[Federal Register Volume 59, Number 165 (Friday, August 26, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-21081]
[[Page Unknown]]
[Federal Register: August 26, 1994]
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DEPARTMENT OF AGRICULTURE
7 CFR Part 985
[FV94-985-3IFR]
Spearmint Oil Produced in the Far West; Revision of the Salable
Quantity and Allotment Percentage for ``Class 3'' Native Spearmint Oil
for the 1994-95 Marketing Year
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Interim final rule with request for comments.
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SUMMARY: This interim final rule increases the quantity of ``Class 3''
(Native) spearmint oil produced in the Far West that handlers may
purchase from, or handle for, producers during the 1994-95 marketing
year. This rule was recommended by the Spearmint Oil Administrative
Committee (Committee), the agency responsible for local administration
of the marketing order for spearmint oil produced in the Far West. The
Committee recommended this rule to avoid extreme fluctuations in
supplies and prices and thus help to maintain stability in the Far West
spearmint oil market.
DATES: Effective on August 26, 1994; comments received by September 26,
1994 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 in triplicate to the Docket
Clerk, Fruit and Vegetable Division, AMS, USDA, Room 2525, South
Building, P.O. Box 96456, Washington, D.C. 20090-6456; Fax: (202) 720-
5698. All comments should reference the docket number and the date and
page number of this issue of the Federal Register and will be made
available for public inspection in the Office of the Docket Clerk
during regular business hours.
FOR FURTHER INFORMATION CONTACT: Robert J. Curry, Northwest Marketing
Field Office, Marketing Order Administration Branch, Fruit and
Vegetable Division, AMS, USDA, 1220 S.W. Third Avenue, Room 369,
Portland, Oregon 97204-2807; telephone: (503) 326-2724; or Christian D.
Nissen, Marketing Order Administration Branch, Fruit and Vegetable
Division, AMS, USDA, Room 2525, South Building, P.O. Box 96456,
Washington, D.C. 20090-6456; telephone: (202) 720-5127.
SUPPLEMENTARY INFORMATION: This rule is issued under Marketing Order
No. 985 [7 CFR Part 985], regulating the handling of spearmint oil
produced in the Far West (Washington, Idaho, Oregon, and designated
parts of California, Nevada, Montana, and Utah), hereinafter referred
to as the ``order.'' This 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 (Department) is issuing this rule in
conformance with Executive Order 12866.
This rule has been reviewed under Executive Order 12778, 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 Class 3 spearmint oil produced in the Far
West that may be purchased from or handled for producers by handlers
during the 1994-95 marketing year, which ends on May 31, 1995. This
rule will not preempt any state or local laws, regulations, or
policies, unless they present an irreconcilable conflict with this
rule.
The Act provides that administrative proceedings must be exhausted
before parties may file suit in court. Under section 608c(15)(A) of the
Act, any handler subject to an order may file with the Secretary a
petition stating that the order, any provision of the order, or any
obligation imposed in connection with the order is not in accordance
with law and request a modification of the order or to be exempted
therefrom. A handler is afforded the opportunity for a hearing on the
petition. After the hearing the Secretary would rule on the petition.
The Act provides that the district court of the United States in any
district in which the handler is an inhabitant, or has his or her
principal place of business, has jurisdiction in equity to review the
Secretary's ruling on the petition, provided a bill in equity is filed
not later than 20 days after date of the entry of the ruling.
Pursuant to requirements set forth in the Regulatory Flexibility
Act (RFA), the Administrator of the Agricultural Marketing Service
(AMS) has considered the economic impact of this action on small
entities.
The purpose of the RFA is to fit regulatory actions to the scale of
business subject to such actions in order that small businesses will
not be unduly or disproportionately burdened. Marketing orders issued
pursuant to the Act, and rules issued thereunder, are unique in that
they are brought about through group action of essentially small
entities acting on their own behalf. Thus, both statutes have small
entity orientation and compatibility.
There are eight spearmint oil handlers subject to regulation under
the order and approximately 260 producers of spearmint oil in the
regulated production area. Of the 260 producers, approximately 145
producers hold ``Class 3'' (Native) spearmint oil allotment base, and
approximately 160 producers hold ``Class 1'' (Scotch) spearmint oil
allotment base. Small agricultural service firms have been defined by
the Small Business Administration [13 CFR 121.601] as those having
annual receipts of less than $5,000,000, and small agricultural
producers are defined as those whose annual receipts are less than
$500,000. A minority of handlers and producers of Far West spearmint
oil may 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 are not exclusively dependent on
the production of spearmint oil. The U.S. production of spearmint oil
is concentrated in the Far West, primarily Washington, Idaho, and
Oregon (part of the area covered by the order). Spearmint oil is also
produced in the Midwest. The production area covered by the order
normally accounts for 75 percent of the annual U.S. production of
spearmint oil.
This rule increases the quantity of Native spearmint oil that
handlers may purchase from, or handle for, producers during the 1994-95
marketing year, which ends on May 31, 1995. This rule increases the
salable quantity from 897,388 pounds to 1,092,577 pounds and the
allotment percentage from 46 percent to 56 percent for Native spearmint
oil for the 1994-95 marketing year.
The salable quantity is the total quantity of each class of oil
that handlers may purchase from, or handle for, producers during a
marketing year. The salable quantity calculated by the Committee is
based on the estimated trade. 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 allotment base for the
applicable class of spearmint oil.
The initial salable quantity and allotment percentages for both
Native and Scotch spearmint oils for the 1994-95 marketing year were
recommended by the Committee at its October 6, 1993, meeting. For both
Native and Scotch spearmint oils, the Committee recommended salable
quantities of 897,388 pounds and 723,326 pounds, and allotment
percentages of 46 percent and 41 percent, respectively.
A proposed rule incorporating the Committee's October 6, 1993,
recommendation was published in the December 21, 1993, issue of the
Federal Register [58 FR 67378]. Comments on the proposed rule were
solicited from interested persons until January 20, 1994. No comments
were received. Accordingly, based upon analysis of available
information, a final rule establishing the Committee's recommendation
as the salable quantities and allotment percentages for both Native and
Scotch spearmint oils for the 1994-95 marketing year was published in
the March 16, 1994, issue of the Federal Register [59 FR 12151].
Pursuant to authority contained in sections 985.50, 985.51, and
985.52 of the order, the Committee unanimously recommended at its June
14, 1994, teleconference meeting that the salable quantity and
allotment percentage for Native spearmint oil for the 1994-95 marketing
year be increased. The Committee recommended that the Native spearmint
oil salable quantity be increased from 897,388 pounds to 1,092,577
pounds. Based on a revised total allotment base of 1,951,032 pounds,
the allotment percentage is increased from 46 to 56 percent which
results in a 195,189 pound increase in the salable quantity.
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Recommendations
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October 6, June 14,
1993 1994
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(1) Salable Quantity.......................... 897,388 1,092,577
(2) Total Allotment Base...................... 1,950,843 1,951,032
(3) Allotment Percentage...................... 46 56
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In making this recommendation the Committee considered all
available information on supply and demand. As of June 14, 1994, the
Committee reports that of the 1994-95 Native spearmint oil salable
quantity of 897,388 pounds, 78,787 pounds remained available for
handling. Handlers have indicated, however, that demand may approximate
200,000 pounds of Native spearmint oil for the remainder of this
marketing year. This level of demand was not anticipated by the
Committee when it made its initial recommendation for the establishment
of a salable quantity and allotment percentage for Native spearmint oil
for the 1994-95 marketing year.
The recommended salable quantity of 1,092,577 pounds of Native
spearmint oil (an increase of 195,189 pounds), combined with the actual
June 1, 1994, carry-in of 21,125 pounds, results in a revised 1994-95
available supply of 1,113,702 pounds. This available supply is
approximately 30,000 pounds higher than the annual average of sales for
the past five years. The Committee anticipates that foreseeable demand
will be adequately met with the recommended increase.
The Committee did not recommend an increase in the available supply
of Scotch spearmint oil since it is anticipated that there will be a
surplus supply of this type of oil by the end of the 1994-95 marketing
year.
The Department, based on its analysis of available information, has
determined that an allotment percentage of 56 percent should be
established for Native spearmint oil for the 1994-95 marketing year.
This percentage will provide an increased salable quantity of 1,092,577
pounds of Native spearmint oil.
Based on available information, the Administrator of the AMS has
determined that the issuance of this interim final rule will not have a
significant economic impact on a substantial number of small entities.
After consideration of all relevant matter presented, including
that contained in the prior proposed and final rules in connection with
the establishment of the salable quantities and allotment percentages
for Native and Scotch spearmint oils for the 1994-95 marketing year,
the Committee's recommendation and other available information, it is
found that to revise section 985.213 [59 FR 12151] to change the
salable quantity and allotment percentage for Native spearmint oil, 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 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 interim final rule increases the quantity of Native
spearmint oil that may be marketed immediately; (2) Handlers and
producers should be apprised as soon as possible of the salable
quantity and allotment percentage of Native spearmint oil contained in
this interim final rule; and (3) This rule provides a 30-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--SPEARMINT OIL PRODUCED IN THE FAR WEST
1. The authority citation for 7 CFR part 985 continues to read as
follows:
Authority: 7 U.S.C. 601-674.
2. Section 985.213 is amended by revising the introductory text and
paragraph (b) to read as follows:
Note: This section will not appear in the annual Code of Federal
Regulations.
Sec. 985.213 Salable quantities and allotment percentages--1994-95
marketing year.
The salable quantity and allotment percentage for each class of
spearmint oil during the marketing year beginning on June 1, 1994,
shall be as follows:
* * * * *
(b) ``Class 3'' (Native) oil--a salable quantity of 1,092,577
pounds and an allotment percentage of 56 percent.
Dated: August 22, 1994.
Eric M. Forman,
Deputy Director, Fruit and Vegetable Division.
[FR Doc. 94-21081 Filed 8-25-94; 8:45 am]
BILLING CODE 3410-02-P