[Federal Register Volume 78, Number 77 (Monday, April 22, 2013)]
[Rules and Regulations]
[Pages 23673-23674]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-09377]


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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 985

[Doc. Nos. AMS-FV-11-0088; FV12-985-1A FIR]


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) and Class 3 (Native) Spearmint Oil for 
the 2012-2013 Marketing Year

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Affirmation of interim rule as final rule.

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SUMMARY: The Department of Agriculture (USDA) is adopting, as a final 
rule, without change, an interim rule that revised the quantity of 
Class 1 (Scotch) and Class 3 (Native) spearmint oil that handlers may 
purchase from, or handle on behalf of, producers during the 2012-2013 
marketing year under the Far West spearmint oil marketing order. The 
interim rule increased the Scotch spearmint oil salable quantity from 
782,413 pounds to 2,622,115 pounds and the allotment percentage from 38 
percent to 128 percent. In addition, the interim rule increased the 
Native spearmint oil salable quantity from 1,162,473 pounds to 
1,348,270 pounds and the allotment percentage from 50 percent to 58 
percent. This change is expected to moderate extreme fluctuations in 
the supply and price of spearmint oil. Also, this change will help 
maintain stability in the Far West spearmint oil market.

DATES: Effective June 1, 2012, through May 31, 2013.

FOR FURTHER INFORMATION CONTACT: Barry Broadbent, Senior Marketing 
Specialist, or Gary Olson, Regional Director, 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 obtain information on complying with this and 
other marketing order regulations by viewing a guide at the following 
Web site: http://www.ams.usda.gov/MarketingOrdersSmallBusinessGuide; or 
by contacting Jeffrey Smutny, 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: Jeffrey.Smutny@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.
    The handling of spearmint oil produced in the Far West is regulated 
by the order and is administered locally by the Spearmint Oil 
Administrative Committee (Committee). Under the authority of the order, 
salable quantities and allotment percentages were established for both 
Scotch and Native spearmint oil for the 2012-2013 marketing year. 
However, early in the 2012-2013 marketing year, it became evident to 
the Committee and the industry that demand for spearmint oil was 
greater than previously projected and an intra-seasonal increase in the 
salable quantity and allotment percentage for each class of oil was 
warranted.
    Therefore, this rule continues in effect the action that increased 
the Scotch spearmint oil salable quantity from 782,413 pounds to 
2,622,115 pounds, and allotment percentage from 38 percent to 128 
percent. In addition, this rule continues in effect the action that 
increased the Native spearmint oil salable quantity from 1,162,473 
pounds to 1,348,270 pounds, and allotment percentage from 50 percent to 
58 percent.
    In an interim rule published in the Federal Register on December 
28, 2012, and effective June 1, 2012, through May 31, 2013, (77 FR 
76341, Doc. No. AMS-FV-11-0088, FV12-985-1A IR), Sec.  985.230 was 
amended to reflect the aforementioned increases in the salable 
quantities and allotment percentages for Scotch and Native spearmint 
oil for the 2012-2013 marketing year.

[[Page 23674]]

Final Regulatory Flexibility Analysis

    Pursuant to requirements set forth in the Regulatory Flexibility 
Act (RFA) (5 U.S.C. 601-612), the Agricultural Marketing Service (AMS) 
has considered the economic impact of this action on small entities. 
Accordingly, AMS has prepared this final 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.
    There are eight spearmint oil handlers subject to regulation under 
the order, and approximately 32 producers of Scotch spearmint oil and 
approximately 88 producers of Native spearmint oil in the regulated 
production area. Small agricultural service firms are defined by the 
Small Business Administration (SBA) 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 (13 CFR 121.201).
    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 eight of the 32 Scotch spearmint oil producers and 22 of 
the 88 Native 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 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 impact 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 order's volume control 
provisions have been successfully implemented in the domestic spearmint 
oil industry since 1980 and provide benefits for producers, handlers, 
manufacturers, and consumers.
    This rule continues in effect the action that increased the 
quantity of Scotch and Native spearmint oil that handlers may purchase 
from, or handle on behalf of, producers during the 2012-2013 marketing 
year, which ends on May 31, 2013. The Scotch spearmint oil salable 
quantity was increased from 782,413 pounds to 2,622,115 pounds and the 
allotment percentage was increased from 38 percent to 128 percent. 
Additionally, the Native spearmint oil salable quantity was increased 
from 1,162,473 pounds to 1,348,270 pounds and the allotment percentage 
was increased from 50 percent to 58 percent.
    The Committee reached its recommendation to increase the salable 
quantity and allotment percentage for both Scotch and Native spearmint 
oil after careful consideration of all available information, believing 
that the increased volume regulation levels it recommended will achieve 
the objectives sought. With the increase, the industry will be able to 
satisfactorily meet the current market demand for both classes of 
spearmint oil. This rule amends the salable quantities and allotment 
percentages previously established in Sec.  985.231. Authority for this 
action is provided in Sec. Sec.  985.50, 985.51, and 985.52 of the 
order.
    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. 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 Far West spearmint oil industry and all interested persons were 
invited to attend the meeting and participate in Committee 
deliberations. Like all Committee meetings, the October 17, 2012, 
meeting was a public meeting and all entities, both large and small, 
were able to express their views on this issue.
    Comments on the interim rule were required to be received on or 
before February 26, 2013. No comments were received. Therefore, for the 
reasons given in the interim rule, we are adopting the interim rule as 
a final rule, without change.
    To view the interim rule, go to: http://www.regulations.gov/#!documentDetail;D=AMS-FV-11-0088-0003.
    This action also affirms information contained in the interim rule 
concerning Executive Orders 12866 and 12988, the Paperwork Reduction 
Act (44 U.S.C. Chapter 35), and the E-Gov Act (44 U.S.C. 101).
    After consideration of all relevant material presented, it is found 
that finalizing the interim rule, without change, as published in the 
Federal Register (77 FR 76341, December 28, 2012) 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.

    Accordingly, the interim rule that amended 7 CFR part 985 and that 
was published at 77 FR 76341 on December 28, 2012, is adopted as a 
final rule, without change.

    Dated: April 16, 2013.
David R. Shipman,
Administrator, Agricultural Marketing Service.
[FR Doc. 2013-09377 Filed 4-19-13; 8:45 am]
BILLING CODE 3410-02-P