[Federal Register Volume 80, Number 60 (Monday, March 30, 2015)]
[Rules and Regulations]
[Pages 16547-16552]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-07114]
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Rules and Regulations
Federal Register
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Federal Register / Vol. 80, No. 60 / Monday, March 30, 2015 / Rules
and Regulations
[[Page 16547]]
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 985
[Doc. No. AMS-FV-13-0087; FV14-985-1C IR]
Marketing Order Regulating the Handling of Spearmint Oil Produced
in the Far West; Revision of the Salable Quantity and Allotment
Percentage for Class 3 (Native) Spearmint Oil for the 2014-2015
Marketing Year
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Interim rule with request for comments.
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SUMMARY: This interim rule implements a recommendation from the
Spearmint Oil Administrative Committee (Committee) to further revise
the quantity of Class 3 (Native) spearmint oil that handlers may
purchase from, or handle on behalf of, producers during the 2014-2015
marketing year under the Far West spearmint oil marketing order
(order). The salable quantity and allotment percentage for Native
spearmint oil was initially established at 1,090,821 pounds and 46
percent, respectively, and was subsequently increased to 1,280,561
pounds and 54 percent in a separate rulemaking action. This rule
further increases the Native spearmint oil salable quantity to
1,351,704 pounds and the allotment percentage to 57 percent for the
2014-2015 marketing year. The order regulates the handling of spearmint
oil produced in the Far West and is locally administered by the
Committee, which is comprised of spearmint oil producers operating
within the order's area of production. The Committee recommended this
rule for the purpose of maintaining orderly marketing conditions in the
Far West spearmint oil market.
DATES: Effective March 30, 2015 and applicable to the 2014-2015
marketing year; comments received by May 29, 2015 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: 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: [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 interim 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 Orders 12866, 13563, and 13175.
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 Native spearmint oil produced in the Far West
that handlers may purchase from, or handle on behalf of, producers
during the 2014-2015 marketing year, which began on June 1, 2014, and
ends on May 31, 2015.
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 revises the quantity of Native spearmint oil that
handlers may purchase from, or handle on behalf of, producers during
the 2014-2015 marketing year under the Far West spearmint oil marketing
order. Prior to this rule, the salable quantity and allotment
percentage for Native spearmint oil was initially established at
1,090,821 pounds and 46 percent, respectively, in a final rule
published May 8, 2014 (79 FR 26359). The salable quantity and allotment
percentage was subsequently increased to 1,280,561 pounds and 54
percent in an interim rule published January 22, 2015 (80 FR 3142).
This interim rule further increases the Native spearmint oil salable
quantity from 1,280,561 pounds to 1,351,704 pounds and the allotment
percentage from 54 percent to 57 percent. This action is anticipated to
be
[[Page 16548]]
the last revision of the Native spearmint oil salable quantity and
allotment percentage established under the order for the 2014-2015
marketing year.
Under the volume regulation provisions of the order, the Committee
meets each year to adopt a marketing policy for the ensuing year. When
the Committee's marketing policy considerations indicate a need for
limiting the quantity of spearmint oil available to the market to
establish or maintain orderly marketing conditions, the Committee
submits a recommendation to the Secretary for volume regulation.
Volume regulation under the order is effectuated through the
establishment of a salable quantity and allotment percentage applicable
to each class of spearmint oil handled in the production area during a
marketing year. The salable quantity is the total quantity of each
class of oil that handlers may purchase from, or handle on behalf of,
producers during a given marketing year. The allotment percentage for
each class of oil is derived by dividing the salable quantity by the
total industry allotment base for that same class of oil. The total
industry allotment base is the aggregate of all allotment base held
individually by producers. Producer allotment base is the quantity of
each class of spearmint oil that the Committee has determined is
representative of a producer's spearmint oil production. Each producer
is allotted a pro rata share of the total salable quantity of each
class of spearmint oil each marketing year. Each producer's annual
allotment is determined by applying the allotment percentage to the
producer's individual allotment base for each applicable class of
spearmint oil.
The full Committee met on November 6, 2013, to consider its
marketing policy for the 2014-2015 marketing year. At that meeting, the
Committee determined that marketing conditions indicated a need for
volume regulation of both classes of spearmint oil for the 2014-2015
marketing year. The Committee recommended salable quantities of
1,149,030 pounds and 1,090,821 pounds, and allotment percentages of 55
percent and 46 percent, respectively, for Scotch and Native spearmint
oil. A proposed rule to that effect was published in the Federal
Register on March 14, 2014 (79 FR 14441). Comments on the proposed rule
were solicited from interested persons until March 31, 2014. No
comments were received. Subsequently, a final rule establishing the
salable quantities and allotment percentages for Scotch and Native
spearmint oil for the 2014-2015 marketing year was published in the
Federal Register on May 8, 2014 (79 FR 26359).
Pursuant to authority contained in Sec. Sec. 985.50, 985.51, and
985.52 of the order, the full eight member Committee met again on
September 11, 2014, to consider pertinent market information on the
current supply, demand, and price of spearmint oil. After some
deliberation, the Committee recommended increasing the 2014-2015
marketing year Scotch spearmint oil salable quantity from 1,149,030
pounds to 1,984,423 pounds and the allotment percentage from 55 percent
to 95 percent. An interim rule to that effect was published in the
Federal Register on October 31, 2014 (79 FR 64657).
The full Committee met again on November 5, 2014, for a regularly
scheduled annual meeting to evaluate the current year's volume control
regulation and to adopt a marketing policy for the 2015-2016 marketing
year. After thorough discussion with regards to the current marketing
conditions for Native spearmint oil, the Committee recommended revising
the previously established 2014-2015 marketing year Native spearmint
oil salable quantity and allotment percentage. Subsequently, in an
interim rule published in the Federal Register on January 22, 2015 (80
FR 3142), the salable quantity for Native spearmint oil was increased
from 1,090,821 pounds to 1,280,561 pounds and the allotment percentage
was increased from 46 percent to 54 percent.
The full Committee met again on February 18, 2015, for a regularly
scheduled meeting where it again evaluated the current year's volume
control regulation. At the meeting, the Committee assessed the current
market conditions for spearmint oil in relation to the revised salable
quantities and allotment percentages established for the 2014-2015
marketing year. The Committee considered a number of factors, including
the current and projected supply, estimated future demand, production
costs, and producer prices for all classes of spearmint oil. The
Committee determined that the recently revised salable quantity and
allotment percentage in effect for Native spearmint oil for the 2014-
2015 marketing year should be further increased to take into account
the unanticipated rise in market demand for that class of spearmint
oil.
Therefore, the Committee recommended increasing the Native
spearmint oil salable quantity from 1,280,561 pounds to 1,351,704
pounds and the allotment percentage from 54 percent to 57 percent. The
recommendation to increase the salable quantity and allotment
percentage passed unanimously.
Thus, taking into consideration the following discussion, this rule
makes additional amounts of Native spearmint oil available to the
market by further increasing the salable quantity and allotment
percentage previously established under the order for the 2014-2015
marketing year. This rule increases the Native spearmint oil salable
quantity 71,143 pounds, to 1,351,704 pounds, and raises the allotment
percentage 3 percent points, to 57 percent. Such additional oil will
become available to the market by releasing Native spearmint oil held
by producers in the reserve pool. As of May 31, 2014, the Committee
records show that the reserve pool for Native spearmint oil contained
446,086 pounds of oil.
The increase in the salable quantity as a result of this rule
represents an additional 71,143 pounds of Native spearmint oil being
made available to the market. However, as some individual producers do
not hold Native spearmint oil from previous year's production in the
reserve pool, the Committee expects that only 48,769 pounds of
additional Native spearmint oil will actually be made available to the
spearmint oil market. The relatively high salable quantity resulting
from this action, as compared to the actual quantity of spearmint oil
that will be made available to the market, is necessary to ensure that
a sufficient quantity of Native spearmint oil is available to fully
supply the market. Producers that do not have additional Native
spearmint oil in inventory (oil held in the reserve pool) will not be
able to utilize the additional annual allotment issued to them as a
result of this action and such additional annual allotment will go
unused.
At the February meeting, the Committee staff reported that demand
for Native spearmint oil continues to be greater than anticipated.
Committee records indicate that 2014-2015 marketing year sales through
the end of January 2015, the most recent full month recorded, are
148,325 pounds higher than for the same period in the 2013-2014
marketing year and 211,163 pounds higher than the average sales for the
same period for the years 2009-2013. The Committee now estimates trade
demand for Native spearmint oil for the 2014-2015 marketing year to be
approximately 1,443,899 pounds, up from the 1,300,000 pounds initially
estimated in the fall of 2013, and the 1,341,000 pounds estimated at
the Committee's November 2014 meeting. If realized, this quantity of
trade demand
[[Page 16549]]
would be just 19,872 pounds less than the quantity of Native spearmint
oil available under the volume control levels implemented in January
2015 (1,463,771 pounds available prior to this rule minus 1,443,899
pounds demanded = 19,872 pounds). The increased quantity of Native
spearmint oil (48,769 pounds) actually made available to the market as
a result of this action would ensure that market demand is fully
satisfied in the current year and that there would be approximately
68,641 pounds of Native spearmint oil salable inventory available to
the market for the start of the 2015-2016 marketing year, which begins
on June 1, 2015.
In making the recommendation to increase the salable quantity and
allotment percentage of Native spearmint oil, the Committee considered
all currently available information on the price, supply, and demand of
spearmint oil. The Committee also considered reports and other
information from handlers and producers in attendance at the meeting.
Lastly, the Committee manager presented information and reports that
were provided to the Committee staff by handlers and producers who were
not in attendance at the February 18, 2015, meeting.
This action increases the 2014-2015 marketing year Native spearmint
oil salable quantity by 71,143 pounds, to a total of 1,351,704 pounds.
However, as mentioned previously, the net effect of the increase will
be much less than the calculated increase due to the amount of actual
oil individual producers have available to market from reserve pool
inventory. The Committee estimates that this action will actually make
an additional 48,769 pounds of Native spearmint oil available to the
market. That amount, combined with the 89,872 pounds of salable Native
spearmint oil that the Committee estimates is currently available to
the market, will make a total of 138,641 pounds available to be
marketed through the remainder of the marketing year. The total supply
of Native spearmint oil that the Committee anticipates actually being
available to the market over the course of the 2014-2015 marketing year
will be increased to 1,512,540 pounds. Actual sales of Native spearmint
oil for the 2013-2014 marketing year totaled 1,341,555 pounds.
The Committee estimates that this action will result in 68,641
pounds of salable Native spearmint oil being carried into the 2015-2016
marketing year. In addition, the Committee expects that 248,602 pounds
of Native spearmint oil will still be held in reserve pool stocks by
producers after this increase. These inventory levels are low in
comparison to historical levels, but are well within the range that the
Committee believes to be appropriate moving forward. In addition, the
Committee believes that the current Native spearmint oil market
situation will stimulate production of Native spearmint oil in the
coming years, further ensuring that the market will be adequately
supplied in the future.
As mentioned previously, when the original 2014-2015 marketing
policy statement was drafted, handlers estimated the demand for Native
spearmint oil for the 2014-2015 marketing year to be 1,300,000 pounds.
The Committee's initial recommendation for the establishment of the
Native spearmint oil salable quantity and allotment percentage for the
2014-2015 marketing year was based on that estimate. The Committee did
not anticipate the increase in demand for Native spearmint oil that the
market is currently experiencing and did not make allowances for it
when the marketing policy was initially adopted. At the February 18,
2015, meeting, the Committee revised its estimate of the current trade
demand to 1,443,899 pounds. The Committee now believes that the supply
of Native spearmint oil available to the market under the previously
revised salable quantity and allotment percentage would be insufficient
to satisfy the current level of demand for oil at reasonable price
levels. The Committee further believes that the increase in the salable
quantity and allotment percentage effectuated by this action is vital
to ensuring an adequate supply of Native spearmint oil is available to
the market moving forward.
As previously stated, it is anticipated that this action will make
48,769 pounds of the Native spearmint oil held in the reserve pool
available to the market. However, to achieve that desired net effect
under the current supply conditions in the industry, it is necessary
for the salable quantity and allotment percentage established under the
volume regulation provisions of the order to be set at artificially
high levels. The Committee records show that some producers do not hold
Native spearmint oil in reserve. Given the process by which volume
regulation is effectuated under the order, only those producers with
Native spearmint oil in the reserve pool will be able to utilize the
additional annual allotment that is issued as a result of this rule.
Likewise, producers that do not have Native spearmint oil reserve oil
from prior years' production will not have any Native spearmint oil
inventory to offer to the market, regardless of how much additional
annual allotment is issued to those producers. As such, the Committee
expects that approximately 31 percent of the increased salable quantity
and allotment percentage for Native spearmint oil may go unused.
As an example, assume Producer A has 2,000 pounds of Native
spearmint oil allotment base. In addition, assume that during the 2014-
2015 marketing year Producer A produced 920 pounds of Native spearmint
oil and held 220 pounds of excess Native spearmint oil in reserve from
production in prior years. Given that the initial 2014-2015 marketing
year allotment percentage was established at 46 percent, Producer A
could market all 920 pounds of the current year production (46 percent
allotment percentage x 2,000 pounds of allotment base), leaving him/her
with 220 pounds in the reserve pool that was initially not available to
market. Without an increase in the allotment percentage, the producer
would not have been able to market any of the 220 pounds of reserve oil
and the oil would have continued to have been held in the reserve pool
for marketing in subsequent years. For Producer A to market all 1,140
pounds of his/her current year Native spearmint oil production and
reserve inventory, the allotment percentage needs to be increased by 11
percent (8 percent plus 3 percent) to a total of 57 percent (57 percent
x 2,000 pounds = 1,140 pounds). An increase in the allotment percentage
of anything less than 11 percent would fail to release all of the
Native spearmint oil that the producer holds in the reserve pool. The
increase in the allotment percentage may be accomplished in several
steps, but has a cumulative effect with regards to the release of
spearmint oil held in the reserve pool.
In contrast, assume that another producer, Producer B, likewise has
2,000 pounds of Native spearmint oil allotment base and produced 920
pounds of Native spearmint oil during the 2014-2015 marketing year.
However, Producer B has no Native spearmint oil held in reserve. As in
the first case, Producer B could market all of his/her current year
production under the initial allotment percentage of 46 percent.
However, any subsequent increase in the allotment percentage would have
no impact on Producer B, as the producer has no reserve pool oil
available to deliver to the market. As a result, any additional annual
allotment allocated to Producer B after an increase in the allotment
percentage would go unfilled.
[[Page 16550]]
The Committee acknowledges that the relatively high salable
quantity, and the corresponding high allotment percentage, will create
a quantity of Native spearmint oil annual allotment for which no Native
spearmint oil will actually be available to market. The Committee
estimates that a 3 percent increase in the allotment percentage and a
71,143 pound increase in the salable quantity is required to make the
desired 48,769 pounds of Native spearmint reserve pool oil available to
the market. Accordingly, the Committee expects that 22,374 pounds of
the recommended 71,143 pound increase in salable quantity will go
unfilled. This quantity of underutilized salable quantity has been
factored into the Committee's recommendation.
The Committee's stated intent in the use of marketing order volume
control regulation is to keep adequate supplies available to meet
market needs and to maintain orderly marketing conditions. With that in
mind, the Committee developed its recommendation for increasing the
Native spearmint oil salable quantity and allotment percentage for the
2014-2015 marketing year based on the information discussed above, as
well as the summary data outlined below.
(A) Estimated 2014-2015 Native Allotment Base--2,371,350 pounds.
This is the estimate on which the original 2014-2015 salable quantity
and allotment percentage was based.
(B) Revised 2014-2015 Native Allotment Base--2,371,410 pounds. This
is 60 pounds more than the estimated allotment base of 2,371,350
pounds. The difference is the result of annual adjustments made to the
allotment base according to the provisions of the order.
(C) Original 2014-2015 Native Allotment Percentage--46 percent.
This was unanimously recommended by the Committee on November 6, 2013.
(D) Original 2014-2015 Native Salable Quantity--1,090,821 pounds.
This figure is 46 percent of the original estimated 2014-2015 allotment
base of 2,371,350 pounds.
(E) Adjusted Initial 2014-2015 Native Salable Quantity--1,090,849
pounds. This figure reflects the salable quantity actually available at
the beginning of the 2014-2015 marketing year. This quantity is derived
by applying the initial 46 percent allotment percentage to the revised
allotment base of 2,371,410.
(F) First Revision to the 2014-2015 Native Salable Quantity and
Allotment Percentage:
(1) Initial Increase in the Native Allotment Percentage--8 percent.
The Committee recommended an 8 percent increase at its November 5,
2014, meeting. The revision was published in the Federal Register on
January 22, 2015 (80 FR 3142).
(2) Revised 2014-2015 Native Allotment Percentage--54 percent. This
number was derived by adding the increase of 8 percent to the initially
established 2014-2015 allotment percentage of 46 percent.
(3) Revised 2014-2015 Native Salable Quantity--1,280,561 pounds.
This amount is 54 percent of the revised 2014-2015 allotment base of
2,371,410 pounds.
(G) Second Revision to the 2014-2015 Native Salable Quantity and
Allotment Percentage:
(1) Increase in Native Allotment Percentage--3 percent. The
Committee unanimously recommended a 3 percent increase at its February
18, 2015, meeting.
(2) Revised 2014-2015 Native Allotment Percentage--57 percent. This
number is derived by adding the 3 percent increase to the previously
revised 2014-2015 allotment percentage of 54 percent.
(3) Revised 2014-2015 Native Salable Quantity--1,351,704 pounds.
This amount is 57 percent of the revised 2014-2015 allotment base of
2,371,410 pounds.
(4) Computed Increase in the 2014-2015 Native Salable Quantity as a
Result of this Revision--71,143 pounds. This figure is 3 percent of the
revised 2014-2015 allotment base of 2,371,410 pounds.
(5) Expected Actual Increase in the 2014-2015 Native Spearmint Oil
Available to the Market--48,769 pounds. This amount is based on the
Committee's estimation of Native spearmint oil actually held in the
reserve pool by producers that may enter the market as a result of this
rule.
Scotch spearmint oil is also regulated by the order. As mentioned
previously, a salable quantity and allotment percentage for Scotch
spearmint oil was established in a final rule published in the Federal
Register on May 8, 2014 (79 FR 26359) and subsequently increased in an
interim rule published in the Federal Register on October 31, 2014 (79
FR 64657). At the February 18, 2015, meeting, the Committee considered
the current production, inventory, and marketing conditions for Scotch
spearmint oil. After receiving reports from the Committee staff and
comments from the industry, the consensus of the Committee was that the
previously increased salable quantity and allotment percentage for
Scotch spearmint oil was appropriate for the current market conditions.
As such, the Committee took no further action with regards to Scotch
spearmint oil for the 2014-2015 marketing year.
This rule relaxes the regulation of Native 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 2014-2015 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 2014-2015 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) the prospective production of each class of oil;
(4) the 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 Native spearmint oil salable quantity and
allotment percentage allows for anticipated market needs for that class
of oil. In determining anticipated market needs, the Committee
considered changes and trends in historical sales, production, and
demand.
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
[[Page 16551]]
small entities acting on their own behalf.
There are 8 spearmint oil handlers subject to regulation under the
order, and approximately 39 producers of Scotch spearmint oil and
approximately 91 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 only 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 22 of the 39 Scotch spearmint oil producers and 29 of
the 91 Native spearmint oil producers could be classified as small
entities under the SBA definition. Thus, the 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 spearmint oil
industry to fully supply spearmint oil markets while avoiding the
negative consequences of over-supplying these markets. Without volume
control regulation, the supply and price of spearmint oil 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 since
1980 and provide benefits for producers, handlers, manufacturers, and
consumers.
This rule increases the quantity of Native spearmint oil that
handlers may purchase from, or handle on behalf of, producers during
the 2014-2015 marketing year, which ends on May 31, 2015. The 2014-2015
Native spearmint oil salable quantity was initially established at
1,090,821 pounds and the allotment percentage initially set at 46
percent. The salable quantity was subsequently increased to 1,280,561
pounds and the allotment percentage to 54 percent. This rule further
increases the Native spearmint oil salable quantity to 1,351,704 pounds
and the allotment percentage to 57 percent.
Based on the information and projections available at the February
18, 2015, 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 Native
spearmint oil after careful consideration of all available information
and input from all interested industry participants, 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 18, 2015, 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: 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 salable quantity and
allotment percentage for Native spearmint oil for the 2014-2015
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.
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 Native spearmint oil
that may be marketed during the marketing year, which ends on May 31,
2015; (2) the current quantity of Native spearmint oil may be
inadequate to meet demand for the 2014-2015 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.
[[Page 16552]]
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2. In Sec. 985.233, revise paragraph (b) to read as follows:
Sec. 985.233 Salable quantities and allotment percentages--2014-2015
marketing year.
* * * * *
(b) Class 3 (Native) oil--a salable quantity of 1,351,704 pounds
and an allotment percentage of 57 percent.
Dated: March 24, 2015.
Rex A. Barnes,
Associate Administrator, Agricultural Marketing Service.
[FR Doc. 2015-07114 Filed 3-27-15; 8:45 am]
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