To: Cranberry Growers
From: David Farrimond, CMC General Manager
Date: April 4, 2000
RE: Growers Notice of Intent to Produce & Qualify for Annual Allotment

On March 30, 2000 the Cranberry Marketing Committee (Committee) voted to forward a recommendation to the Secretary, USDA, for the establishment of a producer allotment volume regulation program for crop year 2000.

Although the Secretary decision, approving or disapproving this recommendation, may not be known until June 1, 2000, the Cranberry Marketing Committee must proceed as if the recommendation will be approved.

The Cranberry Marketing Order (CMO) requires all growers to qualify for their annual allotment by filing with the Committee, on or before April 15, a form wherein growers shall provide pertinent information, including a copy of any lease agreement, as may be necessary for the Committee to determine growers annual allotment.

Enclosed is CMC form AL1 that needs to be completed, signed, dated and filed with the Committee before the Committee can proceed with determining a grower’s annual allotment. Since USDA approval of this form was delayed, the filing date for form AL1 has been extended to on or before April 22, 2000.

Note, if the enclosed AL1 form is not completed and filed with the Committee on or before April 22, 2000 the grower will have failed to qualify for their annual allotment. Furthermore, handlers will not be able to purchase cranberries from or handle cranberries on behalf of any growers who have not been issued an annual allotment by the Committee. Therefore, it is critically important that growers complete and file the AL1 form with the Committee on or before April 22, 2000.

The Committee is in the process of changing the basis for determining cranberry acreage. Currently, to be classified as "cranberry acreage," such acreage must be producing cranberries, on a commercial basis, of at least 15 barrels per acre without replanting or renovation of any kind. The Committee, through informal rulemaking is increasing the barrels per acre from 15 to 50 in determining "cranberry acre."

Growers who had acreage producing for the first time during the 1999 crop year, that were not been replanted or renovated, and produced fifty (50) or less barrels per acre may qualify for a re-determination by the Committee of sales history computed on such acreage for the 1999 crop year. This re-determination does not extend or apply to any acreage that produced fifty-barrels or less during any crop year prior to the 1999 crop year. Growers who feel they may qualify for this re-determination may request a Committee review by sending a written request, along with any supportive documentation, to the Committee on or before May 1, 2000.

In accordance with the marketing order, the Committee shall compute sales history for a grower who has no history of sales associated with such grower’s cranberry acreage during a crop year when a volume regulation has been established. This provision applies to new and existing growers who have new or renovated acres coming into production, i.e., being harvested for the first time, during the 2000 crop year. Growers who have such acreage should denote the number of "new" acreage when answering question #4 on form AL1. The Committee will conduct site checks to verify that such acreage meet the requirements specified in §929.48(a)(5), Cranberry Marketing Order.

On or before June 1, 2000 the Committee shall issue an annual allotment to each grower who has qualified. The annual allotment shall be determined by applying the allotment percentage, established by the Secretary, USDA, to the grower’s sales history. Growers will be notified of their average sales history prior to June 1, 2000. Following this notification, growers may request the Committee review their sales history determination in accordance with §929.125, Cranberry Marketing Order.

Growers who have entered into, extended, or terminated lease agreements should notify the Committee as such. The marketing order requires a leased acreage form be completed and filed with the Committee. The Committee is in the process of reviewing leases on file and will be contacting growers regarding the status of such leases that have expired.

You may receive an AL1 form although you have already transferred (sold) your cranberry acreage. Telling the Committee you sold the cranberry acreage is not sufficient. Buyers and sellers are required to file completed transfer forms with the Committee before the Committee can recognize and proceed with the transfer. Note to buyers, if you did not complete a transfer form contact the Committee so we can check and verify that the transfer has been completed, otherwise your records may not contain accurate sales history information that could be used in determining your annual allotment.

Over the next month the Committee will be providing growers with more details on the review process, including what constitutes unusual circumstances that may be used in re-determining sales history, transfers, leasing, and other pertinent factors that are applicable when a volume regulation has been established.

In the meantime, if you have questions relating to the completion of the AL-1 form, feel free to contact me via email at crnberry@capecod.net, by fax at 508.292.1511 or by phone at either 508.291.1510 ext 14 or 800.253.0862 ext 14.

 


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