[Federal Register Volume 60, Number 112 (Monday, June 12, 1995)]
[Rules and Regulations]
[Pages 30783-30785]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-14278]
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DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 985
[FV95-985-2FIR]
Spearmint Oil Produced in the Far West; Revision of the Salable
Quantity and Allotment Percentage for Class 3 (Native) Spearmint Oil
for the 1994-95 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 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.
EFFECTIVE DATE: June 1, 1994, through May 31, 1995.
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, PO Box 96456,
Washington, DC 20090-6456; telephone: (202) 720-8139; or Fax: (202)
720-5698.
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 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 final rule
finalizes an interim final rule that increased the quantity of 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 8 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 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
accounts for approximately 75 percent of the annual U.S. production of
spearmint oil.
This final rule finalizes an interim final rule increasing the
quantity of Native 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 salable quantity from 1,287,680
pounds to 1,358,404 pounds and the allotment percentage from 66 percent
to 70 percent for Native spearmint oil 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 Scotch
and Native spearmint oils for the 1994-95 marketing year were
recommended by the Committee at its October 6, 1993, meeting. The
Committee recommended [[Page 30784]] salable quantities of 723,326
pounds and 897,388 pounds, and allotment percentages of 41 percent and
46 percent, respectively, for Scotch and Native spearmint oils. A
proposed rule 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 salable quantities and
allotment percentages for Scotch and Native spearmint oils 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
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 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.
At its October 5, 1994, meeting, the Committee recommended that the
salable quantities for Scotch and Native spearmint oils for the 1994-95
marketing year be increased from 723,326 pounds to 811,516 pounds, and
from 1,092,577 pounds to 1,287,680 pounds, respectively. Based on a
revised total allotment base of 1,763,795 pounds, the Committee
recommended that the allotment percentage for Scotch spearmint oil be
increased from 41 percent to 46 percent, resulting in an 88,190 pound
increase in the salable quantity. Further, based on the revised total
allotment base published in the August 26, 1994, Federal Register (59
FR 44028), the Committee recommended that the allotment percentage for
Native spearmint oil be increased from 56 percent to 66 percent,
resulting in a 195,103 pound increase in the salable quantity.
An interim final rule amending the August 26, 1994, rule was
published in the October 31, 1994, Federal Register (59 FR 54376).
Comments on the interim rule were solicited from interested persons
until November 30, 1994. No comments were received.
Accordingly, based upon an analysis of available information, a
final rule finalizing the 1994-95 salable quantities and allotment
percentages was published in the February 2, 1995, Federal Register (60
FR 6392).
Pursuant to authority contained in Secs. 985.50, 985.51, and 985.52
of the order, at its February 22, 1995, meeting, the Committee
recommended, with one member voting in opposition, that the salable
quantity for Native spearmint oil for the 1994-95 marketing year be
increased from 1,287,680 pounds to 1,358,404 pounds. The member voting
in opposition favored the establishment of a lower salable quantity
that would have resulted in a lower allotment percentage. Based on the
revised total allotment base of 1,951,032 pounds, the allotment
percentage for Native spearmint oil is increased from 66 percent to 70
percent, resulting in a 70,724 pound increase in the salable quantity.
Native Spearmint Oil Recommendations
(1) Salable Quantity
October 6, 1993--897,388 pounds
June 14, 1994--1,092,577 pounds
October 5, 1994--1,287,680 pounds
February 22, 1995--1,358,404 pounds
(2) Total Allotment Base
October 6, 1993--1,950,843 pounds
June 14, 1994--1,951,032 pounds
October 5, 1994--1,951,032 pounds
February 22, 1995--1,951,032 pounds
(3) Allotment Percentage
October 6, 1993--46 percent
June 14, 1994--56 percent
October 5, 1994--66 percent
February 22, 1995--70 percent
In making this latest recommendation the Committee considered all
available information on supply and demand.
As of February 22, 1995, the Committee reports that of the 1994-95
marketing year Scotch and Native spearmint oil salable quantities of
811,516 pounds and 1,287,680 pounds, respectively, 154,375 pounds and
70,840 pounds remained available for handling. Handlers have indicated
that the available supply of Scotch spearmint oil is adequate to meet
anticipated demand through May 31, 1995. However, handlers have
indicated that demand for Native spearmint oil may be as high as
100,000 pounds 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
and October 5, 1994, recommendations for increasing the Native
spearmint oil salable quantity and allotment percentage.
The recommended salable quantity of 1,358,404 pounds of Native
spearmint oil (an increase of 70,724 pounds), combined with the June 1,
1994, carry-in of 19,139 pounds, results in a revised 1994-95 available
supply of 1,377,543 pounds. The revised available supply of Native
spearmint oil is approximately 300,000 pounds higher than the annual
average of sales for the past five years. The Committee anticipates
that foreseeable demand for Native spearmint oil will be adequately met
for the remainder of the 1994-95 marketing year.
The Department, based on its analysis of available information, has
determined that an allotment percentage of 70 percent should be
established for Native spearmint oil for the 1994-95 marketing year.
This percentage will provide an increased salable quantity of 1,358,404
pounds of Native spearmint oil.
An interim final rule concerning this action was issued on March
31, 1995, and was published in the Federal Register (60 FR 17434).
Comments were solicited from interested persons through May 8, 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
that contained in the prior proposed, final, and interim final rules in
connection with the establishment of the salable quantities and
allotment percentages for Scotch and Native spearmint oils for the
1994-95 marketing year, the Committee's recommendation and other
available information, it is found that to revise Sec. 985.213 (60 FR
6392) to change the salable quantity and allotment percentage for
Native 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 final rule finalizes an interim final rule increasing
the quantity of Native spearmint oil that may be marketed during the
marketing year beginning on June 1, 1994; and (2) Handlers are aware of
this rule which was recommended by the Committee at [[Page 30785]] a
public meeting and published in the Federal Register as an interim
final rule with a 30-day comment period.
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 60 FR 17434 on April 6, 1995, is adopted as a final
rule without change.
Dated: June 6, 1995.
Sharon Bomer Lauritsen,
Deputy Director, Fruit and Vegetable Division.
[FR Doc. 95-14278 Filed 6-9-95; 8:45 am]
BILLING CODE 3410-02-P
