[Federal Register Volume 61, Number 113 (Tuesday, June 11, 1996)]
[Rules and Regulations]
[Pages 29459-29461]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-14755]
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Rules and Regulations
Federal Register
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Federal Register / Vol. 61, No. 113 / Tuesday, June 11, 1996 / Rules
and Regulations
[[Page 29459]]
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 985
[Docket No. FV96-985-1FIR]
Spearmint Oil Produced in the Far West; Revision of the Salable
Quantity and Allotment Percentages for Class 1 (Scotch) Spearmint Oil
the 1995-96 Marketing Year
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Final rule.
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SUMMARY: The Department of Agriculture (Department) is adopting as a
final rule, without change, the provisions of an interim final rule
increasing 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 for the purpose of avoiding extreme fluctuations in supplies and
prices and thus help to maintain stability in the spearmint oil market.
EFFECTIVE DATE: July 11, 1996.
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, D.C. 20090-6456; telephone: (202) 720-8139; Tershirra
Yeager, 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) 690-0992.
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), 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 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 increases the quantity of Scotch 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 ends on
May 31, 1996. 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 an action 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 Agricultural Marketing Service (AMS) has considered the
economic impact of this rule 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 who are subject to
regulation under the respective 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 order). Spearmint oil is also
produced in the Midwest. The production area covered by the order
normally accounts for approximately 75 percent of the annual U.S.
production of spearmint oil.
This rule finalizes an interim final rule that increased 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
[[Page 29460]]
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 base for the applicable class of spearmint
oil.
The initial salable quantity and allotment percentages for Scotch
and Native percentages 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 64625).
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
Committee's recommendation as the salable quantities and allotment
percentage 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 Secs. 985.50, 985.51, and 985.52
of the order, February 27, 1996, meeting, the Committee unanimously
recommended, that 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 final rule continues to permit 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. An interim final rule was published in
the Federal Register [61 FR 15697]. Comments on the interim final rule
were solicited from interested persons until May 9, 1996. No comments
were received. With this latest revision, 221,557 pounds of Scotch
spearmint oil is made available. The 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 29461]]
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 final rule is 67,786 pounds. This results in an
actual salable quantity of 954,879 pounds of Scotch spearmint oil.
Therefore, based on available information, 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
that contained in the prior proposed and final rules in connection with
the establishment of the salable quantity and allotment percentage 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.
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
Accordingly, the interim final rule amending 7 CFR part 985 which
was published at 61 FR 15695 on April 9, 1996, is adopted as a final
rule without change.
Dated: June 3, 1996.
Sharon Bomer Lauritsen,
Acting Director, Fruit and Vegetable Division.
[FR Doc. 96-14755 Filed 6-10-96; 8:45 am]
BILLING CODE 3410-02-P
