[Federal Register Volume 60, Number 112 (Monday, June 12, 1995)]
[Rules and Regulations]
[Pages 30785-30786]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-14280]
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DEPARTMENT OF AGRICULTURE
7 CFR Part 985
[FV95-985-3FIR]
Spearmint Oil Produced in the Far West; Revision of the Salable
Quantity and Allotment Percentage for Class 3 (Native) Spearmint Oil
for 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
that increased the quantity of Class 3 (Native) 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.
EFFECTIVE DATE: Effective on July 12, 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 97204-2807; 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; 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 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 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
normally accounts for approximately 75 percent of the annual U.S.
production of spearmint oil.
This final rule finalizes an interim final rule that increased the
quantity of Native spearmint oil that handlers may purchase from, or
handle for, producers during the 1995-96 marketing year, which ends on
May 31, 1996. The interim final rule increased the salable quantity
from 906,449 pounds to 1,004,976 pounds and the allotment percentage
from 46 percent to 51 percent for Native spearmint oil for the 1995-96
marketing year.
The interim final rule was issued on April 7, 1995, and published
in the Federal Register (60 FR 18950, April 14, 1995), with an
effective date of April 14, 1995. That rule amended section 985.214 of
the rules and regulations in effect under the order. The rule provided
a 30-day comment period which ended May 15, 1995. No comments were
received. [[Page 30786]]
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 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 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
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).
Pursuant to authority contained in sections 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 1995-96 marketing year be
increased from 906,449 pounds to 1,004,976 pounds. The member voting in
opposition did not favor an increase in the salable quantity and
allotment percentage because he believed it was too early to determine
what the market conditions will be during the 1995-96 marketing year.
Based on the total allotment base of 1,970,542 pounds, the allotment
percentage for Native spearmint oil is increased from 46 percent to 51
percent, resulting in a 98,527 pound increase in the salable quantity.
Native Spearmint Oil Recommendations
(1) Salable Quantity
October 5, 1994
906,449 pounds
February 22, 1995
1,004,976 pounds
(2) Allotment Base
October 5, 1994
1,970,542 pounds
February 22, 1995
1,970,542 pounds
(3) Allotment Percentage
October 5, 1994
46 percent
February 22, 1995
51 percent
In making this latest recommendation, the Committee considered all
available information on supply and demand. The 1995-96 marketing year
begins on June 1, 1995. Handlers have indicated that the available
supply of Scotch spearmint oil appears adequate to meet anticipated
demand through May 31, 1996. Handlers have indicated, however, that
demand for Native spearmint oil is currently fairly strong and
anticipate that this trend will likely continue into the next marketing
year. Based upon this strengthening demand, as well as historical data
that indicates the annual average of sales for the last eight years is
1,006,512 pounds, the Committee believes that an increase in the
salable quantity to 1,004,976 pounds is necessary to meet anticipated
demand. This level of demand was not anticipated by the Committee when
it made its initial recommendation for the establishment of the Native
spearmint oil salable quantity and allotment percentage for the 1995-96
marketing year.
The recommended salable quantity of 1,004,976 pounds of Native
spearmint oil (an increase of 98,527 pounds), combined with a revised
estimated carry-in of 100,000 pounds on June 1, 1995, results in a
revised 1995-96 estimated available supply of 1,104,976 pounds. Thus,
the revised estimate for the 1995-96 marketing year Native spearmint
oil available supply is approximately 100,000 pounds higher than the
annual average of sales for the past eight years. With this revision,
the Committee anticipates that demand for Native spearmint oil during
the 1995-96 marketing year will be adequately met.
The Department, based on its analysis of available information, has
determined that an allotment percentage of 51 percent should be
established for Native spearmint oil for the 1995-96 marketing year.
This percentage will provide an increased salable quantity of 1,004,976
pounds of Native spearmint oil.
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, interim final 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 finalize the interim final
rule revising Sec. 985.214 (60 FR 8524) of the salable quantity and
allotment percentage for Native 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 60 FR 18950 on April 14, 1995, is adopted as a final
rule without change.
Dated: June 6, 1995.
Sharon Bomer Lauritsen,
Deputy Director, Fruit and Vegetable Division.
[FR Doc. 95-14280 Filed 6-9-95; 8:45 am]
BILLING CODE 3410-02-P
