Irish Potatoes Grown in Colorado; Modification of the Handling Regulation for Area No. 2, 3-5 [2012-31513]

Download as PDF Federal Register / Vol. 78, No. 1 / Wednesday, January 2, 2013 / Rules and Regulations DEPARTMENT OF AGRICULTURE Agricultural Marketing Service 7 CFR Part 948 [Doc. No. AMS–FV–12–0043; FV12–948–1 IR] Irish Potatoes Grown in Colorado; Modification of the Handling Regulation for Area No. 2 Agricultural Marketing Service, USDA. ACTION: Interim rule with request for comments. AGENCY: This rule modifies the grade requirements for potatoes handled under the Colorado potato marketing order, Area No. 2 (order). The order regulates the handling of Irish potatoes grown in Colorado and is administered locally by the Colorado Potato Administrative Committee, Area No. 2 (Committee). This rule relaxes the minimum grade requirement for size B and 1-inch to 13⁄4-inch diameter round, red-skinned potatoes handled under the Colorado potato marketing order from U.S. No. 1 to U.S. Commercial. This change is expected to facilitate the handling and marketing of the Area No. 2 potato crop, provide producers and handlers with increased returns, and supply consumers with increased potato purchasing options. DATES: Effective January 3, 2013; comments received by March 4, 2013 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 and Agreement Division, Fruit and Vegetable Program, 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 Director, tkelley on DSK3SPTVN1PROD with SUMMARY: VerDate Mar<15>2010 16:06 Dec 31, 2012 Jkt 229001 Northwest Marketing Field Office, Marketing Order and Agreement Division, Fruit and Vegetable Program, AMS, USDA; Telephone: (503) 326– 2724, Fax: (503) 326–7440, or Email: 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 and Agreement Division, Fruit and Vegetable Program, AMS, USDA, 1400 Independence Avenue SW., STOP 0237, Washington, DC 20250–0237; Telephone: (202) 720– 2491, Fax: (202) 720–8938, or Email: Laurel.May@ams.usda.gov. This rule is issued under Marketing Agreement No. 97 and Marketing Order No. 948, both as amended (7 CFR part 948), regulating the handling of Irish potatoes grown in Colorado, hereinafter referred to as the ‘‘order.’’ The order is effective under the Agricultural Marketing Agreement Act of 1937, as amended (7 U.S.C. 601–674), hereinafter referred to as the ‘‘Act.’’ 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 § 608c(15)(A) of the Act, any handler subject to an order may file with USDA a petition stating that the order, any provision of the order, or any obligation imposed in connection with the order is not in accordance with law and request a modification of the order or to be exempted therefrom. A handler is afforded the opportunity for a hearing on the petition. After the hearing USDA would rule on the petition. The Act provides that the district court of the United States in any district in which the handler is an inhabitant, or has his or her principal place of business, has jurisdiction to review USDA’s ruling on the petition, provided an action is filed not later than 20 days after the date of the entry of the ruling. This rule modifies the minimum requirements for certain potatoes handled under the order’s handling regulation. This rule relaxes the minimum grade requirement for all size B (11⁄2-inch to 21⁄4-inch diameter) and 1inch to 13⁄4-inch diameter round, redskinned potatoes handled under the order to U.S. Commercial. Prior to this change, round, red-skinned potatoes in SUPPLEMENTARY INFORMATION: PO 00000 Frm 00003 Fmt 4700 Sfmt 4700 3 the above size ranges were required to meet or exceed the requirements of the U.S. No. 1 grade standard if such potatoes were to be shipped outside the State of Colorado. This rule is a relaxation of the handling regulation and will make the minimum grade requirements for round, red-skinned potatoes consistent with the current minimum grade requirements for all other varieties of similarly sized potatoes handled under the order. This change was unanimously recommended by the Committee at a meeting held on July 19, 2012. 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 regulations issued pursuant to § 948.22. Under the Colorado potato marketing order, the State of Colorado is divided into three areas of regulation for marketing order purposes. These include: Area 1, commonly known as the Western Slope; Area 2, commonly known as San Luis Valley; and, Area 3, which consists of the remaining producing areas within the State of Colorado not included in the definition of Area 1 or Area 2. Currently, the order only regulates the handling of potatoes produced in Area 2 and Area 3. Regulation for Area 1 has been suspended. The grade, size, and maturity regulations specific to the handling of potatoes grown in Area 2 are contained in § 948.386 of the order. The current handling regulation requires that all potatoes handled under the order must meet the minimum requirements of the U.S. No. 2 grade and be 2 inches or greater in diameter. Smaller size potatoes may be handled if such potatoes meet the requirements of certain higher grades. For all varieties, except round, red-skinned varieties, size B and 1-inch to 13⁄4-inch diameter potatoes may be handled if such potatoes meet the requirements of the U.S. Commercial grade. Round, redskinned varieties of the above size profiles must meet the minimum requirements of the U.S. No. 1 grade standard to be handled under the order. At the July 19 Committee meeting, industry participants indicated to the Committee that there is an emerging market for smaller size U.S. Commercial grade round, red-skinned potatoes for use in certain value added potato products. They further stated that the order’s current U.S. No. 1 grade requirement for small-size, round, redskinned potatoes precludes them from E:\FR\FM\02JAR1.SGM 02JAR1 4 Federal Register / Vol. 78, No. 1 / Wednesday, January 2, 2013 / Rules and Regulations tkelley on DSK3SPTVN1PROD with supplying that market. Relaxing the minimum grade requirement for such potatoes will allow area handlers to compete with other domestic potato producing regions for this developing market segment. Changing the handling regulations to allow small-size, round, red-skinned potatoes to meet or exceed U.S. Commercial grade, instead of the more stringent U.S. No. 1 grade, will make more small potatoes available to consumers and will allow Area 2 handlers to move more of the area’s potato production into the fresh market. This change is expected to benefit producers, handlers, and consumers of round, red-skinned potatoes. 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 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 approximately 80 handlers of Colorado Area No. 2 potatoes subject to regulation under the order and approximately 180 producers in the regulated production area. Small agricultural service firms are defined by the Small Business Administration (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. During the 2010–2011 marketing year, the most recent full marketing year for which statistics are available, 15,583,512 hundredweight of Colorado Area No. 2 potatoes were inspected under the order and sold into the fresh market. Based on an estimated average f.o.b. price of $12.75 per hundredweight, the Committee estimates that 71 Area No. 2 handlers, or about 89 percent, had annual receipts of less than $7,000,000. In view of the foregoing, the majority of Colorado Area No. 2 potato handlers may be classified as small entities. In addition, based on information provided by the National Agricultural Statistics Service, the average producer VerDate Mar<15>2010 16:06 Dec 31, 2012 Jkt 229001 price for Colorado fall potatoes for 2010–2011 was $9.37 per hundredweight. The average annual fresh potato revenue for each of the 180 Colorado Area No. 2 potato producers is therefore calculated to be approximately $811,208. Consequently, on average, many of the Area No. 2 Colorado potato producers may not be classified as small entities. This rule relaxes the minimum grade requirement for size B and 1-inch to 13⁄4-inch diameter round, red-skinned potato varieties from U.S. No. 1 grade to U.S. Commercial. Authority for this action is contained in §§ 948.21 and 948.22. This relaxation is expected to benefit the producers, handlers, and consumers of Colorado potatoes by allowing a greater quantity of fresh potatoes from the production area to enter the market. This anticipated increase in volume is expected to translate into greater returns for handlers and producers, and more purchasing options for consumers. After discussing possible alternatives to this rule, the Committee determined that a relaxation in the grade requirement for small-size, round, redskinned potatoes from U.S. No. 1 to U.S. Commercial would sufficiently meet the industry’s current needs while maintaining the integrity of the order. During its deliberations, the Committee considered making no changes to the handling regulations as well as relaxing the minimum grade requirement for all small-size potatoes to U.S. No. 2. The Committee believes that a relaxation in the handling regulation for small potatoes is necessary to allow handlers to pursue new markets, but lowering the grade requirements for small-size potatoes to U.S. No. 2 would erode the quality reputation of the area’s potatoes. The Committee, therefore, found that there were no other viable alternatives to the recommended relaxation of the minimum grade requirements for round, red-skinned potatoes handled under the order from U.S. No. 1 to U.S. Commercial. 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. 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 potato handlers. As with all Federal PO 00000 Frm 00004 Fmt 4700 Sfmt 4700 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 Colorado potato industry and all interested persons were invited to attend the meeting and participate in Committee deliberations. Like all Committee meetings, the July 19, 2012, 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 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: 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 modification of the grade and maturity requirement prescribed under the Colorado potato marketing order. Any comments received will be considered prior to the finalization of this rule. After consideration of all relevant material presented, including the Committee’s recommendation, and other information, it is hereby 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 action is a relaxation of the current handling regulation; (2) handlers are already shipping potatoes from the 2012–2013 crop and may want to take advantage of this relaxation as soon as possible; (3) handlers are aware of this rule, which was initiated by the industry and unanimously E:\FR\FM\02JAR1.SGM 02JAR1 Federal Register / Vol. 78, No. 1 / Wednesday, January 2, 2013 / Rules and Regulations recommended by the Committee at a public meeting during which interested parties had an opportunity to provide input; and (4) this rule provides a 60day 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: PART 948—IRISH POTATOES GROWN IN COLORADO 1. The authority citation for 7 CFR part 948 continues to read as follows: ■ Authority: 7 U.S.C. 601–674. 2. In § 948.386, paragraphs (a)(3) and (4) are revised to read as follows: ■ § 948.386 Handling regulation. * * * * * (a) * * * (3) 11⁄2-inch minimum to 21⁄4-inch maximum diameter (Size B). U.S. Commercial grade or better. (4) 1-inch minimum diameter to 13⁄4inch maximum diameter. U.S. Commercial grade or better. * * * * * Dated: December 26, 2012. David R. Shipman, Administrator, Agricultural Marketing Service. [FR Doc. 2012–31513 Filed 12–31–12; 8:45 am] BILLING CODE 3410–02–P DEPARTMENT OF TRANSPORTATION Federal Aviation Administration 14 CFR Part 39 [Docket No. FAA–2012–0482; Directorate Identifier 2012–NE–14–AD; Amendment 39– 17290; AD 2012–25–09] RIN 2120–AA64 Airworthiness Directives; Rolls-Royce plc Turbofan Engines Federal Aviation Administration (FAA), DOT. ACTION: Final rule. AGENCY: We are adopting a new airworthiness directive (AD) for all Rolls-Royce plc (RR) RB211–524G2–19; RB211–524G2–T–19; RB211–524G3–19; RB211–524G3–T–19; RB211–524H2–19; RB211–524H2–T–19; RB211–524H–36; RB211–524H–T–36; RB211–535E4–37; tkelley on DSK3SPTVN1PROD with SUMMARY: VerDate Mar<15>2010 16:06 Dec 31, 2012 Jkt 229001 RB211–535E4–B–37; RB211–535E4–B– 75; and RB211–535E4–C–37 turbofan engines. This AD was prompted by an investigation by RR concluding that certain intermediate-pressure (IP) turbine discs produced before 1997 by a certain supplier may contain steel inclusions. This AD requires removal of the affected IP turbine discs to inspect them for steel inclusions, and removal of the affected discs from service if they fail the inspection. This AD also requires removal from service of some IP turbine discs at reduced life limits. We are issuing this AD to prevent uncontained IP turbine disc failure, engine failure, and damage to the airplane. DATES: This AD becomes effective February 6, 2013. The Director of the Federal Register approved the incorporation by reference of certain publications listed in this AD as of February 6, 2013. ADDRESSES: The Docket Operations office is located at Docket Management Facility, U.S. Department of Transportation, 1200 New Jersey Avenue SE., West Building Ground Floor, Room W12–140, Washington, DC 20590–0001. FOR FURTHER INFORMATION CONTACT: Alan Strom, Aerospace Engineer, Engine Certification Office, FAA, Engine & Propeller Directorate, 12 New England Executive Park, Burlington, MA 01803; phone: 781–238–7143; fax: 781–238– 7199; email: alan.strom@faa.gov. SUPPLEMENTARY INFORMATION: Discussion We issued a notice of proposed rulemaking (NPRM) to amend 14 CFR part 39 to include an AD that would apply to the specified products. That NPRM was published in the Federal Register on July 11, 2012 (77 FR 40820). That NPRM proposed to correct an unsafe condition for the specified products. The MCAI states: The inspection of several intermediate pressure (IP) turbine discs at past engine overhauls identified the presence of steel inclusions in these parts. Further investigation concluded that all affected parts were manufactured from billets produced before 1997 at a certain supplier who also melted steel in the same furnaces. Initial engineering evaluation concluded that the lives of the parts would not be affected by the presence of the said steel inclusions. This evaluation has been recently repeated, utilising improved structural analysis, and it is now concluded that the currently published lives of the components cannot be supported for some discs with a steel inclusion. We are issuing this AD to prevent uncontained IP turbine disc failure, PO 00000 Frm 00005 Fmt 4700 Sfmt 4700 5 engine failure, and damage to the airplane. Comments We gave the public the opportunity to participate in developing this AD. We considered the comments received. The following presents the comments received on the proposal and the FAA’s response to each comment. Request To Provide Alternative to Inspection One commenter, American Airlines, requested that we allow replacement of the removed IP turbine disc with a serviceable part as an alternative to the inspection mandated by paragraph (f) in the proposed AD. American noted that including this alternative would allow operators to avoid the added expense of an inspection of discs that are being removed from service. We agree. We revised paragraph (f) of the Compliance section of the AD to allow replacement of an affected disc with a part eligible for installation. Request To Redefine ‘‘Shop Visit’’ One commenter, FedEx Express, requested that we redefine ‘‘shop visit’’ as any IP turbine disc exposed at shop visit, engine Level 3 (Refurbishment), Level 4 (Overhaul), or 05 Module Level 2 (Check and Repair). FedEx Express indicated that this change would align the AD with the current wording in RR Alert Service Bulletin (ASB) RB.211– 72–AG493, dated October 12, 2012. We do not agree. The terms ‘Level 3’ and ‘Level 4’ are not specific enough to be enforceable. Our definition of shop visit in the AD is consistent with the definition in MCAI AD No. 2012–0060, dated April 18, 2012. We did not change the AD based on this comment. Request To Remove Reference to Demagnetization Commenter Rolls-Royce requested that we remove the reference to demagnetization from Compliance paragraph (f). The disc does not need to be demagnetized as it will be magnetized as part of the Superconductive Quantitative Inductive Device (SQUID) inspection process required by paragraph (f). We agree. We changed the references in Compliance paragraphs (f)(1) and (f)(2) from ‘‘clean, demagnetize, and perform * * *’’ to ‘‘clean and perform * * *’’. The first sentence in paragraph (f)(1) now reads: ‘‘If below the inspection threshold, clean and perform a Superconductive Quantitative Inductive Device (SQUID) inspection of the disc at the next shop visit or before the disc reaches the inspection E:\FR\FM\02JAR1.SGM 02JAR1

Agencies

[Federal Register Volume 78, Number 1 (Wednesday, January 2, 2013)]
[Rules and Regulations]
[Pages 3-5]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-31513]

[[Page 3]]

-----------------------------------------------------------------------

DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 948

[Doc. No. AMS-FV-12-0043; FV12-948-1 IR]

Irish Potatoes Grown in Colorado; Modification of the Handling
Regulation for Area No. 2

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Interim rule with request for comments.

-----------------------------------------------------------------------

SUMMARY: This rule modifies the grade requirements for potatoes handled
under the Colorado potato marketing order, Area No. 2 (order). The
order regulates the handling of Irish potatoes grown in Colorado and is
administered locally by the Colorado Potato Administrative Committee,
Area No. 2 (Committee). This rule relaxes the minimum grade requirement
for size B and 1-inch to 1\3/4\-inch diameter round, red-skinned
potatoes handled under the Colorado potato marketing order from U.S.
No. 1 to U.S. Commercial. This change is expected to facilitate the
handling and marketing of the Area No. 2 potato crop, provide producers
and handlers with increased returns, and supply consumers with
increased potato purchasing options.

DATES: Effective January 3, 2013; comments received by March 4, 2013
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 and Agreement Division, Fruit and Vegetable Program,
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 Director, Northwest Marketing Field Office,
Marketing Order and Agreement Division, Fruit and Vegetable Program,
AMS, USDA; Telephone: (503) 326-2724, Fax: (503) 326-7440, or Email:
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 and Agreement
Division, Fruit and Vegetable Program, AMS, USDA, 1400 Independence
Avenue SW., STOP 0237, Washington, DC 20250-0237; Telephone: (202) 720-
2491, Fax: (202) 720-8938, or Email: Laurel.May@ams.usda.gov.

SUPPLEMENTARY INFORMATION: This rule is issued under Marketing
Agreement No. 97 and Marketing Order No. 948, both as amended (7 CFR
part 948), regulating the handling of Irish potatoes grown in Colorado,
hereinafter referred to as the ``order.'' The order is effective under
the Agricultural Marketing Agreement Act of 1937, as amended (7 U.S.C.
601-674), hereinafter referred to as the ``Act.''
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 Sec. 608c(15)(A) of the
Act, any handler subject to an order may file with USDA a petition
stating that the order, any provision of the order, or any obligation
imposed in connection with the order is not in accordance with law and
request a modification of the order or to be exempted therefrom. A
handler is afforded the opportunity for a hearing on the petition.
After the hearing USDA would rule on the petition. The Act provides
that the district court of the United States in any district in which
the handler is an inhabitant, or has his or her principal place of
business, has jurisdiction to review USDA's ruling on the petition,
provided an action is filed not later than 20 days after the date of
the entry of the ruling.
This rule modifies the minimum requirements for certain potatoes
handled under the order's handling regulation. This rule relaxes the
minimum grade requirement for all size B (1\1/2\-inch to 2\1/4\-inch
diameter) and 1-inch to 1\3/4\-inch diameter round, red-skinned
potatoes handled under the order to U.S. Commercial. Prior to this
change, round, red-skinned potatoes in the above size ranges were
required to meet or exceed the requirements of the U.S. No. 1 grade
standard if such potatoes were to be shipped outside the State of
Colorado. This rule is a relaxation of the handling regulation and will
make the minimum grade requirements for round, red-skinned potatoes
consistent with the current minimum grade requirements for all other
varieties of similarly sized potatoes handled under the order. This
change was unanimously recommended by the Committee at a meeting held
on July 19, 2012.
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 regulations issued pursuant to Sec.
948.22.
Under the Colorado potato marketing order, the State of Colorado is
divided into three areas of regulation for marketing order purposes.
These include: Area 1, commonly known as the Western Slope; Area 2,
commonly known as San Luis Valley; and, Area 3, which consists of the
remaining producing areas within the State of Colorado not included in
the definition of Area 1 or Area 2. Currently, the order only regulates
the handling of potatoes produced in Area 2 and Area 3. Regulation for
Area 1 has been suspended.
The grade, size, and maturity regulations specific to the handling
of potatoes grown in Area 2 are contained in Sec. 948.386 of the
order. The current handling regulation requires that all potatoes
handled under the order must meet the minimum requirements of the U.S.
No. 2 grade and be 2 inches or greater in diameter. Smaller size
potatoes may be handled if such potatoes meet the requirements of
certain higher grades. For all varieties, except round, red-skinned
varieties, size B and 1-inch to 1\3/4\-inch diameter potatoes may be
handled if such potatoes meet the requirements of the U.S. Commercial
grade. Round, red-skinned varieties of the above size profiles must
meet the minimum requirements of the U.S. No. 1 grade standard to be
handled under the order.
At the July 19 Committee meeting, industry participants indicated
to the Committee that there is an emerging market for smaller size U.S.
Commercial grade round, red-skinned potatoes for use in certain value
added potato products. They further stated that the order's current
U.S. No. 1 grade requirement for small-size, round, red-skinned
potatoes precludes them from

[[Page 4]]

supplying that market. Relaxing the minimum grade requirement for such
potatoes will allow area handlers to compete with other domestic potato
producing regions for this developing market segment.
Changing the handling regulations to allow small-size, round, red-
skinned potatoes to meet or exceed U.S. Commercial grade, instead of
the more stringent U.S. No. 1 grade, will make more small potatoes
available to consumers and will allow Area 2 handlers to move more of
the area's potato production into the fresh market. This change is
expected to benefit producers, handlers, and consumers of round, red-
skinned potatoes.

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 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 approximately 80 handlers of Colorado Area No. 2 potatoes
subject to regulation under the order and approximately 180 producers
in the regulated production area. Small agricultural service firms are
defined by the Small Business Administration (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.
During the 2010-2011 marketing year, the most recent full marketing
year for which statistics are available, 15,583,512 hundredweight of
Colorado Area No. 2 potatoes were inspected under the order and sold
into the fresh market. Based on an estimated average f.o.b. price of
$12.75 per hundredweight, the Committee estimates that 71 Area No. 2
handlers, or about 89 percent, had annual receipts of less than
$7,000,000. In view of the foregoing, the majority of Colorado Area No.
2 potato handlers may be classified as small entities.
In addition, based on information provided by the National
Agricultural Statistics Service, the average producer price for
Colorado fall potatoes for 2010-2011 was $9.37 per hundredweight. The
average annual fresh potato revenue for each of the 180 Colorado Area
No. 2 potato producers is therefore calculated to be approximately
$811,208. Consequently, on average, many of the Area No. 2 Colorado
potato producers may not be classified as small entities.
This rule relaxes the minimum grade requirement for size B and 1-
inch to 1\3/4\-inch diameter round, red-skinned potato varieties from
U.S. No. 1 grade to U.S. Commercial. Authority for this action is
contained in Sec. Sec. 948.21 and 948.22.
This relaxation is expected to benefit the producers, handlers, and
consumers of Colorado potatoes by allowing a greater quantity of fresh
potatoes from the production area to enter the market. This anticipated
increase in volume is expected to translate into greater returns for
handlers and producers, and more purchasing options for consumers.
After discussing possible alternatives to this rule, the Committee
determined that a relaxation in the grade requirement for small-size,
round, red-skinned potatoes from U.S. No. 1 to U.S. Commercial would
sufficiently meet the industry's current needs while maintaining the
integrity of the order. During its deliberations, the Committee
considered making no changes to the handling regulations as well as
relaxing the minimum grade requirement for all small-size potatoes to
U.S. No. 2. The Committee believes that a relaxation in the handling
regulation for small potatoes is necessary to allow handlers to pursue
new markets, but lowering the grade requirements for small-size
potatoes to U.S. No. 2 would erode the quality reputation of the area's
potatoes. The Committee, therefore, found that there were no other
viable alternatives to the recommended relaxation of the minimum grade
requirements for round, red-skinned potatoes handled under the order
from U.S. No. 1 to U.S. Commercial.
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. 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 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.
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 Colorado potato industry and all interested persons were invited to
attend the meeting and participate in Committee deliberations. Like all
Committee meetings, the July 19, 2012, 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 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:
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 modification of the grade and
maturity requirement prescribed under the Colorado potato marketing
order. Any comments received will be considered prior to the
finalization of this rule.
After consideration of all relevant material presented, including
the Committee's recommendation, and other information, it is hereby
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 action is a relaxation of the current handling
regulation; (2) handlers are already shipping potatoes from the 2012-
2013 crop and may want to take advantage of this relaxation as soon as
possible; (3) handlers are aware of this rule, which was initiated by
the industry and unanimously

[[Page 5]]

recommended by the Committee at a public meeting during which
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 948

Marketing agreements, Potatoes, Reporting and recordkeeping
requirements.

For the reasons set forth in the preamble, 7 CFR part 948 is
amended as follows:

PART 948--IRISH POTATOES GROWN IN COLORADO

0
1. The authority citation for 7 CFR part 948 continues to read as
follows:

Authority: 7 U.S.C. 601-674.

0
2. In Sec. 948.386, paragraphs (a)(3) and (4) are revised to read as
follows:

Sec. 948.386 Handling regulation.

* * * * *
(a) * * *
(3) 1\1/2\-inch minimum to 2\1/4\-inch maximum diameter (Size B).
U.S. Commercial grade or better.
(4) 1-inch minimum diameter to 1\3/4\-inch maximum diameter. U.S.
Commercial grade or better.
* * * * *

Dated: December 26, 2012.
David R. Shipman,
Administrator, Agricultural Marketing Service.
[FR Doc. 2012-31513 Filed 12-31-12; 8:45 am]
BILLING CODE 3410-02-P

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.