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 2004-2005 Marketing Year, 8712-8716 [05-3480]
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Federal Register / Vol. 70, No. 35 / Wednesday, February 23, 2005 / Rules and Regulations
on either small or large melon handlers.
As with all Federal marketing order
programs, reports and forms are
periodically reviewed to reduce
information requirements and
duplication by industry and public
sector agencies. In addition, as noted in
the initial regulatory flexibility analysis,
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 melon
industry and all interested persons were
invited to attend the meeting and
participate in Committee deliberations.
Like all Committee meetings, the
September 16, 2004, meeting was a
public meeting and all entities, both
large and small, were able to express
their views on this issue.
An interim final rule concerning this
action was published in the Federal
Register on November 26, 2004. Copies
of the rule were mailed by the
Committee’s staff to all Committee
members and melon handlers. In
addition, the rule was made available
through the Internet by USDA and the
Office of the Federal Register. That rule
provided for a 60-day comment period
which ended January 25, 2005. One
comment was received during that
period. The comment concerned melon
imports from Mexico and is, therefore,
not applicable to this rulemaking action
because the South Texas melon
marketing order does not impact melon
imports. The comment also stated that
the Committee should be disbanded.
The Committee is authorized under the
marketing order and the Act. No
changes are made as a result of the
comment.
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/
fv/moab.html. Any questions about the
compliance guide should be sent to Jay
Guerber at the previously mentioned
address in the FOR FURTHER INFORMATION
CONTACT section.
After consideration of all relevant
material presented, including the
Committee’s recommendation, and
other information, it is found that the
regulations suspended in this final rule,
which adopts, without change, the
interim final rule, as published in the
Federal Register (69 FR 68761,
November 26, 2004), no longer tend to
effectuate the declared policy of the Act.
List of Subjects in 7 CFR Part 979
Marketing agreements, Melons,
Reporting and recordkeeping
requirements.
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PART 979—MELONS GROWN IN
SOUTH TEXAS
Accordingly, the interim final rule
amending 7 CFR part 979 which was
published at 69 FR 68761 on November
26, 2004, is adopted as a final rule
without change.
n
Dated: February 16, 2005.
Kenneth C. Clayton,
Acting Administrator, Agricultural Marketing
Service.
[FR Doc. 05–3389 Filed 2–22–05; 8:45 am]
BILLING CODE 3410–02–P
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 985
[Docket No. FV04–985–2 IFR–A]
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
2004–2005 Marketing Year
AGENCY: Agricultural Marketing Service,
USDA.
ACTION: Interim final rule with request
for comments.
SUMMARY: This rule amends a prior
interim final rule that increased the
quantity of Class 3 (Native) spearmint
oil produced in the Far West that
handlers may purchase from, or handle
for, producers during the 2004–2005
marketing year. The prior interim final
rule increased the Native spearmint oil
salable quantity from 773,474 pounds to
1,095,689 pounds, and the allotment
percentage from 36 percent to 51
percent. This rule increases the Native
spearmint oil salable quantity by an
additional 171,873 pounds from
1,095,689 pounds to 1,267,562 pounds,
and the allotment percentage by an
additional 8 percent from 51 percent to
59 percent. The Spearmint Oil
Administrative Committee (Committee),
the agency responsible for local
administration of the marketing order
for spearmint oil produced in the Far
West, unanimously recommended this
rule to avoid extreme fluctuations in
supplies and prices and to help
maintain stability in the Far West
spearmint oil market.
DATES: Effective June 1, 2004, through
May 31, 2005; comments received by
April 25, 2005, will be considered prior
to issuance of a final rule.
ADDRESSES: Interested persons are
invited to submit written comments
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concerning this rule. Comments must be
sent to the Docket Clerk, Marketing
Order Administration Branch, Fruit and
Vegetable Programs, AMS, USDA, 1400
Independence Avenue, SW., STOP
0237, Washington, DC 20250–0237; Fax:
(202) 720–8938; e-mail:
moab.docketclerk@usda.gov; or Internet:
https://www.regulations.gov. 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, or
can be viewed at: https://
www.ams.usda.gov/fv/moab.html.
FOR FURTHER INFORMATION CONTACT:
Susan M. Hiller, Northwest Marketing
Field Office, Marketing Order
Administration Branch, Fruit and
Vegetable Programs, AMS, USDA, 1220
SW., Third Avenue, Suite 385, Portland,
Oregon 97204; telephone: (503) 326–
2724, Fax: (503) 326–7440; or George
Kelhart, Technical Advisor, Marketing
Order Administration Branch, Fruit and
Vegetable Programs, AMS, USDA, 1400
Independence Avenue, SW., STOP
0237, Washington, DC 20250–0237;
telephone: (202) 720–2491, Fax: (202)
720–8938.
Small businesses may request
information on complying with this
regulation by contacting Jay Guerber,
Marketing Order Administration
Branch, Fruit and Vegetable Programs,
AMS, USDA, 1400 Independence
Avenue, SW., STOP 0237, Washington,
DC 20250–0237; telephone: (202) 720–
2491, Fax: (202) 720–8938, or e-mail:
Jay.Guerber@usda.gov.
SUPPLEMENTARY INFORMATION: This rule
is issued under Marketing Order No.
985, as amended (7 CFR part 985),
regulating the handling of spearmint oil
produced in the Far West (Washington,
Idaho, Oregon, and designated parts of
Nevada and Utah), hereinafter referred
to as the ‘‘order.’’ The order is effective
under the Agricultural Marketing
Agreement Act of 1937, as amended (7
U.S.C. 601–674), hereinafter referred to
as the ‘‘Act.’’
The Department of Agriculture
(USDA) is issuing this rule in
conformance with Executive Order
12866.
This rule has been reviewed under
Executive Order 12988, Civil Justice
Reform. This rule is not intended to
have retroactive effect. 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
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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 amends an interim final rule
that was published in the Federal
Register on October 21, 2004 (69 FR
61755). That rule, which was based on
two unanimous Committee
recommendations increased the
quantity of Native spearmint oil that
handlers may purchase from, or handle
for, producers during the 2004–2005
marketing year, which ends on May 31,
2005. Pursuant to authority contained in
§§ 985.50, 985.51, and 985.52 of the
order, at its September 13, 2004,
meeting, the Committee unanimously
recommended that the allotment
percentage for Native spearmint oil for
the 2004–2005 marketing year be
increased by 12 percent from 36 percent
to 48 percent. The Committee held
another meeting on October 6, 2004,
where, based on an unanticipated
increase in demand, they unanimously
recommended that the allotment
percentage for Native spearmint oil for
the 2004–2005 marketing year be
increased by an additional 3 percent
from 48 percent to 51 percent.
Specifically, that rule increased the
salable quantity from 773,474 pounds to
1,095,689 pounds, and the allotment
percentage from 36 percent to 51
percent for Native spearmint oil for the
2004–2005 marketing year.
This amended interim final rule,
which is based on a unanimous
Committee recommendation made at a
meeting on January 20, 2005, increases
the salable quantity an additional
171,873 pounds from 1,095,689 pounds
to 1,267,562 pounds, and the allotment
percentage an additional 8 percent from
51 percent to 59 percent for Native
spearmint oil for the 2004–2005
marketing year.
The initial salable quantity and
allotment percentages for Scotch and
Native spearmint oils for the 2004–2005
marketing year were recommended by
the Committee at its October 8, 2003,
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meeting. The Committee recommended
salable quantities of 766,880 pounds
and 773,474 pounds, and allotment
percentages of 40 percent and 36
percent, respectively, for Scotch and
Native spearmint oils. A proposed rule
was published in the Federal Register
on January 23, 2004 (69 FR 3272).
Comments on the proposed rule were
solicited from interested persons until
February 23, 2004. No comments were
received. Subsequently, a final rule
establishing the salable quantities and
allotment percentages for Scotch and
Native spearmint oils for the 2004–2005
marketing year was published in the
Federal Register on March 22, 2004 (69
FR 13213). Subsequently, an interim
final rule made more Native spearmint
oil available for the 2004–2005
marketing year. This rule was published
in the Federal Register on October 21,
2004 (69 FR 61755). No timely
comments were received in response to
the interim final rule.
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 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
individual allotment base for the
applicable class of spearmint oil.
Taking into consideration the
following discussion on adjustments to
the Native spearmint oil salable
quantity, the 2004–2005 marketing year
salable quantity of 1,095,689 pounds
will therefore be increased to 1,267,562
pounds.
The original total industry allotment
base for Native spearmint oil for the
2004–2005 marketing year was
established at 2,148,539 pounds and
was revised at the beginning of the
2004–2005 marketing year to 2,148,410
pounds to reflect a 2003–2004
marketing year loss of 129 pounds of
base due to non-production of some
producers’ total annual allotments.
When the revised total allotment base of
2,148,410 pounds is applied to the
originally established allotment
percentage of 36 percent, the 2004–2005
marketing year salable quantity of
773,474 pounds is effectively modified
to 773,428 pounds.
By increasing the salable quantity and
allotment percentage, this amended
interim final rule makes an additional
amount of Native spearmint oil
available by releasing oil from the
reserve pool. When applied to each
individual producer, the 8 percent
allotment percentage increase allows
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each producer to take up to an amount
equal to 8 percent of their allotment
base from their Native spearmint oil
reserve. This action makes an additional
118,990 pounds of Native spearmint oil
available to the market.
The following table summarizes the
Committee recommendation:
Native Spearmint Oil Recommendation
(A) Estimated 2004–2005 Allotment
Base—2,148,539 pounds. This is the
estimate that the original 2004–2005
Native spearmint oil salable quantity
and allotment percentage was based on.
(B) Revised 2004–2005 Allotment
Base—2,148,410 pounds. This is 129
pounds less than the estimated
allotment base of 2,148,539 pounds.
This is less because some producers
failed to produce all of their 2003–2004
allotment.
(C) Initial 2004–2005 Allotment
Percentage—36 percent. This was
recommended by the Committee on
October 8, 2003.
(D) Initial 2004–2005 Salable
Quantity—773,474. This figure is 36
percent of 2,148,539 pounds.
(E) Initial Adjustment to the 2004–
2005 Salable Quantity—773,428
pounds. This figure reflects the salable
quantity initially available after the
beginning of the 2004–2005 marketing
year due to the 129 pound reduction in
the industry allotment base to 2,148,410
pounds.
(F) First Revised Increase in
Allotment Percentage—15 percent. The
Committee recommended a 12 percent
increase at its September 13, 2004,
meeting and an additional 3 percent
increase at its October 6, 2004, meeting,
for a total increase of 15 percent which
was effective on October 21, 2004.
(G) Second Revised Increase in
Allotment Percentage—8 percent. This
was recommended by the Committee on
January 20, 2005.
(H) First Revised 2004–2005
Allotment Percentage—51 percent. This
figure was derived by adding the first
revised increase of 15 percent to the
initial 2004–2005 allotment percentage
of 36 percent.
(I) Second Revised 2004–2005
Allotment Percentage—59 percent. This
figure was derived by adding the 8
percent to the first revised 2004–2005
allotment percentage of 51 percent.
(J) First Revised Calculated 2004–
2005 Salable Quantity—1,095,689
pounds. This figure is 51 percent of the
revised 2004–2005 allotment base of
2,148,410 pounds.
(K) Second Revised Calculated 2004–
2005 Salable Quantity—1,267,562
pounds. This figure is 59 percent of the
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revised 2004–2005 allotment base of
2,148,410 pounds.
(L) First Revised Computed Increase
in the 2004–2005 Salable Quantity—
322,262 pounds. This figure is 15
percent of the revised 2004–2005
allotment base of 2,148,410 pounds.
(M) Second Revised Computed
Increase in the 2004–2005 Salable
Quantity—171,873 pounds. This figure
is 8 percent of the revised 2004–2005
allotment base of 2,148,410 pounds.
In making this second revision
recommendation, the Committee
considered all available information on
price, supply, and demand. The
Committee also considered reports and
other information from handlers and
producers in attendance at the meeting
and the report given by the Committee
manager from handlers and producers
who were not in attendance. The 2004–
2005 marketing year began on June 1,
2004. Handlers have reported purchases
of 1,055,641 pounds of Native spearmint
oil for the period of June 1, 2004,
through January 20, 2005. This amount
exceeds the five-year average of 852,259
pounds for this period by 203,352
pounds. On average, handlers indicated
that the estimated total demand for the
2004–2005 marketing year could range
from a minimum of 1,212,000 pounds to
as much as 1,242,000 pounds. This
amount exceeds the five-year average for
an entire marketing year of 973,456
pounds by as little as 238,544 pounds
and as much as 268,544 pounds.
Therefore, based on past history, the
industry may not be able to meet market
demand without this increase. When the
Committee made its initial
recommendation for the establishment
of the Native spearmint oil salable
quantity and allotment percentage for
the 2004–2005 marketing year, it had
anticipated that the year would end
with an ample available supply.
Based on its analysis of available
information, USDA has determined that
the salable quantity and allotment
percentage for Native spearmint oil for
the 2004–2005 marketing year should be
increased to 1,267,562 pounds and 59
percent, respectively.
This amended rule further relaxes the
regulation of Native spearmint oil and
will allow for market needs and
improve producer returns. In
conjunction with the issuance of this
rule, the Committee’s revised marketing
policy statement for the 2004–2005
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
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§ 985.50 of the order. During its
discussion of revising the 2004–2005
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) prospective
production of each class of oil; (4) 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 this class of oil. In
determining anticipated market needs,
consideration by the Committee was
given to historical sales, and changes
and trends in production and demand.
Initial Regulatory Flexibility Analysis
Pursuant to requirements set forth in
the Regulatory Flexibility Act (RFA), 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
business subject to such actions in order
that small businesses will not be unduly
or disproportionately burdened.
Marketing orders issued pursuant to the
Act, and the rules issued thereunder, are
unique in that they are brought about
through group action of essentially
small entities acting on their own
behalf. Thus, both statutes have small
entity orientation and compatibility.
There are approximately 8 handlers of
spearmint oil who are subject to
regulation under the marketing order
and approximately 98 producers of
Class 3 (Native) spearmint oil in the
regulated area. Small agricultural
service firms are defined by the Small
Business Administration (SBA) (13 CFR
121.201) as those having annual receipts
of less than $5,000,000, and small
agricultural producers are defined as
those having annual receipts of less than
$750,000.
Based on SBA’s definition of small
entities, the Committee estimates that 2
of the 8 handlers regulated by the order
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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 15 of the 98
Native spearmint oil producers could be
classified as small entities under the
SBA definition. Thus, a majority of
handlers and producers of Far West
spearmint oil may not be classified as
small entities.
The Far West spearmint oil industry
is characterized by producers whose
farming operations generally involve
more than one commodity, and whose
income from farming operations is not
exclusively dependent on the
production of spearmint oil. A typical
spearmint oil-producing operation has
enough acreage for rotation such that
the total acreage required to produce the
crop is about one-third spearmint and
two-thirds rotational crops. Thus, the
typical spearmint oil producer has to
have considerably more acreage than is
planted to spearmint during any given
season. Crop rotation is an essential
cultural practice in the production of
spearmint oil for weed, insect, and
disease control. To remain economically
viable with the added costs associated
with spearmint oil production, most
spearmint oil-producing farms fall into
the SBA category of large businesses.
Small spearmint oil producers
generally are not as extensively
diversified as larger ones and as such
are more at risk to market fluctuations.
Such small producers generally need to
market their entire annual crop and do
not have the luxury of having other
crops to cushion seasons with poor
spearmint oil returns. Conversely, large
diversified producers have the potential
to endure one or more seasons of poor
spearmint oil markets because income
from alternate crops could support the
operation for a period of time. Being
reasonably assured of a stable price and
market provides small producing
entities with the ability to maintain
proper cash flow and to meet annual
expenses. Thus, the market and price
stability provided by the order
potentially benefit the small producer
more than such provisions benefit large
producers. Even though a majority of
handlers and producers of spearmint oil
may not be classified as small entities,
the volume control feature of this order
has small entity orientation.
This rule amends an interim final rule
that was published in the Federal
Register on October 21, 2004 (69 FR
61755). That rule, which was based on
two unanimous Committee
recommendations, increased the
quantity of Native spearmint oil that
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handlers may purchase from, or handle
for, producers during the 2004–2005
marketing year, which ends on May 31,
2005. Pursuant to authority contained in
§§ 985.50, 985.51, and 985.52 of the
order, at its September 13, 2004,
meeting, the Committee unanimously
recommended that the allotment
percentage for Native spearmint oil for
the 2004–2005 marketing year be
increased by 12 percent from 36 percent
to 48 percent. The Committee held
another meeting on October 6, 2004,
where, based on an unanticipated
increase in demand, they unanimously
recommended that the allotment
percentage for Native spearmint oil for
the 2004–2005 marketing year be
increased by an additional 3 percent
from 48 percent to 51 percent.
Specifically, that rule increased the
salable quantity from 773,474 pounds to
1,095,689 pounds, and the allotment
percentage from 36 percent to 51
percent for Native spearmint oil for the
2004–2005 marketing year.
This amended interim final rule,
which is based on a unanimous
Committee recommendation made at a
meeting on January 20, 2005, increases
the salable quantity an additional
171,873 pounds from 1,095,689 pounds
to 1,267,562 pounds, and the allotment
percentage an additional 8 percent from
51 percent to 59 percent for Native
spearmint oil for the 2004–2005
marketing year. This rule relaxes the
regulation of Native spearmint oil and
will allow producers to meet market
needs and improve returns.
An econometric model was used to
assess the impact that volume control
has on the prices producers receive for
their commodity. Without volume
control, spearmint oil markets would
likely be over-supplied, resulting in low
producer prices and a large volume of
oil stored and carried over to the next
crop year. The model estimates how
much lower producer prices would
likely be in the absence of volume
controls.
The recommended salable
percentages, upon which 2004–2005
producer allotments are based, are 40
percent for Scotch and 59 percent for
Native (a 23 percentage point increase
from the original salable percentage of
36 percent). Without volume controls,
producers would not be limited to these
allotment levels, and could produce and
sell additional spearmint. The
econometric model estimated a $1.35
decline in the season average producer
price per pound (from both classes of
spearmint oil) resulting from the higher
quantities that would be produced and
marketed if volume controls were not
used (i.e., if the salable percentages were
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set at 100 percent). A previous price
decline estimate of $1.71 per pound was
based on the 2004–2005 salable
percentages (40 percent for Scotch and
36 percent for Native) published in the
Federal Register on March 22, 2004 (69
FR 13213).
The 2003 Far West producer price for
both classes of spearmint oil was $9.50
per pound, which is below the average
of $11.33 for the period of 1980 through
2002, based on National Agricultural
Statistics Service data. The surplus
situation for the spearmint oil market
that would exist without volume
controls in 2004–2005 also would likely
dampen prospects for improved
producer prices in future years because
of the buildup in stocks.
The use of volume controls allows the
industry to fully supply spearmint oil
markets while avoiding the negative
consequences of over-supplying these
markets. The use of volume controls is
believed to have little or no effect on
consumer prices of products containing
spearmint oil and will not result in
fewer retail sales of such products.
Based on projections available at the
meetings, the Committee considered
alternatives to the 8 percent increase.
The Committee not only considered
leaving the salable quantity and
allotment percentage unchanged, but
also looked at various increases ranging
from 7 percent to 10 percent. 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
believes that the level recommended
will achieve the objectives sought.
Without the increase, the Committee
believes the industry would not be able
to meet market needs.
This rule will not impose any
additional reporting or recordkeeping
requirements on either small or large
spearmint oil handlers. As with all
Federal marketing order programs,
reports and forms are periodically
reviewed to reduce information
requirements and duplication by
industry and public sector agencies.
In addition, USDA has not identified
any relevant Federal rules that
duplicate, overlap or conflict with this
rule.
Further, the Committee meetings were
widely publicized throughout the
spearmint oil industry and all interested
persons were invited to attend the
meetings and participate in Committee
deliberations. Like all Committee
meetings, the September 13, 2004,
October 6, 2004, and the January 20,
2005, meetings were public meetings
and all entities, both large and small,
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8715
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: https://www.ams.usda.gov/
fv/moab.html. Any questions about the
compliance guide should be sent to Jay
Guerber at the previously mentioned
address in the FOR FURTHER INFORMATION
CONTACT section.
This rule invites comments on a
revision to the salable quantity and
allotment percentage for Native
spearmint oil for the 2004–2005
marketing year. A 60-day comment
period is provided. 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
amended interim final 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, 2005; (2)
the current quantity of Native spearmint
oil may be inadequate to meet demand
for the remainder of the marketing year,
thus making the additional oil available
as soon as is practicable is beneficial to
both handlers and producers; (3) the
Committee unanimously recommended
these changes at public meetings 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:
n
E:\FR\FM\23FER1.SGM
23FER1
8716
Federal Register / Vol. 70, No. 35 / Wednesday, February 23, 2005 / Rules and Regulations
PART 985—MARKETING ORDER
REGULATING THE HANDLING OF
SPEARMINT OIL PRODUCED IN THE
FAR WEST
1. The authority citation for 7 CFR part
985 continues to read as follows:
n
Authority: 7 U.S.C. 601–674.
2. In § 985.223, paragraph (b) is revised
to read as follows:
n
(Note: This section will not appear in the
annual Code of Federal Regulations.)
§ 985.223 Salable quantities and allotment
percentages—2004–2005 marketing year.
*
*
*
*
*
(b) Class 3 (Native) oil—a salable
quantity of 1,267,562 pounds and an
allotment percentage of 59 percent.
Dated: February 16, 2005.
Kenneth C. Clayton,
Acting Administrator, Agricultural Marketing
Service.
[FR Doc. 05–3480 Filed 2–18–05; 9:05 am]
BILLING CODE 3410–02–P
DEPARTMENT OF ENERGY
10 CFR Part 824
[Docket No. SO–RM–00–01]
RIN 1992–AA28
Procedural Rules for the Assessment
of Civil Penalties for Classified
Information Security Violations;
Correction
AGENCY: Office of Security, Department
of Energy.
ACTION: Final rule; correction.
SUMMARY: The Department of Energy
published a final rule on January 26,
2005, establishing 10 CFR Part 824 to
implement section 234B of the Atomic
Energy Act of 1954. This document
corrects an inadvertent omission in one
sentence of the final rule.
DATES: This final rule is effective on
February 25, 2005.
FOR FURTHER INFORMATION CONTACT:
Geralyn Praskievicz, (202) 586–4451 or,
JoAnn Williams, (202) 586–6899.
SUPPLEMENTARY INFORMATION: This
document makes a correction to a final
rule that was published in the Federal
Register on January 26, 2005 (67 FR
3599).
In rule document FR Doc. 05–1303,
appearing on page 3599, in the issue of
Wednesday, January 26, 2005, the
following correction is made.
VerDate jul<14>2003
16:23 Feb 22, 2005
Jkt 205001
Adrianne G. Threatt, Counsel (202) 452–
3554, Legal Division. For users of
§ 824.2 [Corrected]
Telecommunications Devices for the
Deaf (TDD) only, contact (202) 263–
n Beginning on page 3607, in the third
column, § 824.2(c) is corrected to read as 4869.
follows:
SUPPLEMENTARY INFORMATION: Regulation
CC establishes the maximum period a
*
*
*
*
*
depositary bank may wait between
(c) Individual employees. No civil
receiving a deposit and making the
penalty may be assessed against an
deposited funds available for
individual employee of a contractor or
withdrawal.1 A depositary bank
any other entity which enters into an
generally must provide faster
agreement with DOE.
Issued in Washington, DC, on February 16, availability for funds deposited by a
local check than by a nonlocal check. A
2005.
check drawn on a bank is considered
Glenn S. Podonsky,
local if it is payable by or at a bank
Director, Office of Security and Safety
located in the same Federal Reserve
Performance Assurance.
check processing region as the
[FR Doc. 05–3423 Filed 2–22–05; 8:45 am]
depositary bank. A check drawn on a
BILLING CODE 6450–01–P
nonbank is considered local if it is
payable through a bank located in the
same Federal Reserve check processing
FEDERAL RESERVE SYSTEM
region as the depositary bank. Checks
that do not meet the requirements for
12 CFR Part 229
local checks are considered nonlocal.
Appendix A to Regulation CC
[Regulation CC; Docket No. R–1224]
contains a routing number guide that
assists banks in identifying local and
Availability of Funds and Collection of
nonlocal banks and thereby determining
Checks
the maximum permissible hold periods
AGENCY: Board of Governors of the
for most deposited checks. The
Federal Reserve System.
appendix includes a list of each Federal
ACTION: Final rule; technical
Reserve check processing office and the
amendment.
first four digits of the routing number,
known as the Federal Reserve routing
SUMMARY: The Board of Governors is
symbol, of each bank that is served by
amending appendix A of Regulation CC that office for check processing
to delete the reference to the Detroit
purposes. Banks whose Federal Reserve
branch office of the Federal Reserve
routing symbols are grouped under the
Bank of Chicago and reassign the
same office are in the same check
Federal Reserve routing symbols
processing region and thus are local to
currently listed under that office to the
one another.
head office of the Federal Reserve Bank
As explained in detail in the Board’s
of Cleveland and delete the reference to final rule published in the Federal
the Houston branch office of the Federal Register on September 28, 2004, the
Reserve Bank of Dallas and reassign the
Federal Reserve Banks have decided to
routing numbers listed under that office reduce further the number of locations
to the head office of that Reserve Bank.
at which they process checks.2 The
These amendments will ensure that the
amendments set forth in this notice are
information in appendix A accurately
part of a series of appendix A
describes the actual structure of check
amendments related to that decision,
processing operations within the
and the Board will issue separate
Federal Reserve System.
notices for each phase of the
restructuring.3
DATES: The amendments to appendix A
As part of the restructuring process,
under the Fourth and Seventh Federal
Reserve Districts (Federal Reserve Banks the Detroit branch office of the Federal
of Cleveland and Chicago) are effective
1 For purposes of Regulation CC, the term ‘‘bank’’
on April 16, 2005. The amendments to
refers to any depository institution, including
appendix A under the Eleventh Federal
commercial banks, savings institutions, and credit
Reserve District (Federal Reserve Bank
unions.
2 See 69 FR 57837, September 28, 2004.
of Dallas) are effective on April 23,
3 In addition to the general advance notice of
2005.
PART 824—[CORRECTED]
FOR FURTHER INFORMATION CONTACT: Jack
K. Walton II, Assistant Director (202)
452–2660, or Joseph P. Baressi, Senior
Financial Services Analyst (202) 452–
3959, Division of Reserve Bank
Operations and Payment Systems; or
PO 00000
Frm 00008
Fmt 4700
Sfmt 4700
future amendments provided by the Board, and the
Board’s notices of final amendments, the Reserve
Banks are striving to inform affected depository
institutions of the exact date of each office
transition at least 120 days in advance. The Reserve
Banks’ communications to affected depository
institutions are available at https://
www.frbservices.org.
E:\FR\FM\23FER1.SGM
23FER1
]]>Agencies
[Federal Register Volume 70, Number 35 (Wednesday, February 23, 2005)]
[Rules and Regulations]
[Pages 8712-8716]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 05-3480]
-----------------------------------------------------------------------
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 985
[Docket No. FV04-985-2 IFR-A]
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 2004-2005
Marketing Year
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Interim final rule with request for comments.
-----------------------------------------------------------------------
SUMMARY: This rule amends a prior interim final rule that increased the
quantity of Class 3 (Native) spearmint oil produced in the Far West
that handlers may purchase from, or handle for, producers during the
2004-2005 marketing year. The prior interim final rule increased the
Native spearmint oil salable quantity from 773,474 pounds to 1,095,689
pounds, and the allotment percentage from 36 percent to 51 percent.
This rule increases the Native spearmint oil salable quantity by an
additional 171,873 pounds from 1,095,689 pounds to 1,267,562 pounds,
and the allotment percentage by an additional 8 percent from 51 percent
to 59 percent. The Spearmint Oil Administrative Committee (Committee),
the agency responsible for local administration of the marketing order
for spearmint oil produced in the Far West, unanimously recommended
this rule to avoid extreme fluctuations in supplies and prices and to
help maintain stability in the Far West spearmint oil market.
DATES: Effective June 1, 2004, through May 31, 2005; comments received
by April 25, 2005, 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 Administration Branch, Fruit and Vegetable Programs,
AMS, USDA, 1400 Independence Avenue, SW., STOP 0237, Washington, DC
20250-0237; Fax: (202) 720-8938; e-mail: moab.docketclerk@usda.gov; or
Internet: https://www.regulations.gov. 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, or can be viewed at:
https://www.ams.usda.gov/fv/moab.html.
FOR FURTHER INFORMATION CONTACT: Susan M. Hiller, Northwest Marketing
Field Office, Marketing Order Administration Branch, Fruit and
Vegetable Programs, AMS, USDA, 1220 SW., Third Avenue, Suite 385,
Portland, Oregon 97204; telephone: (503) 326-2724, Fax: (503) 326-7440;
or George Kelhart, Technical Advisor, Marketing Order Administration
Branch, Fruit and Vegetable Programs, AMS, USDA, 1400 Independence
Avenue, SW., STOP 0237, Washington, DC 20250-0237; telephone: (202)
720-2491, Fax: (202) 720-8938.
Small businesses may request information on complying with this
regulation by contacting Jay Guerber, Marketing Order Administration
Branch, Fruit and Vegetable Programs, AMS, USDA, 1400 Independence
Avenue, SW., STOP 0237, Washington, DC 20250-0237; telephone: (202)
720-2491, Fax: (202) 720-8938, or e-mail: Jay.Guerber@usda.gov.
SUPPLEMENTARY INFORMATION: This rule is issued under Marketing Order
No. 985, as amended (7 CFR part 985), regulating the handling of
spearmint oil produced in the Far West (Washington, Idaho, Oregon, and
designated parts of Nevada and Utah), hereinafter referred to as the
``order.'' The order is effective under the Agricultural Marketing
Agreement Act of 1937, as amended (7 U.S.C. 601-674), hereinafter
referred to as the ``Act.''
The Department of Agriculture (USDA) is issuing this rule in
conformance with Executive Order 12866.
This rule has been reviewed under Executive Order 12988, Civil
Justice Reform. This rule is not intended to have retroactive effect.
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
[[Page 8713]]
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 amends an interim final rule that was published in the
Federal Register on October 21, 2004 (69 FR 61755). That rule, which
was based on two unanimous Committee recommendations increased the
quantity of Native spearmint oil that handlers may purchase from, or
handle for, producers during the 2004-2005 marketing year, which ends
on May 31, 2005. Pursuant to authority contained in Sec. Sec. 985.50,
985.51, and 985.52 of the order, at its September 13, 2004, meeting,
the Committee unanimously recommended that the allotment percentage for
Native spearmint oil for the 2004-2005 marketing year be increased by
12 percent from 36 percent to 48 percent. The Committee held another
meeting on October 6, 2004, where, based on an unanticipated increase
in demand, they unanimously recommended that the allotment percentage
for Native spearmint oil for the 2004-2005 marketing year be increased
by an additional 3 percent from 48 percent to 51 percent. Specifically,
that rule increased the salable quantity from 773,474 pounds to
1,095,689 pounds, and the allotment percentage from 36 percent to 51
percent for Native spearmint oil for the 2004-2005 marketing year.
This amended interim final rule, which is based on a unanimous
Committee recommendation made at a meeting on January 20, 2005,
increases the salable quantity an additional 171,873 pounds from
1,095,689 pounds to 1,267,562 pounds, and the allotment percentage an
additional 8 percent from 51 percent to 59 percent for Native spearmint
oil for the 2004-2005 marketing year.
The initial salable quantity and allotment percentages for Scotch
and Native spearmint oils for the 2004-2005 marketing year were
recommended by the Committee at its October 8, 2003, meeting. The
Committee recommended salable quantities of 766,880 pounds and 773,474
pounds, and allotment percentages of 40 percent and 36 percent,
respectively, for Scotch and Native spearmint oils. A proposed rule was
published in the Federal Register on January 23, 2004 (69 FR 3272).
Comments on the proposed rule were solicited from interested persons
until February 23, 2004. No comments were received. Subsequently, a
final rule establishing the salable quantities and allotment
percentages for Scotch and Native spearmint oils for the 2004-2005
marketing year was published in the Federal Register on March 22, 2004
(69 FR 13213). Subsequently, an interim final rule made more Native
spearmint oil available for the 2004-2005 marketing year. This rule was
published in the Federal Register on October 21, 2004 (69 FR 61755). No
timely comments were received in response to the interim final rule.
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 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 individual allotment base for
the applicable class of spearmint oil.
Taking into consideration the following discussion on adjustments
to the Native spearmint oil salable quantity, the 2004-2005 marketing
year salable quantity of 1,095,689 pounds will therefore be increased
to 1,267,562 pounds.
The original total industry allotment base for Native spearmint oil
for the 2004-2005 marketing year was established at 2,148,539 pounds
and was revised at the beginning of the 2004-2005 marketing year to
2,148,410 pounds to reflect a 2003-2004 marketing year loss of 129
pounds of base due to non-production of some producers' total annual
allotments. When the revised total allotment base of 2,148,410 pounds
is applied to the originally established allotment percentage of 36
percent, the 2004-2005 marketing year salable quantity of 773,474
pounds is effectively modified to 773,428 pounds.
By increasing the salable quantity and allotment percentage, this
amended interim final rule makes an additional amount of Native
spearmint oil available by releasing oil from the reserve pool. When
applied to each individual producer, the 8 percent allotment percentage
increase allows each producer to take up to an amount equal to 8
percent of their allotment base from their Native spearmint oil
reserve. This action makes an additional 118,990 pounds of Native
spearmint oil available to the market.
The following table summarizes the Committee recommendation:
Native Spearmint Oil Recommendation
(A) Estimated 2004-2005 Allotment Base--2,148,539 pounds. This is
the estimate that the original 2004-2005 Native spearmint oil salable
quantity and allotment percentage was based on.
(B) Revised 2004-2005 Allotment Base--2,148,410 pounds. This is 129
pounds less than the estimated allotment base of 2,148,539 pounds. This
is less because some producers failed to produce all of their 2003-2004
allotment.
(C) Initial 2004-2005 Allotment Percentage--36 percent. This was
recommended by the Committee on October 8, 2003.
(D) Initial 2004-2005 Salable Quantity--773,474. This figure is 36
percent of 2,148,539 pounds.
(E) Initial Adjustment to the 2004-2005 Salable Quantity--773,428
pounds. This figure reflects the salable quantity initially available
after the beginning of the 2004-2005 marketing year due to the 129
pound reduction in the industry allotment base to 2,148,410 pounds.
(F) First Revised Increase in Allotment Percentage--15 percent. The
Committee recommended a 12 percent increase at its September 13, 2004,
meeting and an additional 3 percent increase at its October 6, 2004,
meeting, for a total increase of 15 percent which was effective on
October 21, 2004.
(G) Second Revised Increase in Allotment Percentage--8 percent.
This was recommended by the Committee on January 20, 2005.
(H) First Revised 2004-2005 Allotment Percentage--51 percent. This
figure was derived by adding the first revised increase of 15 percent
to the initial 2004-2005 allotment percentage of 36 percent.
(I) Second Revised 2004-2005 Allotment Percentage--59 percent. This
figure was derived by adding the 8 percent to the first revised 2004-
2005 allotment percentage of 51 percent.
(J) First Revised Calculated 2004-2005 Salable Quantity--1,095,689
pounds. This figure is 51 percent of the revised 2004-2005 allotment
base of 2,148,410 pounds.
(K) Second Revised Calculated 2004-2005 Salable Quantity--1,267,562
pounds. This figure is 59 percent of the
[[Page 8714]]
revised 2004-2005 allotment base of 2,148,410 pounds.
(L) First Revised Computed Increase in the 2004-2005 Salable
Quantity--322,262 pounds. This figure is 15 percent of the revised
2004-2005 allotment base of 2,148,410 pounds.
(M) Second Revised Computed Increase in the 2004-2005 Salable
Quantity--171,873 pounds. This figure is 8 percent of the revised 2004-
2005 allotment base of 2,148,410 pounds.
In making this second revision recommendation, the Committee
considered all available information on price, supply, and demand. The
Committee also considered reports and other information from handlers
and producers in attendance at the meeting and the report given by the
Committee manager from handlers and producers who were not in
attendance. The 2004-2005 marketing year began on June 1, 2004.
Handlers have reported purchases of 1,055,641 pounds of Native
spearmint oil for the period of June 1, 2004, through January 20, 2005.
This amount exceeds the five-year average of 852,259 pounds for this
period by 203,352 pounds. On average, handlers indicated that the
estimated total demand for the 2004-2005 marketing year could range
from a minimum of 1,212,000 pounds to as much as 1,242,000 pounds. This
amount exceeds the five-year average for an entire marketing year of
973,456 pounds by as little as 238,544 pounds and as much as 268,544
pounds. Therefore, based on past history, the industry may not be able
to meet market demand without this increase. When the Committee made
its initial recommendation for the establishment of the Native
spearmint oil salable quantity and allotment percentage for the 2004-
2005 marketing year, it had anticipated that the year would end with an
ample available supply.
Based on its analysis of available information, USDA has determined
that the salable quantity and allotment percentage for Native spearmint
oil for the 2004-2005 marketing year should be increased to 1,267,562
pounds and 59 percent, respectively.
This amended rule further relaxes the regulation of Native
spearmint oil and will allow for market needs and improve producer
returns. In conjunction with the issuance of this rule, the Committee's
revised marketing policy statement for the 2004-2005 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 2004-2005 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) prospective production of each class of oil; (4)
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 this class
of oil. In determining anticipated market needs, consideration by the
Committee was given to historical sales, and changes and trends in
production and demand.
Initial Regulatory Flexibility Analysis
Pursuant to requirements set forth in the Regulatory Flexibility
Act (RFA), 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
business subject to such actions in order that small businesses will
not be unduly or disproportionately burdened. Marketing orders issued
pursuant to the Act, and the rules issued thereunder, are unique in
that they are brought about through group action of essentially small
entities acting on their own behalf. Thus, both statutes have small
entity orientation and compatibility.
There are approximately 8 handlers of spearmint oil who are subject
to regulation under the marketing order and approximately 98 producers
of Class 3 (Native) spearmint oil in the regulated area. Small
agricultural service firms are defined by the Small Business
Administration (SBA) (13 CFR 121.201) as those having annual receipts
of less than $5,000,000, and small agricultural producers are defined
as those having annual receipts of less than $750,000.
Based on SBA's definition of small entities, the Committee
estimates that 2 of the 8 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
15 of the 98 Native spearmint oil producers could be classified as
small entities under the SBA definition. Thus, a majority of handlers
and producers of Far West spearmint oil may not be classified as small
entities.
The Far West spearmint oil industry is characterized by producers
whose farming operations generally involve more than one commodity, and
whose income from farming operations is not exclusively dependent on
the production of spearmint oil. A typical spearmint oil-producing
operation has enough acreage for rotation such that the total acreage
required to produce the crop is about one-third spearmint and two-
thirds rotational crops. Thus, the typical spearmint oil producer has
to have considerably more acreage than is planted to spearmint during
any given season. Crop rotation is an essential cultural practice in
the production of spearmint oil for weed, insect, and disease control.
To remain economically viable with the added costs associated with
spearmint oil production, most spearmint oil-producing farms fall into
the SBA category of large businesses.
Small spearmint oil producers generally are not as extensively
diversified as larger ones and as such are more at risk to market
fluctuations. Such small producers generally need to market their
entire annual crop and do not have the luxury of having other crops to
cushion seasons with poor spearmint oil returns. Conversely, large
diversified producers have the potential to endure one or more seasons
of poor spearmint oil markets because income from alternate crops could
support the operation for a period of time. Being reasonably assured of
a stable price and market provides small producing entities with the
ability to maintain proper cash flow and to meet annual expenses. Thus,
the market and price stability provided by the order potentially
benefit the small producer more than such provisions benefit large
producers. Even though a majority of handlers and producers of
spearmint oil may not be classified as small entities, the volume
control feature of this order has small entity orientation.
This rule amends an interim final rule that was published in the
Federal Register on October 21, 2004 (69 FR 61755). That rule, which
was based on two unanimous Committee recommendations, increased the
quantity of Native spearmint oil that
[[Page 8715]]
handlers may purchase from, or handle for, producers during the 2004-
2005 marketing year, which ends on May 31, 2005. Pursuant to authority
contained in Sec. Sec. 985.50, 985.51, and 985.52 of the order, at its
September 13, 2004, meeting, the Committee unanimously recommended that
the allotment percentage for Native spearmint oil for the 2004-2005
marketing year be increased by 12 percent from 36 percent to 48
percent. The Committee held another meeting on October 6, 2004, where,
based on an unanticipated increase in demand, they unanimously
recommended that the allotment percentage for Native spearmint oil for
the 2004-2005 marketing year be increased by an additional 3 percent
from 48 percent to 51 percent. Specifically, that rule increased the
salable quantity from 773,474 pounds to 1,095,689 pounds, and the
allotment percentage from 36 percent to 51 percent for Native spearmint
oil for the 2004-2005 marketing year.
This amended interim final rule, which is based on a unanimous
Committee recommendation made at a meeting on January 20, 2005,
increases the salable quantity an additional 171,873 pounds from
1,095,689 pounds to 1,267,562 pounds, and the allotment percentage an
additional 8 percent from 51 percent to 59 percent for Native spearmint
oil for the 2004-2005 marketing year. This rule relaxes the regulation
of Native spearmint oil and will allow producers to meet market needs
and improve returns.
An econometric model was used to assess the impact that volume
control has on the prices producers receive for their commodity.
Without volume control, spearmint oil markets would likely be over-
supplied, resulting in low producer prices and a large volume of oil
stored and carried over to the next crop year. The model estimates how
much lower producer prices would likely be in the absence of volume
controls.
The recommended salable percentages, upon which 2004-2005 producer
allotments are based, are 40 percent for Scotch and 59 percent for
Native (a 23 percentage point increase from the original salable
percentage of 36 percent). Without volume controls, producers would not
be limited to these allotment levels, and could produce and sell
additional spearmint. The econometric model estimated a $1.35 decline
in the season average producer price per pound (from both classes of
spearmint oil) resulting from the higher quantities that would be
produced and marketed if volume controls were not used (i.e., if the
salable percentages were set at 100 percent). A previous price decline
estimate of $1.71 per pound was based on the 2004-2005 salable
percentages (40 percent for Scotch and 36 percent for Native) published
in the Federal Register on March 22, 2004 (69 FR 13213).
The 2003 Far West producer price for both classes of spearmint oil
was $9.50 per pound, which is below the average of $11.33 for the
period of 1980 through 2002, based on National Agricultural Statistics
Service data. The surplus situation for the spearmint oil market that
would exist without volume controls in 2004-2005 also would likely
dampen prospects for improved producer prices in future years because
of the buildup in stocks.
The use of volume controls allows the industry to fully supply
spearmint oil markets while avoiding the negative consequences of over-
supplying these markets. The use of volume controls is believed to have
little or no effect on consumer prices of products containing spearmint
oil and will not result in fewer retail sales of such products.
Based on projections available at the meetings, the Committee
considered alternatives to the 8 percent increase. The Committee not
only considered leaving the salable quantity and allotment percentage
unchanged, but also looked at various increases ranging from 7 percent
to 10 percent. 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 believes
that the level recommended will achieve the objectives sought. Without
the increase, the Committee believes the industry would not be able to
meet market needs.
This rule will not impose any additional reporting or recordkeeping
requirements on either small or large spearmint oil handlers. As with
all Federal marketing order programs, reports and forms are
periodically reviewed to reduce information requirements and
duplication by industry and public sector agencies.
In addition, USDA has not identified any relevant Federal rules
that duplicate, overlap or conflict with this rule.
Further, the Committee meetings were widely publicized throughout
the spearmint oil industry and all interested persons were invited to
attend the meetings and participate in Committee deliberations. Like
all Committee meetings, the September 13, 2004, October 6, 2004, and
the January 20, 2005, meetings were public meetings 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/fv/moab.html. Any questions about the compliance
guide should be sent to Jay Guerber at the previously mentioned address
in the FOR FURTHER INFORMATION CONTACT section.
This rule invites comments on a revision to the salable quantity
and allotment percentage for Native spearmint oil for the 2004-2005
marketing year. A 60-day comment period is provided. 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 amended interim final 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,
2005; (2) the current quantity of Native spearmint oil may be
inadequate to meet demand for the remainder of the marketing year, thus
making the additional oil available as soon as is practicable is
beneficial to both handlers and producers; (3) the Committee
unanimously recommended these changes at public meetings 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.
0
For the reasons set forth in the preamble, 7 CFR part 985 is amended as
follows:
[[Page 8716]]
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.
0
2. In Sec. 985.223, paragraph (b) is revised to read as follows:
(Note: This section will not appear in the annual Code of Federal
Regulations.)
Sec. 985.223 Salable quantities and allotment percentages--2004-2005
marketing year.
* * * * *
(b) Class 3 (Native) oil--a salable quantity of 1,267,562 pounds
and an allotment percentage of 59 percent.
Dated: February 16, 2005.
Kenneth C. Clayton,
Acting Administrator, Agricultural Marketing Service.
[FR Doc. 05-3480 Filed 2-18-05; 9:05 am]
BILLING CODE 3410-02-P
