[Federal Register Volume 59, Number 154 (Thursday, August 11, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-19559]
[[Page Unknown]]
[Federal Register: August 11, 1994]
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DEPARTMENT OF AGRICULTURE
7 CFR Part 985
[FV94-985-2FIR]
Spearmint Oil Produced in the Far West; Revision of the Salable
Quantity and Allotment Percentage for ``Class 3'' Native Spearmint Oil
for the 1993-94 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 to
increase the quantity of Class 3 (Native) spearmint oil produced in the
Far West that handlers may purchase from, or handle for, producers
during the 1993-94 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. This rule was recommended in
order to avoid extreme fluctuations in supplies and prices and thus
help to maintain stability in the spearmint oil market.
EFFECTIVE DATE: September 12, 1994.
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), 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 rule
increases 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 1993-94 marketing year, which ended on May 31, 1994. 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
producers hold ``Class 1'' (Scotch) oil allotment base, and 145
producers hold ``Class 3'' (Native) 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 interim final rule was issued on April 20, 1994, and published
in the April 28, 1994, Federal Register (59 FR 21917), with an
effective date of April 28, 1994. That rule provided a 30-day comment
period which ended May 31, 1994. No comments were received.
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 order). Spearmint oil is also
produced in the Midwest. The production area covered by the order
normally accounts for 75 percent of the annual U.S. production of
spearmint oil.
This rule continues in effect the increase in the salable quantity
and allotment percentage of Native spearmint oil that handlers may
purchase from, or handle for, producers during the 1993-94 marketing
year, which ended on May 31, 1994. This rule also continues in effect
the increase in the salable quantity from 714,665 pounds to 772,611
pounds and the allotment percentage from 37 percent to 40 percent for
Native spearmint oil.
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 initial salable quantities and allotment percentages for both
Native and Scotch spearmint oils for the 1993-94 marketing year were
recommended by the Committee at its October 15, 1992, meeting. The
Committee recommended salable quantities of 714,665 pounds and 716,164
pounds for Native and Scotch oils, respectively, and allotment
percentages of 37 percent and 41 percent for Native and Scotch oils,
respectively.
A proposed rule incorporating the Committee's October 15, 1992,
recommendation was published in the December 7, 1992, issue of the
Federal Register (57 FR 57695). Comments on the proposed rule were
solicited from interested persons until January 6, 1993. 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 the 1993-94
marketing year was published in the May 13, 1993, issue of the Federal
Register (58 FR 28340).
Pursuant to authority contained in sections 985.50, 985.51, and
985.52 of the order, at its February 23, 1994, meeting in Pasco,
Washington, the Committee recommended that the salable quantity and
allotment percentage for Native spearmint oil for the 1993-94 marketing
year be increased. The Committee vote resulted in seven members in
favor and one member opposed to the recommendation. The member voting
in opposition believes current demand for Native spearmint oil is not
adequate enough to warrant an increase in the salable quantity and
allotment percentage.
The Committee's recommendation to increase the allotment percentage
for Native spearmint oil by three percent results in a 57,946 pound
increase in the salable quantity, from 714,665 to 772,611 pounds.
Growers currently hold in reserve 1,436,020 pounds of Native oil and
948,063 pounds of Scotch oil. However, the Committee states that not
all producers have reserve oil available to fill their increase in the
salable quantity. In those cases, no additional oil is made available
to the market. Therefore, this rule provides an actual increase of
55,553 pounds of additional base rather than the calculated amount.
This small difference between the calculated and actual amounts of
released oil will not have a significant impact on the availability of
marketable oil.
The Committee, in reaching its decision to recommend an increase in
the 1993-94 salable quantity and allotment percentage for Native
spearmint oil, took into consideration the current supply and
anticipated demand for both Native and Scotch spearmint oils. The
available supply of Native and Scotch spearmint oil as of February 23,
1994, is 59,599 pounds and 175,000 pounds, respectively. When
considering its initial recommendation for the 1993-94 season, the
Committee estimated that the recommended salable quantity and allotment
percentage would result in an approximate carryover of 90,000 pounds of
Native oil. This places the current available supply for the effective
period of Native oil below the expected carryover.
Over the past five years, the average utilization of Native oil
between March 1 and May 31 is 91,375 pounds. This figure is
considerably more than the existing available supply. In addition, a
majority of spearmint oil buyers indicated they will be in a position
to buy additional Native spearmint oil if it is made available. By
increasing the Native spearmint oil allotment percentage by three
percent, the available supply (as of February 23, 1994), continues in
effect with an increase by 55,553 pounds, from the original 59,599
pounds to 115,152 pounds.
In its deliberations on how best to meet the anticipated demand,
Committee members and other industry participants indicated that the
available Native spearmint oil supply should be increased by three to
seven percent. The majority of the individuals recommending some level
of increase favored three percent, indicating a higher level may push
Native oil supply into a surplus situation before the end of the
marketing year. The Committee did not recommend an increase in the
supply of Scotch spearmint oil since it is anticipated that there will
be a surplus supply of this type of oil by the end of the marketing
year.
The Department, based on its analysis of available information, has
determined that an allotment percentage of 40 percent should remain
established for Native spearmint oil for the 1993-94 marketing year.
This percentage provides an increase in the salable quantity of Native
spearmint oil from 714,665 pounds to 772,611 pounds.
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 and final rules in connection with
the establishment of the salable quantities and allotment percentages
for Native and Scotch spearmint oils for the 1993-94 marketing year,
the Committee's recommendation and other available information, it is
found that finalizing the interim final rule, without change, as
published in the Federal Register (59 FR 21917, April 28, 1994), 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--MARKETING ORDER REGULATING THE HANDLING OF 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. The interim final rule amending 7 CFR Part 985, which was
published at 59 FR 21917 on April 28, 1994, is adopted as a final rule
without change.
Dated: August 4, 1994.
Robert C. Keeney,
Deputy Director, Fruit and Vegetable Division.
[FR Doc. 94-19559 Filed 8-10-94; 8:45 am]
BILLING CODE 3410-02-P
