[Federal Register Volume 59, Number 152 (Tuesday, August 9, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-19385]
[[Page Unknown]]
[Federal Register: August 9, 1994]
VOL. 59, NO. 152
Tuesday, August 9, 1994
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 945
[Docket No. FV94-945-2PR]
Irish Potatoes Grown in Certain Designated Counties in Idaho, and
Malheur County, Oregon, and Imported Irish Potatoes; Modification of
Minimum Size Requirements
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Proposed rule.
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SUMMARY: This proposed rule would modify the minimum size requirements
for all varieties of potatoes, except round reds, grown in certain
designated counties in Idaho, and Malheur County, Oregon, and for
imported long type potatoes. Currently, the minimum size requirement
for all varieties, except round reds, is 2 inches in diameter, or 4
ounces in weight. This rule would specify that, in addition, at least
40 percent of the potatoes in each lot, by weight, must be 5 ounces or
heavier. Requiring handlers to ship heavier potatoes could correct a
marketing problem by providing the heavier potatoes demanded by the
market and increase returns to producers and handlers. As provided
under the Agricultural Marketing Agreement Act of 1937, the proposed
changes would also apply to imported potatoes.
DATES: Comments must be received by August 24, 1994.
ADDRESSES: Interested persons are invited to submit written comments
concerning this proposal. Comments must be sent in triplicate to the
Docket Clerk, Fruit and Vegetable Division, AMS, USDA, P.O. Box 96456,
Room 2523-S, Washington, DC 20090-6456 or by Fax at (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: Gary D. Olson, Northwest Marketing
Field Office, Fruit and Vegetable Division, AMS, USDA, 1220 SW Third
Avenue, Room 369, Portland, OR 97204; telephone: (503) 326-2724 or Fax
(503) 326-7440; or Valerie L. Emmer, Marketing Order Administration
Branch, Fruit and Vegetable Division, Agricultural Marketing Service,
U.S. Department of Agriculture, P.O. Box 96456, Room 2523-S,
Washington, DC 20090-6456; telephone: (202) 205-2829 or Fax (202) 720-
5698.
SUPPLEMENTARY INFORMATION: This proposed rule is issued under Marketing
Agreement and Marketing Order No. 945 [7 CFR part 945], as amended,
hereinafter referred to as the ``order,'' regulating the handling of
Irish potatoes grown in certain designated counties in Idaho, and
Malheur County, Oregon. The 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.''
This proposed rule, which would also affect the import requirements
for long type Irish potatoes, is also issued pursuant to section 8e of
the Act. The provisions of section 8e and the potato import regulation
are discussed later in this proposed rule.
The U.S. Department of Agriculture (Department) is issuing this
rule in conformance with Executive Order 12866.
This proposal has been reviewed under Executive Order 12778, Civil
Justice Reform. This rule is not intended to have retroactive effect.
This proposed 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 the date of the entry of the ruling.
There are no administrative procedures which must be exhausted
prior to any judicial challenge to the provisions of import regulations
issued under section 8e of the Act.
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. Import regulations issued under
the Act are based on those established under Federal marketing orders.
There are approximately 60 handlers of Idaho-Eastern Oregon
potatoes that are subject to regulation under the order, and
approximately 2,000 producers in the production area. In addition, at
least 75 importers of Irish potatoes are subject to import regulations
and would be affected by this rule. Small agricultural service firms,
which include handlers of Idaho-Eastern Oregon potatoes, have been
defined by the Small Business Administration [13 CFR 121.601] as those
whose annual receipts are less than $5,000,000, and small agricultural
producers are defined as those whose annual receipts are less than
$500,000. A majority of these handlers and producers may be classified
as small entities. The majority of the importers of potatoes may also
be classified as small entities.
This action would amend paragraph (a)(2)(ii) of Sec. 945.341
Handling regulation of the order's rules and regulations. The proposal
is based on a unanimous recommendation made by the Idaho-Eastern Oregon
Potato Committee (committee), the agency responsible for local
administration of the order, at its June 7, 1994, public meeting. The
committee's recommended revision is authorized pursuant to Secs. 945.51
and 945.52 of the order.
Quality assurance is very important to the Idaho-Eastern Oregon
potato industry. Providing the public with acceptable quality produce
which is appealing to the consumer on a consistent basis is necessary
to maintain buyer confidence in the marketplace. The committee reports
that potato size is important to buyers.
For several decades, the minimum size requirement for all varieties
of Idaho-Oregon potatoes, except round reds, has been 2 inches in
diameter, or 4 ounces in weight. However, the committee reports that
the industry has been losing its share of the potato market, because
the market in recent years has been demanding potatoes larger than this
minimum size. Consumers now expect some baker size potatoes in the
packages they buy. In spite of an industry campaign to encourage
handlers to voluntarily ship larger potatoes, a number of handlers have
continued to ship potatoes that barely meet the minimum size
requirement, depressing the price for other potatoes. These potatoes
are generally shipped in consumer packs (e.g., 5- or 10-pound bags) or
in 100-pound sacks for later repackaging into consumer packs.
These shipments have resulted in disappointment by buyers and
consumers in recent years, hurting the quality image of Idaho-Eastern
Oregon potatoes, reducing repeat purchases and overall sales volume,
and resulting in declines in prices, which has hurt the overall sales
volume.
To better meet market demand regarding the size of potatoes, the
committee recommended an additional requirement that at least 40
percent of the potatoes in each lot must weigh at least 5 ounces. It is
anticipated that requiring handlers to ship such heavier potatoes would
enable the industry to regain its lost share of the market and increase
returns to producers and handlers.
Section 8e of the Act requires that when certain domestically
produced commodities, including Irish potatoes, are regulated under a
Federal marketing order, imports of that commodity must meet the same
or comparable grade, size, quality, or maturity requirements, subject
to concurrence by the U.S. Trade Representative. Section 8e also
provides that whenever two or more marketing orders regulating a
commodity produced in different areas of the United States are
concurrently in effect, the Secretary shall determine which of the
areas produces the commodity in more direct competition with the
imported commodity. Imports, then must meet the quality standards set
for the particular area.
In the case of potatoes, the current import regulation [7 CFR
980.1] specifies that import requirements for long type potatoes be
based on those in effect for potatoes grown in certain designated
counties in Idaho, and Malheur County, Oregon, during each month of the
marketing year. While no changes are required in the language of
Sec. 980.1, imports of long type potatoes would have to meet the
increased minimum weight requirements proposed herein.
Section 945.341(i) Applicability to imports is proposed to be
removed from the handling regulations. That paragraph states the same
information that is contained in Sec. 980.1 of the import regulations.
Since the same information applicable to imported potatoes is contained
in the import regulations, paragraph (i) in the domestic handling
regulations should be deleted to eliminate duplication or confusion.
Based on available information, the Administrator of the AMS has
determined that this action would not have a significant economic
impact on a substantial number of small entities.
A 15-day comment period is provided to allow interested persons to
respond to this proposal. All written comments received within the
comment period will be considered before a final determination is made
on this matter. The committee unanimously recommended that this rule
become effective by September 1, 1994, to ensure that implementation be
in place early in the 1994-95 shipping season. Implementation of this
rule by this date will provide ample opportunity for handlers and the
industry to make marketing and promotional plans for the upcoming
season.
In accordance with section 8e of the Act, the United States Trade
Representative has concurred with the issuance of this proposed rule.
List of Subjects in 7 CFR Part 945
Marketing agreements, Potatoes, Reporting and recordkeeping
requirements.
For the reasons set forth in the preamble, 7 CFR part 945 is
proposed to be amended as follows:
PART 945--IRISH POTATOES GROWN IN CERTAIN DESIGNATED COUNTIES IN
IDAHO, AND MALHEUR COUNTY, OREGON
1. The authority citation for 7 CFR part 945 continues to read as
follows:
Authority: 7 U.S.C. 601-674.
2. Section 945.341 is amended by revising paragraph (a)(2)(ii) to
read as follows and removing paragraph (i):
Sec. 945.341 Handling regulation.
* * * * *
(a) * * *
(2) * * *
(ii) All other varieties. 2 inches minimum diameter, or 4 ounces
minimum weight: Provided, That at least 40 percent of the potatoes in
each lot shall be 5 ounces or heavier.
* * * * *
Dated: August 2, 1994.
Terry C. Long,
Acting Deputy Director Fruit and Vegetable Division.
[FR Doc. 94-19385 Filed 8-8-94; 8:45 am]
BILLING CODE 3410-02-P
