Raisins Produced From Grapes Grown in California; Order Amending Marketing Order No. 989

Issuing agencies

Abstract

This final rule amends Marketing Order No. 989, which regulates the handling of raisins produced from grapes grown in California. The Department of Agriculture approves and adopts amendments proposed by the Raisin Administrative Committee (Committee) after due consideration of a public hearing record, and after California raisin producers voted in favor of such amendments in a referendum. This rule reduces the Committee membership size from 47 to 21, removes producer district representation and adds an unaffiliated producer member seat, eliminates the designated cooperative bargaining association member seat, and lowers quorum requirements from 25 to 14; removes the requirement for separate member and alternate member position nominations for independent and small cooperative producers; removes factor 4 and part of factor 5 for establishing marketing policy and adds language clarifying the quality of reconditioned raisins; and adds authority to accept voluntary contributions and language regarding ownership of intellectual property. In addition, this action makes necessary changes to the marketing order to conform to the amendments adopted.

Full Text

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<title>Federal Register, Volume 91 Issue 195 (Friday, October 9, 2026)</title>
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[Federal Register Volume 91, Number 195 (Friday, October 9, 2026)]
[Rules and Regulations]
[Pages 64601-64606]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-20792]



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Rules and Regulations
                                                Federal Register
________________________________________________________________________

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. 195 / Friday, October 9, 2026 / Rules 
and Regulations

[[Page 64601]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 989

[Doc. No. AMS-SC-23-0039; 23-J-0080]


Raisins Produced From Grapes Grown in California; Order Amending 
Marketing Order No. 989

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: This final rule amends Marketing Order No. 989, which 
regulates the handling of raisins produced from grapes grown in 
California. The Department of Agriculture approves and adopts 
amendments proposed by the Raisin Administrative Committee (Committee) 
after due consideration of a public hearing record, and after 
California raisin producers voted in favor of such amendments in a 
referendum. This rule reduces the Committee membership size from 47 to 
21, removes producer district representation and adds an unaffiliated 
producer member seat, eliminates the designated cooperative bargaining 
association member seat, and lowers quorum requirements from 25 to 14; 
removes the requirement for separate member and alternate member 
position nominations for independent and small cooperative producers; 
removes factor 4 and part of factor 5 for establishing marketing policy 
and adds language clarifying the quality of reconditioned raisins; and 
adds authority to accept voluntary contributions and language regarding 
ownership of intellectual property. In addition, this action makes 
necessary changes to the marketing order to conform to the amendments 
adopted.

DATES: This rule is effective November 9, 2026.

FOR FURTHER INFORMATION CONTACT: Christy Pankey, Marketing Specialist, 
or Matthew Pavone, Chief, Rulemaking Services Branch, Market 
Development Division, Specialty Crops Program, AMS, USDA; telephone: 
(202) 720-8085, or email: <a href="/cdn-cgi/l/email-protection#72311a001b01060b5c22131c19170b32070116135c151d04"><span class="__cf_email__" data-cfemail="7b38130912080f02552b1a15101e023b0e081f1a551c140d">[email&#160;protected]</span></a> or 
<a href="/cdn-cgi/l/email-protection#703d1104041815075e2011061f1e1530050314115e171f06"><span class="__cf_email__" data-cfemail="8bc6eaffffe3eefca5dbeafde4e5eecbfef8efeaa5ece4fd">[email&#160;protected]</span></a>.

SUPPLEMENTARY INFORMATION: Prior documents in this proceeding: a Notice 
of Hearing published in the January 12, 2024, issue of the Federal 
Register (89 FR 2178); a Recommended Decision and Opportunity to File 
Written Exceptions published in the September 13, 2024, issue of the 
Federal Register (89 FR 74851); and a Secretary's Decision and 
Referendum Order published in the December 11, 2025, issue of the 
Federal Register (90 FR 57384).
    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 14192.
    Notice of this rulemaking action was provided to Tribal Governments 
through the USDA Office of Tribal Relations.

Preliminary Statement

    This action finalizes amendments to regulations issued to carry out 
a marketing order as defined in 7 CFR 900.2(j). This rule is issued 
under Marketing Order No. 989, as amended (7 CFR part 989), regulating 
the handling of raisins produced from grapes grown in California. Part 
989 (referred to as the ``Order'') is effective under the Agricultural 
Marketing Agreement Act of 1937, as amended (7 U.S.C. 601-674), 
hereinafter referred to as the ``Act.'' The final rule was formulated 
on the record of a public hearing held at the office of the Raisin 
Administrative Committee (Committee), 2445 Capitol Street, Suite 200, 
Fresno, California 93721, on February 13 and 14, 2024. The hearing was 
conducted pursuant to the provisions of the Act, and the applicable 
rules of practice and procedure governing the formulation of marketing 
agreements and orders (7 CFR part 900). Notice of this hearing was 
published in the Federal Register on January 12, 2024 (89 FR 2178) and 
provided an outline of each of the four amendatory proposals to the 
Order.
    Upon the basis of evidence introduced at the hearing and the record 
thereof, on September 16, 2024, the Administrator of the Agricultural 
Marketing Service (AMS) filed with the Hearing Clerk, USDA, a 
Recommended Decision and Opportunity to File Written Exceptions thereto 
by October 15, 2024. AMS published a copy of the Recommended Decision 
and Opportunity to File Written Exceptions in the Federal Register on 
September 13, 2024 (89 FR 74851). Three exceptions were filed. These 
exceptions opposed the removal of the designated cooperative bargaining 
association seat from the Committee membership.
    AMS published the Secretary's Decision and Referendum Order in the 
Federal Register on December 11, 2025 (90 FR 57384), directing that a 
referendum be conducted during the period of January 12 through January 
30, 2026, among eligible California raisin growers to determine whether 
they favored the amendments to the Order. To become effective, per the 
Order, the proposed amendments noted below required approval by at 
least two-thirds of producers voting, or by at least two-thirds of the 
volume of raisins represented by voters voting in the referendum.
    The amendments to reduce the Committee membership size from 47 to 
21, remove producer district representation and add an unaffiliated 
producer member seat, eliminate the designated cooperative bargaining 
association member seat, and lower quorum requirements from 25 to 14 
were favored by 76.25 percent of the growers voting in the referendum, 
representing 82.66 percent of the total volume of raisins produced by 
those voting.
    The amendment to remove the requirement for separate member and 
alternate member position nominations for independent and small 
cooperative producers was favored by 67.50 percent of the growers 
voting in the referendum, representing 81.65 percent of the total 
volume of raisins produced by those voting.
    The amendments to remove factor 4 and part of factor 5 from the 
Committee's considerations for establishing marketing policy and add 
language to clarify the quality of reconditioned raisins as standard 
raisins were favored by 81.25 percent of the growers voting in the 
referendum, representing 91.99 percent of the total volume of raisins 
produced by those voting.

[[Page 64602]]

    The amendments to add authority to accept voluntary contributions 
and add language regarding ownership of intellectual property were 
favored by 72.97 percent of the growers voting in the referendum, 
representing 87.75 percent of the total volume of raisins produced by 
those voting.
    All proposed amendments exceeded the two-thirds requirement. 
Accordingly, the amendments favored by voters included in this final 
rule will reduce Committee membership size from 47 to 21, remove 
producer district representation, add an unaffiliated producer member 
seat, eliminate the designated cooperative bargaining association seat, 
and lower quorum requirements from 25 to 14; remove the requirement for 
separate member and alternate member position nominations for 
independent and small cooperative producers; remove factor 4 and part 
of factor 5 for establishing marketing policy, and add language 
clarifying the quality of reconditioned raisins; and add authority to 
accept voluntary contributions and add language regarding ownership of 
intellectual property.
    AMS also recommended necessary changes to the Order to conform to 
the amendments adopted or to correct minor inconsistencies and 
typographical errors. Specifically, AMS revised Sec.  989.129 to 
replace the word ``ballot'' with ``vote.'' AMS revised Sec.  989.129 to 
revert the regulatory text to its original form prior to the 2018 
amendment (October 26, 2018; 83 FR 53965), which separated nomination 
procedures for independent producers or producers affiliated with small 
cooperative marketing associations. This conforming change aligns with 
the Committee's proposal to remove the requirement that independent and 
small cooperative producers must be nominated separately for either a 
member or alternate member position. In addition, witnesses at the 
hearing testified in support of the amendment to remove separate 
nominations for small cooperative and independent producers, stating 
that separate nomination procedures discouraged participation rather 
than encouraged it, and that the separate nominations would no longer 
be necessary with a smaller Committee size. The regulatory text 
included in this final rule reflects this conforming change.
    The amended marketing agreement was subsequently mailed to all 
raisin handlers in the production area for their approval. The amended 
marketing agreement was not approved by handlers representing more than 
50 percent of the volume of raisins handled by all handlers during the 
August 1, 2024, through July 31, 2025, representative period. 
Consequently, a companion handler agreement will not be established.

Small Business Considerations

    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 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, and the rules issued thereunder, are unique in 
that they are brought about through group action of typically small 
entities acting on their own behalf.
    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 ($381,780,000 production volume divided by 
1,500 producers). Small agricultural producers of raisins are defined 
by the Small Business Administration (SBA) as those having annual 
receipts equal to or less than $4 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 hearing 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 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, the 2022-2023 crop year 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 multiplied by 414,898,000 pounds) 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 handlers), 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 on the probable regulatory and 
informational impact of the proposed amendments to the Order on small 
businesses. The evidence presented at the hearing showed that none of 
the proposed amendments would have any burdensome effects on small 
agricultural producers or firms.

Material Issues

    This action amends the Order to reduce the Committee membership 
size from 47 to 21, remove producer district representation and add an 
unaffiliated producer member seat, eliminate the designated cooperative 
bargaining association member seat, and lower quorum requirements from 
25 to 14; remove the requirement for separate member and alternate 
member position nominations for independent and small cooperative 
producers; remove factor 4 and part of factor 5 for establishing 
marketing policy and add language clarifying the quality of 
reconditioned raisins; and add authority to accept voluntary 
contributions and language regarding ownership of intellectual 
property. In addition, this action makes necessary changes to the Order 
to conform to the amendments adopted.
    The hearing record shows that the amendments will help reduce 
Committee vacancies, improve attendance, generate cost savings,

[[Page 64603]]

enhance administrative efficiency, ensure fair representation, and 
align Committee membership with the overall size of the California 
raisin industry. The record demonstrates that reducing the Committee 
membership size from 47 to 21 will make it easier to manage and fill 
Committee positions, thus improving attendance and lessening the 
likelihood of prolonged vacancies. This amendment, along with the other 
amendments to remove producer district representation, add an 
unaffiliated producer member seat, and eliminate the designated 
cooperative bargaining association member seat, ensure that the size 
and composition of the Committee align 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 and reduce meeting delays and rescheduling caused by low 
attendance, improving administrative efficiency and generating cost 
savings for the Committee.
    The record further showed that removing the requirement for 
separate member and alternate member position nomination procedures for 
independent and small cooperative producers will enhance administrative 
efficiency by reducing administrative burden and streamlining the 
nomination process.
    Additionally, removing factors for establishing marketing policy 
will improve administrative efficiency by removing unnecessary and 
outdated considerations, allowing the Committee to focus on more 
relevant matters. Further, the amendment to clarify the quality of 
reconditioned raisins will dispel negative impressions stemming from 
misconceptions and clarify the quality of reconditioned fruit, 
streamlining sales and contribute to improved administrative 
efficiencies.
    Lastly, the addition of voluntary contribution authority and 
intellectual property language will generate cost savings, as 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.
    These amendments align the Order with current market-driven 
practices that result in a more efficient industry for producers and 
handlers of all sizes. AMS has not identified any relevant Federal 
rules that duplicate, overlap or conflict with this rule. These 
amendments are intended to improve the operation and administration of 
the Order and to assist in the marketing of California raisins.
    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 989) are 
approved under OMB No. 0581-0178 Vegetables and Specialty Crops. Some 
minor changes in those requirements are anticipated as a result of this 
proceeding. Changes would remove information no longer applicable. 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 herein have been reviewed under 
Executive Order 12988, ``Civil Justice Reform.'' They are not intended 
to have retroactive effect. The amendments do not preempt any State or 
local laws, regulations, or policies, unless they present an 
irreconcilable conflict with this rule.
    The Act provides that administrative proceedings must be exhausted 
before parties may file suit in court. Under section 608c(15)(A) of the 
Act, any handler subject to an order may file with USDA a petition 
stating that the order, any provision of the order, or any obligation 
imposed in connection with the order is not in accordance with law and 
request a modification of the order or to be exempted therefrom. 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 
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.

Order Amending the Order Regulating the Handling of Raisin Produced 
From Grapes Grown in California \1\
---------------------------------------------------------------------------

    \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 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 Order, as amended, and as hereby further amended, and all 
of the terms and conditions thereof, would tend to effectuate the 
declared policy of the Act;
    (2) The Order, as amended, and as hereby 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 Order, as amended, and as hereby 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 Order, as amended, and as hereby 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 
raisins produced from grapes grown in California; and

[[Page 64604]]

    (5) All handling of raisins produced from grapes grown in the 
production area as defined in the 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 grown in California shall be in 
conformity to, and in compliance with, the terms and conditions of the 
said Order, as amended, and as hereby 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 the Secretary's Decision and Referendum 
Order (December 11, 2025; 90 FR 57384), 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.
    For the reasons set out in the preamble, 7 CFR part 989 is 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:
    (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 of 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 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 paragraph (a) and revising and 
republishing paragraphs (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.

[[Page 64605]]

    (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 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. 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 and republish 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

[[Page 64606]]

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
14. Revise and republish 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 one vote for a 
nominee for each producer position to be filled.

Erin Morris,
Administrator, Agricultural Marketing Service.
[FR Doc. 2026-20792 Filed 10-8-26; 8:45 am]
BILLING CODE P


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