Rule2026-17512
Tart Cherries Grown in the States of Michigan, et al.; Free and Restricted Percentages for the 2024-2025 Crop Year
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
August 27, 2026
Effective
September 28, 2026
Issuing agencies
Agriculture DepartmentAgricultural Marketing Service
Abstract
This final rule implements a recommendation from the Cherry Industry Administrative Board (Board) to establish free market tonnage percentages (free percentages) and restricted percentages for the 2024- 2025 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 establishes the proportion of tart cherries from the 2024-2025 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.
Full Text
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<title>Federal Register, Volume 91 Issue 165 (Thursday, August 27, 2026)</title>
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[Federal Register Volume 91, Number 165 (Thursday, August 27, 2026)]
[Rules and Regulations]
[Pages 55236-55241]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-17512]
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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 2024-2025 Crop Year
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Final rule.
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SUMMARY: This final rule implements a recommendation from the Cherry
Industry Administrative Board (Board) to establish free market tonnage
percentages (free percentages) and restricted percentages for the 2024-
2025 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 establishes the proportion of
tart cherries from the 2024-2025 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: Effective September 28, 2026.
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#57042332213239791c362231313a3639172224333679303821"><span class="__cf_email__" data-cfemail="b6e5c2d3c0d3d898fdd7c3d0d0dbd7d8f6c3c5d2d798d1d9c0">[email protected]</span></a> or
<a href="/cdn-cgi/l/email-protection#22614a504b51564b434c0c6c4b5151474c62575146430c454d54"><span class="__cf_email__" data-cfemail="8ac9e2f8e3f9fee3ebe4a4c4e3f9f9efe4cafff9eeeba4ede5fc">[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 Order No. 930 (7 CFR part 930; the Order),
regulating tart cherries grown in the states of Michigan, New York,
Pennsylvania, Oregon, Utah, Washington, and Wisconsin. 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.
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 930, as amended (7 CFR part 930),
Tart Cherries Grown in the States of Michigan, New York, Pennsylvania,
Oregon, Utah, Washington, and Wisconsin, and is necessary for the
continued operation of Marketing Order No. 930. 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 this final rule is
[[Page 55237]]
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, free and
restricted percentages may be established for tart cherries for the
2024-2025 crop year. This action establishes 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 final rule establishes the proportion of tart cherries from
the 2024-2025 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 2024-2025 crop year effectuates the 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 public 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 2024-2025 crop
year are: 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) are not regulated for the 2024-
2025 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 10 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 2024-2025 crop year. After some discussion, the
Board
[[Page 55238]]
unanimously supported an estimated crop of 247.3 million pounds for the
2024-2025 season. Next, the Board computed an optimum supply of 268.3
million pounds for the 2024-2025 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 2024-2025
season. One member questioned whether 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 the 2024-2025 season's carry-out
volume the same as the previous year at 85 million pounds. Several
members expressed that 85 million pounds was too large for the 2024-
2025 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 2024-2025 crop
to meet optimum supply, the Board subtracted the carry-in inventory
available on June 1, 2024, of 93.1 million pounds from the optimum
supply (268.3 million pounds). This number, 175.2 million pounds, was
then subtracted from the Board's estimated 2024-2025 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 the 2024-2025 season's
economic demands, and fulfill orders that had 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 the
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 2024-2025 crop year.
The Board met again on September 12, 2024, to consider final volume
regulation percentages for the 2024-2025 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 2024-2025 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 agreed 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 2024-2025 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 2024-2025 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 268.3
(item 1 plus item 2)..........................
(4) Carry-in as of July 1, 2023................ 93.1
(5) Adjusted optimum supply (item 3 minus item 175.2
4)............................................
(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 47.3
9)............................................
[[Page 55239]]
(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 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 that a restricted percentage should be
established for the 2024-2025 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 tends to effectuate the declared policy
of the Act, and so designates these percentages.
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 action in
order that small businesses will not be unduly or disproportionately
burdened. Marketing orders issued pursuant to the Act 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 115114, 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 2023-2024
season, the total 2023-2024 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
[[Page 55240]]
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 final rule establishes 2024-2025 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 action regulates tart
cherries handled in Michigan, Utah, Washington, Wisconsin, and New
York. The authorities for this 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 final rule results 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 rule, 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) is 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.
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 2020-2021 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 previous three years' average sales. Even with the
recommended 19 percent restriction, the domestic market will 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
action will unduly burden growers or handlers.
While this action 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 should 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 action 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 final rule
provide the market with optimum supply and 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 rule 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 will generate. Growers and handlers, regardless of size,
will 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 2024-2025 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 2024-2025 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 were invited
to
[[Page 55241]]
submit comments on this rule, including the regulatory and
informational 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 as a result of this final rule. Should
any changes become necessary, they would be submitted to OMB for
approval.
This final rule will 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
final rule.
A proposed rule concerning this action was published in the Federal
Register on November 18, 2025 (90 FR 51572). Copies of the proposed
rule were provided to all tart cherry 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 December 18, 2025, was provided for interested
persons to respond to the proposal. AMS received two comments during
the comment period. One comment supported the proposal and one comment
challenged the procedural sufficiency of the rulemaking, asserting that
AMS did not adhere to the requirements of the Administrative Procedure
Act, Paperwork Reduction Act, Executive Order 12866, and the Regulatory
Flexibility Act.
Specifically, the commenter claimed that AMS procedurally bypassed
notice and comment or waived the 30-day delayed effective date without
adequate good cause and failed to present a clear analysis of the
impacts on small businesses, and that the rule did not provide
information regarding the reporting burden on handlers.
Contrary to the commenter's assertions on the Administrative
Procedures Act, 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 proposed rule in
the Federal Register on November 18, 2025, not an interim final rule as
the commenter suggests. The proposed rule included a 30-day comment
period for interested persons, ending December 18, 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 final rule on small entities. AMS has provided adequate
opportunity for interested persons to consider the proposal and provide
comments and included the regulatory and informational impacts of this
action on small businesses. As noted above in the Final Regulatory
Flexibility Analysis, growers and handlers, regardless of size, benefit
from the stabilizing effects of the volume restriction.
In response to the commenter's request for clarification on the
Paperwork Reduction Act, the proposed rulemaking and this final rule
address the Paperwork Reduction Act of 1995 (44 U.S.C. chapter 35) and
related compliance. AMS reiterates that in accordance with the
Paperwork Reduction Act, 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, and that no
changes to those requirements would be necessary based on this action.
Lastly, and contrary to the commenter's assertion that AMS did not
adhere to Executive Order 12866, AMS reiterates that this rule falls
within a category of regulatory actions that OMB exempted from
Executive Order 12866 review. After review of the comment, AMS
determined that all the statutory and procedural requirements for
rulemaking have been met regarding this action. 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 Board and other
available information, AMS has determined that this final rule is
consistent with and effectuates the purposes of the Act.
List of Subjects in 7 CFR Part 930
Tart cherries, Marketing agreements, Reporting and recordkeeping
requirements.
For the reasons set forth in the preamble, 7 CFR part 930 is
amended 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 part 930 continues to read as follows:
Authority: 7 U.S.C. 601-674.
0
2. Revise Sec. 930.256 to read as follows:
Sec. 930.256 Free and restricted percentages for the 2024-2025 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. 2026-17512 Filed 8-26-26; 8:45 am]
BILLING CODE 3410-02-P
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</html>Indexed from Federal Register on August 27, 2026.
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.