Rule2026-06891
Grapes Grown in a Designated Area of Southeastern California; Decreased Assessment Rate
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
April 9, 2026
Effective
May 11, 2026
Issuing agencies
Agriculture DepartmentAgricultural Marketing Service
Abstract
This final rule implements a recommendation from the California Desert Grape Administrative Committee (Committee) to decrease the assessment rate established for the 2025 fiscal period and subsequent fiscal periods from $0.040 to $0.030 per 18-pound lug for grapes grown in a designated area of southeastern California. The assessment rate will remain in effect indefinitely unless modified, suspended, or terminated.
Full Text
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<title>Federal Register, Volume 91 Issue 68 (Thursday, April 9, 2026)</title>
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[Federal Register Volume 91, Number 68 (Thursday, April 9, 2026)]
[Rules and Regulations]
[Pages 17845-17847]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-06891]
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Rules and Regulations
Federal Register
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This section of the FEDERAL REGISTER contains regulatory documents
having general applicability and legal effect, most of which are keyed
to and codified in the Code of Federal Regulations, which is published
under 50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by the Superintendent of Documents.
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Federal Register / Vol. 91, No. 68 / Thursday, April 9, 2026 / Rules
and Regulations
[[Page 17845]]
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: Final rule.
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SUMMARY: This final rule implements a recommendation from the
California Desert Grape Administrative Committee (Committee) to
decrease the assessment rate established for the 2025 fiscal period and
subsequent fiscal periods from $0.040 to $0.030 per 18-pound lug for
grapes grown in a designated area of southeastern California. The
assessment rate will remain in effect indefinitely unless modified,
suspended, or terminated.
DATES: Effective May 11, 2026.
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#f3b19a929d9092beddb196818781929d97b386809792dd949c85"><span class="__cf_email__" data-cfemail="e2a08b838c8183afcca087909690838c86a297918683cc858d94">[email protected]</span></a> or <a href="/cdn-cgi/l/email-protection#3c7d5e555b5d555012715d545d4e5d567c494f585d125b534a"><span class="__cf_email__" data-cfemail="f7b6959e90969e9bd9ba969f9685969db782849396d9909881">[email protected]</span></a>.
SUPPLEMENTARY INFORMATION: This action, pursuant to 5 U.S.C. 553,
amends regulations issued to carry out a marketing order as defined in
7 CFR 900.2(j). This final rule is issued under the Agricultural
Marketing Agreement Act of 1937, as amended (7 U.S.C. 601-674) (the
Act), amending Marketing Agreement and Order No. 925 (7 CFR part 925;
the Order), regulating the handling of grapes grown in a designated
area of southeastern California. The Committee locally administers the
Order and is comprised of producers and handlers of grapes operating
within the area of production, as well as a public member.
This action is exempt from the Office of Management and Budget
(OMB) review process required by Executive Order 12866. This rule
amends existing Marketing Order No. 925, as amended (7 CFR part 925),
Grapes Grown in a Designated Area of Southeastern California, and is
necessary for the continued operation of Marketing Order No. 925.
Additionally, this action is exempt from the requirements of Executive
Order 14192, ``Unleashing Prosperity Through Deregulation,'' pursuant
to section 5(c).
This final 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. The Agricultural Marketing Service
(AMS) has determined that this final 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 final 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 will be applicable to all assessable grapes for the
2025 fiscal period, and continue until amended, suspended, or
terminated.
The Act provides that administrative remedies must be exhausted
before parties may file suit in court challenging the final agency
action. Under section 8c(15)(A) of the Act (7 U.S.C. 608(c)(15)(A)),
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 final rule decreases the assessment rate for California grapes
handled under the Order from $0.040 to $0.030 per 18-pound lug for the
2025 fiscal period 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 fiscal period and subsequent fiscal periods, the
Committee recommended, and AMS approved, an assessment rate of $0.040
per 18-pound lug of California grapes. 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
with a vote of eight in favor and none opposed, 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 fiscal period and
subsequent fiscal periods. In comparison, the 2024 fiscal period
budgeted expenditures were $77,000. The assessment rate of $0.030 per
18-pound lug is $0.010 lower than the rate currently in effect. The
Committee recommended decreasing the assessment rate to draw down its
reserve funds to within a level authorized by 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.
[[Page 17846]]
The Committee derived the recommended assessment rate by reviewing
anticipated expenses, the estimated 2,000,000 18-pound lugs of
assessable California 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
assessment 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 from the financial reserve fund, should be
sufficient to meet the Committee's estimated program expenditures of
$88,600 for the 2025 fiscal period. Funds available in the financial
reserve (which currently total 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 assessment rate will 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 will 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.
Final 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 final rule on small entities. Accordingly, AMS has prepared this
final 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 are unique regulations in that they are brought
about through group action of typically small entities.
There are approximately six producers of California grapes in the
production area and six handlers subject to regulation under the Order.
At the time this analysis was prepared, the Small Business
Administration (SBA) defined small agricultural producers of grapes as
those having annual receipts equal to or less than $4,000,000 (North
American Industry Classification System (NAICS) code 111332, Grape
Vineyards) and small agricultural service firms as those having annual
receipts equal to or less than $34,000,000 (NAICS code 115114,
Postharvest Crop Activities) (13 CFR 121.201).
The USDA 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 $42,448,910,
divided by 6 producers equals an estimated annual crop value per
producer of $7.07 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, AMS 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 $98,231,619
(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 $16,371,937 ($98,231,619 divided by 6), which is below the
$34,000,000 SBA size threshold (NAICS code 115114, Postharvest Crop
Activities) for handlers. Thus, the majority of California grape
handlers subject to the order would be classified as small entities.
This final rule decreases 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 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 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 0.23 percent ($0.030 per 18-pound lug assessment rate divided by
$13.11 and multiplied by 100).
This final rule decreases the assessment rate 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.
Committee meetings are widely publicized throughout the production
area. 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 were invited to submit comments on this rule, including the
[[Page 17847]]
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 are necessary as a
result of this action. Should any changes become necessary, they would
be submitted to OMB for approval.
This final rule does 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 final rule.
A proposed rule concerning this action was published in the Federal
Register on October 1, 2025 (90 FR 47243). Copies of the proposed rule
were provided to California grape handlers. In addition, the proposal
was made available through the internet by AMS and the Office of the
Federal Register via <a href="https://www.regulations.gov">https://www.regulations.gov</a>. A 30-day comment
period ending October 31, 2025, was provided to all interested persons
to respond to the proposal. AMS received five comments regarding this
proposal. Three comments supported the proposal and one comment did not
pertain to the merits of the rule. One comment challenged the
procedural sufficiency of the rulemaking, asserting that AMS did not
adhere to the requirements of the Administrative Procedure Act, the
Regulatory Flexibility Act, and Executive Order 12866.
Specifically, the commenter claimed that AMS procedurally bypassed
notice and comment by issuing a direct final rule without relying on a
good cause exception, deprived interested parties a meaningful
opportunity to comment, and failed to present a complete analysis of
the impacts on small businesses. After reviewing the comment, AMS
determined that all of the statutory and procedural requirements for
rulemaking have been met regarding this action.
Contrary to the comment's assertions, AMS did not bypass notice and
comment or invoke good cause. Interested persons had numerous
opportunities to review pertinent information, present their views, and
participate in the rulemaking process. As noted above, AMS published a
notice of proposed rulemaking in the Federal Register on October 1,
2025, that included a 30-day comment period for interested persons,
ending October 31, 2025. The proposed rulemaking also included an
Initial Regulatory Flexibility Analysis, pursuant to requirements set
forth in the Regulatory Flexibility Act, that considered and detailed
for the public's review the economic impact of this rule on small
entities.
Additionally, to address the comment's statements concerning
Executive Order 12866, AMS reiterates that, as stated in the proposed
rule, this rule falls within a category of regulatory actions that OMB
exempted from the review process required by Executive Order 12866.
Accordingly, AMS made no changes to the rule as proposed.
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 final rule is
consistent with and will effectuate the purposes of the Act.
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 amends 7 CFR part 925 as follows:
PART 925--GRAPES GROWN IN A DESIGNATED AREA OF SOUTHEASTERN
CALIFORNIA
0
1. The authority citation for 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. 2026-06891 Filed 4-8-26; 8:45 am]
BILLING CODE 3410-02-P
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