[Federal Register Volume 59, Number 209 (Monday, October 31, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-26924]
[[Page Unknown]]
[Federal Register: October 31, 1994]
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DEPARTMENT OF AGRICULTURE
7 CFR Part 985
[FV94-985-4IFR]
Spearmint Oil Produced in the Far West; Revision of the Salable
Quantities and Allotment Percentages for ``Class 1'' (Scotch) and
``Class 3'' (Native) Spearmint Oil for the 1994-95 Marketing Year
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Interim final rule with request for comments.
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SUMMARY: This interim final rule increases the quantities of ``Class
1'' (Scotch) and ``Class 3'' (Native) spearmint oil produced in the Far
West that handlers may purchase from, or handle for, producers during
the 1994-95 marketing year. This rule was recommended by the Spearmint
Oil Administrative Committee (Committee), the agency responsible for
local administration of the marketing order for spearmint oil produced
in the Far West. The Committee recommended this rule to avoid extreme
fluctuations in supplies and prices and thus help to maintain stability
in the Far West spearmint oil market.
DATES: Effective on October 31, 1994; comments received by November 30,
1994 will be considered prior to issuance of a final rule.
ADDRESSES: Interested persons are invited to submit written comments
concerning this rule. Comments must be sent in triplicate to the Docket
Clerk, Fruit and Vegetable Division, AMS, USDA, Room 2525, South
Building, P.O. Box 96456, Washington, D.C. 20090-6456; Fax: (202) 720-
5698. All comments should reference the docket number and the date and
page number of this issue of the Federal Register and will be made
available for public inspection in the Office of the Docket Clerk
during regular business hours.
FOR FURTHER INFORMATION CONTACT: Robert J. Curry, Northwest Marketing
Field Office, Marketing Order Administration Branch, Fruit and
Vegetable Division, AMS, USDA, 1220 S.W. Third Avenue, Room 369,
Portland, Oregon 97204-2807; telephone: (503) 326-2724; or Caroline C.
Thorpe, Marketing Order Administration Branch, Fruit and Vegetable
Division, AMS, USDA, Room 2525, South Building, P.O. Box 96456,
Washington, D.C. 20090-6456; telephone: (202) 720-8139.
SUPPLEMENTARY INFORMATION: This rule is issued under Marketing Order
No. 985 [7 CFR Part 985], regulating the handling of spearmint oil
produced in the Far West (Washington, Idaho, Oregon, and designated
parts of California, Nevada, Montana, and Utah). This marketing 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 Department of Agriculture (Department) is issuing this rule in
conformance with Executive Order 12866.
This rule has been reviewed under Executive Order 12778, Civil
Justice Reform. Under the provisions of the marketing order now in
effect, salable quantities and allotment percentages may be established
for classes of spearmint oil produced in the Far West. This rule
increases the quantities of ``Class 1'' and ``Class 3'' spearmint oil
produced in the Far West that may be purchased from or handled for
producers by handlers during the 1994-95 marketing year, which ends on
May 31, 1995. This rule will 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 the Secretary 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 the Secretary 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 in equity to review the
Secretary's ruling on the petition, provided a bill in equity is filed
not later than 20 days after date of the entry of the ruling.
Pursuant to requirements set forth in the Regulatory Flexibility
Act (RFA), the Administrator of the Agricultural Marketing Service
(AMS) has considered the economic impact of this action on small
entities.
The purpose of the RFA is to fit regulatory actions to the scale of
business subject to such actions in order that small businesses will
not be unduly or disproportionately burdened. Marketing orders issued
pursuant to the Act, and rules issued thereunder, are unique in that
they are brought about through group action of essentially small
entities acting on their own behalf. Thus, both statutes have small
entity orientation and compatibility.
There are eight spearmint oil handlers subject to regulation under
the marketing order and approximately 260 producers of spearmint oil in
the regulated production area. Of the 260 producers, approximately 160
producers hold ``Class 1'' Scotch spearmint oil allotment base, and
approximately 145 producers hold ``Class 3'' (Native) spearmint oil
allotment base. Small agricultural service firms have been defined by
the Small Business Administration [13 CFR 121.601] as those having
annual receipts of less than $5,000,000, and small agricultural
producers are defined as those whose annual receipts are less than
$500,000. A minority of handlers and producers of Far West spearmint
oil may be classified as small entities.
The Far West spearmint oil industry is characterized by producers
whose farming operations generally involve more than one commodity and
whose income from farming operations are not exclusively dependent on
the production of spearmint oil. The U.S. production of spearmint oil
is concentrated in the Far West, primarily Washington, Idaho, and
Oregon (part of the area covered by the marketing order). Spearmint oil
is also produced in the Midwest. The production area covered by the
marketing order normally accounts for 75 percent of the annual U.S.
production of spearmint oil.
This rule increases the quantities of the Scotch and Native classes
of spearmint oil that handlers may purchase from, or handle for,
producers during the 1994-95 marketing year, which ends on May 31,
1995. This rule increases the Scotch spearmint oil salable quantity and
allotment percentage from 723,326 pounds to 811,516 pounds and 41
percent to 46 percent, respectively, and the Native spearmint oil
salable quantity and allotment percentage from 1,092,577 pounds to
1,287,680 pounds and 56 percent to 66 percent, respectively, for the
1994-95 marketing year.
The salable quantity is the total quantity of each class of oil
that handlers may purchase from, or handle for, producers during a
marketing year. The salable quantity calculated by the Committee is
based on the estimated trade demand. The total salable quantity is
divided by the total industry allotment base to determine an allotment
percentage. Each producer is allotted a share of the salable quantity
by applying the allotment percentage to the producer's allotment base
for the applicable class of spearmint oil.
The initial salable quantities and allotment percentages for the
Scotch and Native classes of spearmint oil for the 1994-95 marketing
year were recommended by the Committee at its October 6, 1993, meeting.
The Committee recommended salable quantities of 723,326 pounds and
897,388 pounds, and allotment percentages of 41 percent and 46 percent,
respectively, for the Scotch and Native classes of spearmint oil. A
proposed rule incorporating the Committee's October 6, 1993,
recommendation was published in the December 21, 1993, issue of the
Federal Register [58 FR 67378]. Comments on the proposed rule were
solicited from interested persons until January 20, 1994. No comments
were received. Accordingly, based upon analysis of available
information, a final rule establishing the Committee's recommendation
as the salable quantities and allotment percentages for the Scotch and
Native classes of spearmint oil for the 1994-95 marketing year was
published in the March 16, 1994, issue of the Federal Register [59 FR
12151].
At its June 14, 1994, teleconference meeting, the Committee
unanimously recommended that the salable quantity and allotment
percentage for Native spearmint oil for the 1994-95 marketing year be
increased. The Committee recommended that the Native spearmint oil
salable quantity be increased from 897,388 pounds to 1,092,577 pounds,
and that the allotment percentage, based on a revised total allotment
base of 1,951,032 pounds, be increased from 46 to 56 percent resulting
in a 195,189 pound increase in the salable quantity.
An interim final rule incorporating the Committee's June 14, 1994,
recommendation was published in the August 26, 1994, Federal Register
(59 FR 44028). Comments on the interim rule were solicited from
interested persons until September 26, 1994. No comments were received.
Pursuant to authority contained in sections 985.50, 985.51, and
985.52 of the marketing order, at its October 5, 1994, meeting, the
Committee recommended by a unanimous vote to increase the salable
quantity and allotment percentage for Scotch spearmint oil. The
committee also recommended by 10 to 1 vote an increase in the salable
quantity and allotment percentage for Native spearmint oil. The person
voting in opposition favored a smaller increase in the salable quantity
and allotment percentage for Native spearmint oil.
Specifically, the committee recommended that the salable quantities
and allotment percentages for Scotch and Native classes of spearmint
oil for the 1994-95 marketing year be increased from 723,326 pounds to
811,516 pounds, and 1,092,577 pounds to 1,287,680 pounds, respectively.
Based on a revised total allotment base of 1,763,795 pounds, the
allotment percentage for Scotch spearmint oil is increased from 41
percent to 46 percent, resulting in an 88,190 pound increase in the
salable quantity. Further, based on the same revised total allotment
base published in the August 26, 1994, Federal Register (59 FR 44028)
the allotment percentage for Native spearmint oil is increased from 56
percent to 66 percent, resulting in a 195,103 pound increase in the
salable quantity.
Scotch Spearmint Oil Recommendations
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Oct. 6, Oct. 5,
1993 1994
------------------------------------------------------------------------
(1) Salable Quantity.......................... 723,326 811,516
(2) Total Allotment Base...................... 1,764,209 1,763,795
(3) Allotment Percentage...................... 41 46
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Native Spearmint Oil Recommendations
------------------------------------------------------------------------
Oct. 6, June 14, Oct. 5,
1993 1994 1994
------------------------------------------------------------------------
(1) Salable Quantity............. 897,388 1,092,577 1,287,680
(2) Total Allotment Base......... 1,950,843 1,951,032 1,951,032
(3) Allotment Percentage......... 46 56 66
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In making this recommendation the Committee considered all
available information on supply and demand. As of October 5, 1994, the
Committee reports that of the respective 1994-95 Scotch and Native
spearmint oil salable quantities of 723,326 pounds and 1,092,577
pounds, and approximately 116,000 pounds and 87,000 pounds,
respectively, remained available for handling. Handlers have indicated,
however, that demand may approximate 200,000 pounds of Scotch spearmint
oil, and 300,000 pounds of Native spearmint oil for the remainder of
this marketing year. This level of demand was not anticipated by the
Committee when it made its initial recommendation for the establishment
of the Scotch and Native spearmint oil salable quantities and allotment
percentages for the 1994-95 marketing year, nor was it foreseen when
the Committee made its June 14, 1994, recommendation for an increase in
the Native spearmint oil salable quantity and allotment percentage.
The recommended salable quantity of 811,516 pounds of Scotch
spearmint oil (an increase of 88,190 pounds), combined with the actual
June 1, 1994, carry-in of 145,809 pounds, results in a revised 1994-95
available supply of 957,325 pounds. Similarly, the recommended salable
quantity of 1,287,680 pounds of Native spearmint oil (an increase of
195,103 pounds), combined with the revised June 1, 1994, carry-in of
19,139 pounds, results in a revised 1994-95 available supply of
1,306,819 pounds. The revised available supplies of the Scotch and
Native classes of spearmint oil, respectively, are approximately 67,000
pounds and 227,000 pounds higher than the respective annual average of
sales for the past five years. The Committee anticipates that
foreseeable demand for both classes of oil will be adequately met with
the recommended increase.
The Department, based on its analysis of available information, has
determined that allotment percentages of 46 percent and 66 percent,
respectively, should be established for the Scotch and Native classes
of spearmint oil for the 1994-95 marketing year. These percentages will
provide an increased salable quantity of 811,516 pounds of Scotch
spearmint oil and an increased salable quantity of 1,287,680 pounds of
Native spearmint oil.
Based on available information, the Administrator of the AMS has
determined that the issuance of this interim final rule will not have a
significant economic impact on a substantial number of small entities.
After consideration of all relevant matter presented, including
that contained in the prior proposed, final, and interim final rules in
connection with the establishment of the salable quantities and
allotment percentages for the Scotch and Native classes of spearmint
oil for the 1994-95 marketing year, the Committee's recommendation and
other available information, it is found that to revise Sec. 985.213 to
change the salable quantities and allotment percentages for the Scotch
and Native classes of spearmint oil, as hereinafter set forth, will
tend to effectuate the declared policy of the Act.
Pursuant to 5 U.S.C. 553, it is also found and determined upon good
cause that it is impracticable, unnecessary, and contrary to public
interest to give preliminary notice prior to putting this rule into
effect and that good cause exists for not postponing the effective date
of this rule until 30 days after publication in the Federal Register
because: (1) This interim final rule increases the quantities of the
Scotch and Native classes of spearmint oil that may be marketed
immediately; (2) the committee recommended this rule a public meeting
and all interested persons had an opportuntnity to provide input; and
(3) This rule provides a 30-day comment period and any comments
received will be considered prior to finalization of this rule.
List of Subjects in 7 CFR Part 985
Marketing agreements, Oils and fats, Reporting and recordkeeping
requirements, Spearmint oil.
For the reasons set forth in the preamble, 7 CFR part 985 is
amended as follows:
PART 985--SPEARMINT OIL PRODUCED IN THE FAR WEST
1. The authority citation for 7 CFR part 985 continues to read as
follows:
Authority: 7 U.S.C. 601-674.
2. Section 985.213 is amended by revising paragraphs (a) and (b) to
read as follows:
Note: This section will not appear in the annual Code of Federal
Regulations.
Sec. 985.213 Salable quantities and allotment percentages--1994-95
marketing year.
* * * * *
(a) ``Class 1'' (Scotch) oil--a salable quantity of 811,516 pounds
and allotment percentage of 46 percent.
(b) ``Class 3'' (Native) oil--a salable quantity of 1,287,680
pounds and an allotment percentage of 66 percent.
Dated: October 26, 1994.
Eric M. Forman,
Deputy Director, Fruit and Vegetable Division.
[FR Doc. 94-26924 Filed 10-26-94; 2:40 pm]
BILLING CODE 3410-02-P
