[Federal Register Volume 60, Number 31 (Wednesday, February 15, 1995)]
[Rules and Regulations]
[Pages 8524-8526]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-3785]
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DEPARTMENT OF AGRICULTURE
7 CFR Part 985
[FV94-985-5FR]
Spearmint Oil Produced in the Far West; Salable Quantities and
Allotment Percentages for the 1995-96 Marketing Year
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Final rule.
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SUMMARY: This final rule establishes the quantity of spearmint oil
produced in the Far West, by class, that handlers may purchase from, or
handle for, producers during the 1995-96 marketing year. The Spearmint
Oil Administrative Committee (Committee), the agency responsible for
local administration of the marketing order for spearmint oil produced
in the Far [[Page 8525]] West, recommended this rule for the purpose of
avoiding extreme fluctuations in supplies and prices, and thus help to
maintain stability in the spearmint oil market.
EFFECTIVE DATE: March 17, 1995.
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; 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) 720-5127.
SUPPLEMENTARY INFORMATION: This final 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 final 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
final rule establishes the quantity of spearmint oil produced in the
Far West, by class, that may be purchased from or handled for producers
by handlers during the 1995-96 marketing year, which begins on June 1,
1995. This final 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 8 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) oil allotment base, and approximately
145 producers hold Class 3 (Native) oil allotment base. Small
agricultural service firms are 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 have been defined as
those whose annual receipts are less than $500,000. A minority of
producers and handlers 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 is 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 accounts for approximately 75 percent of the annual
U.S. production of spearmint oil.
Pursuant to authority contained in Secs. 985.50, 985.51, and 985.52
of the marketing order, the Committee recommended the salable
quantities and allotment percentages for the 1995-96 marketing year at
its October 5, 1994, meeting. The Committee recommended the
establishment of a salable quantity and allotment percentage for Scotch
spearmint oil by a unanimous vote, and a seven to one vote,
respectively. The member voting in opposition favored the establishment
of a higher salable quantity that would have resulted in a higher
allotment percentage. The Committee also recommended the establishment
of a salable quantity and allotment percentage for Native spearmint oil
by a unanimous vote.
This final rule establishes a salable quantity of 908,531 pounds
and an allotment percentage of 51 percent for Scotch spearmint oil, and
a salable quantity of 906,449 pounds and an allotment percentage of 46
percent for Native spearmint oil. This rule limits the amount of
spearmint oil that handlers may purchase from, or handle for, producers
during the 1995-96 marketing year, which begins on June 1, 1995.
Salable quantities and allotment percentages have been placed into
effect each season since the marketing order's inception in 1980.
The salable quantity and allotment percentage for each class of
spearmint oil for the 1995-96 marketing year is based upon the
Committee's recommendations and the following data and estimates:
(1) Class 1 (Scotch) Spearmint Oil
(A) Estimated carry-in on June 1, 1995--57,325 pounds. This number
is derived by subtracting the estimated 1994-95 marketing year trade
demand of 900,000 pounds from the revised 1994-95 marketing year total
available supply of 957,325 pounds.
(B) Estimated trade demand (domestic and export) for the 1995-96
marketing year--950,000 pounds. This number is an estimate that takes
into account the average of total annual sales made between 1980 and
1993, handler estimates, and information provided by producers and
buyers.
(C) Salable quantity required from 1995-96 regulated production--
892,675 pounds. This number is the difference between the estimated
1995-96 marketing year trade demand and the estimated carry-in on June
1, 1995.
(D) Total allotment base for the 1995-96 marketing year--1,781,433
pounds.
(E) Computed allotment percentage--50.1 percent. This percentage is
computed by dividing the required salable quantity by the total
allotment base.
(F) Recommended allotment percentage--51 percent.
(G) The Committee's recommended salable quantity--908,531 pounds.
(2) Class 3 (Native) Spearmint Oil
(A) Estimated carry-in on June 1, 1995--156,733 pounds. This number
is [[Page 8526]] derived by subtracting the estimated 1994-95 marketing
year trade demand of 1,150,000 pounds from the revised 1994-95
marketing year total available supply of 1,306,733 pounds.
(B) Estimated trade demand (domestic and export) for the 1995-96
marketing year--1,050,000 pounds. This number is an estimate based on
the average of total annual sales made between 1980 and 1993, handler
estimates, and information provided by producers and buyers.
(C) Salable quantity required from 1995-96 regulated production--
893,267 pounds. This number is the difference between the estimated
1995-96 marketing year trade demand and the estimated carry-in on June
1, 1995.
(D) Total allotment base for the 1995-96 marketing year--1,970,542
pounds.
(E) Computed allotment percentage--45.3 percent. This percentage is
computed by dividing the required salable quantity by the total
allotment base.
(F) Recommended allotment percentage--46 percent.
(G) The Committee's recommended salable quantity--906,449 pounds.
The salable quantity is the total quantity of each class of oil
which handlers may purchase from or handle on behalf of producers
during a marketing year. 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 Committee's recommended salable quantities of 908,531 pounds
and 906,449 pounds, and allotment percentages of 51 percent and 46
percent for Scotch and Native spearmint oils, respectively, are based
on anticipated 1995-96 marketing year supply and trade demand.
The recommended salable quantity and allotment percentage for
Native spearmint oil reflects the Committee's expectation that demand
during the 1995-96 marketing year will approximate the demand initially
anticipated for the 1994-95 marketing year. On the other hand, the
relatively higher recommended salable quantity and allotment percentage
for Scotch spearmint oil for the 1995-96 marketing year demonstrates
that the Committee is concerned with the increasing Scotch spearmint
oil production both inside and outside the marketing order production
area, and the industry's desire to maintain a significant share of the
North American market.
These salable quantities are not expected to cause a shortage of
spearmint oil supplies. Any unanticipated or additional market demand
for spearmint oil which may develop during the marketing year can be
satisfied by an increase in the salable quantity. Both Scotch and
Native spearmint oil producers who produce more than their annual
allotments during the 1994-95 season may transfer such excess spearmint
oil to a producer with spearmint oil production less than his or her
annual allotment or put it into the reserve pool.
This regulation, as adopted, will be similar to those which have
been issued in prior seasons. Costs to producers and handlers resulting
from this final action are expected to be offset by the benefits
derived from improved returns.
The establishment of these salable quantities and allotment
percentages allows for anticipated market needs based on historical
sales, changes and trends in production and demand, and information
available to the Committee. Adoption of this final rule also provides
spearmint oil producers with information on the amount of oil which
should be produced for next season.
The proposed rule concerning this action was published in the
December 15, 1994, Federal Register [59 FR 64624], with a 30-day
comment period ending January 17, 1995. No comments were received.
Based on available information, the Administrator of the AMS has
determined that the issuance of this final rule will not have a
significant economic impact on a substantial number of small entities.
After consideration of all relevant matter presented, including the
information and recommendations submitted by the committee and other
available information, it is hereby found that this rule, as
hereinafter set forth, will tend to effectuate the declared policy of
the Act.
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. A new section 985.214 is added to read as follows:
Note: This section will not appear in the annual Code of Federal
Regulations.
Sec. 985.214 Salable quantities and allotment percentages--1995-96
marketing year.
The salable quantity and allotment percentage for each class of
spearmint oil during the marketing year beginning on June 1, 1995,
shall be as follows:
(a) Class 1 (Scotch) oil--a salable quantity of 908,531 pounds and
an allotment percentage of 51 percent.
(b) Class 3 (Native) oil--a salable quantity of 906,449 pounds and
an allotment percentage of 46 percent.
Dated: February 8, 1995.
Sharon Bomer Lauritsen,
Deputy Director, Fruit and Vegetable Division.
[FR Doc. 95-3785 Filed 2-14-95; 8:45 am]
BILLING CODE 3410-02-P
