Irish Potatoes Grown in Colorado; Modification of the Handling Regulation for Area No. 2, 85108-85110 [2016-28252]
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85108
Federal Register / Vol. 81, No. 227 / Friday, November 25, 2016 / Rules and Regulations
There are two California olive
handlers subject to regulation under the
marketing order and about 1,000 olive
producers in the production area. Small
agricultural service firms are defined by
the Small Business Administration
(SBA) as those having annual receipts of
less than $7,500,000, and small
agricultural producers are defined as
those whose annual receipts are less
than $750,000 (13 CFR 121.201). Based
upon information from the Committee
and the National Agricultural Statistics
Service (NASS), the average producer
price for the 2013–14 crop year (the last
year information was available) was
$1,150 per ton of canning-size olives
and $385 per ton for limited-use size
olives. The total assessable volume was
85,668 tons. Canning sizes represented
88 percent of the assessable olive
volume, while limited-use sizes
represented 12 percent of the assessable
olive volume. Based on production,
producer prices, and the total number of
California olive producers, the average
annual producer revenue is less than
$750,000. Thus, the majority of olive
producers may be classified as small
entities. Both of the handlers may be
classified as large entities.
This rule continues in effect the
suspension of the incoming size-grading
regulations in § 932.51, beginning with
the 2016–17 crop year. It also continues
in effect the revision of regulations in
§ 932.151, bringing the rules and
regulations into conformity with the
rule and its intent. In addition, the rule
continues in effect conforming changes
made to the Committee forms, COC–3c
and COC–5.
This action is expected to result in
increased handler flexibility and
competitiveness, while reducing some
of the costs associated with size-grading.
In addition, this action will allow the
Committee time to develop new
requirements that address advancing
technology and equipment.
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. Minor
conforming changes to those
requirements were necessary as a result
of this action. AMS submitted a request
to OMB to make minor conforming
changes to forms COC–3c and COC–5.
This rule will not impose any
additional reporting or recordkeeping
requirements on either small or large
olive handlers. As with all Federal
marketing order programs, reports and
forms are periodically reviewed to
reduce information requirements and
VerDate Sep<11>2014
14:00 Nov 23, 2016
Jkt 241001
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
California olive industry and all
interested persons were invited to
attend the meeting and participate in
Committee deliberations. Like all
Committee meetings, the February 17,
2016, 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
September 16, 2016. 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:
https://www.gpo.gov/fdsys/pkg/FR2016-07-18/pdf/2016-16704.pdf.
This action also affirms information
contained in the interim rule concerning
Executive Orders 12866, 12988, 13175,
and 13563; the Paperwork Reduction
Act (44 U.S.C. Chapter 35); and the EGov 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 (81 FR 46567, July 18, 2016)
will tend to effectuate the declared
policy of the Act.
List of Subjects in 7 CFR Part 932
Marketing agreements, Olives,
Reporting and recordkeeping
requirements.
Accordingly, the interim rule that
amended 7 CFR part 932 and that was
published at 81 FR 46567 on July 18,
2016, is adopted as a final rule, without
change.
■
Dated: November 18, 2016.
Bruce Summers,
Associate Administrator, Agricultural
Marketing Service.
[FR Doc. 2016–28254 Filed 11–23–16; 8:45 am]
BILLING CODE 3410–02–P
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DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 948
[Doc. No. AMS–SC–16–0042; SC16–948–1
FR]
Irish Potatoes Grown in Colorado;
Modification of the Handling
Regulation for Area No. 2
Agricultural Marketing Service,
USDA.
ACTION: Final rule.
AGENCY:
This rule implements a
recommendation from the Colorado
Potato Administrative Committee, Area
No. 2 (Committee) to revise the grade
requirement currently prescribed for
11⁄2-inch minimum to 21⁄4-inch
maximum diameter (Size B) potatoes
under the Colorado potato marketing
order (order). The Committee locally
administers the order and is comprised
of producers and handlers of potatoes
operating within the area of production.
This rule relaxes the current minimum
grade requirement for Size B red
potatoes from U.S. Commercial grade or
better to U.S. No. 2 grade or better.
Relaxing this grade requirement will
allow area handlers to supply new
markets with U.S. No. 2 grade Size B red
potatoes and is expected to benefit
producers, handlers, and consumers.
DATES: Effective November 28, 2016.
FOR FURTHER INFORMATION CONTACT: Sue
Coleman, Marketing Specialist, or Gary
D. Olson, Regional Director, Northwest
Marketing Field Office, Marketing Order
and Agreement Division, Specialty
Crops Program, AMS, USDA;
Telephone: (503) 326–2724, Fax: (503)
326–7440, or Email: Sue.Coleman@
ams.usda.gov or GaryD.Olson@
ams.usda.gov.
Small businesses may request
information on complying with this
regulation by contacting Richard Lower,
Marketing Order and Agreement
Division, Specialty Crops Program,
AMS, USDA, 1400 Independence
Avenue SW., STOP 0237, Washington,
DC 20250–0237; Telephone: (202) 720–
2491, Fax: (202) 720–8938, or Email:
Richard.Lower@ams.usda.gov.
SUPPLEMENTARY INFORMATION: This final
rule is issued under Marketing
Agreement No. 97 and Marketing Order
No. 948, both as amended (7 CFR part
948), regulating the handling of Irish
potatoes grown in Colorado, 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.’’
SUMMARY:
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Federal Register / Vol. 81, No. 227 / Friday, November 25, 2016 / Rules and Regulations
The Department of Agriculture
(USDA) is issuing this rule in
conformance with Executive Orders
12866, 13563, and 13175.
This final 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 final rule revises the grade
requirement currently prescribed for
Size B potatoes under the order. This
rule relaxes the current minimum grade
requirement for Size B red potatoes from
U.S. Commercial grade to U.S. No. 2
grade. This change was unanimously
recommended by the Committee at a
meeting held on March 17, 2016.
Section 948.22 of the order authorizes
the issuance of grade, size, quality,
maturity, pack, and container
regulations for potatoes grown in the
order’s production area. Section 948.21
authorizes the modification, suspension,
or termination of regulations issued
pursuant to § 948.22.
Under the Colorado potato marketing
order, the State of Colorado is divided
into three areas of regulation for
marketing order purposes. These
include: Area 1, commonly known as
the Western Slope; Area 2, commonly
known as San Luis Valley; and Area 3,
which consists of the remaining
producing areas within the State of
Colorado not included in the definitions
of Area 1 or Area 2. Currently, the order
only regulates the handling of potatoes
produced in Area 2 and Area 3.
Regulation for Area 1 has been
suspended.
The grade, size, and maturity
requirements specific to the handling of
potatoes grown in Area 2 are contained
in § 948.386 of the order. The current
handling regulation requires that, for all
varieties, Size B potatoes (11⁄2-inch
minimum to 21⁄4-inch maximum
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Jkt 241001
diameter, as designated in the U.S.
Standards for Grades of Potatoes) may
be handled under the order, if such
potatoes meet or exceed the
requirements of the U.S. Commercial
grade.
At the March 17, 2016, Committee
meeting, industry participants indicated
to the Committee that there is demand
in several markets, including the food
service market, for Size B, U.S. No. 2
grade red potatoes. They further stated
that the order’s current grade
requirement for Size B potatoes (U.S.
Commercial grade or better) precludes
handlers from supplying this growing
and profitable market. Relaxing the
grade requirement for Size B red
potatoes will allow area handlers to
compete with other domestic potato
producing regions. This change will
effectively lower the allowable grade for
red varieties of Size B potatoes from
U.S. Commercial grade or better to U.S.
No. 2 grade or better.
Relaxing the grade requirement to
allow shipments of U.S. No. 2 grade
Size B red potatoes should make more
potatoes available to consumers and
should allow Area 2 handlers to move
more of the area’s potato production
into the fresh market. This change is
expected to benefit producers, handlers,
and consumers of potatoes.
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
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 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 66 handlers
of Colorado Area No. 2 potatoes subject
to regulation under the order and
approximately 150 producers 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 $7,500,000, and small
agricultural producers are defined as
those having annual receipts of less than
$750,000 (13 CFR 121.201).
During the 2014–2015 marketing year,
the most recent full marketing year for
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85109
which statistics are available,
14,075,876 hundredweight of Colorado
Area No. 2 potatoes were inspected
under the order and sold into the fresh
market. Based on information reported
by USDA’s Market News Service, the
average f.o.b. shipping point price for
the 2014–2015 Colorado potato crop
was $8.60 per hundredweight.
Multiplying $8.60 by the shipment
quantity of 14,075,876 hundredweight
yields an annual crop revenue estimate
of $121,052,534. The average annual
fresh potato revenue for each of the 66
handlers is therefore calculated to be
$1,834,129 ($121,052,534 divided by
66), which is less than the SBA
threshold of $7,500,000. Consequently,
on average, most of the Colorado Area
No. 2 potato handlers may be classified
as small entities.
In addition, based on information
provided by the National Agricultural
Statistics Service, the average producer
price for the 2014 Colorado fall potato
crop was $8.25 per hundredweight.
Multiplying $8.25 by the shipment
quantity of 14,075,876 hundredweight
yields an annual crop revenue estimate
of $116,125,977. The average annual
fresh potato revenue for each of the 150
Colorado Area No. 2 potato producers is
therefore calculated to be approximately
$774,173 ($116,125,977 divided by 150),
which is greater than the SBA threshold
of $750,000. Consequently, on average,
many of the Area No. 2 Colorado potato
producers may not be classified as small
entities.
This final rule relaxes the minimum
grade requirement prescribed for 11⁄2inch minimum diameter to 21⁄4-inch
maximum diameter (Size B) red
potatoes under the order. Currently, the
handling of Size B potatoes is allowed
if the potatoes otherwise meet or exceed
the requirements of the U.S.
Commercial grade standard. This
change will effectively lower the
minimum grade requirement for Size B
red potatoes from U.S. Commercial
grade or better to U.S. No. 2 grade or
better. Relaxing the grade requirement
will allow Colorado Area 2 handlers to
supply markets with U.S. No. 2 grade
Size B red potatoes and enable them to
better compete with the other domestic
potato producing regions. This change
in the handling regulations is expected
to benefit producers, handlers, and
consumers. All other requirements in
the order’s handling regulations would
remain unchanged. Authority for this
action is contained in §§ 948.21 and
948.22 of the order.
This relaxation is expected to benefit
producers, handlers, and consumers of
Colorado Area 2 potatoes by allowing a
greater quantity of potatoes from the
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Federal Register / Vol. 81, No. 227 / Friday, November 25, 2016 / Rules and Regulations
production area to enter the fresh
market. The anticipated increase in
volume is expected to translate into
greater returns for handlers and
producers, and more purchasing options
for consumers.
After discussing possible alternatives
to this change, the Committee
determined that a relaxation in the
grade requirement for Size B red
potatoes should meet the industry’s
current needs while maintaining the
integrity of the order’s quality
objectives. During its deliberations, the
Committee considered making no
changes to the handling regulation, as
well as relaxing the grade requirement
for all Size B potatoes. The Committee
believes that a relaxation in the
handling regulation for Size B red
potatoes is necessary to allow handlers
to pursue new markets, but lowering the
grade requirement for all other types
and varieties of Size B potatoes to U.S.
No. 2 grade or better could erode the
quality reputation of the area’s
production. Therefore, the Committee
found that there were no other viable
alternatives to the proposal as
recommended.
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 final rule relaxes the minimum
grade requirements under the Colorado
Area 2 potato marketing order.
Accordingly, this action will not impose
any additional reporting or
recordkeeping requirements on either
small or large 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.
As noted in the initial regulatory
flexibility analysis, USDA has not
identified any relevant Federal rules
that duplicate, overlap or conflict with
this final rule.
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, the Committee’s meeting
was widely publicized throughout the
VerDate Sep<11>2014
14:00 Nov 23, 2016
Jkt 241001
Colorado potato industry, and all
interested persons were invited to
attend the meeting and participate in
Committee deliberations on all issues.
Like all Committee meetings, the March
17, 2016, meeting was a public meeting,
and all entities, both large and small,
were able to express views on this issue.
A proposed rule concerning this
action was published in the Federal
Register on August 1, 2016 (81 FR
50406). Copies of the rule were made
available to all interested Colorado
potato producers and handlers. Finally,
the rule was made available through the
internet by USDA and the Office of the
Federal Register. A 60-day comment
period ending September 30, 2016, was
provided to allow interested persons to
respond to the proposal. No comments
were received.
A small business guide on complying
with fruit, vegetable, and specialty crop
marketing agreements and orders may
be viewed at: https://www.ams.usda.gov/
rules-regulations/moa/small-businesses.
Any questions about the compliance
guide should be sent to Richard Lower
at the previously mentioned address in
the FOR FURTHER INFORMATION CONTACT
section.
After consideration of all relevant
matter presented, including the
information and recommendation
submitted by the Committee and other
available information, it is hereby found
that this rule, as hereinafter set forth,
will tend to effectuate the declared
policy of the Act.
It is further found that good cause
exists for not postponing the effective
date of this rule until 30 days after
publication in the Federal Register (5
U.S.C. 553) because handlers are already
shipping potatoes from the 2016 crop,
and handlers want to take advantage of
the relaxation as soon as possible.
Further, handlers are aware of this rule,
which was recommended at a public
meeting. Also, a 60-day comment period
was provided for in the proposed rule.
List of Subjects in 7 CFR Part 948
Marketing agreements, Potatoes,
Reporting and recordkeeping
requirements.
For the reasons set forth in the
preamble, 7 CFR part 948 is amended as
follows:
PART 948—IRISH POTATOES GROWN
IN COLORADO
1. The authority citation for 7 CFR
part 948 continues to read as follows:
■
Authority: 7 U.S.C. 601–674.
2. In § 948.386, paragraph (a)(3) is
revised to read as follows:
§ 948.386
Handling regulation.
*
*
*
*
*
(a) * * *
(3) 11⁄2-inch minimum to 21⁄4-inch
maximum diameter (Size B). U.S.
Commercial grade or better, except that
red varieties may be U.S. No. 2 grade or
better.
*
*
*
*
*
Dated: November 18, 2016.
Bruce Summers,
Associate Administrator, Agricultural
Marketing Service.
[FR Doc. 2016–28252 Filed 11–23–16; 8:45 am]
BILLING CODE 3410–02–P
NATIONAL CREDIT UNION
ADMINISTRATION
12 CFR Part 705
RIN 3133–AE58
Community Development Revolving
Loan Fund
National Credit Union
Administration (NCUA).
ACTION: Final rule.
AGENCY:
The NCUA Board (Board) is
finalizing a rule to make several
technical amendments to NCUA’s rule
governing the Community Development
Revolving Loan Fund (CDRLF). The
amendments will make the rule more
succinct and improve its transparency,
organization, and ease of use by credit
unions.
DATES: This rule is effective December
27, 2016.
FOR FURTHER INFORMATION CONTACT:
Geetha Valiyil, Manager, Grants and
Loans, Office of Small Credit Union
Initiatives, or Justin Anderson, Senior
Staff Attorney, Office of General
Counsel, at 1775 Duke Street,
Alexandria, VA 22314 or telephone
(703) 518–6645 (Ms. Valiyil) or (703)
518–6540 (Mr. Anderson).
SUPPLEMENTARY INFORMATION:
SUMMARY:
A. Background
In June 2016, the Board issued a
proposed rule to amend NCUA’s CDRLF
rule.1 The proposed amendments were
largely technical in nature or clarified
NCUA’s practices with respect to
disbursing money from the CDRLF.
B. Summary of Comments
NCUA received three comments on
the proposed rule, all of which were
generally supportive of the rule. One
commenter, however, did request
additional changes and clarifications.
■
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1 81
FR 40197 (June 21, 2016).
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]]>Agencies
[Federal Register Volume 81, Number 227 (Friday, November 25, 2016)]
[Rules and Regulations]
[Pages 85108-85110]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-28252]
-----------------------------------------------------------------------
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 948
[Doc. No. AMS-SC-16-0042; SC16-948-1 FR]
Irish Potatoes Grown in Colorado; Modification of the Handling
Regulation for Area No. 2
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: This rule implements a recommendation from the Colorado Potato
Administrative Committee, Area No. 2 (Committee) to revise the grade
requirement currently prescribed for 1\1/2\-inch minimum to 2\1/4\-inch
maximum diameter (Size B) potatoes under the Colorado potato marketing
order (order). The Committee locally administers the order and is
comprised of producers and handlers of potatoes operating within the
area of production. This rule relaxes the current minimum grade
requirement for Size B red potatoes from U.S. Commercial grade or
better to U.S. No. 2 grade or better. Relaxing this grade requirement
will allow area handlers to supply new markets with U.S. No. 2 grade
Size B red potatoes and is expected to benefit producers, handlers, and
consumers.
DATES: Effective November 28, 2016.
FOR FURTHER INFORMATION CONTACT: Sue Coleman, Marketing Specialist, or
Gary D. Olson, Regional Director, Northwest Marketing Field Office,
Marketing Order and Agreement Division, Specialty Crops Program, AMS,
USDA; Telephone: (503) 326-2724, Fax: (503) 326-7440, or Email:
Sue.Coleman@ams.usda.gov or GaryD.Olson@ams.usda.gov.
Small businesses may request information on complying with this
regulation by contacting Richard Lower, Marketing Order and Agreement
Division, Specialty Crops Program, AMS, USDA, 1400 Independence Avenue
SW., STOP 0237, Washington, DC 20250-0237; Telephone: (202) 720-2491,
Fax: (202) 720-8938, or Email: Richard.Lower@ams.usda.gov.
SUPPLEMENTARY INFORMATION: This final rule is issued under Marketing
Agreement No. 97 and Marketing Order No. 948, both as amended (7 CFR
part 948), regulating the handling of Irish potatoes grown in Colorado,
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.''
[[Page 85109]]
The Department of Agriculture (USDA) is issuing this rule in
conformance with Executive Orders 12866, 13563, and 13175.
This final 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 final rule revises the grade requirement currently prescribed
for Size B potatoes under the order. This rule relaxes the current
minimum grade requirement for Size B red potatoes from U.S. Commercial
grade to U.S. No. 2 grade. This change was unanimously recommended by
the Committee at a meeting held on March 17, 2016.
Section 948.22 of the order authorizes the issuance of grade, size,
quality, maturity, pack, and container regulations for potatoes grown
in the order's production area. Section 948.21 authorizes the
modification, suspension, or termination of regulations issued pursuant
to Sec. 948.22.
Under the Colorado potato marketing order, the State of Colorado is
divided into three areas of regulation for marketing order purposes.
These include: Area 1, commonly known as the Western Slope; Area 2,
commonly known as San Luis Valley; and Area 3, which consists of the
remaining producing areas within the State of Colorado not included in
the definitions of Area 1 or Area 2. Currently, the order only
regulates the handling of potatoes produced in Area 2 and Area 3.
Regulation for Area 1 has been suspended.
The grade, size, and maturity requirements specific to the handling
of potatoes grown in Area 2 are contained in Sec. 948.386 of the
order. The current handling regulation requires that, for all
varieties, Size B potatoes (1\1/2\-inch minimum to 2\1/4\-inch maximum
diameter, as designated in the U.S. Standards for Grades of Potatoes)
may be handled under the order, if such potatoes meet or exceed the
requirements of the U.S. Commercial grade.
At the March 17, 2016, Committee meeting, industry participants
indicated to the Committee that there is demand in several markets,
including the food service market, for Size B, U.S. No. 2 grade red
potatoes. They further stated that the order's current grade
requirement for Size B potatoes (U.S. Commercial grade or better)
precludes handlers from supplying this growing and profitable market.
Relaxing the grade requirement for Size B red potatoes will allow area
handlers to compete with other domestic potato producing regions. This
change will effectively lower the allowable grade for red varieties of
Size B potatoes from U.S. Commercial grade or better to U.S. No. 2
grade or better.
Relaxing the grade requirement to allow shipments of U.S. No. 2
grade Size B red potatoes should make more potatoes available to
consumers and should allow Area 2 handlers to move more of the area's
potato production into the fresh market. This change is expected to
benefit producers, handlers, and consumers of potatoes.
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
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 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 66 handlers of Colorado Area No. 2 potatoes
subject to regulation under the order and approximately 150 producers
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 $7,500,000, and small agricultural
producers are defined as those having annual receipts of less than
$750,000 (13 CFR 121.201).
During the 2014-2015 marketing year, the most recent full marketing
year for which statistics are available, 14,075,876 hundredweight of
Colorado Area No. 2 potatoes were inspected under the order and sold
into the fresh market. Based on information reported by USDA's Market
News Service, the average f.o.b. shipping point price for the 2014-2015
Colorado potato crop was $8.60 per hundredweight. Multiplying $8.60 by
the shipment quantity of 14,075,876 hundredweight yields an annual crop
revenue estimate of $121,052,534. The average annual fresh potato
revenue for each of the 66 handlers is therefore calculated to be
$1,834,129 ($121,052,534 divided by 66), which is less than the SBA
threshold of $7,500,000. Consequently, on average, most of the Colorado
Area No. 2 potato handlers may be classified as small entities.
In addition, based on information provided by the National
Agricultural Statistics Service, the average producer price for the
2014 Colorado fall potato crop was $8.25 per hundredweight. Multiplying
$8.25 by the shipment quantity of 14,075,876 hundredweight yields an
annual crop revenue estimate of $116,125,977. The average annual fresh
potato revenue for each of the 150 Colorado Area No. 2 potato producers
is therefore calculated to be approximately $774,173 ($116,125,977
divided by 150), which is greater than the SBA threshold of $750,000.
Consequently, on average, many of the Area No. 2 Colorado potato
producers may not be classified as small entities.
This final rule relaxes the minimum grade requirement prescribed
for 1\1/2\-inch minimum diameter to 2\1/4\-inch maximum diameter (Size
B) red potatoes under the order. Currently, the handling of Size B
potatoes is allowed if the potatoes otherwise meet or exceed the
requirements of the U.S. Commercial grade standard. This change will
effectively lower the minimum grade requirement for Size B red potatoes
from U.S. Commercial grade or better to U.S. No. 2 grade or better.
Relaxing the grade requirement will allow Colorado Area 2 handlers to
supply markets with U.S. No. 2 grade Size B red potatoes and enable
them to better compete with the other domestic potato producing
regions. This change in the handling regulations is expected to benefit
producers, handlers, and consumers. All other requirements in the
order's handling regulations would remain unchanged. Authority for this
action is contained in Sec. Sec. 948.21 and 948.22 of the order.
This relaxation is expected to benefit producers, handlers, and
consumers of Colorado Area 2 potatoes by allowing a greater quantity of
potatoes from the
[[Page 85110]]
production area to enter the fresh market. The anticipated increase in
volume is expected to translate into greater returns for handlers and
producers, and more purchasing options for consumers.
After discussing possible alternatives to this change, the
Committee determined that a relaxation in the grade requirement for
Size B red potatoes should meet the industry's current needs while
maintaining the integrity of the order's quality objectives. During its
deliberations, the Committee considered making no changes to the
handling regulation, as well as relaxing the grade requirement for all
Size B potatoes. The Committee believes that a relaxation in the
handling regulation for Size B red potatoes is necessary to allow
handlers to pursue new markets, but lowering the grade requirement for
all other types and varieties of Size B potatoes to U.S. No. 2 grade or
better could erode the quality reputation of the area's production.
Therefore, the Committee found that there were no other viable
alternatives to the proposal as recommended.
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 final rule relaxes the minimum grade requirements under the
Colorado Area 2 potato marketing order. Accordingly, this action will
not impose any additional reporting or recordkeeping requirements on
either small or large 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.
As noted in the initial regulatory flexibility analysis, USDA has
not identified any relevant Federal rules that duplicate, overlap or
conflict with this final rule.
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, the Committee's meeting was widely publicized
throughout the Colorado potato industry, and all interested persons
were invited to attend the meeting and participate in Committee
deliberations on all issues. Like all Committee meetings, the March 17,
2016, meeting was a public meeting, and all entities, both large and
small, were able to express views on this issue.
A proposed rule concerning this action was published in the Federal
Register on August 1, 2016 (81 FR 50406). Copies of the rule were made
available to all interested Colorado potato producers and handlers.
Finally, the rule was made available through the internet by USDA and
the Office of the Federal Register. A 60-day comment period ending
September 30, 2016, was provided to allow interested persons to respond
to the proposal. No comments were received.
A small business guide on complying with fruit, vegetable, and
specialty crop marketing agreements and orders may be viewed at: https://www.ams.usda.gov/rules-regulations/moa/small-businesses. Any questions
about the compliance guide should be sent to Richard Lower at the
previously mentioned address in the FOR FURTHER INFORMATION CONTACT
section.
After consideration of all relevant matter presented, including the
information and recommendation submitted by the Committee and other
available information, it is hereby found that this rule, as
hereinafter set forth, will tend to effectuate the declared policy of
the Act.
It is further found that good cause exists for not postponing the
effective date of this rule until 30 days after publication in the
Federal Register (5 U.S.C. 553) because handlers are already shipping
potatoes from the 2016 crop, and handlers want to take advantage of the
relaxation as soon as possible. Further, handlers are aware of this
rule, which was recommended at a public meeting. Also, a 60-day comment
period was provided for in the proposed rule.
List of Subjects in 7 CFR Part 948
Marketing agreements, Potatoes, Reporting and recordkeeping
requirements.
For the reasons set forth in the preamble, 7 CFR part 948 is
amended as follows:
PART 948--IRISH POTATOES GROWN IN COLORADO
0
1. The authority citation for 7 CFR part 948 continues to read as
follows:
Authority: 7 U.S.C. 601-674.
0
2. In Sec. 948.386, paragraph (a)(3) is revised to read as follows:
Sec. 948.386 Handling regulation.
* * * * *
(a) * * *
(3) 1\1/2\-inch minimum to 2\1/4\-inch maximum diameter (Size B).
U.S. Commercial grade or better, except that red varieties may be U.S.
No. 2 grade or better.
* * * * *
Dated: November 18, 2016.
Bruce Summers,
Associate Administrator, Agricultural Marketing Service.
[FR Doc. 2016-28252 Filed 11-23-16; 8:45 am]
BILLING CODE 3410-02-P
