Marketing Order Regulating the Handling of Spearmint Oil Produced in the Far West; Revision of the Salable Quantity and Allotment Percentage for Class 1 (Scotch) and Class 3 (Native) Spearmint Oil for the 2011-2012 Marketing Year, 61933-61937 [2011-25812]
Download as PDF
<![CDATA[
61933
Rules and Regulations
Federal Register
Vol. 76, No. 194
Thursday, October 6, 2011
This section of the FEDERAL REGISTER
contains regulatory documents having general
applicability and legal effect, most of which
are keyed to and codified in the Code of
Federal Regulations, which is published under
50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by
the Superintendent of Documents. Prices of
new books are listed in the first FEDERAL
REGISTER issue of each week.
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 985
[Doc. Nos. AMS–FV–10–0094; FV11–985–1A
IR]
Marketing Order Regulating the
Handling of Spearmint Oil Produced in
the Far West; Revision of the Salable
Quantity and Allotment Percentage for
Class 1 (Scotch) and Class 3 (Native)
Spearmint Oil for the 2011–2012
Marketing Year
Agricultural Marketing Service,
USDA.
ACTION: Interim rule with request for
comments.
AGENCY:
This rule revises the quantity
of Class 1 (Scotch) and Class 3 (Native)
spearmint oil that handlers may
purchase from, or handle on behalf of,
producers during the 2011–2012
marketing year. This rule increases the
Scotch spearmint oil salable quantity
from 693,141 pounds to 733,913
pounds, and the allotment percentage
from 34 percent to 36 percent. In
addition, this rule increases the Native
spearmint oil salable quantity from
1,012,949 pounds to 1,266,161 pounds,
and the allotment percentage from 44
percent to 55 percent. The marketing
order regulates the handling of
spearmint oil produced in the Far West
and is administered locally by the
Spearmint Oil Administrative
Committee (Committee). The Committee
recommended this rule for the purpose
of avoiding extreme fluctuations in
supplies and prices and to help
maintain stability in the Far West
spearmint oil market.
DATES: Effective June 1, 2011, through
May 31, 2012; comments received by
December 5, 2011 will be considered
prior to issuance of a final rule.
wreier-aviles on DSK7SPTVN1PROD with RULES
SUMMARY:
VerDate Mar<15>2010
15:01 Oct 05, 2011
Jkt 226001
Interested persons are
invited to submit written comments
concerning this proposal. 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:
Barry Broadbent, Marketing Specialist
or Gary Olson, Regional Manager,
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:
Barry.Broadbent@ams.usda.gov or
GaryD.Olson@ams.usda.gov.
Small businesses may request
information on complying with this
regulation by contacting Laurel May,
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:
Laurel.May@ams.usda.gov.
ADDRESSES:
This rule
is issued under Marketing Order No.
985 (7 CFR part 985), as amended,
regulating the handling of spearmint oil
produced in the Far West (Washington,
Idaho, Oregon, and designated parts of
Nevada and Utah), hereinafter referred
to as the ‘‘order.’’ The order is effective
under the Agricultural Marketing
Agreement Act of 1937, as amended (7
U.S.C. 601–674), hereinafter referred to
as the ‘‘Act.’’
The Department of Agriculture
(USDA) is issuing this rule in
conformance with Executive Order
12866.
SUPPLEMENTARY INFORMATION:
PO 00000
Frm 00001
Fmt 4700
Sfmt 4700
This rule has been reviewed under
Executive Order 12988, Civil Justice
Reform. Under the provisions of the
marketing order now in effect, salable
quantities and allotment percentages
may be established for classes of
spearmint oil produced in the Far West.
This rule increases the quantity of
Scotch and Native spearmint oil
produced in the Far West that handlers
may purchase from, or handle on behalf
of, producers during the 2011–2012
marketing year, which began on June 1,
2011, and ends on May 31, 2012.
The Act provides that administrative
proceedings must be exhausted before
parties may file suit in court. Under
section 608c(15)(A) of the Act, any
handler subject to an order may file
with USDA a petition stating that the
order, any provision of the order, or any
obligation imposed in connection with
the order is not in accordance with law
and request a modification of the order
or to be exempted therefrom. A handler
is afforded the opportunity for a hearing
on the petition. After the hearing USDA
would rule on the petition. The Act
provides that the district court of the
United States in any district in which
the handler is an inhabitant, or has his
or her principal place of business, has
jurisdiction to review USDA’s ruling on
the petition, provided an action is filed
not later than 20 days after the date of
the entry of the ruling.
The original salable quantity and
allotment percentages for Scotch and
Native spearmint oil for the 2011–2012
marketing year were recommended by
the Committee at its October 13, 2010,
meeting. The Committee recommended
salable quantities of 694,774 pounds
and 1,012,983 pounds, and allotment
percentages of 34 percent and 44
percent, respectively, for Scotch and
Native spearmint oil. A proposed rule
was published in the Federal Register
on March 4, 2011 (76 FR 11971).
Comments on the proposed rule were
solicited from interested persons until
April 4, 2011. No comments were
received. Subsequently, a final rule
establishing the salable quantities and
allotment percentages for Scotch and
Native spearmint oil for the 2011–2012
marketing year was published in the
Federal Register on May 13, 2011 (76
FR 27852).
This rule revises the quantity of
Scotch and Native spearmint oil that
handlers may purchase from, or handle
E:\FR\FM\06OCR1.SGM
06OCR1
wreier-aviles on DSK7SPTVN1PROD with RULES
61934
Federal Register / Vol. 76, No. 194 / Thursday, October 6, 2011 / Rules and Regulations
on behalf of, producers during the
2011–2012 marketing year, which ends
on May 31, 2012. Pursuant to authority
contained in §§ 985.50, 985.51, and
985.52 of the order, the full eight
member Committee met on August 17,
2011, to consider pertinent market
information on the current supply,
demand, and price of spearmint oil. The
Committee, in two separate motions,
recommended that the 2011–2012
marketing year Scotch and Native
spearmint oil allotment percentages be
increased by 2 percent and 11 percent,
respectively. The motion to increase the
allotment percentage for Scotch was
unanimous and the motion to increase
the allotment percentage for Native
passed with seven members in favor and
one member opposed. The member
opposed to the motion agreed that an
increase was necessary for the industry
to respond to increasing demand, but
based his vote on the opinion that an 11
percent increase was too high this early
in the marketing year.
Thus, taking into consideration the
following discussion, this rule increases
the 2011–2012 marketing year salable
quantities and allotment percentages for
Scotch and Native spearmint oil to
733,913 pounds and 36 percent, and
1,266,161 pounds and 55 percent,
respectively.
The salable quantity is the total
quantity of each class of oil that
handlers may purchase from, or handle
for, producers during the 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.
The total industry allotment base for
Scotch spearmint oil for the 2011–2012
marketing year was estimated by the
Committee at the October 13, 2010,
meeting at 2,043,453 pounds. This was
later revised at the beginning of the
2011–2012 marketing year to 2,038,595
pounds to reflect the loss of 4,858
pounds of base due to non-production
of some producers’ total annual
allotments during the 2010–2011
marketing year.
Section 985.53(e) of the order requires
that producers make a bona fide effort
to produce all of their respective
allotment base each year. Failure to do
so results in a reduction in the
producer’s allotment base equivalent to
such unproduced portion. The 4,858
pound reduction in allotment base for
Scotch spearmint oil reflects the total
base surrendered by all producers due
to the non-production of those
VerDate Mar<15>2010
15:01 Oct 05, 2011
Jkt 226001
producers’ total annual allotments
during the 2010–2011 marketing year.
When the revised total Scotch
allotment base of 2,038,595 pounds is
applied to the originally established
allotment percentage of 34 percent, the
initially established 2011–2012
marketing year salable quantity of
694,774 pounds is effectively modified
to 693,122 pounds. After accounting for
a rounding adjustment of 19 pounds, the
actual 2011–2012 marketing year annual
allotment for Scotch spearmint oil prior
to this increase is 693,141 pounds.
The same situation applies to Native
spearmint oil where the Committee
estimated at the October 13, 2010,
meeting that the total industry allotment
base for Native spearmint oil for the
2011–2012 marketing year was
2,302,233 pounds. This number was
later revised at the beginning of the
2011–2012 marketing year to 2,301,926
pounds to reflect the bona fide effort
reduction of 307 pounds. Just as with
Scotch spearmint oil, the 307 pound
reduction in Native allotment base
reflects the total base surrendered by all
producers due to the non-production of
such producers’ total annual allotments
during the 2010–2011 marketing year.
When the revised total Native
allotment base of 2,301,926 pounds is
applied to the originally established
allotment percentage of 44 percent, the
initially established 2011–2012
marketing year Native salable quantity
of 1,012,983 pounds is effectively
modified to 1,012,847 pounds. After
accounting for 102 pounds of rounding
adjustments when calculating each
producer’s annual allotment, the actual
2011–2012 total annual allotment of
Native spearmint oil prior to this
increase is 1,012,949 pounds.
By increasing the salable quantity and
allotment percentage, this rule makes
additional amounts of Scotch and
Native spearmint oil available to the
market. Such additional oil may come
from spearmint oil produced in the
current marketing year or by releasing
oil from the reserve pool. As of May 31,
2011, the Committee estimated the
Scotch reserve pool to contain 454,715
pounds of spearmint oil and the Native
reserve pool to contain 606,942 pounds
of spearmint oil.
When the allotment percentage
increases established by this rule are
applied to each individual producer,
each such producer may deliver up to
an amount equal to such allotment from
their 2011–2012 marketing year’s
production, from spearmint oil
transferred from another producer’s
2011–2012 marketing year production,
or from the respective class of oil held
in reserve. However, pursuant to
PO 00000
Frm 00002
Fmt 4700
Sfmt 4700
§§ 985.56 and 985.156, producers with
excess oil are only able to transfer such
excess oil to other producers to fill
deficiencies in annual allotments prior
to October 31 of each marketing year.
The Committee expects that all
individuals entitled to a pro rata
increase in the salable quantity
allotment for each class of spearmint oil
will be able to exercise the full
marketing rights associated with such
an increase.
Therefore, the 2 percent increase in
the Scotch spearmint oil allotment
percentage established by this rule is
expected to result in a 2011–2012
marketing year salable quantity of
733,913 pounds. Likewise, the 11
percent increase in the Native spearmint
oil allotment percentage established by
this rule is expected to result in a 2011–
2012 marketing year salable quantity of
1,266,161 pounds. This reflects an
additional 40,772 pounds of Scotch
spearmint oil and 253,212 pounds of
Native spearmint oil being made
available to the market by this rule.
The following summarizes the
Committee recommendations:
Scotch Spearmint Oil Recommendation
(A) Estimated 2011–2012 Scotch
Allotment Base—2,043,453 pounds.
This is the estimate on which the
original 2011–2012 salable quantity and
allotment percentage was based.
(B) Revised 2011–2012 Scotch
Allotment Base—2,038,595 pounds.
This is 4,858 pounds less than the
estimated allotment base of 2,043,453
pounds. The difference is the result of
some producers failing to produce all of
their 2010–2011 allotment.
(C) Original 2011–2012 Scotch
Allotment Percentage—34 percent. This
was unanimously recommended by the
Committee on October 13, 2010.
(D) Original 2011–2012 Scotch
Salable Quantity—694,774 pounds. This
figure is 34 percent of the estimated
2011–2012 allotment base of 2,043,453
pounds.
(E) Adjusted 2011–2012 Scotch
Salable Quantity—693,141 pounds. This
figure reflects the salable quantity
actually available at the beginning of the
2011–2012 marketing year. This
quantity is derived by applying the
34 percent allotment percentage to the
revised allotment base of 2,038,595.
This adjusted salable quantity also
accounts for a 19 pound increase due to
rounding.
(F) Current Revision to the 2011–2012
Scotch Salable Quantity and Allotment
Percentage:
(1) Increase in Scotch Allotment
Percentage—2 percent. The Committee
E:\FR\FM\06OCR1.SGM
06OCR1
wreier-aviles on DSK7SPTVN1PROD with RULES
Federal Register / Vol. 76, No. 194 / Thursday, October 6, 2011 / Rules and Regulations
recommended a 2 percent increase at its
August 17, 2011, meeting.
(2) 2011–2012 Scotch Allotment
Percentage—36 percent. This figure is
derived by adding the increase of 2
percent to the original 2011–2012
allotment percentage of 34 percent.
(3) Calculated Revised 2011–2012
Scotch Salable Quantity—733,913
pounds. This figure is 36 percent of the
revised 2011–2012 allotment base of
2,038,595 pounds plus the 19 pound
rounding adjustment.
(4) Computed Increase in the 2011–
2012 Scotch Salable Quantity—40,772
pounds. This figure is 2 percent of the
revised 2011–2012 allotment base of
2,038,595 pounds.
The 2011–2012 marketing year began
on June 1, 2011, with an estimated
carry-in of 227,241 pounds of salable
Scotch spearmint oil. When the
estimated carry-in is added to the
revised 2011–2012 salable quantity of
693,141 pounds, the result is a total
estimated available supply of Scotch
spearmint oil for the 2011–2012
marketing year of 920,382 pounds. Of
this amount, 733,877 pounds of Scotch
spearmint oil have already been sold or
committed, which leaves just 186,505
pounds available for sale for the
remainder of the 2011–2012 marketing
year.
In making this recommendation to
increase the available supply of Scotch
spearmint oil, 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 reports given by the Committee
manager from handlers and producers
who were not in attendance. By
increasing the 2011–2012 Scotch
spearmint oil salable percentage by 2
percent, an estimated additional 40,772
pounds will be made available to the
market. This amount combined with the
186,505 pounds currently available, will
make a total of 227,277 pounds
available to the market and bring the
total available supply of Scotch
spearmint oil for the marketing year to
961,154 pounds.
When the original 2011–2012
marketing policy statement was drafted,
handlers estimated that the demand for
Scotch spearmint oil for the 2011–2012
marketing year may be 800,000 pounds.
However, when the Committee made its
original recommendation for the
establishment of the Scotch spearmint
oil salable quantity and allotment
percentage for the 2011–2012 marketing
year, it had not anticipated the increase
in demand for Scotch spearmint oil that
the market is currently experiencing.
VerDate Mar<15>2010
15:01 Oct 05, 2011
Jkt 226001
The Committee believes that the supply
of Scotch spearmint oil available to the
market, without an increase in the
salable quantity, would be insufficient
to satisfy the current demand for oil at
reasonable price levels. Therefore, it is
the opinion of the industry that this
action is essential to ensuring an
adequate supply of Scotch spearmint oil
to the market.
Native Spearmint Oil Recommendation
(A) Estimated 2011–2012 Native
Allotment Base—2,302,233 pounds.
This is the estimate on which the
original 2011–2012 Native spearmint oil
salable quantity and allotment
percentage was based.
(B) Revised 2011–2012 Native
Allotment Base—2,301,926 pounds.
This is 307 pounds less than the
estimated allotment base of 2,302,233
pounds. The difference is the result of
some producers failing to produce all of
their 2010–2011 allotment.
(C) Original 2011–2012 Native
Allotment Percentage—44 percent. This
was unanimously recommended by the
Committee at its October 13, 2010
meeting.
(D) Original 2011–2012 Native Salable
Quantity—1,012,983 pounds. This
figure is 44 percent of the estimated
2011–2012 allotment base of 2,302,233.
(E) Adjusted 2011–2012 Native
Salable Quantity—1,012,949 pounds.
This figure reflects the salable quantity
actually available at the beginning of the
2011–2012 marketing year. This
quantity is derived by applying the 44
percent allotment percentage to the
revised allotment base of 2,301,926. The
adjusted salable quantity also accounts
for a 101 pound increase due to
rounding.
(F) Current Revision to the 2011–2012
Native Salable Quantity and Allotment
Percentage:
(1) Increase in Native Allotment
Percentage—11 percent. The Committee
recommended an 11 percent increase at
its August 17, 2011, meeting.
(2) 2011–2012 Native Allotment
Percentage—55 percent. This figure is
derived by adding the increase of 11
percent to the original 2011–2012
allotment percentage of 44 percent.
(3) Calculated Revised 2011–2012
Native Salable Quantity—1,266,161
pounds. This figure is 55 percent of the
revised 2011–2012 allotment base of
2,301,926 pounds, plus the 101 pound
increase due to rounding.
(4) Computed Increase in the 2011–
2012 Native Salable Quantity—253,212
pounds. This figure is 11 percent of the
revised 2011–2012 allotment base of
2,301,926 pounds.
PO 00000
Frm 00003
Fmt 4700
Sfmt 4700
61935
The 2011–2012 marketing year began
on June 1, 2011, with an estimated
carry-in of 164,809 pounds of salable
Native spearmint oil. When the
estimated carry-in is added to the
revised 2011–2012 salable quantity of
1,012,949 pounds, the result is a total
estimated available supply of Native
spearmint oil for the 2011–2012
marketing year of 1,177,758 pounds. Of
this amount, 1,076,114 pounds of oil
have already been sold or committed for
the 2011–2012 marketing year, which
leaves just 101,644 pounds available for
sale.
In making this 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 reports given by the Committee
manager from handlers and producers
who were not in attendance. By
increasing the 2011–2012 Native
spearmint oil salable percentage by
11 percent, an estimated additional
253,212 pounds will be made available
to the market. This amount combined
with the 101,644 pounds currently
available, will make a total of 354,856
pounds available to the market and
bring the total available supply of
Native spearmint oil for the year to
1,430,970 pounds.
When the original 2011–2012
marketing policy statement was drafted,
handlers estimated that the demand for
Native spearmint oil for the 2011–2012
marketing year may be 1,130,000
pounds. However, when the Committee
made its original recommendation for
the establishment of the Native
spearmint oil salable quantity and
allotment percentage for the 2011–2012
marketing year, it had not anticipated
the increase in demand for Native
spearmint oil that the market is
currently experiencing. The Committee
believes that the supply of Native
spearmint oil available to the market,
without an increase in the salable
quantity, would be insufficient to satisfy
the current demand for oil at reasonable
price levels. Therefore, it is the opinion
of the industry that this action is
essential to ensuring an adequate supply
of Native spearmint oil to the market.
Based on its analysis of available
information, USDA has determined that
the salable quantity and allotment
percentage for Scotch spearmint oil for
the 2011–2012 marketing year should be
increased to 733,913 pounds and 36
percent, respectively. In addition, USDA
has determined that the salable quantity
and allotment percentage for Native
spearmint oil for the 2011–2012
E:\FR\FM\06OCR1.SGM
06OCR1
61936
Federal Register / Vol. 76, No. 194 / Thursday, October 6, 2011 / Rules and Regulations
marketing year should be increased to
1,266,161 pounds and 55 percent,
respectively.
This rule relaxes the regulation of
Scotch and Native spearmint oil and
will allow producers to meet market
demand while improving producer
returns. In conjunction with the
issuance of this rule, the Committee’s
revised marketing policy statement for
the 2011–2012 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 § 985.50 of the order. During its
discussion of revising the 2011–2012
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 increases in the Scotch and
Native spearmint oil salable quantity
and allotment percentage allows for
anticipated market needs for both
classes of oil. In determining anticipated
market needs, consideration by the
Committee was given to historical sales,
and changes and trends in production
and demand.
wreier-aviles on DSK7SPTVN1PROD with RULES
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
VerDate Mar<15>2010
15:01 Oct 05, 2011
Jkt 226001
small entities acting on their own
behalf.
There are 8 spearmint oil handlers
subject to regulation under the order,
and approximately 32 producers of
Scotch spearmint oil and approximately
88 producers of Native spearmint oil in
the regulated production 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 $7,000,000,
and small agricultural producers are
defined as those having annual receipts
of less than $750,000.
Based on the SBA’s definition of
small entities, the Committee estimates
that two of the eight handlers regulated
by the order could be considered small
entities. Most of the handlers are large
corporations involved in the
international trading of essential oils
and the products of essential oils. In
addition, the Committee estimates that 8
of the 32 Scotch spearmint oil producers
and 22 of the 88 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 use of volume control regulation
allows the industry to fully supply
spearmint oil markets while avoiding
the negative consequences of oversupplying these markets. Volume
control is believed to have little or no
effect on consumer prices of products
containing spearmint oil and likely does
not result in fewer retail sales of such
products. Without volume control,
producers would not be limited in the
production and marketing of spearmint
oil. Under those conditions, the
spearmint oil market would likely
fluctuate widely. Periods of oversupply
could result in low producer prices and
a large volume of oil stored and carried
over to future crop years. Periods of
undersupply could lead to excessive
price spikes and could drive end users
to source flavoring needs from other
markets, potentially causing long term
economic damage to the domestic
spearmint oil industry. The marketing
order’s volume control provisions have
been successfully implemented in the
domestic spearmint oil industry for
nearly three decades and provide
benefits for producers, handlers,
manufacturers, and consumers.
This rule increases the quantity of
Scotch and Native spearmint oil that
handlers may purchase from, or handle
on behalf of, producers during the
2011–2012 marketing year, which ends
on May 31, 2012. This rule increases the
Native spearmint oil salable quantity
from 693,141 pounds to 733,913 pounds
PO 00000
Frm 00004
Fmt 4700
Sfmt 4700
and the allotment percentage from 34
percent to 36 percent. Additionally, this
rule increases the Native spearmint oil
salable quantity from 1,012,949 pounds
to 1,266,161 pounds and the allotment
percentage from 44 percent to 55
percent.
Based on projections available at the
meeting, the Committee considered a
number of alternatives to this increase.
The Committee not only considered
leaving the salable quantity and
allotment percentage unchanged, but
also considered other potential levels of
increase. The Committee reached its
recommendation to increase the salable
quantity and allotment percentage for
both Scotch and Native spearmint oil
after careful consideration of all
available information, and believes that
the levels recommended will achieve
the objectives sought. Without the
increase, the Committee believes the
industry would not be able to
satisfactorily meet market demand.
In accordance with the Paperwork
Reduction Act of 1995, (44 U.S.C.
chapter 35), the order’s information
collection requirements have been
previously approved by the Office of
Management and Budget (OMB) and
assigned OMB No. 0581–0178,
Vegetable and Specialty Crop Marketing
Orders. No changes in those
requirements as a result of this action
are necessary. Should any changes
become necessary, they would be
submitted to OMB for approval.
This rule will not impose any
additional reporting or recordkeeping
requirements on either small or large
spearmint oil handlers. As with all
Federal marketing order programs,
reports and forms are periodically
reviewed to reduce information
requirements and duplication by
industry and public sector agencies.
AMS is committed to complying with
the E-Government Act, to promote the
use of the Internet and other
information technologies to provide
increased opportunities for citizen
access to Government information and
services, and for other purposes.
In addition, USDA has not identified
any relevant Federal rules that
duplicate, overlap or conflict with this
rule.
Further, the Committee’s meeting was
widely publicized throughout the
spearmint oil industry and all interested
persons were invited to attend the
meeting and participate in Committee
deliberations. Like all Committee
meetings, the August 17, 2011, meeting
was a public meeting and all entities,
both large and small, were able to
express their views on this issue.
Finally, interested persons are invited to
E:\FR\FM\06OCR1.SGM
06OCR1
Federal Register / Vol. 76, No. 194 / Thursday, October 6, 2011 / Rules and Regulations
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/
MarketingOrdersSmallBusinessGuide.
Any questions about the compliance
guide should be sent to Laurel May at
the previously mentioned address in the
FOR FURTHER INFORMATION CONTACT
section.
This rule invites comments on a
change to the salable quantity and
allotment percentage for both Scotch
and Native spearmint oil for the 2011–
2012 marketing year. Any comments
received will be considered prior to
finalization of this rule.
After consideration of all relevant
material presented, including the
Committee’s recommendation, and
other information, it is found that this
interim rule, as hereinafter set forth,
will tend to effectuate the declared
policy of the Act.
Pursuant to 5 U.S.C. 553, it is also
found and determined upon good cause
that it is impracticable, unnecessary,
and contrary to the public interest to
give preliminary notice prior to putting
this rule into effect and that good cause
exists for not postponing the effective
date of this rule until 30 days after
publication in the Federal Register
because: (1) This rule increases the
quantity of Scotch and Native spearmint
oil that may be marketed during the
marketing year, which ends on May 31,
2012; (2) the current quantity of Scotch
and Native spearmint oil may be
inadequate to meet demand for the
2011–2012 marketing year, thus making
the additional oil available as soon as is
practicable will be beneficial to both
handlers and producers; (3) the
Committee recommended these changes
at a public meeting and interested
parties had an opportunity to provide
input; and (4) this rule provides a
60-day comment period and any
comments received will be considered
prior to finalization of this rule.
wreier-aviles on DSK7SPTVN1PROD with RULES
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:
VerDate Mar<15>2010
15:01 Oct 05, 2011
Jkt 226001
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:
■
Authority: 7 U.S.C. 601–674.
2. In § 985.230, paragraphs (a) and (b)
are revised to read as follows:
■
Note: This section will not appear in the
annual Code of Federal Regulations.
§ 985.230 Salable quantities and allotment
percentages—2011–2012 marketing year.
*
*
*
*
*
(a) Class 1 (Scotch) oil—a salable
quantity of 733,913 pounds and an
allotment percentage of 36 percent.
(b) Class 3 (Native) oil—a salable
quantity of 1,266,161 pounds and an
allotment percentage of 55 percent.
Dated: September 30, 2011.
Ellen King,
Associate Administrator, Agricultural
Marketing Service.
[FR Doc. 2011–25812 Filed 10–5–11; 8:45 am]
BILLING CODE 3410–02–P
INTERNATIONAL TRADE
COMMISSION
19 CFR Parts 201, 206, 207, and 210
Practice and Procedure: Rules of
General Application, Safeguards,
Antidumping and Countervailing Duty,
and Adjudication and Enforcement
International Trade
Commission.
ACTION: Final rule.
AGENCY:
The United States
International Trade Commission
(‘‘Commission’’) is amending its rules of
practice and procedure concerning rules
of general application, safeguards,
antidumping and countervailing duty,
and adjudication and enforcement. The
amendments are necessary to
implement a new Commission
requirement for electronic filing of most
documents with the agency. The
intended effects of the amendments are
to increase efficiency in processing
documents filed with the Commission,
reduce Commission expenditures, and
conform agency processes to Federal
Government initiatives.
DATES: Effective November 7, 2011.
FOR FURTHER INFORMATION CONTACT:
James R. Holbein, Secretary, telephone
(202) 205–2000 or Gracemary RothRoffy, telephone (202) 205–3117, Office
of the General Counsel, United States
SUMMARY:
PO 00000
Frm 00005
Fmt 4700
Sfmt 4700
61937
International Trade Commission.
Hearing-impaired individuals are
advised that information on this matter
can be obtained by contacting the
Commission’s TDD terminal at 202–
205–1810. General information
concerning the Commission may also be
obtained by accessing its Internet server
at https://www.usitc.gov.
SUPPLEMENTARY INFORMATION: On July 6,
2011, the Commission published a
notice of proposed rulemaking
concerning the filing of documents with
the agency. 76 FR 39750, July 6, 2011.
This notice of final rulemaking is based
on that notice. On the same day, the
Commission published a notice seeking
public comment on a draft Handbook on
Electronic Filing Procedures. 76 FR
39757, July 6, 2011. The preamble
below is designed to assist readers in
understanding these amendments to the
Commission’s Rules. This preamble
provides background information, a
regulatory analysis of the amendments,
a discussion of the comments received
from the public, and a section-bysection explanation of the amendments.
Background
Section 335 of the Tariff Act of 1930
(19 U.S.C. 1335) authorizes the
Commission to adopt such reasonable
procedures, rules, and regulations as it
deems necessary to carry out its
functions and duties. This rulemaking
seeks to improve provisions of the
Commission’s existing Rules of Practice
and Procedure. The Commission is
amending its rules covering proceedings
such as investigations and reviews
conducted under title VII and section
337 of the Tariff Act of 1930 (19 U.S.C.
1337, 1671 et seq.), sections 202, 406,
421, 422 of the Trade Act of 1974 (19
U.S.C. 2252, 2436, 2451, 2451a), and
sections 302 and 312 of the North
American Free Trade Agreement
Implementation Act (19 U.S.C. 3352,
3372).
Consistent with its ordinary practice,
the Commission is issuing these
amendments in accordance with
provisions of section 553 of the APA (5
U.S.C. 553), although not all provisions
apply to this rulemaking. The APA
procedure entails the following steps:
(1) Publication of a notice of proposed
rulemaking; (2) solicitation of public
comments on the proposed
amendments; (3) Commission review of
public comments on the proposed
amendments; and (4) publication of
final amendments at least thirty days
prior to their effective date.
The Commission will now require
that most filings with the agency be
made by electronic means. The
electronic version will constitute the
E:\FR\FM\06OCR1.SGM
06OCR1
]]>Agencies
[Federal Register Volume 76, Number 194 (Thursday, October 6, 2011)]
[Rules and Regulations]
[Pages 61933-61937]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-25812]
========================================================================
Rules and Regulations
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains regulatory documents
having general applicability and legal effect, most of which are keyed
to and codified in the Code of Federal Regulations, which is published
under 50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by the Superintendent of Documents.
Prices of new books are listed in the first FEDERAL REGISTER issue of each
week.
========================================================================
Federal Register / Vol. 76, No. 194 / Thursday, October 6, 2011 /
Rules and Regulations
[[Page 61933]]
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 985
[Doc. Nos. AMS-FV-10-0094; FV11-985-1A IR]
Marketing Order Regulating the Handling of Spearmint Oil Produced
in the Far West; Revision of the Salable Quantity and Allotment
Percentage for Class 1 (Scotch) and Class 3 (Native) Spearmint Oil for
the 2011-2012 Marketing Year
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Interim rule with request for comments.
-----------------------------------------------------------------------
SUMMARY: This rule revises the quantity of Class 1 (Scotch) and Class 3
(Native) spearmint oil that handlers may purchase from, or handle on
behalf of, producers during the 2011-2012 marketing year. This rule
increases the Scotch spearmint oil salable quantity from 693,141 pounds
to 733,913 pounds, and the allotment percentage from 34 percent to 36
percent. In addition, this rule increases the Native spearmint oil
salable quantity from 1,012,949 pounds to 1,266,161 pounds, and the
allotment percentage from 44 percent to 55 percent. The marketing order
regulates the handling of spearmint oil produced in the Far West and is
administered locally by the Spearmint Oil Administrative Committee
(Committee). The Committee recommended this rule for the purpose of
avoiding extreme fluctuations in supplies and prices and to help
maintain stability in the Far West spearmint oil market.
DATES: Effective June 1, 2011, through May 31, 2012; comments received
by December 5, 2011 will be considered prior to issuance of a final
rule.
ADDRESSES: Interested persons are invited to submit written comments
concerning this proposal. 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: Barry Broadbent, Marketing Specialist
or Gary Olson, Regional Manager, 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:
Barry.Broadbent@ams.usda.gov or GaryD.Olson@ams.usda.gov.
Small businesses may request information on complying with this
regulation by contacting Laurel May, 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: Laurel.May@ams.usda.gov.
SUPPLEMENTARY INFORMATION: This rule is issued under Marketing Order
No. 985 (7 CFR part 985), as amended, regulating the handling of
spearmint oil produced in the Far West (Washington, Idaho, Oregon, and
designated parts of Nevada and Utah), hereinafter referred to as the
``order.'' The order is effective under the Agricultural Marketing
Agreement Act of 1937, as amended (7 U.S.C. 601-674), hereinafter
referred to as the ``Act.''
The Department of Agriculture (USDA) is issuing this rule in
conformance with Executive Order 12866.
This rule has been reviewed under Executive Order 12988, Civil
Justice Reform. Under the provisions of the marketing order now in
effect, salable quantities and allotment percentages may be established
for classes of spearmint oil produced in the Far West. This rule
increases the quantity of Scotch and Native spearmint oil produced in
the Far West that handlers may purchase from, or handle on behalf of,
producers during the 2011-2012 marketing year, which began on June 1,
2011, and ends on May 31, 2012.
The Act provides that administrative proceedings must be exhausted
before parties may file suit in court. Under section 608c(15)(A) of the
Act, any handler subject to an order may file with USDA a petition
stating that the order, any provision of the order, or any obligation
imposed in connection with the order is not in accordance with law and
request a modification of the order or to be exempted therefrom. A
handler is afforded the opportunity for a hearing on the petition.
After the hearing USDA would rule on the petition. The Act provides
that the district court of the United States in any district in which
the handler is an inhabitant, or has his or her principal place of
business, has jurisdiction to review USDA's ruling on the petition,
provided an action is filed not later than 20 days after the date of
the entry of the ruling.
The original salable quantity and allotment percentages for Scotch
and Native spearmint oil for the 2011-2012 marketing year were
recommended by the Committee at its October 13, 2010, meeting. The
Committee recommended salable quantities of 694,774 pounds and
1,012,983 pounds, and allotment percentages of 34 percent and 44
percent, respectively, for Scotch and Native spearmint oil. A proposed
rule was published in the Federal Register on March 4, 2011 (76 FR
11971). Comments on the proposed rule were solicited from interested
persons until April 4, 2011. No comments were received. Subsequently, a
final rule establishing the salable quantities and allotment
percentages for Scotch and Native spearmint oil for the 2011-2012
marketing year was published in the Federal Register on May 13, 2011
(76 FR 27852).
This rule revises the quantity of Scotch and Native spearmint oil
that handlers may purchase from, or handle
[[Page 61934]]
on behalf of, producers during the 2011-2012 marketing year, which ends
on May 31, 2012. Pursuant to authority contained in Sec. Sec. 985.50,
985.51, and 985.52 of the order, the full eight member Committee met on
August 17, 2011, to consider pertinent market information on the
current supply, demand, and price of spearmint oil. The Committee, in
two separate motions, recommended that the 2011-2012 marketing year
Scotch and Native spearmint oil allotment percentages be increased by 2
percent and 11 percent, respectively. The motion to increase the
allotment percentage for Scotch was unanimous and the motion to
increase the allotment percentage for Native passed with seven members
in favor and one member opposed. The member opposed to the motion
agreed that an increase was necessary for the industry to respond to
increasing demand, but based his vote on the opinion that an 11 percent
increase was too high this early in the marketing year.
Thus, taking into consideration the following discussion, this rule
increases the 2011-2012 marketing year salable quantities and allotment
percentages for Scotch and Native spearmint oil to 733,913 pounds and
36 percent, and 1,266,161 pounds and 55 percent, respectively.
The salable quantity is the total quantity of each class of oil
that handlers may purchase from, or handle for, producers during the
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.
The total industry allotment base for Scotch spearmint oil for the
2011-2012 marketing year was estimated by the Committee at the October
13, 2010, meeting at 2,043,453 pounds. This was later revised at the
beginning of the 2011-2012 marketing year to 2,038,595 pounds to
reflect the loss of 4,858 pounds of base due to non-production of some
producers' total annual allotments during the 2010-2011 marketing year.
Section 985.53(e) of the order requires that producers make a bona
fide effort to produce all of their respective allotment base each
year. Failure to do so results in a reduction in the producer's
allotment base equivalent to such unproduced portion. The 4,858 pound
reduction in allotment base for Scotch spearmint oil reflects the total
base surrendered by all producers due to the non-production of those
producers' total annual allotments during the 2010-2011 marketing year.
When the revised total Scotch allotment base of 2,038,595 pounds is
applied to the originally established allotment percentage of 34
percent, the initially established 2011-2012 marketing year salable
quantity of 694,774 pounds is effectively modified to 693,122 pounds.
After accounting for a rounding adjustment of 19 pounds, the actual
2011-2012 marketing year annual allotment for Scotch spearmint oil
prior to this increase is 693,141 pounds.
The same situation applies to Native spearmint oil where the
Committee estimated at the October 13, 2010, meeting that the total
industry allotment base for Native spearmint oil for the 2011-2012
marketing year was 2,302,233 pounds. This number was later revised at
the beginning of the 2011-2012 marketing year to 2,301,926 pounds to
reflect the bona fide effort reduction of 307 pounds. Just as with
Scotch spearmint oil, the 307 pound reduction in Native allotment base
reflects the total base surrendered by all producers due to the non-
production of such producers' total annual allotments during the 2010-
2011 marketing year.
When the revised total Native allotment base of 2,301,926 pounds is
applied to the originally established allotment percentage of 44
percent, the initially established 2011-2012 marketing year Native
salable quantity of 1,012,983 pounds is effectively modified to
1,012,847 pounds. After accounting for 102 pounds of rounding
adjustments when calculating each producer's annual allotment, the
actual 2011-2012 total annual allotment of Native spearmint oil prior
to this increase is 1,012,949 pounds.
By increasing the salable quantity and allotment percentage, this
rule makes additional amounts of Scotch and Native spearmint oil
available to the market. Such additional oil may come from spearmint
oil produced in the current marketing year or by releasing oil from the
reserve pool. As of May 31, 2011, the Committee estimated the Scotch
reserve pool to contain 454,715 pounds of spearmint oil and the Native
reserve pool to contain 606,942 pounds of spearmint oil.
When the allotment percentage increases established by this rule
are applied to each individual producer, each such producer may deliver
up to an amount equal to such allotment from their 2011-2012 marketing
year's production, from spearmint oil transferred from another
producer's 2011-2012 marketing year production, or from the respective
class of oil held in reserve. However, pursuant to Sec. Sec. 985.56
and 985.156, producers with excess oil are only able to transfer such
excess oil to other producers to fill deficiencies in annual allotments
prior to October 31 of each marketing year. The Committee expects that
all individuals entitled to a pro rata increase in the salable quantity
allotment for each class of spearmint oil will be able to exercise the
full marketing rights associated with such an increase.
Therefore, the 2 percent increase in the Scotch spearmint oil
allotment percentage established by this rule is expected to result in
a 2011-2012 marketing year salable quantity of 733,913 pounds.
Likewise, the 11 percent increase in the Native spearmint oil allotment
percentage established by this rule is expected to result in a 2011-
2012 marketing year salable quantity of 1,266,161 pounds. This reflects
an additional 40,772 pounds of Scotch spearmint oil and 253,212 pounds
of Native spearmint oil being made available to the market by this
rule.
The following summarizes the Committee recommendations:
Scotch Spearmint Oil Recommendation
(A) Estimated 2011-2012 Scotch Allotment Base--2,043,453 pounds.
This is the estimate on which the original 2011-2012 salable quantity
and allotment percentage was based.
(B) Revised 2011-2012 Scotch Allotment Base--2,038,595 pounds. This
is 4,858 pounds less than the estimated allotment base of 2,043,453
pounds. The difference is the result of some producers failing to
produce all of their 2010-2011 allotment.
(C) Original 2011-2012 Scotch Allotment Percentage--34 percent.
This was unanimously recommended by the Committee on October 13, 2010.
(D) Original 2011-2012 Scotch Salable Quantity--694,774 pounds.
This figure is 34 percent of the estimated 2011-2012 allotment base of
2,043,453 pounds.
(E) Adjusted 2011-2012 Scotch Salable Quantity--693,141 pounds.
This figure reflects the salable quantity actually available at the
beginning of the 2011-2012 marketing year. This quantity is derived by
applying the 34 percent allotment percentage to the revised allotment
base of 2,038,595. This adjusted salable quantity also accounts for a
19 pound increase due to rounding.
(F) Current Revision to the 2011-2012 Scotch Salable Quantity and
Allotment Percentage:
(1) Increase in Scotch Allotment Percentage--2 percent. The
Committee
[[Page 61935]]
recommended a 2 percent increase at its August 17, 2011, meeting.
(2) 2011-2012 Scotch Allotment Percentage--36 percent. This figure
is derived by adding the increase of 2 percent to the original 2011-
2012 allotment percentage of 34 percent.
(3) Calculated Revised 2011-2012 Scotch Salable Quantity--733,913
pounds. This figure is 36 percent of the revised 2011-2012 allotment
base of 2,038,595 pounds plus the 19 pound rounding adjustment.
(4) Computed Increase in the 2011-2012 Scotch Salable Quantity--
40,772 pounds. This figure is 2 percent of the revised 2011-2012
allotment base of 2,038,595 pounds.
The 2011-2012 marketing year began on June 1, 2011, with an
estimated carry-in of 227,241 pounds of salable Scotch spearmint oil.
When the estimated carry-in is added to the revised 2011-2012 salable
quantity of 693,141 pounds, the result is a total estimated available
supply of Scotch spearmint oil for the 2011-2012 marketing year of
920,382 pounds. Of this amount, 733,877 pounds of Scotch spearmint oil
have already been sold or committed, which leaves just 186,505 pounds
available for sale for the remainder of the 2011-2012 marketing year.
In making this recommendation to increase the available supply of
Scotch spearmint oil, 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 reports given by the Committee manager from handlers
and producers who were not in attendance. By increasing the 2011-2012
Scotch spearmint oil salable percentage by 2 percent, an estimated
additional 40,772 pounds will be made available to the market. This
amount combined with the 186,505 pounds currently available, will make
a total of 227,277 pounds available to the market and bring the total
available supply of Scotch spearmint oil for the marketing year to
961,154 pounds.
When the original 2011-2012 marketing policy statement was drafted,
handlers estimated that the demand for Scotch spearmint oil for the
2011-2012 marketing year may be 800,000 pounds. However, when the
Committee made its original recommendation for the establishment of the
Scotch spearmint oil salable quantity and allotment percentage for the
2011-2012 marketing year, it had not anticipated the increase in demand
for Scotch spearmint oil that the market is currently experiencing. The
Committee believes that the supply of Scotch spearmint oil available to
the market, without an increase in the salable quantity, would be
insufficient to satisfy the current demand for oil at reasonable price
levels. Therefore, it is the opinion of the industry that this action
is essential to ensuring an adequate supply of Scotch spearmint oil to
the market.
Native Spearmint Oil Recommendation
(A) Estimated 2011-2012 Native Allotment Base--2,302,233 pounds.
This is the estimate on which the original 2011-2012 Native spearmint
oil salable quantity and allotment percentage was based.
(B) Revised 2011-2012 Native Allotment Base--2,301,926 pounds. This
is 307 pounds less than the estimated allotment base of 2,302,233
pounds. The difference is the result of some producers failing to
produce all of their 2010-2011 allotment.
(C) Original 2011-2012 Native Allotment Percentage--44 percent.
This was unanimously recommended by the Committee at its October 13,
2010 meeting.
(D) Original 2011-2012 Native Salable Quantity--1,012,983 pounds.
This figure is 44 percent of the estimated 2011-2012 allotment base of
2,302,233.
(E) Adjusted 2011-2012 Native Salable Quantity--1,012,949 pounds.
This figure reflects the salable quantity actually available at the
beginning of the 2011-2012 marketing year. This quantity is derived by
applying the 44 percent allotment percentage to the revised allotment
base of 2,301,926. The adjusted salable quantity also accounts for a
101 pound increase due to rounding.
(F) Current Revision to the 2011-2012 Native Salable Quantity and
Allotment Percentage:
(1) Increase in Native Allotment Percentage--11 percent. The
Committee recommended an 11 percent increase at its August 17, 2011,
meeting.
(2) 2011-2012 Native Allotment Percentage--55 percent. This figure
is derived by adding the increase of 11 percent to the original 2011-
2012 allotment percentage of 44 percent.
(3) Calculated Revised 2011-2012 Native Salable Quantity--1,266,161
pounds. This figure is 55 percent of the revised 2011-2012 allotment
base of 2,301,926 pounds, plus the 101 pound increase due to rounding.
(4) Computed Increase in the 2011-2012 Native Salable Quantity--
253,212 pounds. This figure is 11 percent of the revised 2011-2012
allotment base of 2,301,926 pounds.
The 2011-2012 marketing year began on June 1, 2011, with an
estimated carry-in of 164,809 pounds of salable Native spearmint oil.
When the estimated carry-in is added to the revised 2011-2012 salable
quantity of 1,012,949 pounds, the result is a total estimated available
supply of Native spearmint oil for the 2011-2012 marketing year of
1,177,758 pounds. Of this amount, 1,076,114 pounds of oil have already
been sold or committed for the 2011-2012 marketing year, which leaves
just 101,644 pounds available for sale.
In making this 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 reports given by the Committee manager
from handlers and producers who were not in attendance. By increasing
the 2011-2012 Native spearmint oil salable percentage by 11 percent, an
estimated additional 253,212 pounds will be made available to the
market. This amount combined with the 101,644 pounds currently
available, will make a total of 354,856 pounds available to the market
and bring the total available supply of Native spearmint oil for the
year to 1,430,970 pounds.
When the original 2011-2012 marketing policy statement was drafted,
handlers estimated that the demand for Native spearmint oil for the
2011-2012 marketing year may be 1,130,000 pounds. However, when the
Committee made its original recommendation for the establishment of the
Native spearmint oil salable quantity and allotment percentage for the
2011-2012 marketing year, it had not anticipated the increase in demand
for Native spearmint oil that the market is currently experiencing. The
Committee believes that the supply of Native spearmint oil available to
the market, without an increase in the salable quantity, would be
insufficient to satisfy the current demand for oil at reasonable price
levels. Therefore, it is the opinion of the industry that this action
is essential to ensuring an adequate supply of Native spearmint oil to
the market.
Based on its analysis of available information, USDA has determined
that the salable quantity and allotment percentage for Scotch spearmint
oil for the 2011-2012 marketing year should be increased to 733,913
pounds and 36 percent, respectively. In addition, USDA has determined
that the salable quantity and allotment percentage for Native spearmint
oil for the 2011-2012
[[Page 61936]]
marketing year should be increased to 1,266,161 pounds and 55 percent,
respectively.
This rule relaxes the regulation of Scotch and Native spearmint oil
and will allow producers to meet market demand while improving producer
returns. In conjunction with the issuance of this rule, the Committee's
revised marketing policy statement for the 2011-2012 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 2011-2012 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 increases in the Scotch and Native spearmint oil salable
quantity and allotment percentage allows for anticipated market needs
for both classes 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.
There are 8 spearmint oil handlers subject to regulation under the
order, and approximately 32 producers of Scotch spearmint oil and
approximately 88 producers of Native spearmint oil in the regulated
production 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 $7,000,000, and small agricultural
producers are defined as those having annual receipts of less than
$750,000.
Based on the SBA's definition of small entities, the Committee
estimates that two of the eight handlers regulated by the order could
be considered small entities. Most of the handlers are large
corporations involved in the international trading of essential oils
and the products of essential oils. In addition, the Committee
estimates that 8 of the 32 Scotch spearmint oil producers and 22 of the
88 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 use of volume control regulation allows the industry to fully
supply spearmint oil markets while avoiding the negative consequences
of over-supplying these markets. Volume control is believed to have
little or no effect on consumer prices of products containing spearmint
oil and likely does not result in fewer retail sales of such products.
Without volume control, producers would not be limited in the
production and marketing of spearmint oil. Under those conditions, the
spearmint oil market would likely fluctuate widely. Periods of
oversupply could result in low producer prices and a large volume of
oil stored and carried over to future crop years. Periods of
undersupply could lead to excessive price spikes and could drive end
users to source flavoring needs from other markets, potentially causing
long term economic damage to the domestic spearmint oil industry. The
marketing order's volume control provisions have been successfully
implemented in the domestic spearmint oil industry for nearly three
decades and provide benefits for producers, handlers, manufacturers,
and consumers.
This rule increases the quantity of Scotch and Native spearmint oil
that handlers may purchase from, or handle on behalf of, producers
during the 2011-2012 marketing year, which ends on May 31, 2012. This
rule increases the Native spearmint oil salable quantity from 693,141
pounds to 733,913 pounds and the allotment percentage from 34 percent
to 36 percent. Additionally, this rule increases the Native spearmint
oil salable quantity from 1,012,949 pounds to 1,266,161 pounds and the
allotment percentage from 44 percent to 55 percent.
Based on projections available at the meeting, the Committee
considered a number of alternatives to this increase. The Committee not
only considered leaving the salable quantity and allotment percentage
unchanged, but also considered other potential levels of increase. The
Committee reached its recommendation to increase the salable quantity
and allotment percentage for both Scotch and Native spearmint oil after
careful consideration of all available information, and believes that
the levels recommended will achieve the objectives sought. Without the
increase, the Committee believes the industry would not be able to
satisfactorily meet market demand.
In accordance with the Paperwork Reduction Act of 1995, (44 U.S.C.
chapter 35), the order's information collection requirements have been
previously approved by the Office of Management and Budget (OMB) and
assigned OMB No. 0581-0178, Vegetable and Specialty Crop Marketing
Orders. No changes in those requirements as a result of this action are
necessary. Should any changes become necessary, they would be submitted
to OMB for approval.
This rule will not impose any additional reporting or recordkeeping
requirements on either small or large spearmint oil handlers. As with
all Federal marketing order programs, reports and forms are
periodically reviewed to reduce information requirements and
duplication by industry and public sector agencies.
AMS is committed to complying with the E-Government Act, to promote
the use of the Internet and other information technologies to provide
increased opportunities for citizen access to Government information
and services, and for other purposes.
In addition, USDA has not identified any relevant Federal rules
that duplicate, overlap or conflict with this rule.
Further, the Committee's meeting was widely publicized throughout
the spearmint oil industry and all interested persons were invited to
attend the meeting and participate in Committee deliberations. Like all
Committee meetings, the August 17, 2011, meeting was a public meeting
and all entities, both large and small, were able to express their
views on this issue. Finally, interested persons are invited to
[[Page 61937]]
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/MarketingOrdersSmallBusinessGuide. Any questions
about the compliance guide should be sent to Laurel May at the
previously mentioned address in the FOR FURTHER INFORMATION CONTACT
section.
This rule invites comments on a change to the salable quantity and
allotment percentage for both Scotch and Native spearmint oil for the
2011-2012 marketing year. Any comments received will be considered
prior to finalization of this rule.
After consideration of all relevant material presented, including
the Committee's recommendation, and other information, it is found that
this interim rule, as hereinafter set forth, will tend to effectuate
the declared policy of the Act.
Pursuant to 5 U.S.C. 553, it is also found and determined upon good
cause that it is impracticable, unnecessary, and contrary to the public
interest to give preliminary notice prior to putting this rule into
effect and that good cause exists for not postponing the effective date
of this rule until 30 days after publication in the Federal Register
because: (1) This rule increases the quantity of Scotch and Native
spearmint oil that may be marketed during the marketing year, which
ends on May 31, 2012; (2) the current quantity of Scotch and Native
spearmint oil may be inadequate to meet demand for the 2011-2012
marketing year, thus making the additional oil available as soon as is
practicable will be beneficial to both handlers and producers; (3) the
Committee recommended these changes at a public meeting and interested
parties had an opportunity to provide input; and (4) this rule provides
a 60-day comment period and any comments received will be considered
prior to finalization of this rule.
List of Subjects in 7 CFR Part 985
Marketing agreements, Oils and fats, Reporting and recordkeeping
requirements, Spearmint oil.
For the reasons set forth in the preamble, 7 CFR part 985 is
amended as follows:
PART 985--MARKETING ORDER REGULATING THE HANDLING OF SPEARMINT OIL
PRODUCED IN THE FAR WEST
0
1. The authority citation for 7 CFR part 985 continues to read as
follows:
Authority: 7 U.S.C. 601-674.
0
2. In Sec. 985.230, paragraphs (a) and (b) are revised to read as
follows:
Note: This section will not appear in the annual Code of
Federal Regulations.
Sec. 985.230 Salable quantities and allotment percentages--2011-2012
marketing year.
* * * * *
(a) Class 1 (Scotch) oil--a salable quantity of 733,913 pounds and
an allotment percentage of 36 percent.
(b) Class 3 (Native) oil--a salable quantity of 1,266,161 pounds
and an allotment percentage of 55 percent.
Dated: September 30, 2011.
Ellen King,
Associate Administrator, Agricultural Marketing Service.
[FR Doc. 2011-25812 Filed 10-5-11; 8:45 am]
BILLING CODE 3410-02-P
