Irish Potatoes Grown in Colorado; Relaxation of the Handling Regulation for Area No. 3, 17034-17036 [2010-7564]
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17034
Federal Register / Vol. 75, No. 64 / Monday, April 5, 2010 / Rules and Regulations
PART 944—FRUITS; IMPORT
REQUIREMENTS
3. Amend § 944.503 by removing
‘‘during the period April 10 through July
10, 2009,’’ from the fourth sentence in
paragraph (a)(1).
■
Dated: March 26, 2010.
David R. Shipman,
Acting Administrator, Agricultural Marketing
Service.
[FR Doc. 2010–7563 Filed 4–2–10; 8:45 am]
BILLING CODE P
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 948
[Doc. No. AMS–FV–08–0115; FV09–948–2
IFR]
Irish Potatoes Grown in Colorado;
Relaxation of the Handling Regulation
for Area No. 3
AGENCY: Agricultural Marketing Service,
USDA.
ACTION: Interim rule with request for
comments.
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SUMMARY: This rule relaxes the size
requirement prescribed under the
Colorado potato marketing order. The
marketing order regulates the handling
of Irish potatoes grown in Colorado, and
is administered locally by the Colorado
Potato Administrative Committee for
Area No. 3 (Committee). This rule
provides for the handling of all varieties
of potatoes with a minimum diameter of
3⁄4 inch, if the potatoes otherwise meet
U.S. No. 1 grade. This change is
intended to provide potato handlers
with greater marketing flexibility,
producers with increased returns, and
consumers with a greater supply of
potatoes.
DATES: Effective April 6, 2010;
comments received by June 4, 2010 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; or Internet: https://
www.regulations.gov. All comments
should reference the document number
and the date and page number of this
issue of the Federal Register and will be
made available for public inspection in
the Office of the Docket Clerk during
VerDate Nov<24>2008
13:31 Apr 02, 2010
Jkt 220001
regular business hours, or can be viewed
at: https://www.regulations.gov. All
comments submitted in response to this
rule will be included in the record and
will be made available to the public.
Please be advised that the identity of the
individuals or entities submitting the
comments will be made public on the
Internet at the address provided above.
FOR FURTHER INFORMATION CONTACT:
Teresa Hutchinson or Gary Olson,
Northwest Marketing Field Office,
Marketing Order Administration
Branch, Fruit and Vegetable Programs,
AMS, USDA, Telephone: (503) 326–
2724, Fax: (503) 326–7440, or E-mail:
Teresa.Hutchinson@ams.usda.gov or
GaryD.Olson@ams.usda.gov.
Small businesses may request
information on complying with this
regulation by contacting Antoinette
Carter, 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:
Antoinette.Carter@ams.usda.gov.
SUPPLEMENTARY INFORMATION: This rule
is issued under Marketing Agreement
No. 97 and 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.’’
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.
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 there from. 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.
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This rule relaxes the size requirement
for all varieties of Colorado Area No. 3
potatoes by allowing the handling of
potatoes with a minimum diameter of 3⁄4
inch, if the potatoes otherwise meet U.S.
No. 1 grade. This change is intended to
provide potato handlers with greater
marketing flexibility, producers with
increased returns, and consumers with
a greater supply of potatoes.
Section 948.22 authorizes the
issuance of grade, size, quality,
maturity, pack, and container
regulations for potatoes grown in the
production area. Section 948.21 further
authorizes the modification, suspension,
or termination of requirements issued
pursuant to § 948.22.
Section 948.40 provides that
whenever the handling of potatoes is
regulated pursuant to §§ 948.20 through
948.24, such potatoes must be inspected
by the Federal-State Inspection Service,
and certified as meeting the applicable
requirements of such regulations.
Under the order, the State of Colorado
is divided into three separate regulatory
areas for marketing order purposes. Area
No. 1, commonly known as the Western
Slope, includes and consists of the
counties of Routt, Eagle, Pitkin,
Gunnison, Hinsdale, La Plata, and all
counties west thereof; Area No. 2,
commonly known as the San Luis
Valley, includes and consists of the
counties of Saguache, Huerfano, Las
Animas, Mineral, Archuleta, and all
counties south thereof; and Area No. 3
includes and consists of all the
remaining counties in the State of
Colorado which are not included in
Area No. 1 or Area No. 2. The order
currently regulates the handling of
potatoes grown in Areas No. 2 and No.
3 only; regulation for Area No. 1 is
currently not active.
Grade, size, and maturity regulations
specific to the handling of Colorado
potatoes grown in Area No. 3 are
contained in § 948.387 of the order’s
administrative rules and regulations.
The Committee met on June 4, 2009,
and again on November 17, 2009, to
discuss decreasing the minimum size
requirement for certain potatoes. As a
consequence of these deliberations, the
Committee unanimously recommended
on November 17 that § 948.387(a) of the
order’s handling regulation be revised to
provide for the handling of all varieties
of potatoes with a minimum diameter of
3⁄4 inch, if the potatoes otherwise meet
U.S. No. 1 grade requirements (a potato
meeting all the requirements of a U.S.
No. 1 grade potato as defined in the U.S.
Standards for Grades of Potatoes would
have a minimum size of 17⁄8 inches).
This recommendation provides for the
handling of potatoes within both the
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Creamer size category (3⁄4 inch to 15⁄8
inch diameter) and the Size B category
(11⁄2 inch to 21⁄4 inch diameter), as well
as the handling of small potato packs
that may fall outside these categories.
Prior to the effective date of this action,
the handling regulation provided that
Area No. 3 potatoes could not be
handled unless U.S. No. 2 grade or
better, 17⁄8 inches minimum diameter or
4 ounces minimum weight, and Size B
potatoes if U.S. No. 1 grade or better.
The Committee believes that in recent
years consumer demand has been
increasing for smaller potatoes which
often command premium prices. The
market for these smaller potatoes is
currently being supplied by potato
production areas outside Colorado Area
No. 3. Having the ability to handle
smaller potatoes enables the Colorado
Area No. 3 potato industry to market a
larger portion of its crop while
satisfying consumer demand for smaller
potatoes. This size relaxation is also
expected to increase returns to
producers.
The Committee believes that quality
assurance is important to the industry
and to consumers. Providing consistent,
high quality potatoes is necessary to
maintain consumer confidence. The
Committee also believes that relaxing
the size requirement for all varieties of
U.S. No. 1 potatoes will preserve their
commitment to quality while allowing
the industry to respond to changing
consumer preferences.
Initial Regulatory Flexibility Analysis
Pursuant to requirements set forth in
the Regulatory Flexibility Act (RFA)
(5 U.S.C. 601–612), the Agricultural
Marketing Service (AMS) has
considered the economic impact of this
action on small entities. Accordingly,
AMS has prepared this initial regulatory
flexibility analysis.
The purpose of the RFA is to fit
regulatory actions to the scale of
business subject to such actions in order
that small businesses will not be unduly
or disproportionately burdened.
Marketing orders issued pursuant to the
Act, and rules issued thereunder, are
unique in that they are brought about
through group action of essentially
small entities acting on their own
behalf.
Based on Committee data, there are
nine producers (eight of whom are also
handlers) in the regulated area and nine
handlers (eight of whom are also
producers) subject to regulation under
the order. Small agricultural producers
are defined by the Small Business
Administration (13 CFR 121.201) as
those having annual receipts of less than
$750,000, and small agricultural service
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13:31 Apr 02, 2010
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firms are defined as those having annual
receipts of less than $7,000,000.
According to the Committee, 825,617
hundredweight of Colorado Area No. 3
potatoes were produced for the fresh
market during the 2007 season. Based
on National Agricultural Statistics
Service (NASS) data, the average
producer price for Colorado summer
potatoes for 2007 was $7.75 per
hundredweight. The average annual
producer revenue for the nine Colorado
Area No. 3 potato producers is therefore
calculated to be approximately
$710,948. Using Committee data
regarding each individual handler’s
total shipments during the 2007–2008
fiscal period and a Committee estimated
average f.o.b. price for 2007 of $9.95 per
hundredweight ($7.75 per
hundredweight plus estimated packing
and handling costs of $2.20 per
hundredweight), none of the Colorado
Area No. 3 potato handlers ship over
$7,000,000 worth of potatoes. Thus, the
majority of handlers and producers of
Colorado Area No. 3 potatoes may be
classified as small entities.
This rule provides for the handling of
all varieties of potatoes with a minimum
diameter of 3⁄4 inch, if the potatoes
otherwise meet the requirements of U.S.
No. 1 grade. This change enables
handlers to respond to consumer
demand for small potatoes.
The authority for regulating grade and
size is provided in § 948.22 of the order.
Section 948.387(a) of the order’s
administrative rules and regulations
prescribes the actual size requirements.
This rule is expected to have a
beneficial impact on handlers and
producers due to the increased volume
of potatoes into the fresh market. There
should be no extra cost to producers or
handlers because current harvesting and
handling methods can accommodate the
sorting of these smaller potatoes. The
size relaxation will result in a greater
quantity of potatoes meeting the
minimum requirements of the handling
regulation. The Committee believes that
this relaxation should translate into
increased sales thus greater returns for
handlers and producers.
Neither NASS nor the Committee
compiles statistics relating to the
production of potatoes measuring much
less than 17⁄8 inches in diameter. The
Committee has relied on information
provided by producers and handlers
familiar with the small potato market for
its recommendation.
As small potatoes have grown in
popularity with consumers, the market
demand has outpaced the quantity of
small, high quality potatoes available
from Colorado. The Committee believes
that this regulatory relaxation will
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17035
increase the available supply of small
potatoes. The Committee also believes
that these smaller potatoes will not
compete directly with the market for
larger fresh market potatoes and that
this action will not adversely affect the
overall Colorado potato market.
By providing Colorado Area No. 3
handlers the flexibility to pack smaller
potatoes, the Committee believes the
industry will remain competitive in the
marketplace. The small potato market is
a premium market and this action is
expected to further increase sales of
Colorado potatoes to benefit the
Colorado potato industry. The benefits
of this rule are not expected to be
disproportionately greater or lesser for
small entities than for large entities.
The Committee discussed alternatives
to this recommendation, including not
changing the minimum size
requirement. Another alternative
discussed was to use the term ‘‘Creamer’’
which is defined in the U.S. Standards
for Grades of Potatoes as potatoes
measuring from 3⁄4 inches in diameter to
15⁄8 inches in diameter. However, by not
using either the terms ‘‘Creamer’’ and
‘‘Size B’’, or the resultant upper and
lower size designations, the Committee
intends handlers to have greater
flexibility in marketing fresh potatoes.
The Committee believes that this rule
will benefit the industry by augmenting
the developing market for small
potatoes and enhancing returns to
producers.
This rule 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. In addition, USDA has
not identified any relevant Federal rules
that duplicate, overlap or conflict with
this 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.
Further, the Committee’s meeting was
widely publicized throughout the
Colorado potato industry and all
interested persons were invited to
participate in Committee deliberations.
Like all Committee meetings, the June 4
and November 17, 2009, meetings were
public meetings and all entities, both
large and small, were able to express
views on this issue. Finally, interested
persons are invited to submit comments
on this interim rule, including the
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Federal Register / Vol. 75, No. 64 / Monday, April 5, 2010 / Rules and Regulations
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/
AMSv1.0/ams.fetchTemplateData.
do?template=TemplateN&page=
MarketingOrdersSmallBusinessGuide.
Any questions about the compliance
guide should be sent to Antoinette
Carter at the previously mentioned
address in the FOR FURTHER INFORMATION
CONTACT section.
This rule invites comments on a
relaxation of the size requirement
prescribed under the Colorado potato
marketing order. Any comments
received will be considered prior to
finalization of this rule.
After consideration of all relevant
material presented, including the
Committee’s recommendation, and
other information, it is found that this
interim rule, as hereinafter set forth,
will tend to effectuate the declared
policy of the Act.
Pursuant to 5 U.S.C. 553, it is also
found and determined upon good cause
that it is impracticable, unnecessary,
and contrary to the public interest to
give preliminary notice prior to putting
this rule into effect and that good cause
exists for not postponing the effective
date of this rule until 30 days after
publication in the Federal Register
because: (1) Any changes resulting from
this rule should be effective as soon as
practicable because the Colorado Area
No. 3 potato shipping season began in
July; (2) the Committee discussed and
unanimously recommended these
changes at public meetings and all
interested parties had an opportunity to
provide input; (3) handlers are aware of
this action and want to take advantage
of this relaxation as soon as possible;
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 948
Marketing agreements, Potatoes,
Reporting and recordkeeping
requirements.
■ For the reasons set forth in the
preamble, 7 CFR part 948 is amended as
follows:
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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 § 948.387, paragraph (a) is
revised to read as follows:
■
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§ 948.387
Handling regulation.
*
*
*
*
*
(a) Grade and size requirements—All
varieties.
U.S. No. 2 or better grade, 17⁄8 inches
minimum diameter or 4 ounces
minimum weight: Provided That the
minimum size may be 3⁄4 inch in
diameter, if the potatoes otherwise meet
U.S. No. 1 grade.
*
*
*
*
*
Dated: March 26, 2010.
David R. Shipman,
Acting Administrator, Agricultural Marketing
Service.
[FR Doc. 2010–7564 Filed 4–2–10; 8:45 am]
BILLING CODE P
DEPARTMENT OF ENERGY
10 CFR Part 431
[Docket Number EERE–2007–BT–STD–
0007]
RIN 1904–AB70
Energy Conservation Program: Energy
Conservation Standards for Small
Electric Motors; Correction
AGENCY: Office of Energy Efficiency and
Renewable Energy, Department of
Energy.
ACTION: Final rule; technical correction.
SUMMARY: This document contains a
technical correction to the final rule
regarding the energy conservation
standards for small electric motors,
which was published on March 9, 2010.
In that final rule, the U.S. Department
of Energy (DOE) adopted regulations to
establish energy conservation standards
for small electric motors. Due to a
drafting error, an incorrect compliance
date for this equipment was
inadvertently inserted into the
regulation. This correction notice
addresses the error.
DATES: This technical correction is
effective April 8, 2010.
FOR FURTHER INFORMATION CONTACT:
James Raba, U.S. Department of Energy,
Office of Energy Efficiency and
Renewable Energy, Building
Technologies Program, EE–2J, 1000
Independence Avenue, SW.,
Washington, DC 20585–0121, (202)
586–8654. E-mail:
Jim.Raba@ee.doe.gov.
Michael Kido, U.S. Department of
Energy, Office of the General Counsel,
GC–72, 1000 Independence Avenue,
SW., Washington, DC 20585–0121,
(202) 586–9507. E-mail:
Michael.Kido@hq.doe.gov.
SUPPLEMENTARY INFORMATION:
PO 00000
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I. Background
On March 9, 2010, the DOE’s Office
of Energy Efficiency and Renewable
Energy published a final rule titled
‘‘Energy Conservation Standards for
Small Electric Motors.’’ 75 FR 10874.
Since the publication of that rule, it has
come to DOE’s attention that, due to a
technical oversight, a certain part of the
final regulations inadvertently applied
an incorrect date by which
manufacturers would need to comply
with the standards established by that
rule. That section of the regulations,
section 431.446(a) of Title 10 of the
Code of Federal Regulations (10 CFR),
Part 431, provides a date of February 28,
2015. 75 FR 10947. Instead, that date
should be March 9, 2015, which is 60
months from the date of the final rule’s
publication in the Federal Register, and
in the case of a small electric motor that
requires listing or certification by a
nationally recognized safety testing
laboratory, March 9, 2017, 84 months
after such date. Both of these dates are
specified compliance dates for small
electric motor standards under the
Energy Policy and Conservation Act of
1975, as amended (EPCA). See 42 U.S.C.
6317(b)(3).
II. Need for Correction
As published, the final regulation
contains an erroneous date that this
document corrects. In light of the
statutory requirement, the considerable
amount of time before the compliance
date and, in the case of the 2015 date,
the small difference in the number of
days at issue, the change addressed by
today’s document is technical in nature.
Because these dates are specified by
EPCA, DOE does not have the discretion
to deviate from these statutorilyprescribed requirements. As such, DOE
finds that there is good cause under 5
U.S.C. 553(b)(B) and that the issuance of
a separate notice to solicit public
comment on the changes contained in
this notice is unnecessary. In FR Doc.
2010–4358, appearing in the document
beginning on page 10947 in the Federal
Register of Tuesday, March 9, 2010, the
following correction is made:
§ 431.446
[Corrected]
1. On page 10947, in the third column,
under § 431.446, introductory paragraph
(a) is corrected to read as follows:
■
§ 431.446 Small electric motors energy
conservation standards and their effective
dates.
(a) Each small electric motor
manufactured (alone or as a component
of another piece of non-covered
equipment) after March 9, 2015, or in
the case of a small electric motor which
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]]>Agencies
[Federal Register Volume 75, Number 64 (Monday, April 5, 2010)]
[Rules and Regulations]
[Pages 17034-17036]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-7564]
-----------------------------------------------------------------------
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 948
[Doc. No. AMS-FV-08-0115; FV09-948-2 IFR]
Irish Potatoes Grown in Colorado; Relaxation of the Handling
Regulation for Area No. 3
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Interim rule with request for comments.
-----------------------------------------------------------------------
SUMMARY: This rule relaxes the size requirement prescribed under the
Colorado potato marketing order. The marketing order regulates the
handling of Irish potatoes grown in Colorado, and is administered
locally by the Colorado Potato Administrative Committee for Area No. 3
(Committee). This rule provides for the handling of all varieties of
potatoes with a minimum diameter of \3/4\ inch, if the potatoes
otherwise meet U.S. No. 1 grade. This change is intended to provide
potato handlers with greater marketing flexibility, producers with
increased returns, and consumers with a greater supply of potatoes.
DATES: Effective April 6, 2010; comments received by June 4, 2010 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; or Internet: https://www.regulations.gov. All comments should reference the document number
and the date and page number of this issue of the Federal Register and
will be made available for public inspection in the Office of the
Docket Clerk during regular business hours, or can be viewed at: https://www.regulations.gov. All comments submitted in response to this rule
will be included in the record and will be made available to the
public. Please be advised that the identity of the individuals or
entities submitting the comments will be made public on the Internet at
the address provided above.
FOR FURTHER INFORMATION CONTACT: Teresa Hutchinson or Gary Olson,
Northwest Marketing Field Office, Marketing Order Administration
Branch, Fruit and Vegetable Programs, AMS, USDA, Telephone: (503) 326-
2724, Fax: (503) 326-7440, or E-mail: Teresa.Hutchinson@ams.usda.gov or
GaryD.Olson@ams.usda.gov.
Small businesses may request information on complying with this
regulation by contacting Antoinette Carter, 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:
Antoinette.Carter@ams.usda.gov.
SUPPLEMENTARY INFORMATION: This rule is issued under Marketing
Agreement No. 97 and 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.''
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.
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 there from. 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 relaxes the size requirement for all varieties of
Colorado Area No. 3 potatoes by allowing the handling of potatoes with
a minimum diameter of \3/4\ inch, if the potatoes otherwise meet U.S.
No. 1 grade. This change is intended to provide potato handlers with
greater marketing flexibility, producers with increased returns, and
consumers with a greater supply of potatoes.
Section 948.22 authorizes the issuance of grade, size, quality,
maturity, pack, and container regulations for potatoes grown in the
production area. Section 948.21 further authorizes the modification,
suspension, or termination of requirements issued pursuant to Sec.
948.22.
Section 948.40 provides that whenever the handling of potatoes is
regulated pursuant to Sec. Sec. 948.20 through 948.24, such potatoes
must be inspected by the Federal-State Inspection Service, and
certified as meeting the applicable requirements of such regulations.
Under the order, the State of Colorado is divided into three
separate regulatory areas for marketing order purposes. Area No. 1,
commonly known as the Western Slope, includes and consists of the
counties of Routt, Eagle, Pitkin, Gunnison, Hinsdale, La Plata, and all
counties west thereof; Area No. 2, commonly known as the San Luis
Valley, includes and consists of the counties of Saguache, Huerfano,
Las Animas, Mineral, Archuleta, and all counties south thereof; and
Area No. 3 includes and consists of all the remaining counties in the
State of Colorado which are not included in Area No. 1 or Area No. 2.
The order currently regulates the handling of potatoes grown in Areas
No. 2 and No. 3 only; regulation for Area No. 1 is currently not
active.
Grade, size, and maturity regulations specific to the handling of
Colorado potatoes grown in Area No. 3 are contained in Sec. 948.387 of
the order's administrative rules and regulations.
The Committee met on June 4, 2009, and again on November 17, 2009,
to discuss decreasing the minimum size requirement for certain
potatoes. As a consequence of these deliberations, the Committee
unanimously recommended on November 17 that Sec. 948.387(a) of the
order's handling regulation be revised to provide for the handling of
all varieties of potatoes with a minimum diameter of \3/4\ inch, if the
potatoes otherwise meet U.S. No. 1 grade requirements (a potato meeting
all the requirements of a U.S. No. 1 grade potato as defined in the
U.S. Standards for Grades of Potatoes would have a minimum size of 1\7/
8\ inches). This recommendation provides for the handling of potatoes
within both the
[[Page 17035]]
Creamer size category (\3/4\ inch to 1\5/8\ inch diameter) and the Size
B category (1\1/2\ inch to 2\1/4\ inch diameter), as well as the
handling of small potato packs that may fall outside these categories.
Prior to the effective date of this action, the handling regulation
provided that Area No. 3 potatoes could not be handled unless U.S. No.
2 grade or better, 1\7/8\ inches minimum diameter or 4 ounces minimum
weight, and Size B potatoes if U.S. No. 1 grade or better.
The Committee believes that in recent years consumer demand has
been increasing for smaller potatoes which often command premium
prices. The market for these smaller potatoes is currently being
supplied by potato production areas outside Colorado Area No. 3. Having
the ability to handle smaller potatoes enables the Colorado Area No. 3
potato industry to market a larger portion of its crop while satisfying
consumer demand for smaller potatoes. This size relaxation is also
expected to increase returns to producers.
The Committee believes that quality assurance is important to the
industry and to consumers. Providing consistent, high quality potatoes
is necessary to maintain consumer confidence. The Committee also
believes that relaxing the size requirement for all varieties of U.S.
No. 1 potatoes will preserve their commitment to quality while allowing
the industry to respond to changing consumer preferences.
Initial Regulatory Flexibility Analysis
Pursuant to requirements set forth in the Regulatory Flexibility
Act (RFA) (5 U.S.C. 601-612), the Agricultural Marketing Service (AMS)
has considered the economic impact of this action on small entities.
Accordingly, AMS has prepared this initial regulatory flexibility
analysis.
The purpose of the RFA is to fit regulatory actions to the scale of
business subject to such actions in order that small businesses will
not be unduly or disproportionately burdened. Marketing orders issued
pursuant to the Act, and rules issued thereunder, are unique in that
they are brought about through group action of essentially small
entities acting on their own behalf.
Based on Committee data, there are nine producers (eight of whom
are also handlers) in the regulated area and nine handlers (eight of
whom are also producers) subject to regulation under the order. Small
agricultural producers are defined by the Small Business Administration
(13 CFR 121.201) as those having annual receipts of less than $750,000,
and small agricultural service firms are defined as those having annual
receipts of less than $7,000,000.
According to the Committee, 825,617 hundredweight of Colorado Area
No. 3 potatoes were produced for the fresh market during the 2007
season. Based on National Agricultural Statistics Service (NASS) data,
the average producer price for Colorado summer potatoes for 2007 was
$7.75 per hundredweight. The average annual producer revenue for the
nine Colorado Area No. 3 potato producers is therefore calculated to be
approximately $710,948. Using Committee data regarding each individual
handler's total shipments during the 2007-2008 fiscal period and a
Committee estimated average f.o.b. price for 2007 of $9.95 per
hundredweight ($7.75 per hundredweight plus estimated packing and
handling costs of $2.20 per hundredweight), none of the Colorado Area
No. 3 potato handlers ship over $7,000,000 worth of potatoes. Thus, the
majority of handlers and producers of Colorado Area No. 3 potatoes may
be classified as small entities.
This rule provides for the handling of all varieties of potatoes
with a minimum diameter of \3/4\ inch, if the potatoes otherwise meet
the requirements of U.S. No. 1 grade. This change enables handlers to
respond to consumer demand for small potatoes.
The authority for regulating grade and size is provided in Sec.
948.22 of the order. Section 948.387(a) of the order's administrative
rules and regulations prescribes the actual size requirements.
This rule is expected to have a beneficial impact on handlers and
producers due to the increased volume of potatoes into the fresh
market. There should be no extra cost to producers or handlers because
current harvesting and handling methods can accommodate the sorting of
these smaller potatoes. The size relaxation will result in a greater
quantity of potatoes meeting the minimum requirements of the handling
regulation. The Committee believes that this relaxation should
translate into increased sales thus greater returns for handlers and
producers.
Neither NASS nor the Committee compiles statistics relating to the
production of potatoes measuring much less than 1\7/8\ inches in
diameter. The Committee has relied on information provided by producers
and handlers familiar with the small potato market for its
recommendation.
As small potatoes have grown in popularity with consumers, the
market demand has outpaced the quantity of small, high quality potatoes
available from Colorado. The Committee believes that this regulatory
relaxation will increase the available supply of small potatoes. The
Committee also believes that these smaller potatoes will not compete
directly with the market for larger fresh market potatoes and that this
action will not adversely affect the overall Colorado potato market.
By providing Colorado Area No. 3 handlers the flexibility to pack
smaller potatoes, the Committee believes the industry will remain
competitive in the marketplace. The small potato market is a premium
market and this action is expected to further increase sales of
Colorado potatoes to benefit the Colorado potato industry. The benefits
of this rule are not expected to be disproportionately greater or
lesser for small entities than for large entities.
The Committee discussed alternatives to this recommendation,
including not changing the minimum size requirement. Another
alternative discussed was to use the term ``Creamer'' which is defined
in the U.S. Standards for Grades of Potatoes as potatoes measuring from
\3/4\ inches in diameter to 1\5/8\ inches in diameter. However, by not
using either the terms ``Creamer'' and ``Size B'', or the resultant
upper and lower size designations, the Committee intends handlers to
have greater flexibility in marketing fresh potatoes. The Committee
believes that this rule will benefit the industry by augmenting the
developing market for small potatoes and enhancing returns to
producers.
This rule 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. In addition, USDA has not identified any
relevant Federal rules that duplicate, overlap or conflict with this
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.
Further, the Committee's meeting was widely publicized throughout
the Colorado potato industry and all interested persons were invited to
participate in Committee deliberations. Like all Committee meetings,
the June 4 and November 17, 2009, meetings were public meetings and all
entities, both large and small, were able to express views on this
issue. Finally, interested persons are invited to submit comments on
this interim rule, including the
[[Page 17036]]
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/AMSv1.0/ams.fetchTemplateData.do?template=TemplateN&page=MarketingOrdersSmallBusinessGuide. Any questions about the compliance guide should be sent to
Antoinette Carter at the previously mentioned address in the FOR
FURTHER INFORMATION CONTACT section.
This rule invites comments on a relaxation of the size requirement
prescribed under the Colorado potato marketing order. Any comments
received will be considered prior to finalization of this rule.
After consideration of all relevant material presented, including
the Committee's recommendation, and other information, it is found that
this interim rule, as hereinafter set forth, will tend to effectuate
the declared policy of the Act.
Pursuant to 5 U.S.C. 553, it is also found and determined upon good
cause that it is impracticable, unnecessary, and contrary to the public
interest to give preliminary notice prior to putting this rule into
effect and that good cause exists for not postponing the effective date
of this rule until 30 days after publication in the Federal Register
because: (1) Any changes resulting from this rule should be effective
as soon as practicable because the Colorado Area No. 3 potato shipping
season began in July; (2) the Committee discussed and unanimously
recommended these changes at public meetings and all interested parties
had an opportunity to provide input; (3) handlers are aware of this
action and want to take advantage of this relaxation as soon as
possible; 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 948
Marketing agreements, Potatoes, Reporting and recordkeeping
requirements.
0
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. 948.387, paragraph (a) is revised to read as follows:
Sec. 948.387 Handling regulation.
* * * * *
(a) Grade and size requirements--All varieties.
U.S. No. 2 or better grade, 1\7/8\ inches minimum diameter or 4
ounces minimum weight: Provided That the minimum size may be \3/4\ inch
in diameter, if the potatoes otherwise meet U.S. No. 1 grade.
* * * * *
Dated: March 26, 2010.
David R. Shipman,
Acting Administrator, Agricultural Marketing Service.
[FR Doc. 2010-7564 Filed 4-2-10; 8:45 am]
BILLING CODE P
