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Proposed Rule2025-22596

Raisins Produced From Grapes Grown in California; Secretary's Decision and Referendum Order on Proposed Amendments to Marketing Order No. 989

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Published

December 11, 2025

Issuing agencies

Agriculture DepartmentAgricultural Marketing Service

Abstract

This decision proposes amendments to Marketing Order No. 989 (Order), which regulates the handling of raisins produced from grapes grown in California and provides producers with the opportunity to vote in a referendum to determine if they favor the proposed changes. The Raisin Administrative Committee, which locally administers the Order, recommended amendments that would reduce Committee size, eliminate the designated cooperative bargaining association member seat, lower quorum requirements, remove producer district representation, remove the requirement for separate member and alternate nominations for independent and small cooperative producers, remove factors for establishing marketing policy, add language to clarify the quality of reconditioned raisins, add authority to accept voluntary contributions, and add language regarding ownership of intellectual property. In addition, the Agricultural Marketing Service proposed to make any such changes to the Order as may be necessary to conform to any amendment that may result from the hearing.

Full Text

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[Federal Register Volume 90, Number 236 (Thursday, December 11, 2025)]
[Proposed Rules]
[Pages 57384-57391]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-22596]

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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. 236 / Thursday, December 11, 2025 /
Proposed Rules

[[Page 57384]]

DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 989

[Docket No. AMS-SC-23-0039]

Raisins Produced From Grapes Grown in California; Secretary's
Decision and Referendum Order on Proposed Amendments to Marketing Order
No. 989

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Proposed rule and referendum order.

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SUMMARY: This decision proposes amendments to Marketing Order No. 989
(Order), which regulates the handling of raisins produced from grapes
grown in California and provides producers with the opportunity to vote
in a referendum to determine if they favor the proposed changes. The
Raisin Administrative Committee, which locally administers the Order,
recommended amendments that would reduce Committee size, eliminate the
designated cooperative bargaining association member seat, lower quorum
requirements, remove producer district representation, remove the
requirement for separate member and alternate nominations for
independent and small cooperative producers, remove factors for
establishing marketing policy, add language to clarify the quality of
reconditioned raisins, add authority to accept voluntary contributions,
and add language regarding ownership of intellectual property. In
addition, the Agricultural Marketing Service proposed to make any such
changes to the Order as may be necessary to conform to any amendment
that may result from the hearing.

DATES: The referendum will be conducted from January 12, 2026, through
January 30, 2026. The representative period for the purpose of the
referendum is August 1, 2024, through July 31, 2025.

ADDRESSES: Market Development Division, Specialty Crops Program, AMS,
USDA, 1400 Independence Avenue SW, STOP 0237, Washington, DC 20250-
0237.

FOR FURTHER INFORMATION CONTACT: Christy Pankey, Marketing Specialist,
or Matthew Pavone, Chief, Rulemaking Services Branch, 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#e4a78c968d97909dcab4858a8f819da491978085ca838b92">[email&#160;protected]</a> or
<a href="/cdn-cgi/l/email-protection#4c012d383824293b621c2d3a2322290c393f282d622b233a">[email&#160;protected]</a>.
Small businesses may request information on this proceeding 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#98f9f6ecf7f1f6fdececfdb6fbf9eaecfdead8edebfcf9b6fff7ee">[email&#160;protected]</a>.

SUPPLEMENTARY INFORMATION: Prior documents in this proceeding: Notice
of Hearing published in the January 12, 2024, issue of the Federal
Register (89 FR 2178) and a Recommended Decision and Opportunity to
File Written Exceptions published in the September 13, 2024, issue of
the Federal Register (89 FR 74851).
This action is governed by the provisions of sections 556 and 557
of title 5 of the United States Code and, therefore, is excluded from
the requirements of Executive Orders 12866 and 13563.
Notice of this rulemaking action was provided to Tribal governments
through the Department of Agriculture's (USDA) Office of Tribal
Relations.

Preliminary Statement

This decision is issued pursuant to the provisions of the
Agricultural Marketing Agreement Act of 1937, as amended (7 U.S.C. 601-
674), hereinafter referred to as the ``Act,'' and the applicable rules
of practice and procedure governing the formulation and amendment of
marketing agreements and orders (7 CFR part 900).
The proposed amendments in this decision are based on the record of
a public hearing on February 13 and 14, 2024, at the office of the
Raisin Administrative Committee, 2445 Capitol Street, Suite 200,
Fresno, California 93721. Notice of this hearing was published in the
Federal Register on January 12, 2024 (89 FR 2178). The notice of
hearing contained four proposals submitted to the Agricultural
Marketing Service (AMS) by the Raisin Administrative Committee
(Committee). AMS also proposed to make conforming changes as may be
necessary to conform to any amendments, and to correct minor
inconsistencies and typographical errors. The Recommended Decision
notes that the Committee has struggled to fill vacancies and secure
member attendance at meetings, largely because the California raisin
industry has significantly declined and that volume regulation
authority was removed from the Order in 2018. In response to these
challenges, the Committee proposed several changes:
Under Proposal No. 1, the Committee membership size would be
reduced from 47 to 21 members and alternates. Specifically, Proposal
No. 1 would decrease producer member seats (from 35 to 12) and handler
member seats (from 10 to 8), eliminate the designated cooperative
bargaining association member seat, remove producer district
representation, and would add a designated seat for an unaffiliated
independent producer member. The quorum requirements would also be
reduced from 25 to 14 members.
Additionally, the Committee recommended eliminating separate
nomination procedures for small cooperative and independent producers
(Proposal No. 2); removing two factors no longer relevant to the
development of their annual marketing policy and clarifying language
regarding the quality of reconditioned raisins (Proposal No. 3); and
adding authority to accept voluntary contributions as well as to
develop and use intellectual property (Proposal No. 4).
Witnesses testified on the record that the proposed amendments
would help reduce Committee vacancies, improve attendance, generate
cost savings, enhance administrative efficiency, ensure fair
representation, and align Committee membership with the overall size of
the California raisin industry. As outlined in the Recommended
Decision, the Committee believes that reducing its size from 47 to 21
members and alternates would make it easier to manage and fill
Committee positions, thus improving attendance and lessening the
likelihood of prolonged

[[Page 57385]]

vacancies. This amendment, along with the other amendments under
Proposal No. 1, would ensure that the size and composition of the
Committee aligns with the size and structure of the industry, and that
different stakeholders within the industry have a fair and equitable
level of representation on the Committee. Further, with lower quorum
requirements, the Committee can make decisions more easily, reduce
meeting delays and the number of rescheduled meetings caused by low
attendance, improve administrative efficiency and generate a cost
savings for the Committee.
Eliminating separate nomination procedures for small cooperative
and independent producers under Proposal No. 2, would also enhance
administrative efficiency by reducing administrative burden and
streamlining the nomination process.
Removing factors for establishing marketing policy under Proposal
No. 3 would improve administrative efficiency by removing unnecessary
and outdated considerations and allow the Committee to focus on more
relevant matters. Further, the amendment to clarify the quality of
reconditioned raisins under Proposal No. 3 would dispel negative
impressions stemming from misconceptions and clarify the quality of
reconditioned fruit, streamlining sales and contribute to improving
administrative efficiencies.
Lastly, the addition of voluntary contribution authority and
intellectual property language under Proposal No. 4 would generate a
costs savings because voluntary contributions and revenue from
intellectual property can provide additional funding, aside from
assessments, that the Committee may use for other activities approved
under the Order, such as research and promotion.
After thorough consideration of the hearing record, USDA has
determined that the proposed amendments would tend to effectuate the
declared policy of the Act.
Additionally, USDA proposed to make any such changes as may be
necessary to the Order to conform to any amendment that may be adopted,
or to correct minor inconsistencies and typographical errors.
Accordingly, USDA recommended the following change in the Recommended
Decision: revise Sec. 989.129 to replace the word ``ballot'' with
``vote.'' This conforming change aligns with the Committee's proposal
to remove separate nomination procedures, reverting the regulatory text
to its original form prior to the 2018 amendment. Witnesses at the
hearing testified in support of the removal of separate nominations for
small cooperative and independent producers, as separate nomination
procedures had been shown to discourage participation and would not be
needed with a smaller Committee.

Comments and Exceptions

Upon the basis of evidence introduced at the hearing and the record
thereof, the Administrator of AMS on September 16, 2024, filed with the
Hearing Clerk, USDA, a Recommended Decision and Opportunity to File
Written Exceptions thereto by October 15, 2024. USDA received three
comments opposing the removal of the designated cooperative bargaining
association seat from the Committee membership. Accordingly, three
exceptions were filed.
All three comments proposed establishing a Committee size of 22
members, instead of the 21-member structure as proposed by the
Committee, and retaining the designated cooperative bargaining
association seat. The relevant issues raised by commenters suggest that
under the structure proposed by the Committee, Sun-Maid Growers (Sun-
Maid), a cooperative marketing association, would control 50 percent of
the Committee's representation, giving it dominance in decision-making,
and that the removal of the cooperative bargaining association seat
would disenfranchise workers and weaken the Raisin Bargaining
Association (RBA). We address these points, as well as the alternate
proposal, below:

Alternate Proposal

USDA considered but rejected the proposal to increase the proposed
Committee size to 22 members because record evidence does not support
this proposal. Rather, the record evidence shows that the justification
for the extra seat no longer applies. Adding the seat to the proposed
21-member Committee structure would give the RBA disproportionate
representation, as the extra seat is not allocated on proportional
shares and would be unfair to other industry groups, such as
independent producers, who do not have a dedicated seat.

Sun-Maid's Influence on the Committee

Two of the three comments raised concerns about Sun-Maid gaining
more influence on the Committee, asserting that it would control 50
percent of the Committee's seats under the proposed structure, which
could negatively impact small producers. Under the proposed Committee
membership structure, Sun-Maid would hold eight seats--five for
producers and three for handlers--representing approximately 38 percent
of the Committee, not the 50 percent asserted by the commenters.
Further, the number of seats allocated to Sun-Maid aligns with its
share of industry volume. While this would give Sun-Maid some level of
influence, there would still be 10 seats reserved for independents--
five independent producers and five independent handlers--which would
help to ensure that no single entity can dominate decisions without the
support of other Committee members.
Record evidence shows that the Committee has been considering a
reduction in size for many years and has explored various alternatives,
ultimately recommending the proposed amendments. The addition of the
unaffiliated independent producer member seat would help to reduce the
marginalization of small producers. The unaffiliated seat would most
likely be filled by a small producer, ensuring representation of
producers not affiliated with handlers on the Committee. Furthermore,
small independent producers testified in favor of the changes,
including the elimination of the designated cooperative bargaining
association seat, indicating that they are comfortable with Sun-Maid's
level of representation within the proposed Committee structure.
Lastly, under the proposed Committee structure, the majority of
Committee seats would be allocated to producers ensuring that there
would not be disproportionate handler representation and that the
Committee is producer-focused.

RBA's Reduced Representation

Commenters also suggested that removing the cooperative bargaining
association seat would disenfranchise workers by eliminating a seat
designated for industry workers, thereby reducing diversity, and
further weakening the RBA, as well as hindering new member recruitment
and disrupting the worker/manufacturer relationship. Record evidence
shows that the RBA's diminished representation and the Committee's
proposal to remove the designated seat are the result of a significant
decline in RBA's membership and total raisin acquisitions over time, as
well as the removal of volume control authority under the Order.
As noted above in the alternate proposal discussion, if the
designated seat were to remain on the Committee, the seat would grant
the RBA disproportionate representation on the Committee, which would
be unfair to other industry producers. While the

[[Page 57386]]

designated seat's removal may be perceived to further contribute to the
RBA's decline, the sustainability and continuity of such organizations
ultimately depends on the evolving needs and preferences of the
industry. Therefore, new member recruitment to the RBA and the
maintenance of a good working relationship between such workers and
manufacturers falls under the RBA's purview, and not the Committee, as
the Committee does not have authority over the RBA or any other
organization representing industry regarding such matters.
Record evidence further indicates that the RBA's role has changed
over time. Historically, the RBA played a vital role in the
establishment of volume regulation, which helped to address pricing
contracts. However, raisin growers voted through referendum in 2017 to
remove volume regulation authority from the Order. Furthermore, the
Committee's primary authorities are to recommend regulations related to
quality control and research and promotion. Since the Committee no
longer has authority to implement volume control, it does not make
decisions that directly affect surplus raisins and, consequently,
pricing. Therefore, the RBA's function of bargaining for commodity
prices falls outside the current scope of the Order. Without this
authority, the Committee no longer views the RBA-designated seat as
necessary. RBA would still have Committee representation that is
proportional to its raisin acquisitions, so if the RBA experiences
future growth in acquisitions, its representation on the Committee
would change accordingly. The opportunity for RBA members to serve
directly on the Committee as producers would remain.
For these reasons, no changes have been made to the amendment under
Proposal No. 1 related to the reduction of Committee membership to 21
members or the elimination of the cooperative bargaining association
seat.

Initial Regulatory Flexibility Analysis

Pursuant to the 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 so that small businesses will not be
unduly or disproportionately burdened. Marketing orders and amendments
issued pursuant to the Act, and the rules issued thereunder, are unique
in that they are normally brought about through group action of
essentially small entities acting on their own behalf.
According to the hearing transcript, there are approximately 1,500
producers of California raisins. According to the National Agricultural
Statistical Service (NASS) data presented at the hearing, the total
value of production for the 2022-2023 crop year of raisins was
$381,780,000. Taking the total value of production for raisins and
dividing it by the total number of raisin producers provides a return
per producer of $254,520. 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) (13 CFR 121.201). Therefore, a majority of raisin
producers would be considered small entities under SBA's standards.
According to the record, there were 17 handlers for the 2022-2023
crop year. 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). 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
Committee (August 2022-July 2023), the average price paid for packaged
raisins purchased by the USDA for food assistance programs was $1.56
per pound. The annual receipts for handlers can be calculated by taking
the USDA average purchase price and multiplying it by the total number
of shipments as reported by the Committee for the 2022-2023 crop year
($1.56 x 414,898,000 LB) which equals $647,240,880. Taking the
calculation for the annual receipts by handlers and dividing by the
number of handlers provides an estimated annual receipt per handler
($647,240,880 divided by 17), which equals $38,072,993. Based on the
SBA definition of an agricultural service firm having less than $34
million in annual receipts, there is a mix of both large and small
raisin handlers.
The production area regulated under the Order covers the State of
California. Acreage devoted to raisin production in the production area
has declined in recent years. According to data presented at the
hearing, bearing acreage for raisins reached a high of 280,000 acres
during the 2000-2001 crop year. Since then, bearing acreage for raisins
has decreased almost 53 percent to 133,000 acres in 2021-2022. Total
production of raisins reached a high during the 2000-2001 crop year of
2,921,000 tons (green tons) but has decreased 65 percent to a total
production of raisins of 1,010,000 tons in 2021-2022.
During the hearing held on February 13 and 14, 2024, interested
persons were invited to present evidence at the hearing on the probable
regulatory and informational impact of the proposed amendments to the
Order on small businesses. The evidence presented at the hearing shows
that none of the proposed amendments would have any burdensome effects
on small agricultural producers or firms.

Estimated Economic Impact of Amending Committee Membership Size and
Composition

Proposal No. 1 would remove producer district representation in
Sec. 989.26(c) and add an unaffiliated independent producer member
seat to Sec. 989.126(a)(1). Corresponding changes would also remove
Sec. Sec. 989.22 and 989.122 and references to producer districts in
Sec. Sec. 989.29(b)(2), 989.126(a), and 989.129. In addition, Proposal
No. 1 would eliminate the designated cooperative bargaining association
seat in Sec. 989.26. Corresponding changes would also remove the
reference to the cooperative bargaining association position in Sec.
989.30. Lastly, Proposal No. 1 would amend Sec. 989.38 by lowering the
quorum requirement from 25 to 14.
Most witnesses supported this proposal and stated that reducing the
size of the Committee would make conducting business more efficient.
These witnesses' statements are supported by the data collected by NASS
showing that bearing acreage for raisins has decreased almost 53
percent since the 2000-2001 season.
Currently, the Committee structure consists of 47 members and 47
alternates, where quorum is met when at least 25 members are in
attendance. A witness testified that, from April 2019 through June
2023, Committee meeting participation averaged only 33 out of the 47
members in attendance. Further, witnesses testified that the number of
raisin producers has declined from approximately 3,500 during the 2000-
2001 season to approximately 1,500 during the 2022-2023 season.
Reducing the number of members on the Committee would bring
representation into balance with the overall size of the industry.
For the reasons described above, it is determined that the proposed
amendment would benefit industry

[[Page 57387]]

participants and improve administration of the Order. The costs of
implementing this proposal would be minimal, if any, and may even
create efficiencies that would reduce administrative costs.

Estimated Economic Impact of Removing Separate Nomination Procedures

Proposal No. 2 would amend Sec. 989.29 to eliminate the
requirement for separate nominations for independent producers or
producers affiliated with small cooperative marketing associations.
Currently, the Committee has difficulty filling Committee seats
designated for independent producer members and independent producer
alternate members. Independent producer alternate member seats have
gone unfilled for several consecutive years.
According to witness testimony, the purpose of the proposal is to
eliminate the requirements for separate nominations for independent
producers and create greater competition for all Committee positions.
When the raisin industry had more producers, the Committee believed
designating separate nominations for independent producers ensured that
independent producers' concerns were part of Committee discussions. As
the raisin industry has evolved, separate nominations for independent
producers have resulted in low attendance rates and absenteeism at
Committee meetings.
In conclusion, it is determined that the benefits of eliminating
the requirements for separate nominations for independent producers
would outweigh any costs associated with the implementation of the
proposed amendment.

Estimated Economic Impact of Updating Marketing Policy and Quality
Standards for Reconditioned Raisins

Proposal No. 3 would modify Sec. 989.54(a) by removing factor
number 4 ``An estimated desirable carryout at the end of the crop
year;'' and the last part of factor number 5, ``, considering the
estimated world raisin supply and demand situation''. Proposal No. 3
would also amend Sec. Sec. 989.24 and 989.58 by adding language to
clarify that the quality of reconditioned raisins is the same as other
``standard raisins.''
Currently, many customers believe reconditioned raisins differ from
raisins that were not reconditioned, even though both raisins have been
inspected and met the same quality standard. The Committee believes
that there is an impression in the raisin market that the quality level
of reconditioned raisins is lower than other standard raisins.
Clarifying that ``standard raisins'' shall be defined as any raisins
that have been inspected and meet the Order's minimum requirements,
regardless of whether the fruit has been reconditioned or not, would
remove the negative quality association customers may have with
reconditioned raisins.
According to a witness, the proposed amendment would streamline the
sales process and would have a positive impact for raisin handlers and
producers. Currently, USDA does not distinguish between reconditioned
or standard raisins when purchasing for feeding programs.
It is determined that the benefits gained from implementing this
proposal would outweigh additional implementation costs incurred, if
any.

Estimated Economic Impact of Adding Contribution Authority and Patent/
Trademark Authority

Proposal No. 4 would add Sec. 989.63 to establish the authority to
accept voluntary contributions; add Sec. 989.64 to establish authority
related to ownership of, and rights to, intellectual property; and add
authority for the collection of rents/royalties from the same.
The Order does not currently allow for the Committee to accept
voluntary contributions or have ownership of, and rights to,
intellectual property. This proposal would allow for the Committee to
generate additional income outside the collection of handler
assessments.
According to a witness, the Committee has been approached recently
with the opportunity to generate revenue from ``The California
Raisins,'' the trademarked animated rhythm and blues music group
created by the raisin industry. Adding the authority to own, and to
exercise the rights of, intellectual property would allow the Committee
to receive income from patents, copyrights, trademarks, inventions,
publications, or product formulations. Such authority would allow the
Committee to collect additional income from ``The California Raisins''
and any other intellectual property owned or controlled by the
Committee. The additional income could benefit the raisin industry by,
for instance, supporting future production research as determined by
the Committee.
For the reasons described above, it is determined that any
additional costs incurred as a result of this proposal would be
outweighed by the increased flexibility for the industry to respond to
a changing global marketplace.
USDA has not identified any relevant Federal rules that duplicate,
overlap or conflict with this proposed rule. These amendments are
intended to improve the operation and administration of the Order and
to assist in the marketing of California raisins.
Committee meetings regarding these proposals, as well as the
hearing date and location, were widely publicized throughout the
California raisin industry, and all interested persons were invited to
attend the meetings and the hearing to participate in Committee
deliberations on all issues. All Committee meetings, and the hearing,
were public forums, and all entities, both large and small, were able
to express views on these issues.
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.

Paperwork Reduction Act

Current information collection requirements that are part of the
Federal marketing order for California raisins (7 CFR part 984) are
approved under OMB No. 0581-0178 Vegetables and Specialty Crops. Some
changes in those requirements are anticipated as a result of this
proceeding. Such changes would be submitted to OMB for approval.
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.

Civil Justice Reform

The amendments to the Order proposed herein have been reviewed
under Executive Order 12988, Civil Justice Reform. They are not
intended to have retroactive effect. If adopted, the proposed
amendments would not preempt any State or local laws, regulations, or
policies, unless they present an irreconcilable conflict with this
proposal.
The Act provides that administrative proceedings must be exhausted
before parties may file suit in court. Under Sec. 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. A
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

[[Page 57388]]

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
entry of the ruling.

Findings and Conclusions

The findings and conclusions, rulings, and general findings and
determinations included in the Recommended Decision and Opportunity to
File Written Exceptions set forth in the September 13, 2024, issue of
the Federal Register (89 FR 74851), are hereby approved and adopted.

Marketing Order

Annexed hereto and made a part hereof is the document entitled
``Order Amending the Order Regulating the Handling of Raisin Produced
from Grapes Grown in California.'' This document has been decided upon
as the detailed and appropriate means of effectuating the foregoing
findings and conclusions.
It is hereby ordered, that this entire decision be published in the
Federal Register.

Referendum Order

It is hereby directed that a referendum be conducted in accordance
with the procedure for the conduct of referenda (7 CFR 900.400 through
900.407). To determine whether the annexed order amending the order
regulating the handling of raisins produced from grapes grown in
California is approved or favored by growers, as defined under the
terms of the Order, who during the representative period were engaged
in the production of raisins produced from grapes in the production
area.
The representative period for the conduct of such referendum is
hereby determined to be August 1, 2024, through July 31, 2025.
The agents of the Secretary to conduct such referendum are hereby
designated to be Peter Sommers, Marketing Specialist, and Abigail
Maharaj, Branch Chief, West Region Branch, Market Development Division,
Specialty Crops Program, AMS, USDA; Telephone: (559) 487-5905, or
Email: <a href="/cdn-cgi/l/email-protection#3d4d5849584f4f134e525050584f4e7d484e595c135a524b">[email&#160;protected]</a> or <a href="/cdn-cgi/l/email-protection#6f0e0d06080e060341020e070e1d0e052f1a1c0b0e41080019">[email&#160;protected]</a>.

Order Amending the Order Regulating the Handling Raisins Produced From
Grapes Grown in California 1
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\1\ This order shall not become effective unless and until the
requirements of Sec. 900.14 of the rules of practice and procedure
governing proceedings to formulate marketing agreements and
marketing orders have been met.
---------------------------------------------------------------------------

Findings and Determinations

The findings and determinations hereinafter set forth are
supplementary to the findings and determinations that were previously
made in connection with the issuance of the marketing order, and all
said previous findings and determinations are hereby ratified and
affirmed, except insofar as such findings and determinations may be in
conflict with the findings and determinations set forth herein.
(a) Findings and Determinations Upon the Basis of the Hearing Record
Pursuant to the provisions of the Agricultural Marketing Agreement
Act of 1937, as amended (7 U.S.C. 601-674), and the applicable rules of
practice and procedure effective thereunder (7 CFR part 900), a public
hearing was held upon proposed further amendment of Marketing Order No.
989, regulating the handling of raisins produced from grapes grown in
California.
Upon the basis of the record, it is found that:
(1) The marketing order, as amended, and as hereby proposed to be
further amended, and all of the terms and conditions thereof, would
tend to effectuate the declared policy of the Act;
(2) The marketing order, as amended, and as hereby proposed to be
further amended, regulates the handling of raisins produced from grapes
grown in the production area in the same manner as, and is applicable
only to, persons in the respective classes of commercial and industrial
activity specified in the marketing order upon which a hearing has been
held;
(3) The marketing order, as amended, and as hereby proposed to be
further amended, is limited in its application to the smallest regional
production area that is practicable, consistent with carrying out the
declared policy of the Act, and the issuance of several orders
applicable to subdivisions of the production area would not effectively
carry out the declared policy of the Act;
(4) The marketing order, as amended, and as hereby proposed to be
further amended, prescribes, insofar as practicable, such different
terms applicable to different parts of the production area as are
necessary to give due recognition to the differences in the production
and marketing of raisin produced from grapes grown in California; and
(5) All handling of raisins produced from grapes grown in the
production area, as defined in the marketing order, is in the current
of interstate or foreign commerce or directly burdens, obstructs, or
affects such commerce.

Order Relative to Handling

It is therefore ordered, that on and after the effective date
hereof, all handling of raisins produced from grapes grown in
California shall be in conformity to, and in compliance with, the terms
and conditions of the said Order as hereby proposed to be amended as
follows:
The provisions of the proposed marketing order amending the Order
contained in the Recommended Decision and Opportunity to File Written
Exceptions published in the September 13, 2024, issue of the Federal
Register (89 FR 74851), and in this Secretary's Decision and Referendum
Order, will be and are the terms and provisions of this order amending
the Order and are set forth in full herein.

List of Subjects in 7 CFR Part 989

Grapes, Marketing agreements, Raisins, Reporting and recordkeeping
requirements.

Recommended Further Amendment of the Marketing Order

For the reasons set out in the preamble, 7 CFR part 989 is proposed
to be amended as follows:

PART 989--RAISINS PRODUCED FROM GRAPES GROWN IN CALIFORNIA

0
1. The authority citation for part 989 continues to read as follows:

Authority: 7 U.S.C. 601-674.

Sec. 989.22 [Removed and Reserved]

0
2. Remove and reserve Sec. 989.22.
0
3. Amend Sec. 989.24 by revising paragraph (b) to read as follows:

Sec. 989.24 Standard raisins, off-grade raisins, other failing
raisins, and raisin residual material.

* * * * *
(b) Off-grade raisins means raisins which do not meet the then
effective minimum grade and condition standards for natural condition
raisins: Provided, That raisins which are certified as off-grade
raisins shall continue to be such until successfully reconditioned as
standard raisins or become ``other failing raisins.''
* * * * *
0
4. Revise Sec. 989.26 to read as follows:

Sec. 989.26 Establishment and membership.

A Raisin Administrative Committee is hereby established consisting
of 21 members of whom 12 shall represent producers, 8 shall represent
handlers and 1 shall be a public member.
(a) The producer members shall be selected as follows:

[[Page 57389]]

(1) Producer members representing the cooperative marketing
association(s) shall be members of such association(s) engaged in the
handling of raisins, each of which acquired not less than 10 percent of
the total raisin acquisitions during the preceding crop year, and those
members shall be equal to the product, rounded to the nearest whole
number, obtained by multiplying 12 by the ratio the cooperative
marketing association(s) raisin acquisitions are to the acquisitions of
all handlers during the preceding crop year.
(2) Producer members representing cooperative bargaining
association(s) shall be members of such association(s), and the number
of those members shall be equal to the product, rounded to the nearest
whole number, obtained by multiplying 12 by the ratio the raisins
acquired by handlers from bargaining association members are to the
total acquisitions of all handlers during the preceding crop year.
(3) All other producer members, who shall not be members of a
cooperative bargaining association(s), cooperative marketing
association(s) engaged in the handling of raisins which acquired 10
percent or more of the total acquisitions during the preceding crop
year, nor sold for cash to cooperative marketing association(s), shall
represent all producers not defined in paragraphs (a)(1) or (a)(2) of
this section and shall be selected as designated in the rules and
regulations.
(b) The handler members shall be divided into two groups and
include the following:
(1) Handler members shall be selected from and represent
cooperative marketing association(s) engaged in the handling of raisins
each of which acquired not less than 10 percent of the total raisin
acquisitions during the preceding crop year, and the number of those
members shall be equal to the product, rounded to the nearest whole
number, obtained by multiplying 8 by the ratio of the cooperative
marketing association(s) raisin acquisitions are to the total
acquisitions of all handlers during the preceding crop year.
(2) The remaining handler members shall be selected from and
represent all other handlers, which would include all independent
handlers and small cooperative marketing association(s) who acquired
less than 10 percent of the total raisin acquisitions during the
preceding crop year. Handler nominees for this group shall be nominated
by all handlers in the group in a manner determined by the Committee,
with the approval of the Secretary, and specified in the rules and
regulations.
(c) The public member shall be nominated by the Committee and
selected by the Secretary as public member.
(d) For each member of the Committee there shall be an alternate
member who shall have the same qualifications as the member for whom
they are an alternate.
0
5. Amend Sec. 989.29 by revising paragraphs (a) and (b) (1) and (2) to
read as follows:

Sec. 989.29 Initial members and nomination of successor members.

(a) Initial members. Members and alternate members of the Committee
serving immediately prior to the effective date of this amended subpart
shall, if thereafter they are eligible, serve on the Committee until
April 30, 2026, and until their respective successors have been
selected and qualified.
(b) * * *
(1) The Committee shall notify the cooperative marketing
association(s) engaged in handling not less than 10 percent of the
total raisin acquisitions during the preceding crop year, and
cooperative bargaining association(s), of the date by which nominations
to fill member and alternate member positions shall be made. The
Committee shall give reasonable publicity of a meeting or meetings of
producers who are not members of cooperative bargaining association(s),
or cooperative marketing association(s) which handled 10 percent or
more of the total raisin acquisitions during the preceding crop year,
and of independent handlers and cooperative marketing association(s)
who handled less than 10 percent of the total raisin acquisitions
during the preceding crop year, for the purpose of making nominations
to fill the member and alternate member positions prescribed in Sec.
989.26 (a)(3) and (b): Provided, That member and alternate member
nominations by independent handlers and cooperative marketing
association(s) who acquired less than 10 percent of the total raisin
acquisitions during the preceding crop year may be made to the
Committee by mail in lieu of meetings.
(2)(i) Any producer representing independent producers and
producers who are affiliated with cooperative marketing association(s)
handling less than 10 percent of the total raisin acquisitions during
the preceding crop year must have produced grapes which were made into
raisins.
(ii) Each such producer whose name is offered in nomination to
represent on the Committee independent producers or producers who are
affiliated with cooperative marketing association(s) handling less than
10 percent of the total raisin acquisitions during the preceding crop
year shall be given the opportunity to provide the Committee a short
statement outlining qualifications and desire to serve if selected.
These brief statements, together with a ballot and voting instructions,
shall be mailed to all independent producers and producers who are
affiliated with cooperative marketing associations handling less than
10 percent of the total raisin acquisitions during the preceding crop
year of record with the Committee. The producer candidate receiving the
highest number of votes shall be designated as the first member nominee
for a member position in which they qualify, the second highest shall
be designated as the second member nominee for a member position which
they qualify, until nominees for all producer member positions have
been filled. Similarly, after all producer member positions have been
filled, the producer candidate receiving the highest number of votes
shall be designated as the first alternate member nominee for a member
position in which they qualify, the second highest shall be designated
as the second alternate member nominee for a member position in which
they qualify, until nominees for all alternate member positions have
been filled.
(iii) In the event there are no qualified candidates for any
designated producer member or alternate member positions, such
positions may be filled by other producer candidates not otherwise
nominated for a position.
(iv) Each independent producer or producer affiliated with
cooperative marketing association(s) handling less than 10 percent of
the total raisin acquisitions during the preceding crop year shall cast
only one vote with respect to each position for which nominations are
to be made. Write-in candidates shall be accepted. The person receiving
the most votes with respect to each position to be filled, in
accordance with paragraph (b)(2)(ii) and (iii) of this section, shall
be the person to be certified to the Secretary as the nominee. The
Committee may, subject to the approval of the Secretary, establish
rules and regulations to effectuate this section.
* * * * *
0
6. Revise Sec. 989.30 to read as follows:

Sec. 989.30 Selection.

The Secretary shall select producer, handler, and public members
and alternate members in the number specified in Sec. 989.26, as
applicable, and with the qualifications specified in Sec. 989.27. Such
selections may be made from nominations certified pursuant to

[[Page 57390]]

Sec. 989.29 or from other eligible producers, or handlers.

Sec. 989.38 [Amended]

0
7. Amend Sec. 989.38 by removing the numeral ``25'' and adding in its
place the numeral ``14''.

Sec. 989.54 [Amended]

0
8. Amend Sec. 989.54 by:
0
a. Removing paragraph (a)(4);
0
b. Redesignating paragraphs (a)(5) through (9) as paragraphs (a)(4)
through (8), respectively; and
0
c. Removing in newly redesignated paragraph (a)(4), removing the text
``, considering the estimated world raisin supply and demand
situation''.
0
9. Amend Sec. 989.58 by adding paragraph (g) to read as follows:

Sec. 989.58 Natural condition raisins.

* * * * *
(g) Quality reconditioned raisins. All raisins which have been
inspected and certified as meeting the minimum grade, quality, and
condition standards established pursuant to this section, whether upon
incoming inspection or upon later inspection after reconditioning,
shall be determined to be standard raisins, labelled accordingly, and
shall be eligible for commercial disposition as natural condition
raisins or packed raisins in normal outlets.
0
10. Add Sec. 989.63 to read as follows:

Sec. 989.63 Contributions.

The Committee may accept voluntary contributions: Provided, That
such contributions shall only be used to pay expenses authorized under
Sec. 989.79. Furthermore, contributions shall be free from any
encumbrances by the donor and the Committee shall retain complete
control of their use.
0
11. Add Sec. 989.64 to read as follows:

Sec. 989.64 Patents, copyrights, trademarks, inventions, product
formulations, and publications.

(a) Any patents, copyrights, trademarks, inventions, product
formulations, and publications developed through the use of funds
received by the Committee under this subpart shall be the property of
the U.S. Government, as represented by the Committee, and shall, along
with any rents, royalties, residual payments, or other income from the
rental, sales, leasing, franchising, or other uses of such patents,
copyrights, trademarks, inventions, product formulations, or
publications, inure to the benefit of the Committee; shall be
considered income subject to the same fiscal, budget, and audit
controls as other funds of the Committee; and may be licensed subject
to approval by the Secretary.
(b) Upon termination of this subpart, Sec. 989.92 shall apply to
determine disposition of any property, including patents, copyrights,
trademarks, inventions, product formulations, and publications
developed through the use of funds received by the Committee under this
subpart.
(c) Should patents, copyrights, trademarks, inventions, product
formulations, or publications be developed through the use of funds
collected by the Committee under this subpart and funds contributed by
another organization or person, ownership and related rights to such
patents, copyrights, trademarks, inventions, product formulations, or
publications shall be determined by agreement between the Committee and
the person or organization contributing funds towards the development
of such patents, copyrights, inventions, trademarks, product
formulations, or publications in a manner consistent with paragraph (a)
of this section.
(d) Should any patents, copyrights, trademarks, inventions, product
formulations, or publications, be licensed to the Committee by another
person or organization, the rights and obligations regarding such
licensed patents, copyrights, trademarks, inventions, product
formulations, or publications shall be determined by agreement between
the Committee and the person or organization permitting licensure in a
manner consistent with paragraph (a) of this section.

Sec. 989.122 [Removed and Reserved]

0
12. Remove and reserve Sec. 989.122.
0
13. Revise Sec. 989.126 to read as follows:

Sec. 989.126 Representation of the Committee.

(a) Pursuant to Sec. 989.26(a)(3), and commencing with the term of
office beginning May 1, 2026, apportionment of independent and small
cooperative producers shall be:
(1) One producer member, selected from and representing all
producers, who is unaffiliated with any handler (including, but not
limited to, ownership, employment, or agent of any handler, and whose
family members are similarly unaffiliated with any handler); and
(2) The remaining producer member(s) selected from and representing
all other independent and small cooperative producers.
(b) Pursuant to section Sec. 989.26(b)(2), and commencing with the
term of office beginning May 1, 2026, apportionment of the independent
and small cooperative marketing association handlers shall be:
(1) Two members selected from and representing the four handler(s)
other than major cooperative marketing association handler(s) who
acquired the largest percentage of the total raisin acquisitions during
the preceding crop year; and
(2) The remaining member(s) selected from and representing all
other handlers, including small cooperative marketing association
handler(s) and all processors.
0
13. Revise Sec. 989.129 to read as follows:

Sec. 989.129 Voting at nomination meetings.

Any person (defined in Sec. 989.3 as an individual, partnership,
corporation, association, or any other business unit) who is engaged,
in a proprietary capacity, in the production of grapes which are sun-
dried or dehydrated by artificial means to produce raisins and who
qualifies under the provisions of Sec. 989.29(b)(2) shall be eligible
to cast one vote for a nominee for each producer member position and
one vote for a nominee for each producer alternate member position on
the Committee which is to be filled. Such person must be the one who or
which: Owns and farms land resulting in his or its ownership of such
grapes produced thereon; rents and farms land, resulting in his or its
ownership of all or a portion of such grapes produced thereon; or owns
land which he or it does not farm and, as rental for such land, obtains
the ownership of a portion of such grapes or the raisins. In this
connection, a partnership shall be deemed to include two or more
persons (including a husband and wife) with respect to land the title
to which, or leasehold interest in which, is vested in them as tenants
in common, joint tenants, or under community property laws, as
community property. In a landlord-tenant relationship, wherein each of
the parties is a producer, each such producer shall be entitled to one
vote for a nominee for each producer member position and one vote for
each producer alternate member position. Hence, where two persons
operate land as landlord and tenant on a share-crop basis, each person
is entitled to one vote for each such position to be filled. Where land
is leased on a cash rental basis, only the person who is the tenant or
cash renter (producer) is entitled to vote. A partnership or
corporation, when eligible, is entitled to cast only

[[Page 57391]]

one vote for a nominee for each producer position to be filled.

Erin Morris,
Administrator, Agricultural Marketing Service.
[FR Doc. 2025-22596 Filed 12-10-25; 8:45 am]
BILLING CODE P

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