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fled percentages of their raisins for Gov ernment disposition. Prices received by producers rose rapidly, reaching 169 per cent of parity in 1944. In 1946, a year of relatively small raisin production, such prices rose to 202 percent of par ity. Total acreage of raisin variety grapes in California expanded from 253,561 acres in 1941 to 271,691 acres in 1947.
For the past four years, 1945-1948, pro duction of raisin variety grapes in Cali fornia has averaged in excess of 1,600,000 fresh tons, as compared with an average for the five years, 1934-1938, of slightly less than 1,200,000 tons.
In 1946, the year of peak prices, a much larger than normal percentage of raisin variety grapes was crushed for wine and brandy. Large wine inven tories were carried over into the 1947
season, so th at a smaller proportion of the raisin variety grapes was crushed th at season and a larger proportion was converted to raisins. Normal produc tion of raisins had increased, as evi denced by an average production of 237,500 tons for the four years, 1945-1948, compared with an average production of 218,600 tons for the prewar period, 19341938. Commercial exports of raisins, including those to Canada, dropped, however, from an average of 61,000 tons for th e 1934-1938 period to an average of approximately 41,000 tons for 1946 and 1947. The domestic outlets for raisin variety grapes in all forms have not ex panded enough to absorb the greater production and offset the reduction in commercial exports of raisins. There has been substantial increase in domes tic wine consumption, but domestic con sumption of raisins, the most important outlet for raisin variety grapes, has not kept pace with population increase.
The lack of usual demand by vintners for raisin variety grapes of the 1947
crop, increased production of raisins, ex cessive trade inventories of raisins, and curtailed commercial exports caused raisin prices to producers to decline sharply from $312 per ton, or 202 per cent of parity in 1946, to $132 per ton, or 76 percent of parity in 1947. This severe drop in prices adversely affected the wel fare of raisin variety grape producers.
A greater decline in prices would have occurred if the Government had not pur chased nearly 119,000 tons of raisins from the 1947 supply. This surplus condition was not temporary. Despite a 194S pro duction of raisins which was 27 percent less than th at of 1947, it has been neces sary for the Government to purchase for price support purposes in excess of 59,000
tons of raisins, in order to assure pro ducers a farm price comparable to that received by them in 1947. Commercial exports of raisins from the 1948 crop, although subsidized in part, are expected to total far less than those from the 1946
or 1947 production. Preliminary re turns for the 1948 crop indicate pro ducers will receive approximately $134
per ton for raisins, as compared with an average parity price of $174 per ton for the first six months of the 1948 season.
Barring unforeseen circumstances, such as unfavorable weather conditions, raisin production in 1949, and for some time to come, will exceed the quantity which can be marketed in normal do
PROPOSED RULE MAKING

mestic and foreign commercial outlets at grown. It would not be practicable to regulate the handling of raisins in any prices remunerative to p r o d u c e r s .
Attempts to force into those outlets a part of the area without applying the quantity of raisins much in excess of same regulation to the remaining parts their normal requirements would cause of such area, inasmuch as, in such an marked shrinkage in both prices and re event, raisins could be produced and turns to producers. The supply of rai handled in the uncovered portion free sins available for disposition in such from any or all restrictions. There are outlets should be restricted to a volume no differences in the production and which conforms with commercial dis marketing of raisins which would require tributive requirements and the excess different terms for one portion of the should be disposed of in channels not State as compared with other portions.
competitive with normal commercial out The issuance of several orders for each lets. In this way, producers would be of the several portions of the State where benefited by higher average prices and raisins are produced would be impracti greater aggregate returns for their raicable and would not effectively carry out sins than would be the case in the ab the declared policy of the act. Under the sence of such control. This would be foregoing circumstances, it is desirable true even if the surplus should be sal from the standpoint of reasonably ef vaged at low values, because the demand fective regulation, for the entire State of for raisins is inelastic at volumes equiva California to be included in the area. It lent to current levels of production. is concluded, therefore, that the State of Effective control of the surplus also California, considered as a unit, con would equalize among producers the bur stitutes the smallest practicable area, den of such surplus. The order is de consistently with the carrying out of the signed to establish orderly marketing declared policy of the act and for the conditions for raisins and to accomplish purposes of the order.
Raisin variety grapes should be de the foregoing results in conformity with the Agricultural Marketing Agreement fined to mean and include grapes of the Thompson Seedless or Sultanina, Mus Act of 1937, as amended.
3 a Certain terms, applying to cat of Alexandria or Muscat, Muscatel specific individuals, agencies, legislation, Gordo Blanco or Muscat, Black Cor concepts, or things, are used throughout inth or Zarite C urrant, White Corinth the order. Those terms should be defined or Zante C urrant, and Seedless Sul to designate specifically their appli tana or Sultana, varieties grown in the cability, and to establish appropriate area. These varieties of grapes comprise limitations of their meanings wherever all of the varieties from which raisins are produced in any appreciable volume they are used.
The definition of Secretary should in the area. A relatively small quantity include not only the Secretary of Agri of Black Minukka grapes are dried, but culture of the United States, the official but the public demand for such dried charged by law with general supervision grapes has been very limited. A num over such programs, but also, in order to ber of the other varieties of grapes de recognize the fact that it is physically velop a fairly high sugar content and impossible for him to perform personally could be dried. However, experience has all of the functions and duties imposed demonstrated that grapes of these varie upon him by law, it should include any ties in dried form are not generally ac other officer or employee of the United ceptable to the public. None of the States Department of Agriculture who is, other varieties at this time appears to or who may hereafter be, authorized to have qualities which might cause dried perform the duties of the Secretary. The grapes produced from them to be ac definition of act gives the legal cita cepted in preference to raisins produced the varieties proposed to be in tion for the statute pursuant to which from and from such latter varieties regulatory programs of this nature are cluded, operated. The definition of person fol are produced practically all of the raisins are sold commercially.
lows the definition of that term as set which It was proposed that the term raisins forth in the act.
defined to mean any raisin variety Area should be defined to mean the be grapes from which a part of the natural State of California. Commercial raisin moisture has been removed. It would production in the United States is con not be practicable to specify how much fined to this State, and, by reason of un moisture should be removed from grapes favorable climatic and soil conditions, it before they should be considered as rais does not appear probable that such pro ins because the moisture content of n at duction will later develop on any appre ural condition raisins varies consider ciable commercial scale in other States. ably. Moreover, if such a maximum While raisins are produced, primarily in moisture content should be specified, it Fresno, Kern, Kangs, Madera, Merced, might be possible for persons to circum San Joaquin, Stanislaus, and Tulare vent the intended regulations by adding Counties, they are also produced commer" moisture to the raisins so as to bring cially to a limited extent in other counties the moisture content thereof slightly of California. Also, in other counties of above the maximum prescribed. How the State, raisin variety grapes are ever, it is not intended that raisin variety grown which are not normally converted grapes will be considered raisins prior into raisins but which might be so con to the time they are removed from the verted if it became profitable to do so. vines, eVen though they may lose some Raisin variety grapes are grown on a moisture content while on the vines.
commercial scale in about 40 of the 58 Conversely, it is intended th at such counties of California. Further, raisins grapes, will be considered raisins if they could be produced in some of the counties have been removed from the vines and where raisin variety grapes are not now Ipse part of tlieir natural moisture due