[Federal Register Volume 79, Number 151 (Wednesday, August 6, 2014)]
[Rules and Regulations]
[Pages 45673-45675]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-18606]
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Rules and Regulations
Federal Register
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Federal Register / Vol. 79, No. 151 / Wednesday, August 6, 2014 /
Rules and Regulations
[[Page 45673]]
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 945
[Doc. No. AMS-FV-14-0046; FV14-945-2 IR]
Irish Potatoes Grown in Certain Designated Counties in Idaho, and
Malheur County, Oregon; Modification of Container Requirements
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Interim rule with request for comments.
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SUMMARY: This rule modifies the container requirements currently
prescribed under the Idaho-Eastern Oregon potato marketing order
(order). The order regulates the handling of potatoes grown in certain
designated counties in Idaho, and Malheur County, Oregon and is
administered locally by the Idaho-Eastern Oregon Potato Committee
(Committee). This rule removes the requirement that fiberboard cartons
used to pack 50-pound quantities of U.S. No. 2 grade potatoes be of
one-piece construction. This change is needed to respond to market
demands and to provide handlers flexibility in shipping U.S. No. 2
grade potatoes. In addition, this rule makes a change to the order's
handling regulations to correct a citation reference.
DATES: August 7, 2014; comments received by October 6, 2014 will be
considered prior to issuance of a final rule.
ADDRESSES: Interested persons are invited to submit written comments
concerning this 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: Sue Coleman, Marketing Specialist, or
Gary D. 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:
[email protected] or [email protected].
Small businesses may request information on complying with this
regulation 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: [email protected].
SUPPLEMENTARY INFORMATION: This rule is issued under Marketing
Agreement No. 98 and Order No. 945, both as amended (7 CFR part 945),
regulating the handling of Irish potatoes grown in certain designated
counties in Idaho, and Malheur County, Oregon, 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 Orders 12866, 13563, and 13175.
This rule has been reviewed under Executive Order 12988, Civil
Justice Reform. This rule is not intended to have retroactive effect.
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.
This rule modifies language in the order's administrative rules and
regulations to remove the requirement that fiberboard cartons used to
pack 50-pound quantities of U.S. No. 2 grade potatoes must be of one-
piece construction. This change will allow handlers to ship U.S. No. 2
grade potatoes in 50-pound fiberboard cartons without regard to the
construction of the carton. The requirement that cartons be of natural
kraft color and be permanently and conspicuously marked as to grade
will not change as a result of this rule. This rule will enable
handlers to respond to market demands and provide greater flexibility
in shipping U.S. No. 2 grade potatoes. This rule was unanimously
recommended at a Committee meeting on April 22, 2014. In addition, this
rule makes a change to the order's handling regulations to correct
references in Sec. 945.341(b)(3)(i) and (ii), which currently refers
to a paragraph that does not exist: (b)(4)(iii). The correct reference
should be (b)(3)(iii).
Sections 945.51 and 945.52 of the order provide authority for the
establishment and modification of regulations applicable to the
handling of potatoes. Section 945.52(a)(3) specifically authorizes the
regulation of size, capacity, weight, dimensions, pack, labeling or
marking of the container, or containers, which may be used in the
packaging or handling of potatoes, or both.
Section 945.341 of the order's administrative rules prescribes the
minimum quality, minimum maturity, pack and marking, and inspection
requirements for handling fresh market Idaho-Eastern Oregon potatoes.
Section 945.341(c) prescribes the pack and
[[Page 45674]]
marking requirements for domestic and export shipments of potatoes.
Under those requirements, cartons of U.S. No. 2 grade potatoes must be
packed in one-piece 50-pound fiberboard cartons of natural kraft color
provided the cartons are permanently and conspicuously marked as to
grade. Grade requirements are based on the U.S. Standards for Grades of
Potatoes (7 CFR 51.1540-51.1566).
At its telephone meeting on April 22, 2014, the Committee
unanimously recommended the relaxation of the order's container
requirements to remove the one-piece construction prerequisite for 50-
pound fiberboard cartons. The change was recommended to allow handlers
to ship U.S. No. 2 grade potatoes in any type of 50-pound fiberboard
cartons of natural kraft color, provided the cartons are permanently
and conspicuously marked as to grade.
Handlers reported that food service customers are very concerned
about the one-piece 50-pound cartons because they are often damaged in
transit. The one-piece 50-pound carton has a structure that is weaker
than that of a two-piece 50-pound carton with a bottom and a lid.
Despite the structure, the two-piece 50-pound carton is less costly
than the one-piece construction and could save handlers between $400
and $1,600 per load, depending on the transportation method utilized.
Additionally, handlers expressed the need for the mandatory grade
markings to only be required on the top portion of a multi-piece 50-
pound carton. This would enable handlers to save money by allowing them
to use a uniform, unmarked bottom piece for different grades of
potatoes. The lid of the multi-piece 50-pound carton would continue to
be required to have the grade permanently and conspicuously marked.
Initial 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 initial regulatory flexibility
analysis.
The purpose of the RFA is to fit regulatory actions to the scale of
businesses 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 approximately 450 producers of potatoes in the production
area and approximately 32 handlers subject to regulation under the
marketing order. Small agricultural producers are defined by the Small
Business Administration (SBA) as those having annual receipts of less
than $750,000, and small agricultural service firms are defined as
those whose annual receipts are less than $7,000,000 (13 CFR 121.201).
During the 2012-2013 fiscal period, the most recent for which
statistics are available, 35,148,900 hundredweight of Idaho-Eastern
Oregon potatoes were inspected under the order and sold into the fresh
market. Based on information provided by the National Agricultural
Statistics Service, the average producer price for the 2012 Idaho
potato crop was $5.30 per hundredweight. Multiplying $5.30 by the
shipment quantity of 35,148,900 hundredweight yields an annual crop
revenue estimate of $186,289,170. The average annual fresh potato
revenue for each of the 450 producers is therefore calculated to be
$413,396 ($186,289,170 divided by 450), which is less than the SBA
threshold of $750,000. Consequently, on average almost all of the
Idaho-Eastern Oregon potato producers may be classified as small
entities.
In addition, based on information reported by USDA's Market News
Service, the average f.o.b. shipping point price for the 2012 Idaho
potato crop was $5.87 per hundredweight. Multiplying $5.87 by the
shipment quantity of 35,148,900 hundredweight yields an annual crop
revenue estimate of $206,324,043. The average annual fresh potato
revenue for each of the 32 handlers is therefore calculated to be
$6,447,626 ($206,324,043 divided by 32), which is less than the SBA
threshold of $7,000,000. Consequently, on average most all of the
Idaho-Eastern Oregon potato handlers may be classified as small
entities.
This rule relaxes the container requirements to allow handlers to
ship U.S. No. 2 grade potatoes in any type of 50-pound fiberboard
cartons of natural kraft color, provided the cartons are permanently
and conspicuously marked as to grade. This will enable handlers to
respond to market demands and to provide greater flexibility in
shipping U.S. No. 2 grade potatoes. In addition, this rule makes
changes to the order's handling regulations to correct a citation
reference.
The authority for the establishment of pack and marking
requirements is provided in Sec. 945.52 of the order. Section
945.341(c) of the order's administrative rules prescribes the pack and
marking requirements for domestic and export shipments of potatoes.
The Committee believes that the recommendation should increase the
sale of U.S. No. 2 grade potatoes. This action is expected to further
increase the shipments of U.S. No. 2 potatoes to the food service
industry and help the Idaho-Eastern Oregon potato industry benefit from
the recent increased growth in demand from the food service industry
sector. The benefits of this rule are not expected to be
disproportionately greater or lesser for small entities than large
entities.
Prior to arriving at this container recommendation, the Committee
considered information from the Idaho Potato Commission and the Idaho
Grower Shippers Association. The Committee also discussed several
alternatives to this recommendation including leaving the current
requirement in place. However, the Committee believed that it was
important to be able to respond to changing market conditions and meet
customer needs. The Committee will monitor the quantity of U.S. No. 2
grade potatoes shipped in multi-piece 50-pound fiberboard cartons of
natural kraft color and evaluate if any further modification to the
order's container requirements is necessary.
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 (Generic Vegetable and Specialty Crops). 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 Idaho-Eastern Oregon potato
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.
[[Page 45675]]
Further, the Committee meeting was widely publicized throughout the
Idaho-Eastern Oregon potato industry and all interested persons were
invited to attend the meeting and participate in Committee
deliberations. Like all Committee meetings, the April 22, 2014, 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 comments on this interim rule, including 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: http://www.ams.usda.gov/MarketingOrdersSmallBusinessGuide. Any questions
about the compliance guide should be sent to Jeffrey Smutny at the
previously mentioned address in the FOR FURTHER INFORMATION CONTACT
section.
This rule invites comments on a change to the container
requirements currently prescribed under the Idaho-Eastern Oregon potato
marketing order. 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.
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) Handlers are currently shipping Idaho-Eastern Oregon
potatoes; (2) this action relaxes current container requirements; (3)
the Committee unanimously recommended this change 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 945
Marketing agreements, Potatoes, Reporting and recordkeeping
requirements.
For the reasons set forth in the preamble, 7 CFR part 945 is
amended as follows:
PART 945--IRISH POTATOES GROWN IN CERTAIN DESIGNATED COUNTIES IN
IDAHO, AND MALHEUR COUNTY, OREGON
0
1. The authority citation for 7 CFR part 945 continues to read as
follows:
Authority: 7 U.S.C. 601-674.
Sec. 945.341 [Amended]
0
2. In Sec. 945.341(b)(3)(i) and (ii), remove the reference
``(b)(4)(iii)'' and add in its place the reference ``(b)(3)(iii)''.
0
3. In Sec. 945.341(c)(2)(ii), remove the word ``one-piece''.
Dated: July 31, 2014.
Rex A. Barnes,
Associate Administrator, Agricultural Marketing Service.
[FR Doc. 2014-18606 Filed 8-5-14; 8:45 am]
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