[Federal Register Volume 61, Number 69 (Tuesday, April 9, 1996)]
[Rules and Regulations]
[Pages 15695-15697]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-8719]
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Rules and Regulations
Federal Register
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Federal Register / Vol. 61, No. 69 / Tuesday, April 9, 1996 / Rules
and Regulations
[[Page 15695]]
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 985
[FV96-985-1IFR]
Spearmint Oil Produced in the Far West; Revision of the Salable
Quantity and Allotment Percentage for Class 1 (Scotch) Spearmint Oil
for the 1995-96 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 quantity of Class 1
(Scotch) spearmint oil produced in the Far West that handlers may
purchase from, or handle for, producers during the 1995-96 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 April 9, 1996 through May 31, 1996; comments
received by May 9, 1996 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, DC 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 SW 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, DC 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), hereinafter referred
to as the ``order.'' This 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 quantity of Scotch spearmint oil produced in the Far West
that may be purchased from or handled for producers by handlers during
the 1995-96 marketing year, which ends on May 31, 1996. 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 order and approximately 260 producers of spearmint oil in the
regulated production area. Of the 260 producers, approximately 160
(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 order). Spearmint oil is also
produced in the Midwest. The production area covered by the order
normally accounts for
[[Page 15696]]
approximately 75 percent of the annual U.S. production of spearmint
oil.
This rule increases the quantity of Scotch spearmint oil that
handlers may purchase from, or handle for, producers during the 1995-96
marketing year, which ends on May 31, 1996. This rule increases the
salable quantity from 908,531 pounds to 997,317 pounds and the
allotment percentage from 51 percent to 56 percent for Scotch spearmint
oil for the 1995-96 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 individual
allotment base for the applicable class of spearmint oil.
The initial salable quantity and allotment percentages for Scotch
and Native spearmint oils for the 1995-96 marketing year were
recommended by the Committee at its October 5, 1994, meeting. The
Committee recommended salable quantities of 908,531 pounds and 906,449
pounds, and allotment percentages of 51 percent and 46 percent,
respectively, for Scotch and Native spearmint oils. A proposed rule was
published in the December 15, 1994, issue of the Federal Register (59
FR 64624). Comments on the proposed rule were solicited from interested
persons until January 17, 1995. No comments were received. Accordingly,
based upon analysis of available information, a final rule establishing
the salable quantities and allotment percentages for Scotch and Native
spearmint oils for the 1995-96 marketing year was published in the
February 15, 1995, issue of the Federal Register (60 FR 8524). The
Committee met again on February 22, 1995, to recommend an increase in
the salable quantity and allotment percentage for Native spearmint oil.
An interim final rule increasing the salable quantity and allotment
percentage for Native spearmint oil by 98,527 and 5 percent,
respectively, was published in the Federal Register on April 14, 1995
(60 FR 18950). Comments were solicited on the interim final rule until
May 15, 1995. No comments were received. Accordingly, based upon
analysis of available information, a final rule establishing as the
salable quantity and allotment percentage for Native spearmint oil for
the 1995-96 marketing year was published in the June 12, 1995, issue of
the Federal Register (60 FR 30785).
Pursuant to authority contained in sections 985.50, 985.51, and
985.52 of the order, at its February 27, 1996, meeting, the Committee
unanimously recommended that the allotment percentage for Scotch
spearmint oil for the 1995-96 marketing year be increased by 5 percent
from 51 percent to 56 percent. The 1995-96 marketing year salable
quantity of 908,531 pounds would therefore be increased by 89,046
pounds to 997,317 pounds.
However, some Scotch spearmint oil producers did not produce all of
their individual salable quantities for the 1995-96 marketing year, or
fill their deficiencies from the prior year's production. The marketing
order authorizes such producers to have their deficiencies filled by
other producers who have production in excess of their salable
quantities. This is optional for producers, but must be done before
November 1 of each marketing year. Although the Scotch spearmint oil
salable quantity for 1995-96 was established at 908,531 pounds, only
887,093 pounds were actually made available. Unfilled deficiencies
totaled 21,178 pounds.
In addition, for the Scotch spearmint oil the total industry
allotment base of 1,781,433 pounds was revised to 1,780,923 pounds to
reflect loss of base due to non-production of their total annual
allotments. This adjustment resulted in a 510 pound loss of total
industry base, which is reflected in the calculations for the revised
salable quantity.
This interim final rule makes an additional amount of Scotch
spearmint oil available by increasing the salable quantity which
releases oil from the reserve pool. Only producers with Scotch
spearmint oil in the reserve pool will be able to use this increase in
the salable quantity. Prior to November 1, 1995, producers without
reserve pool oil or producers with an insufficient supply of reserve
oil could have deficiencies in meeting their salable quantities filled
by producers having excess Scotch spearmint oil. If all producers could
use their salable quantity, this 5 percent increase in the allotment
percentage would have made an additional 89,046 pounds of Scotch
spearmint oil available. However, Scotch spearmint oil producers having
21,260 pounds of Scotch spearmint oil will not be able to use their
reserve pool deficiencies this marketing year. Thus, rather than 89,046
additional pounds being made available, this action makes 67,786
additional pounds of Scotch spearmint oil available to the market.
The following table summarizes the Committee recommendation:
Scotch Spearmint Oil Recommendation
(a) Actual Carry In on June 1, 1995: 150,637 pounds
(b) 1995-96 Salable Quantity: 908,531 pounds
(c) 1995-96 Available Supply: 1,059,168 pounds (a+b)
(d) Total Sales as of February 27, 1996: 883,959 pounds
(e) Calculated Available Supply as of February 27, 1996: 175,209
pounds (c-d)
(f) Unfilled Deficiencies in producers' salable quantities prior to
November 1, 1995: 21,178 pounds
(g) Unusable salable quantities due to producers not having reserve
pool oil: 21,260 pounds
(h) Total Deficiency Affecting Salable Quantity: 42,438 pounds (f+g)
(i) Actual Available Supply (2/27/96): 153,771 pounds (e-f)
(j) Revised Total Allotment Base: 1,780,923 pounds
(k) Recommended Allotment Percentage (2/27/96): 56 percent
(l) Calculated Revised Salable Quantity: 997,317 pounds (j x k)
(m) Actual Oil Available as Salable Quantity: 954,879 pounds (l-h)
In making this latest recommendation, the Committee considered all
available information on supply and demand. The 1996-97 marketing year
begins on June 1, 1996. Handlers have indicated that with this action,
the available supply of both Scotch and Native spearmint oils appears
adequate to meet anticipated demand through May 31, 1996. However, with
increases in Scotch spearmint oil production elsewhere over the past
two years, the Committee has embarked on a strategy of maintaining an
abundance of Scotch spearmint oil available for market in an attempt to
regain lost market share. With 153,771 pounds of Scotch spearmint oil
available as of February 27, 1996, the Committee, believes that the
increase would ensure that ample supplies of Scotch spearmint oil are
available throughout the remainder of the current marketing year. When
the Committee made its initial recommendation for the establishment of
the Scotch spearmint oil salable quantity and allotment percentage for
the 1995-96 marketing year, it had anticipated that the year would end
with an ample available supply. With this revision, 221,557 pounds of
Scotch spearmint oil is made available for market during the remainder
of the 1995-96 marketing year.
The Department, based on its analysis of available information, has
determined
[[Page 15697]]
that an allotment percentage of 56 percent should be established for
Scotch spearmint oil for the 1995-96 marketing year. This percentage
will provide an increased calculated salable quantity of 997,317
pounds, the actual additional amount of Scotch spearmint oil being made
available by this interim final rule is 67,786 pounds. This results in
an actual salable quantity of 954,879 pounds of Scotch 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 and final rules in connection with
the establishment of the salable quantities and allotment percentages
for Scotch and Native spearmint oils for the 1995-96 marketing year,
the Committee's recommendation and other available information, it is
found that to revise section 985.214 (60 FR 8524) to change the salable
quantity and allotment percentage for Scotch 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 the 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 quantity of Scotch
spearmint oil that may be marketed during the marketing year beginning
on June 1, 1995; (2) The quantity of Scotch spearmint planted for the
1996-97 marketing year may be affected, thus handlers and producers
should be apprised as soon as possible of the salable quantity and
allotment percentage of Scotch spearmint oil contained in this interim
final rule; 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 985.214 is amended by revising paragraph (a) 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 997,317 pounds and
an allotment percentage of 56 percent.
* * * * *
Dated: April 2, 1996.
James R. Rodeheaver,
Acting Deputy Director, Fruit and Vegetable Division.
[FR Doc. 96-8719 Filed 4-8-96; 8:45 am]
BILLING CODE 3410-02-P
