[Federal Register Volume 77, Number 69 (Tuesday, April 10, 2012)]
[Rules and Regulations]
[Pages 21391-21395]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-8531]



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Federal Register / Vol. 77, No. 69 / Tuesday, April 10, 2012 / Rules 
and Regulations

[[Page 21391]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 985

[Doc. No. AMS-FV-10-0094; FV11-985-1B IR]


Marketing Order Regulating the Handling of Spearmint Oil Produced 
in the Far West; Revision of the Salable Quantity and Allotment 
Percentage for Class 1 (Scotch) Spearmint Oil for the 2011-2012 
Marketing Year

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Interim rule with request for comments.

-----------------------------------------------------------------------

SUMMARY: This rule revises the quantity of Class 1 (Scotch) spearmint 
oil that handlers may purchase from, or handle on behalf of, producers 
during the 2011-2012 marketing year. This rule increases the Scotch 
spearmint oil salable quantity from 733,913 pounds to 876,596 pounds, 
and the allotment percentage from 36 percent to 43 percent. The 
marketing order regulates the handling of spearmint oil produced in the 
Far West and is administered locally by the Spearmint Oil 
Administrative Committee (Committee). The Committee unanimously 
recommended this rule for the purpose of avoiding extreme fluctuations 
in supplies and prices and to help maintain stability in the Far West 
spearmint oil market.

DATES: Effective June 1, 2011, through May 31, 2012; comments received 
by June 11, 2012 will be considered prior to issuance of a final rule.

ADDRESSES: Interested persons are invited to submit written comments 
concerning this interim rule. Comments must be sent to the Docket 
Clerk, Marketing Order and Agreement Division, Fruit and Vegetable 
Program, AMS, USDA, 1400 Independence Avenue SW., STOP 0237, 
Washington, DC 20250-0237; Fax: (202) 720-8938; or Internet: http://www.regulations.gov. All comments should reference the document 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, or can be viewed at: http://www.regulations.gov. All comments submitted in response to this rule 
will be included in the record and will be made available to the 
public. Please be advised that the identity of the individuals or 
entities submitting the comments will be made public on the Internet at 
the address provided above.

FOR FURTHER INFORMATION CONTACT: Barry Broadbent, Marketing Specialist, 
or Gary Olson, Regional Manager, Northwest Marketing Field Office, 
Marketing Order and Agreement Division, Fruit and Vegetable Program, 
AMS, USDA; Telephone: (503) 326-2724, Fax: (503) 326-7440, or Email: 
Barry.Broadbent@ams.usda.gov or GaryD.Olson@ams.usda.gov.
    Small businesses may request information on complying with this 
regulation by contacting Laurel May, Marketing Order and Agreement 
Division, Fruit and Vegetable Program, AMS, USDA, 1400 Independence 
Avenue SW., STOP 0237, Washington, DC 20250-0237; Telephone: (202) 720-
2491, Fax: (202) 720-8938, or Email: Laurel.May@ams.usda.gov.

SUPPLEMENTARY INFORMATION: This rule is issued under Marketing Order 
No. 985 (7 CFR part 985), as amended, regulating the handling of 
spearmint oil produced in the Far West (Washington, Idaho, Oregon, and 
designated parts of Nevada and Utah), hereinafter referred to as the 
``order.'' 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.''
    The Department of Agriculture (USDA) is issuing this rule in 
conformance with Executive Order 12866.
    This rule has been reviewed under Executive Order 12988, 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 Scotch spearmint oil produced in the Far West 
that handlers may purchase from, or handle on behalf of, producers 
during the 2011-2012 marketing year, which ends on May 31, 2012.
    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 USDA 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 USDA 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 to review USDA's ruling on the petition, 
provided an action is filed not later than 20 days after the date of 
the entry of the ruling.
    The original salable quantity and allotment percentages for Scotch 
and Native spearmint oil for the 2011-2012 marketing year were 
recommended by the Committee at its October 13, 2010, meeting. The 
Committee recommended salable quantities of 694,774 pounds and 
1,012,983 pounds, and allotment percentages of 34 percent and 44 
percent, respectively, for Scotch and Native spearmint oil. A proposed 
rule was published in the Federal Register on March 4, 2011 (76 FR 
11971). Comments on the proposed rule were solicited from interested 
persons until April 4, 2011. No comments were received. A final rule 
establishing the salable quantities and allotment percentages for 
Scotch and Native spearmint oil for the 2011-2012 marketing year was 
published in the Federal Register on May 13, 2011 (76 FR 27852).
    The Committee met again on August 17, 2011, to consider amending 
the salable quantities and allotment percentages for Scotch and Native 
spearmint oil for the 2011-2012 marketing year. At the meeting, the 
Committee recommended increasing the salable quantities to 733,913 
pounds and 1,266,161 pounds, and allotment percentages to 36 percent 
and 55 percent, respectively, for Scotch and Native spearmint oil. The 
2011-2012

[[Page 21392]]

marketing year salable quantities and allotment percentages were 
subsequently amended to those levels by an interim rule published in 
the Federal Register on October 6, 2011 (76 FR 61933). Comments on the 
interim rule were solicited from interested persons until December 5, 
2011. No comments were received in response to the interim rule. A 
final rule establishing the amended salable quantities and allotment 
percentages was published in the Federal Register on February 3, 2012 
(77 FR 5385).
    This rule further revises the quantity of Scotch spearmint oil that 
handlers may purchase from, or handle on behalf of, producers during 
the 2011-2012 marketing year, which ends on May 31, 2012. Pursuant to 
authority contained in Sec. Sec.  985.50, 985.51, and 985.52 of the 
order, the full eight member Committee met on February 22, 2012, to 
consider pertinent market information on the current supply, demand, 
and price of spearmint oil. In a vote with seven members in favor and 
one member opposed, the Committee recommended that the 2011-2012 Scotch 
spearmint oil allotment percentage be increased by 7 percent, from 36 
percent to 43 percent. The Committee member that voted against the 
increase concurred with the rest of the Committee members that an 
increase was justified; however, he felt that a 7 percent increase was 
an excessive response to the current Scotch spearmint oil marketing 
conditions.
    Thus, taking into consideration the following discussion, this rule 
increases the 2011-2012 marketing year salable quantity and allotment 
percentage for Scotch spearmint oil to 876,596 pounds and 43 percent.
    The salable quantity is the total quantity of each class of oil 
that handlers may purchase from, or handle on behalf of, producers 
during the marketing year. 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 individual allotment base 
for the applicable class of spearmint oil.
    The total industry allotment base for Scotch spearmint oil for the 
2011-2012 marketing year was initially estimated by the Committee to be 
2,043,453 pounds. When that allotment base was applied to the 
originally established allotment percentage of 34 percent, the 
initially established 2011-2012 marketing year salable quantity was set 
at 694,774 pounds.
    The total allotment base is adjusted at the end of each marketing 
year to account for the bona fide effort provision of the order. In 
accordance with Sec.  985.53(e), producers must make a bona fide effort 
to produce a quantity of oil equal to or greater than their allotment 
base. Should a producer fail to produce that amount, their allotment 
base is reduced by an amount equal to the unproduced portion. The 
production data used to accurately make this adjustment to the total 
industry allotment base is not available until after the end of the 
marketing year. Consequently, since the rule that established the 2011-
2012 marketing year initial allotment percentage and salable quantity 
for Scotch spearmint oil was published prior to the end of the 2010-
2011 marketing year, an estimate of the total industry allotment base 
was relied upon in the calculation of the initial salable quantity for 
the 2011-2012 marketing year.
    After the end of the 2010-2011 marketing year on May 31, 2011, 
however, the Committee recalculated the final total industry allotment 
base for Scotch spearmint oil to be 2,038,595 pounds rather than 
2,043,453 pounds. The 4,858 pound difference between the estimated 
number and the final number is the amount of Scotch spearmint oil 
allotment base that producers failed to produce during the 2010-2011 
marketing year.
    The Committee met again in August 2011 to consider the current 
market conditions of the spearmint oil industry and to recommend 
increases in allotment percentages and salable quantities for both 
Scotch and Native spearmint oil. The allotment percentage and salable 
quantity for Scotch spearmint oil was subsequently increased in an 
interim rule that was finalized February 3, 2012 (77 FR 5385). That 
rule increased the allotment percentage 2 percent and effectively 
increased the 2011-2012 marketing year salable quantity by 142,683 
pounds. The total salable quantity was increased to 733,913 pounds and 
was calculated by applying the increased allotment percentage (36 
percent) to the revised total industry allotment base of 2,038,595 
pounds and adjusted for rounding.
    This interim rule further increases the allotment percentage and 
salable quantity for the remainder of the 2011-2012 marketing year, 
which ends May 31, 2012. The Scotch spearmint oil salable quantity is 
increased from 733,913 pounds to 876,596 pounds, and the allotment 
percentage from 36 percent to 43 percent. The additional amount of 
Scotch spearmint oil is made available by releasing oil from the 
reserve pool. The reserve pool is composed of Scotch spearmint oil that 
producers have produced in prior years in excess of their annual 
allotment and is restricted in its disposition. The oil is held in 
storage and may only be released to fill the producer's future 
production deficiencies or when additional oil is needed to satisfy 
normal market demand. The reserve is an important component of volume 
regulation, providing a mechanism to supply the market in times of 
unanticipated increases in the demand for spearmint oil. As of February 
1, 2012, the Committee estimated the reserve pool of Scotch spearmint 
oil to be 366,988 pounds.
    When the allotment percentage increase established by this rule is 
applied to each individual producer, that producer may take up to an 
amount equal to such allotment from their reserve of Scotch spearmint 
oil. Producers that do not have excess oil in the reserve pool equal to 
or greater than their respective share of the pro rata increase in the 
salable quantity will not be able to exercise the full marketing rights 
associated with such an increase. Also, pursuant to Sec. Sec.  985.56 
and 985.156, producers with excess oil are not able to transfer such 
excess oil to other producers to fill deficiencies in annual allotments 
after October 31 of each marketing year. As a result, the Committee has 
calculated that deficiencies in individual producer's oil reserves will 
most likely result in a reduction in the amount of Scotch spearmint oil 
that will actually made available to the market by this rule. The 
Committee estimates that as much as 24,453 pounds of the additional 
salable quantity will not actually enter the market.
    Therefore, the anticipated effect of the 7 percent increase in the 
salable percentage established by this rule is that an estimated total 
of 1,079,384 pounds of Scotch spearmint oil will be available for the 
2011-2012 marketing year. This amount is lower that the established 
salable quantity and accounts for the expected producer reserve pool 
deficiencies. The Committee believes the net effect of this rule is to 
release an estimated additional 118,230 pounds of Scotch spearmint oil 
into the market.
    The following summarizes the Committee recommendations:

Scotch Spearmint Oil Recommendation

    (A) Estimated 2011-2012 Allotment Base--2,043,453 pounds. This is 
the estimate on which the original 2011-2012 Scotch spearmint oil 
salable quantity and allotment percentage was based.

[[Page 21393]]

    (B) Revised 2011-2012 Allotment Base--2,038,595 pounds. This is 
4,858 pounds less than the estimated allotment base of 2,043,453 pounds 
due to the accounting for producers that failed to produce all of their 
2011-2012 allotment.
    (C) Original 2011-2012 Allotment Percentage--34 percent. This was 
unanimously recommended by the Committee on October 13, 2010.
    (D) Original 2011-2012 Salable Quantity--694,774 pounds. This 
figure is 34 percent of the originally estimated 2011-2012 allotment 
base of 2,043,453.
    (E) Prior Revision to the 2011-2012 Salable Quantity and Allotment 
Percentage:
    (1) Increase in Allotment Percentage--2 percent. The Committee 
recommended a 2 percent increase at its August 17, 2011, meeting.
    (2) 2011-2012 Allotment Percentage--36 percent. This figure is 
derived by adding the increase of 2 percent to the originally 
established 2011-2012 allotment percentage of 34 percent.
    (3) Calculated Revised 2011-2012 Salable Quantity--733,913 pounds. 
This figure is 36 percent of the revised 2011-2012 allotment base of 
2,038,595 pounds, plus 19 pounds to account for a rounding adjustment.
    (4) Computed Increase in the 2011-2012 Salable Quantity--40,772 
pounds. This figure is 2 percent of the revised 2011-2012 allotment 
base of 2,038,595.
    (F) Current Revision to the 2011-2012 Salable Quantity and 
Allotment Percentage effectuated by this rule:
    (1) Increase in Allotment Percentage--7 percent. The Committee 
recommended a 7 percent increase at its February 22, 2012, meeting.
    (2) 2011-2012 Allotment Percentage--43 percent. This figure is 
derived by adding the increase of 7 percent to the revised 2011-2012 
allotment percentage of 36 percent.
    (3) Calculated Revised 2011-2012 Salable Quantity--876,596 pounds. 
This figure is 43 percent of the revised 2011-2012 allotment base of 
2,038,595 pounds.
    (4) Computed Increase in the 2011-2012 Salable Quantity--142,702 
pounds. This figure is 7 percent of the revised 2011-2012 allotment 
base of 2,038,595 pounds.
    The 2011-2012 marketing year began on June 1, 2011, with an 
estimated carry-in of 227,241 pounds of salable Scotch spearmint oil. 
When the estimated carry-in is added to the revised 2011-2012 salable 
quantity of 876,596 pounds, the result is a total available supply of 
Scotch spearmint oil for the 2011-2012 marketing year of 1,103,837 
pounds. However, the Committee estimates that only 1,079,384 will 
actually be available to the market given producer reserve pool 
deficiencies. Of this amount, 915,964 pounds of oil has already been 
sold or committed for the 2011-2012 marketing year. This would leave 
approximately 163,420 pounds to fulfill market needs for the remainder 
of the marketing year.
    In making this recommendation, the Committee considered all 
available information on price, supply, and demand. The Committee also 
considered reports and other information from handlers and producers in 
attendance at the meeting and reports given by the Committee manager 
from handlers and producers who were not in attendance. By increasing 
the 2011-2012 Scotch spearmint oil salable percentage by 7 percent, an 
additional 142,702 pounds of Scotch spearmint oil is theoretically made 
available to the market. However, as previously discussed, deficiencies 
in producer's reserves are expected to limit the amount of Scotch 
spearmint oil that is actually released into the market.
    Scotch spearmint oil handlers originally estimated that the trade 
demand for Scotch oil for the 2011-2012 marketing year may be 850,000 
pounds. Sales and commitments for Scotch spearmint oil have already 
eclipsed that estimate, and the industry expects that market activity 
will continue through the end of the marketing year. The Committee 
believes that this rule will release enough oil to satisfy the demand 
for Scotch spearmint oil for the remainder of the 2011-2012 marketing 
year and will carry over a sufficient quantity of Scotch spearmint oil 
into the 2012-2013 marketing year to adequately supply the market.
    When the Committee made its original recommendation for the 
establishment of the Scotch spearmint oil salable quantity and 
allotment percentage for the 2011-2012 marketing year, and again when 
it recommended the first increase, it anticipated that its actions 
would provide the industry with an ample available supply. In the 
interim, the Scotch spearmint oil market has experienced dynamic 
changes in the demand for oil. The Committee believes that the supply 
of Scotch spearmint oil that is available to the market without the 
issuance of this rule would be insufficient to satisfy the current 
demand at reasonable price levels. Therefore, the industry may not be 
able to adequately meet market demand without this increase.
    Based on its analysis of available information, USDA has determined 
that the salable quantity and allotment percentage for Scotch spearmint 
oil for the 2011-2012 marketing year should be increased to 876,596 
pounds and 43 percent, respectively.
    This rule relaxes the regulation of Scotch spearmint oil and will 
allow producers to meet market demand while improving producer returns. 
In conjunction with the issuance of this rule, the Committee's revised 
marketing policy statement for the 2011-2012 marketing year has been 
reviewed by USDA. The Committee's marketing policy statement, a 
requirement whenever the Committee recommends implementing volume 
regulations or recommends revisions to existing volume regulations, 
meets the intent of Sec.  985.50 of the order. During its discussion of 
revising the 2011-2012 salable quantities and allotment percentages, 
the Committee considered: (1) The estimated quantity of salable oil of 
each class held by producers and handlers; (2) the estimated demand for 
each class of oil; (3) prospective production of each class of oil; (4) 
total of allotment bases of each class of oil for the current marketing 
year and the estimated total of allotment bases of each class for the 
ensuing marketing year; (5) the quantity of reserve oil, by class, in 
storage; (6) producer prices of oil, including prices for each class of 
oil; and (7) general market conditions for each class of oil, including 
whether the estimated season average price to producers is likely to 
exceed parity. Conformity with USDA's ``Guidelines for Fruit, 
Vegetable, and Specialty Crop Marketing Orders'' has also been reviewed 
and confirmed.
    The increase in the Scotch spearmint oil salable quantity and 
allotment percentage allows for anticipated market needs for this class 
of oil. In determining anticipated market needs, consideration by the 
Committee was given to historical sales, and changes and trends in 
production and demand.

Initial Regulatory Flexibility Analysis

    Pursuant to requirements set forth in the Regulatory Flexibility 
Act (RFA), the Agricultural Marketing Service (AMS) has considered the 
economic impact of this action on small entities. Accordingly, AMS has 
prepared this initial regulatory flexibility analysis.
    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 the rules issued thereunder, are unique in 
that they are brought about through group action of essentially small 
entities acting on their own behalf.

[[Page 21394]]

    There are 8 spearmint oil handlers subject to regulation under the 
order and approximately 32 producers of Scotch spearmint oil in the 
regulated production area. Small agricultural service firms are defined 
by the Small Business Administration (SBA) (13 CFR 121.201) as those 
having annual receipts of less than $7,000,000, and small agricultural 
producers are defined as those having annual receipts of less than 
$750,000.
    Based on the SBA's definition of small entities, the Committee 
estimates that two of the eight handlers regulated by the order could 
be considered small entities. Most of the handlers are large 
corporations involved in the international trading of essential oils 
and the products of essential oils. In addition, the Committee 
estimates that 8 of the 32 Scotch spearmint oil producers could be 
classified as small entities under the SBA definition. Thus, a majority 
of handlers and producers of Far West spearmint oil may not 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 is not exclusively dependent on 
the production of spearmint oil. A typical spearmint oil-producing 
operation has enough acreage for rotation such that the total acreage 
required to produce the crop is about one-third spearmint and two-
thirds rotational crops. Thus, the typical spearmint oil producer has 
to have considerably more acreage than is planted to spearmint during 
any given season. Crop rotation is an essential cultural practice in 
the production of spearmint oil for weed, insect, and disease control. 
To remain economically viable with the added costs associated with 
spearmint oil production, most spearmint oil-producing farms fall into 
the SBA category of large businesses.
    Small spearmint oil producers generally are not as extensively 
diversified as larger ones and as such are more at risk to market 
fluctuations. Such small producers generally need to market their 
entire annual crop and do not have the luxury of having other crops to 
cushion seasons with poor spearmint oil returns. Conversely, large 
diversified producers have the potential to endure one or more seasons 
of poor spearmint oil markets because income from alternate crops could 
support the operation for a period of time. Being reasonably assured of 
a stable price and market provides small producing entities with the 
ability to maintain proper cash flow and to meet annual expenses. Thus, 
the market and price stability provided by the order potentially 
benefit the small producer more than such provisions benefit large 
producers. Even though a majority of handlers and producers of 
spearmint oil may not be classified as small entities, the volume 
control feature of this order has small entity orientation.
    This rule revises the quantity of Scotch spearmint oil that 
handlers may purchase from, or handle on behalf of, producers during 
the 2011-2012 marketing year, which ends on May 31, 2011. This rule 
increases the Scotch spearmint oil salable quantity from 733,913 pounds 
to 876,596 pounds and the allotment percentage from 36 percent to 43 
percent.
    The use of volume control regulation allows the industry to fully 
supply spearmint oil markets while avoiding the negative consequences 
of over-supplying these markets. Volume control is believed to have 
little or no effect on consumer prices of products containing spearmint 
oil and likely does not result in fewer retail sales of such products. 
Without volume control, producers would not be limited in the 
production and marketing of spearmint oil. Under those conditions, the 
spearmint oil market would likely fluctuate widely. Periods of 
oversupply could result in low producer prices and a large volume of 
oil stored and carried over to future crop years. Periods of 
undersupply could lead to excessive price spikes and could drive end 
users to source flavoring needs from other markets, potentially causing 
long term economic damage to the domestic spearmint oil industry. The 
marketing order's volume control provisions have been successfully 
implemented in the domestic spearmint oil industry for nearly three 
decades and provide benefits for producers, handlers, manufacturers, 
and consumers.
    Based on projections available at the meeting, the Committee 
considered a number of alternatives to this increase. The Committee not 
only considered leaving the salable quantity and allotment percentage 
unchanged, but also considered other potential levels of increase. The 
Committee reached its recommendation to increase the salable quantity 
and allotment percentage for Scotch spearmint oil after careful 
consideration of all available information, and believes that the 
levels recommended will achieve the objectives sought. Without the 
increase, the Committee believes the industry would not be able to 
satisfactorily meet market demand.
    In accordance with the Paperwork Reduction Act of 1995, (44 U.S.C. 
Chapter 35), the order's information collection requirements have been 
previously approved by the Office of Management and Budget (OMB) and 
assigned OMB No. 0581-0178, Vegetable and Specialty Crop Marketing 
Orders. No changes in those requirements as a result of this action are 
necessary. Should any changes become necessary, they would be submitted 
to OMB for approval.
    This rule will not impose any additional reporting or recordkeeping 
requirements on either small or large spearmint oil handlers. As with 
all Federal marketing order programs, reports and forms are 
periodically reviewed to reduce information requirements and 
duplication by industry and public sector agencies.
    AMS is committed to complying with the E-Government Act, to promote 
the use of the Internet and other information technologies to provide 
increased opportunities for citizen access to Government information 
and services, and for other purposes.
    In addition, USDA has not identified any relevant Federal rules 
that duplicate, overlap or conflict with this rule.
    Further, the Committee's meeting was widely publicized throughout 
the spearmint oil industry and all interested persons were invited to 
attend the meeting and participate in Committee deliberations. Like all 
Committee meetings, the February 22, 2012, meeting was a public meeting 
and all entities, both large and small, were able to express their 
views on this issue. Finally, interested persons are invited to submit 
information on the regulatory and informational impacts of this action 
on small businesses.
    A small business guide on complying with fruit, vegetable, and 
specialty crop marketing agreements and orders may be viewed at: 
www.ams.usda.gov/MarketingOrdersSmallBusinessGuide. Any questions about 
the compliance guide should be sent to Laurel May at the previously 
mentioned address in the FOR FURTHER INFORMATION CONTACT section.
    This rule invites comments on a change to the salable quantity and 
allotment percentage for Scotch spearmint oil for the 2011-2012 
marketing year. Any comments received will be considered prior to 
finalization of this rule.
    After consideration of all relevant material presented, including 
the Committee's recommendation, and other information, it is found that 
this interim rule, as hereinafter set forth, will tend to effectuate 
the declared policy of the Act.

[[Page 21395]]

    Pursuant to 5 U.S.C. 553, it is also found and determined upon good 
cause that it is impracticable, unnecessary, and contrary to the 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 rule increases the quantity of Scotch spearmint oil 
that may be marketed during the marketing year, which ends on May 31, 
2012; (2) the current quantity of Scotch spearmint oil may be 
inadequate to meet demand for the 2011-2012 marketing year, thus making 
the additional oil available as soon as is practicable will be 
beneficial to both handlers and producers; (3) the Committee 
recommended these changes at a public meeting and interested parties 
had an opportunity to provide input; and (4) this rule provides a 60-
day comment period and any comments received will be considered prior 
to finalization of this rule.

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

0
1. The authority citation for 7 CFR part 985 continues to read as 
follows:

    Authority:  7 U.S.C. 601-674.


0
2. In Sec.  985.230, paragraph (a) is revised to read as follows:
    [Note: This section will not appear in the annual Code of Federal 
Regulations.]


Sec.  985.230  Salable quantities and allotment percentages--2011-2012 
marketing year.

* * * * *
    (a) Class 1 (Scotch) oil--a salable quantity of 876,596 pounds and 
an allotment percentage of 43 percent.
* * * * *

    Dated: April 4, 2012.
Robert C. Keeney,
Acting Administrator, Agricultural Marketing Service.
[FR Doc. 2012-8531 Filed 4-9-12; 8:45 am]
BILLING CODE 3410-02-P