt purposes include, in part, the
development of new products, sales into new markets, the development of
export markets, and charitable contributions. Sections 930.55 through
930.57 prescribe procedures for inventory reserves. For tart cherries
held in reserve, handlers would be responsible for storage and would
retain title of the tart cherries.
Under Sec. 930.52, only districts in which the average annual
production of cherries over the prior three years has exceeded six
million pounds are subject to volume regulation, and any district
producing a crop that is less than 50 percent of its annual average
processed production in the previous five years would be exempt from
any volume regulation. The regulated districts for the 2024-25 crop
year would be: District 1--Northern Michigan; District 2--Central
Michigan; District 3--Southern Michigan; District 4--New York; District
7--Utah; District 8--Washington; and District 9--Wisconsin. Districts 5
and 6 (Oregon and Pennsylvania, respectively) would not be regulated
for the 2024-25 season.
Demand for tart cherries and tart cherry products tends to be
relatively stable despite the variance in production volume that the
industry may experience from year to year. Additionally, once
processed, tart cherries can be stored and carried over from crop year
to crop year, further impacting supply. The Board is aware of this
economic relationship and focuses on using the volume control
provisions in the marketing order to balance supply and demand to
stabilize industry returns.
Pursuant to Sec. 930.50, the Board meets on or about July 1 of
each crop year to review sales data, inventory data, current crop
forecasts, and market conditions for the upcoming season and, if
necessary, to recommend preliminary free and restricted percentages if
anticipated supply would exceed demand. After harvest is complete, but
no later than September 15 of each crop year, the Board meets again to
update its calculations using actual production data, consider any
necessary adjustments to the preliminary percentages, and determine if
final free and restricted percentages should be recommended to the
Secretary.
The Board uses sales history, inventory, and production data to
determine whether a surplus exists and how much volume should be
restricted to maintain optimum supply. The optimum supply represents
the desirable volume of tart cherries that should be available for sale
in the coming crop year. The optimum supply value is calculated by
determining the average free sales of the prior three years, reduced by
average sales that represent dispositions of exempt cherries and
restricted percentage cherries qualifying for diversion credit for the
same three years, plus desirable carry-out inventory. Desirable carry-
out is the amount of fruit needed by the industry to be carried into
the succeeding crop year to meet market demand until the new crop is
available. Desirable carry-out is recommended by the Board after
considering market circumstances and needs. Section 930.151 specifies
that desirable carry-out can range from zero to a maximum of 100
million pounds.
In addition, Sec. 930.50(g) specifies that in years when
restricted percentages are established, the Board shall make available
tonnage equivalent to an additional 10 percent of the average sales of
the prior three years for market expansion. This requirement conforms
with the USDA's ``Guidelines for Fruit, Vegetable, and Specialty Crop
Marketing Orders'' (<a href="http://www.ams.usda.gov/publications/content/1982-guidelines-fruit-vegetable-marketing-orders">http://www.ams.usda.gov/publications/content/1982-guidelines-fruit-vegetable-marketing-orders</a>, pg. 12) which specifies
that 110 percent of recent years' sales should be made available to
primary markets each season before recommendations for volume
regulation are approved.
After the Board determines the optimum supply, desirable carry-out,
and market expansion factor, it must examine the current year's
available volume to determine whether an oversupply might occur.
Available volume includes carry-in inventory (any inventory available
at the beginning of the season) along with that season's production. If
production plus the carry-in inventory is greater than the optimum
supply (3-year sales average plus the targeted carry-out), then the
difference is considered surplus. The ten percent market expansion
factor and any economic adjustments recommended by the Board are then
subtracted from this surplus number to arrive at an adjusted surplus.
This adjusted surplus tonnage is divided by the sum of production in
the regulated districts to reach a restricted percentage. This
percentage must be held in reserve or used for approved diversion
activities, such as exports, new products, or new market activities.
The Board met on June 20, 2024, to discuss whether supply would
exceed demand for the 2024-25 crop year. After some discussion, the
Board unanimously supported an estimated crop of 247.3 million pounds
for the 2024-25 season. Next, the Board computed an optimum supply of
268.3 million pounds for the 2024-25 crop year using the three-year
average of free sales (191.6 million pounds) plus a recommended
desirable carry-out of 76.7 million pounds.
In determining the carry-out figure, the Board members discussed
the findings of the committee established by the Board to review the
way volume control is calculated, including carry-out. The committee
looked at the five-year average movement for June (18.8 million
pounds), July (19.3 million pounds), August (19.3 million pounds), and
September (19.3 million pounds) for an average carry-out of 76.7
million pounds. It was also reported that the numbers were consistent
from year to year, and based on the historical data, would be
reflective of what would be needed for carry-out for the 2024-25
season. One member questioned if the industry really needed four months
of inventory or if three or three and half months would be a better
indicator of needed carry-out. Other members voiced concerns about how
reflective these numbers were of the different market segments.
The Board also considered setting carry-out volume the same as last
year at 85 million pounds. Several members expressed that 85 million
pounds was too large for this season's carry-out since the carry-in
inventory was above 90 million pounds from last season. After
considering a range of alternatives between 75 to 85 million pounds,
the Board unanimously recommended a carry-out of 76.7 million pounds.
To calculate the production quantity needed from the 2024-25 crop
to meet optimum supply, the Board subtracted the carry-in inventory
available on June 1, 2024, of 93.1 million pounds from the
[[Page 51574]]
optimum supply (268.3 million pounds). This number, 175.2 million
pounds, was then subtracted from the Board's estimated 2024-25 total
production of 247.3 million pounds (from regulated and unregulated
districts) to calculate a surplus of 72.1 million pounds of tart
cherries.
The Board then discussed whether this calculation would supply
enough cherries to grow sales, account for this season's economic
demands, and fulfill orders that have not yet shipped. The Board
discussed making an economic adjustment based on some fruit quality
concerns from the weather in Michigan and reports of European crops
being short this year which could increase demand for domestic fruit.
After discussing multiple motions for an economic adjustment ranging
from 0 to 10 million pounds, the Board recommended a preliminary
economic adjustment of 5 million pounds at the June meeting.
The Board also complied with the market expansion factor
requirement by removing 19.2 million pounds (average sales for prior
three years of 191.6 million times 10 percent) from the 72.1 million
pounds of surplus. The adjusted surplus of 47.9 million pounds (72.1
million pounds -19.2 million pounds -5 million pounds for the economic
adjustment) was then divided by the expected production in the
regulated districts (245.5 million pounds) to reach a preliminary
restricted percentage of 19.5 percent for the 2024-25 crop year.
The Board met again on September 12, 2024, to consider final volume
regulation percentages for the 2024-25 season. The final percentages
are based on the Board's reported production figures and the supply and
demand information available in September.
The total production for the 2024-25 season reported at the
September meeting was 261.7 million pounds. This exceeded the Board's
June production estimate by 14.5 million pounds. In addition, growers
diverted 11.02 million pounds in the orchard, lowering the available
production for market. As a result, 250.67 million pounds of production
would be available to the market, 249.3 million pounds of which are in
the seven districts subject to volume regulation.
At the September meeting, the Board revisited the recommended 5-
million-pound economic adjustment to the optimum supply calculation
made in June. The Board discussed that the yields from processing were
lower than normal by approximately 10 percent due to poor fruit
quantity throughout the industry. To address this issue, the Board
recommended increasing the economic adjustment by 15 million pounds for
a total economic adjustment of 20 million pounds. The Board believes
this increase should ensure sufficient inventory is available to meet
demand.
The Board then recalculated the restricted percentage using the
revised economic adjustment and the actual production numbers. The
carry-in figure considered at the June meeting of 93.1 million pounds
was subtracted from the optimum supply of 268.3 million pounds to
determine 175.2 million pounds of 2024-25 production would be necessary
to reach optimum supply. The 175.2 million pounds were then subtracted
from the actual production of 261.7 million pounds, resulting in a
surplus of 86.5 million pounds of tart cherries.
The calculated surplus of 86.5 million pounds was reduced by
subtracting the economic adjustment of 20 million pounds and the market
expansion factor of 19.2 million pounds, resulting in an adjusted
surplus of 47.3 million pounds. The Board then divided the adjusted
surplus by the available production of 249.3 million pounds in the
regulated districts (261.7 million pounds minus 11.02 million pounds of
in-orchard diversion minus 1.33 million pounds from unregulated
districts) to calculate a restricted percentage of 19 percent (47.3
million pounds) with a corresponding free percentage of 81 percent (202
million pounds) in the regulated districts for the 2024-25 crop year,
as outlined in the following table:
------------------------------------------------------------------------
Millions of
pounds
------------------------------------------------------------------------
September Calculations:
(1) Average sales of the prior three years.......... 191.6
(2) Desirable carry-out............................. 76.7
---------------
(3) Optimum supply calculated by the Board (item 1 268.3
plus item 2).......................................
(4) Carry-in as of July 1, 2023..................... 93.1
(5) Adjusted optimum supply (item 3 minus item 4)... 175.2
(6) Board reported production....................... 261.7
(7) Surplus (item 6 minus item 5)................... 86.5
(8) Total economic adjustments...................... 20
(9) Market growth factor............................ 19.2
(10) Adjusted Surplus (item 7 minus items 8 and 9).. 47.3
(11) Production in regulated districts.............. 260.4
(12) In-Orchard Diversion........................... 11.02
---------------
(13) Production minus in-orchard diversion.......... 249.3
------------------------------------------------------------------------
Final Percentages: Percent
---------------
Restricted (item 10 divided by item 13 x 100)....... 19
Free (100 minus restricted percentage).............. 81
------------------------------------------------------------------------
The final restriction of 19 percent is lower than the preliminary
restriction percentage of 19.5 percent. The change is due to the
increase in the economic adjustment at the September meeting. While
actual production increased by a total of 14.5 million pounds over the
June estimate, the economic adjustment increased from the 5 million
pounds recommended in June to 20 million pounds at the September
meeting. The economic adjustment roughly balanced out the additional
production, keeping the final restriction close to the number estimated
in June.
Establishing free and restricted percentages is an attempt to bring
supply and demand into balance. Historically, if the primary market is
oversupplied with cherries, grower
[[Page 51575]]
prices decline substantially. Restricted percentages have benefited
grower returns and helped stabilize the market as compared to those
seasons prior to the implementation of the Order. The Board, based on
its discussion of this issue and the result of the above calculations,
believes the available information indicates a restricted percentage
should be established for the 2024-25 crop year to avoid oversupplying
the market with tart cherries.
Consequently, the Board recommended final percentages of 81 percent
free, and 19 percent restricted by a vote of 17 in favor, and 1 opposed
on September 12, 2024. The Board could meet during the crop year, and
if conditions so warranted, recommend the release of additional volume.
The Secretary finds, from the recommendation and supporting information
supplied by the Board, that designating final percentages of 81 percent
free and 19 percent restricted would tend to effectuate the declared
policy of the Act, and so designates these percentages.
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 typically small
entities acting on their own behalf.
There are approximately 330 growers of tart cherries in the
regulated area and approximately 30 handlers of tart cherries who are
subject to regulation under the Order. At the time this analysis was
prepared, the Small Business Administration (SBA) defined small
agricultural growers of tart cherries as those having annual receipts
equal to or less than $3.5 million (North American Industry
Classification System (NAICS) code 111339, Other Noncitrus Fruit
Farming). Small agricultural service firms, including handlers, are
defined as those whose annual receipts are equal to or less than $34
million (NAICS code 11514, Postharvest Crop Activities) (13 CFR
121.201).
According to data from the National Agricultural Statistics Service
(NASS), the 2023-2024 season average grower price for tart cherries
utilized for processing was approximately $0.1922 per pound. With total
utilization for processing at 196.5 million pounds for the 2023-24
season, the total 2023-24 value of the crop utilized for processing is
estimated at $37.7 million. Dividing the crop value by the estimated
number of growers (330) yields an estimated average annual receipts per
grower of approximately $114,240. This is well below the $3.5 million
SBA threshold for small growers.
An estimate of the season average price per pound received by
handlers for processed tart cherries was derived from USDA's purchases
of dried tart cherries for feeding programs in 2023 and 2024, which had
an average price of $4.72 per pound. The dried cherry price was
converted to a raw product equivalent price of $0.94 per pound at an
industry recognized ratio of five to one. Based on utilization, this
price represents a good estimate of the price for processed cherries.
Multiplying the raw product equivalent price above by the total
processed utilization of 196.5 million pounds results in an estimated
handler-level tart cherry value of $184.7 million. Dividing this figure
by the number of handlers ($184.7 million divided by 30 handlers)
yields estimated average annual receipts per handler of approximately
$6.2 million, which is well below the SBA threshold of $34 million for
small agricultural service firms. Assuming normal distributions, the
majority of growers and handlers of tart cherries may be classified as
small entities.
The tart cherry industry in the United States is characterized by
wide annual fluctuations in production. According to NASS, the pounds
of tart cherry production utilized for processing for the years 2021
through 2023 were 170.1 million, 239.0 million, and 196.5 million,
respectively. Because of these fluctuations, supply and demand for tart
cherries are rarely in balance.
Demand for tart cherries is inelastic, meaning changes in price
have a minimal effect on total sales volume. However, prices are very
sensitive to changes in supply, and grower prices vary widely in
response to the large swings in annual supply. Grower prices per pound
for processed utilization have ranged from a low of $0.07 in 1987 to a
high of $0.59 per pound in 2012 when a weather event substantially
reduced supply. Grower prices per pound for processed utilization over
the most recent three years (2021 through 2023) were $0.50, $0.22, and
$0.19, respectively.
Because of this relationship between supply and price,
oversupplying the market with tart cherries would have a sharp negative
effect on prices, driving down grower returns. Aware of this economic
relationship, the Board focuses on using the volume control authority
in the Order to align supply with demand and stabilize industry
returns. This authority allows the industry to set free and restricted
percentages to bring supply and demand into balance. Free percentage
cherries can be marketed by handlers to any outlet, while restricted
percentage volume must be held by handlers in reserve, diverted, or
used for exempted purposes.
This proposal would establish 2024-25 crop year percentages of 81
percent free and 19 percent restricted. These percentages should
stabilize marketing conditions by adjusting supply to meet market
demand and help improve grower returns. The proposal would regulate
tart cherries handled in Michigan, Utah, Washington, Wisconsin, and New
York. The authorities for this proposed action are provided in
Sec. Sec. 930.50, 930.51(a), and 930.52. The Board recommended this
action at its meeting on September 12, 2024.
This proposal would result in some fruit being diverted from the
primary domestic markets as authorized in the Order's marketing policy
in Sec. 930.50. However, as mentioned earlier, the USDA's ``Guidelines
for Fruit, Vegetable, and Specialty Crop Marketing Orders'' (<a href="https://www.ams.usda.gov/publications/content/1982-guidelines-fruit-vegetable-marketing-orders">https://www.ams.usda.gov/publications/content/1982-guidelines-fruit-vegetable-marketing-orders</a>) specify that 110 percent of recent years' sales
should be made available to primary markets each crop year per Sec.
930.50(g), before recommendations for volume regulation are approved.
Under this proposal, the available quantity of 296.4 million pounds
(Free production of 202 million plus a carry-in of 93.1 million plus
1.33 million pounds unregulated) would be 155 percent of the average
sales for the last three years (191.6 million pounds).
In addition, there are secondary uses available for restricted
fruit, including the development of new products, sales into new
markets, the development of export markets, and being placed in
reserve. While these alternatives may provide different levels of
return than the sales to primary markets, they play an important role
for the industry. The areas of new products, new markets, and the
development of export markets utilize restricted fruit to develop and
expand the markets for tart cherries.
[[Page 51576]]
Placing tart cherries into reserves is also a key part of balancing
supply and demand. Although handlers bear the handling and storage
costs for fruit in reserve, reserves stored in large crop years can be
used to supplement supplies in short crop years. The reserves help the
industry mitigate the impact of oversupply in large crop years, while
allowing the industry to supply markets in years when production falls
below demand. During the 2020-21 season, the Board voted to release all
fruit in the reserve into the primary market to increase supply.
In considering the establishment of free and restricted
percentages, the Board recommended a carry-out of 76.7 million pounds
to help ensure sufficient product is available to meet demand until the
following year's crop is harvested and processed. The Board also
recommended an economic adjustment of 20 million pounds. These numbers,
along with carry-in, production in the unregulated districts, and free
tonnage from the regulated districts, would make 296.4 million pounds
of fruit available for the domestic market, which is nearly 105 million
pounds more than the last three years' average sales. Even with the
recommended 19 percent restriction, the domestic market would have an
ample supply of tart cherries. Further, should marketing conditions
change, and market demand exceed existing supplies, the Board could
meet and recommend the release of additional reserves up to 50-million-
pounds of tart cherries. Consequently, it is not anticipated that this
proposal would unduly burden growers or handlers.
While this proposal could result in some additional costs for the
industry, these costs would be outweighed by the benefits. The purpose
of setting restricted percentages is to attempt to bring supply and
demand into balance. If the primary market (domestic) is oversupplied
with cherries, grower prices decline substantially. Without volume
control, the primary market would likely be oversupplied, resulting in
lower grower prices.
An AMS econometric model used to assess the impact volume control
has on the price growers receive for their product estimates volume
control would have a positive impact on grower returns for this crop
year. With volume control, grower prices are estimated to be about
three cents per pound higher than without a restriction. In addition,
absent volume control, the industry could start to build large amounts
of unwanted inventories, which in turn could have a depressing effect
on grower prices.
Retail demand is assumed to be inelastic, which indicates changes
in price do not result in significant changes in the quantity demanded.
Consumer prices largely do not reflect fluctuations in cherry supplies.
Therefore, this proposal should have little or no effect on consumer
prices and should not result in a reduction in retail sales.
The free and restricted percentages established by this proposal
would provide the market with optimum supply and would apply uniformly
to all regulated handlers in the industry, regardless of size. As the
restriction represents a percentage of a handler's volume, the costs,
when applicable, are proportionate and should not place an extra burden
on small entities as compared to large entities.
The stabilizing effects of this proposal would benefit all handlers
by helping them maintain and expand markets, despite seasonal supply
fluctuations. Likewise, price stability positively impacts all growers
and handlers by allowing them to better anticipate the revenues their
tart cherries would generate. Growers and handlers, regardless of size,
would benefit from the stabilizing effects of the volume restriction.
As noted earlier, the Board discussed several carry-out inventory
alternatives, ranging from 75 million pounds to 85 million pounds. The
Board noted if the carry-out number was too large, it could add to the
unsold free inventory and have a negative impact on grower returns, and
if it was too small, it could negatively impact the supply processors
need in the months prior to next season's harvest. Therefore, after
consideration of the alternatives, the Board recommended a carry-out of
76.7 million pounds.
The Board also weighed alternatives when discussing the economic
adjustment. At its June meeting, the Board recommended a 5-million-
pound economic adjustment based on fruit quality concerns and a short
crop in Europe, after considering making no economic adjustment or an
economic adjustment of 10 million pounds. In September, the Board
discussed that fruit quality throughout the industry was resulting in
lower processing yields. Consequently, the Board recommended increasing
the economic adjustment by 15 million pounds for an economic adjustment
of 20 million pounds for the 2024-25 season.
The Board considered recommendations that would result in a smaller
restriction. However, after considering the larger than expected
harvest and carry-in inventory, the industry recommended a 19 percent
restriction for the 2024-25 crop. Thus, the alternatives were rejected.
The Board's meetings are widely publicized throughout the tart
cherry industry and all interested persons are invited to attend the
meetings and participate in Board deliberations on all issues. Like all
Board meetings, the June 20 and September 12, 2024, meetings were
public meetings 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 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. 0581-0177, Tart
Cherries Grown in the States of Michigan, New York, Pennsylvania,
Oregon, Utah, Washington, and Wisconsin. No changes to those
requirements would be necessary based on 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 tart cherry
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 Board and other
available information, AMS has determined that this proposed rule is
[[Page 51577]]
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 930
Tart cherries, Marketing agreements, Reporting and recordkeeping
requirements.
For the reasons set forth in the preamble, the Agriculture
Marketing Services proposes to amend 7 CFR part 930 as follows:
PART 930--TART CHERRIES GROWN IN THE STATES OF MICHIGAN, NEW YORK,
PENNSYLVANIA, OREGON, UTAH, WASHINGTON, AND WISCONSIN.
0
1. The authority citation for 7 CFR part 930 continues to read as
follows:
Authority: 7 U.S.C. 601-674.
0
2. Revise Sec. 930.256 and its section title to read as follows:
Sec. 930.256 Free and restricted percentages for the 2024-25 crop
year.
The percentages for tart cherries handled by handlers during the
crop year beginning on July 1, 2024, which shall be free and
restricted, respectively, are designated as follows: Free percentage,
81 percent and restricted percentage, 19 percent.
Erin Morris,
Administrator, Agricultural Marketing Service.
[FR Doc. 2025-20214 Filed 11-17-25; 8:45 am]
BILLING CODE P
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</html>Indexed from Federal Register on November 18, 2025.
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.