Irish Potatoes Grown in Colorado and Imported Irish Potatoes; Relaxation of the Handling Regulation for Area No. 2 and Import Regulations, 60117-60119 [2014-23524]
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60117
Proposed Rules
Federal Register
Vol. 79, No. 193
Monday, October 6, 2014
This section of the FEDERAL REGISTER
contains notices to the public of the proposed
issuance of rules and regulations. The
purpose of these notices is to give interested
persons an opportunity to participate in the
rule making prior to the adoption of the final
rules.
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Parts 948 and 980
[Doc. No. AMS–FV–13–0073; FV13–948–3
PR]
Irish Potatoes Grown in Colorado and
Imported Irish Potatoes; Relaxation of
the Handling Regulation for Area No. 2
and Import Regulations
Agricultural Marketing Service,
USDA.
ACTION: Proposed rule.
AGENCY:
This proposed rule invites
comments on a revision to the minimum
quantity exception 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 action would increase
the quantity of potatoes that may be
handled under the order without regard
to the order’s handling regulation
requirements from 1,000 to 2,000
pounds. The change in the import
regulation is required under section 8e
of the Agricultural Marketing
Agreement Act of 1937. This action
would allow the importation which, in
the aggregate, does not exceed 2,000
pounds for all other round type
potatoes, except red skinned, round
type or long type potatoes that continue
to remain at a 500 pound limit, to be
imported without regard to the import
regulations. This action is expected to
benefit producers, handlers, and
importers.
SUMMARY:
Comments must be received by
December 5, 2014.
ADDRESSES: Interested persons are
invited to submit written comments
concerning this proposal. Comments
must be sent to the Docket Clerk,
Marketing Order and Agreement
Division, Fruit and Vegetable Program,
AMS, USDA, 1400 Independence
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DATES:
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Avenue SW., STOP 0237, Washington,
DC 20250–0237; Fax: (202) 720–8938; or
Internet: http://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: http://
www.regulations.gov. All comments
submitted in response to this proposal
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
comments will be made public on the
internet at the address provided above.
Sue
Coleman, Marketing Specialist, or Gary
D. 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: Sue.Coleman@
ams.usda.gov or GaryD.Olson@
ams.usda.gov.
Small businesses may request
information on complying with this
regulation by contacting Jeffrey Smutny,
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:
Jeffrey.Smutny@ams.usda.gov.
FOR FURTHER INFORMATION CONTACT:
This
proposed rule is issued under Marketing
Agreement No. 97 and Order No. 948,
both as amended (7 CFR part 948),
regulating the handling of Irish potatoes
grown in Colorado, hereinafter referred
to as the ‘‘order.’’ The order is effective
under the Agricultural Marketing
Agreement Act of 1937, as amended (7
U.S.C. 601–674), hereinafter referred to
as the ‘‘Act.’’
This proposed rule is also issued
under section 8e of the Act, which
provides that whenever certain
specified commodities, including Irish
potatoes, are regulated under a Federal
marketing order, imports of these
commodities into the United States are
prohibited unless they meet the same or
comparable grade, size, quality, or
maturity requirements as those in effect
for the domestically produced
commodities.
SUPPLEMENTARY INFORMATION:
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Sfmt 4702
The Department of Agriculture
(USDA) is issuing this proposed rule in
conformance with Executive Orders
12866, 13563, and 13175.
This proposed rule has been reviewed
under Executive Order 12988, Civil
Justice Reform. This proposed rule is
not intended to have retroactive effect.
The Act provides that administrative
proceedings must be exhausted before
parties may file suit in court. Under
section 608c(15)(A) of the Act, any
handler subject to an order may file
with USDA a petition stating that the
order, any provision of the order, or any
obligation imposed in connection with
the order is not in accordance with law
and request a modification of the order
or to be exempted therefrom. A handler
is afforded the opportunity for a hearing
on the petition. After the hearing, USDA
would rule on the petition. The Act
provides that the district court of the
United States in any district in which
the handler is an inhabitant, or has his
or her principal place of business, has
jurisdiction to review USDA’s ruling on
the petition, provided an action is filed
not later than 20 days after the date of
the entry of the ruling.
There are no administrative
procedures which must be exhausted
prior to any judicial challenge to the
provisions of import regulations issued
under section 8e of the Act.
This proposal invites comments on a
revision to the minimum quantity
exception currently prescribed in the
handling regulation for potatoes
handled under the order. This proposal
would increase the quantity of potatoes
that may be handled without regard to
the order’s handling regulation from
1,000 to 2,000 pounds. Relaxing the
minimum quantity exception is
expected to benefit producers, handlers,
and importers. The rule was
unanimously recommended by the
Committee at a meeting on July 18,
2013.
Section 948.4 of the order divides the
State of Colorado into three areas of
regulation for marketing order purposes.
These areas include: Area No. 1,
commonly known as the Western Slope;
Area No. 2, commonly known as San
Luis Valley; and, Area No. 3, which
consists of the remaining producing
areas within the State of Colorado not
included in the definition of Area No.
1 or Area No. 2. Currently, the order
only regulates the handling of potatoes
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Federal Register / Vol. 79, No. 193 / Monday, October 6, 2014 / Proposed Rules
produced in Area No. 2 and Area No. 3.
Regulation for Area No. 1 has been
suspended.
Section 948.50 of the order establishes
committees as administrative agencies
for each of the areas set forth under
§ 948.4. Section 948.22(a) of the order
authorizes the issuance of grade, size,
quality, maturity, pack, and container
regulations for potatoes grown in the
order’s production area. Further, section
948.22(b)(2) of the order provides
authority for each area committee to
recommend modification of regulations
to provide for minimum quantities that
should be relieved of regulatory or
administrative obligations.
Section 948.386 of the order’s
administrative rules prescribes grade,
size, maturity, and inspection
requirements for Colorado Area No. 2
potatoes. Paragraph (f) of that section
prescribes the minimum quantity of
potatoes that are exempt from
regulation. Currently, each person may
handle up to 1,000 pounds of potatoes
without regard to the order’s grade, size,
maturity, and inspection requirements.
At its meeting on July 18, 2013, the
Committee unanimously recommended
increasing the order’s minimum
quantity exception from 1,000 to 2,000
pounds. The recommendation was made
at the request of producers and handlers
who wanted greater flexibility in
distributing smaller quantities of
potatoes. In its deliberations, the
Committee commented that 2,000
pounds is consistent with the current
weight of a pallet of potatoes. One pallet
is typically the smallest lot of potatoes
distributed, since most delivery vehicles
are now capable of transporting at least
2,000 pounds.
Handlers also feel that the value of
one pallet of potatoes does not warrant
the cost of complying with the order’s
regulations. Based on an estimated
average f.o.b. price of $12.60, the value
of one pallet of potatoes is
approximately $225.00. Increasing the
minimum quantity exception from 1,000
to 2,000 pounds of potatoes would
allow a handler to ship one pallet of
potatoes without regard to the order’s
grade, size, maturity, and inspection
requirements. Relaxing the minimum
quantity is expected to benefit
producers, handlers, and importers.
Section 8e of the Act provides that
when certain domestically produced
commodities, including Irish potatoes,
are regulated under a Federal marketing
order, imports of that commodity must
meet the same or comparable grade,
size, quality, and maturity requirements.
Whenever two or more marketing orders
regulating the same commodity
produced in different areas of the
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United States are concurrently in effect,
the importation into the United States of
any such commodity shall be prohibited
unless it complies with the grade, size,
quality and maturity provisions of the
order which, as determined by the
Secretary of Agriculture, regulates the
commodity produced in the area with
which the imported commodity is in
most direct competition (7 U.S.C. 608e–
(a)). Section 980.1(b)(2) of the Vegetable
Import Regulations specifies that
potatoes imported into the United States
are in most direct competition with
potatoes of the same type produced in
the area covered by this order. Since
this action would increase the minimum
quantity exemption under the domestic
handling regulations, a corresponding
change to the import regulations must
also be considered.
Minimum grade, size, quality, and
maturity requirements for Irish potatoes
imported into the United States are
currently in effect under § 980.1 (7 CFR
980.1). The minimum quantity
exemption is specified in § 980.1(c). The
exemption for red skinned, round type
or long type potatoes would remain at
a 500 pound limit. This proposal would
increase the quantity for all other round
type potatoes that may be imported
without regard to the import regulation
requirements from 1,000 to 2,000
pounds. The metric equivalent for 1,000
pounds is 453.592 kilograms and 2,000
pounds is 907.185 kilograms. The
increase in the minimum quantity
exemption for imports of potatoes
would have a beneficial impact on
importers. This proposed rule would
provide flexibility in the importation
and distribution of smaller quantities of
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
businesses subject to such actions in
order that small businesses will not be
unduly or disproportionately burdened.
Marketing orders issued pursuant to the
Act, and rules issued thereunder, are
unique in that they are brought about
through group action of essentially
small entities acting on their own
behalf. Import regulations issued under
the Act are based on those established
under Federal marketing orders.
There are approximately 80 handlers
of Colorado Area No. 2 potatoes subject
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to regulation under the order and
approximately 180 producers in the
regulated production area. There are
approximately 240 importers of
potatoes. Small agricultural service
firms (handlers and importers) are
defined by the Small Business
Administration (SBA) 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 (13 CFR 121.201).
During the 2011–2012 fiscal period,
the most recent for which statistics are
available, 15,072,963 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 $12.60 per
hundredweight, the Committee
estimates that 66 Area No. 2 handlers,
or about 83 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 the 2011 Colorado fall potato
crop was $10.70 per hundredweight.
Multiplying $10.70 by the shipment
quantity of 15,072,963 hundredweight
yields an annual crop revenue estimate
of $161,280,704. The average annual
fresh potato revenue for each of the 180
Colorado Area No. 2 potato producers is
therefore calculated to be approximately
$896,000 ($161,280,704 divided by 180),
which is greater than the SBA threshold
of $750,000. Consequently, on average,
many of the Colorado Area No. 2 potato
producers may not be classified as small
entities.
Information from the Foreign
Agricultural Service, USDA, indicates
that the dollar value of imports of the
type of potatoes affected by this rule
ranged from approximately $55.8
million in 2009 to $ 56.5 million in
2013. Using these values, the majority of
importers of the type of potatoes
affected by this rule would have annual
receipts of less than $7,000,000 and may
be classified as small entities.
Canada is the major potato-producing
country exporting potatoes to the United
States. In 2013, affected shipments of
potatoes imported into the United States
totaled around 3,479,468
hundredweight. Of that amount,
3,479,383 hundredweight were
imported from Canada, 59
hundredweight were imported from
Ecuador, and 26 hundredweight were
imported from Peru.
This proposal would revise the
quantity of potatoes that may be
handled without regard to the
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Federal Register / Vol. 79, No. 193 / Monday, October 6, 2014 / Proposed Rules
requirements of § 948.386(a), (b), and (c)
of the order from 1,000 to 2,000 pounds
and makes a corresponding change to
the potato import regulation. At the July
18, 2013 meeting, the Committee
unanimously recommended increasing
the minimum quantity exception to be
consistent with the approximate weight
of one pallet of potatoes. Authority for
the establishment and modification of a
minimum quantity exception is
provided in § 948.22(b)(2) of the order.
This proposed rule amends the
provisions in §§ 948.386(f) and 980.1(c).
The change in the import regulation is
required under section 8e of the Act.
This action is not expected to increase
the costs associated with the order’s
requirements or the potato import
regulation. Rather, it is anticipated that
this proposed change will have a
beneficial impact. The Committee
believes it would provide greater
flexibility in the distribution of small
quantities of potatoes. Currently, the
distribution of potatoes between 1,000
and 2,000 pounds requires an
inspection and certification that the
product conforms to the grade, size, and
maturity requirements of the order. This
translates into a cost for handlers and
importers of both time and inspection
fees, which is high in relation to the
small value (approximately $225.00 per
pallet) of these transactions. This action
would allow shipments up to 2,000
pounds of potatoes without regard to the
order’s grade, size, maturity, and
inspection requirements and the related
costs. The benefits for this proposed
rule are expected to be equally available
to all fresh potato producers, handlers,
and importers, regardless of their size.
As an alternative to the proposal, the
Committee discussed leaving the
handling regulation unchanged. The
Committee rejected this idea because a
pallet of potatoes weighs approximately
2,000 pounds and the 1,000 pound
minimum quantity exception did not
accommodate this size shipment. No
other alternatives were discussed.
In accordance with the Paperwork
Reduction Act of 1995 (44 U.S.C.
Chapter 35), the order’s information
collection requirements have been
previously approved by the Office of
Management and Budget (OMB) and
assigned OMB No. 0581–0178 (Generic
Vegetable and Specialty Crops). No
changes in those requirements as a
result of this action are necessary.
Should any changes become necessary,
they would be submitted to OMB for
approval.
This proposed rule would relax the
minimum quantity exception under the
order from 1,000 to 2,000 pounds.
Accordingly, this action would not
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Jkt 235001
impose any additional reporting or
recordkeeping requirements on either
small or large Colorado Area No. 2
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.
USDA has not identified any relevant
Federal rules that duplicate, overlap or
conflict with this proposed rule.
In addition, the Committee’s meeting
was widely publicized throughout the
Colorado Area No. 2 potato industry and
all interested persons were invited to
attend the meeting and participate in
Committee deliberations on all issues.
Like all Committee meetings, the July
18, 2013, meeting was a public meeting
and all entities, both large and small,
were able to express views on this issue.
Finally, interested persons are invited to
submit comments on this proposed rule,
including the regulatory and
informational impacts of this action on
small businesses.
A small business guide on complying
with fruit, vegetable, and specialty crop
marketing agreements and orders may
be viewed at: http://www.ams.usda.gov/
MarketingOrdersSmallBusinessGuide.
Any questions about the compliance
guide should be sent to Jeffrey Smutny
at the previously mentioned address in
the FOR FURTHER INFORMATION CONTACT
section.
In accordance with section 8e of the
Act, the United States Trade
Representative has concurred with the
issuance of this proposed rule.
A 60-day comment period is provided
to allow interested persons to respond
to this proposal. All written comments
timely received will be considered
before a final determination is made on
this matter.
60119
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. Revise § 948.386(f) to read as
follows:
■
§ 948.386
Handling regulation.
*
*
*
*
*
(f) Minimum quantity. For purposes
of regulation under this part, each
person may handle up to but not to
exceed 2,000 pounds of potatoes
without regard to the requirements of
paragraphs (a), (b), and (c) of this
section, but this exception shall not
apply to any shipment which exceeds
2,000 pounds of potatoes.
*
*
*
*
*
PART 980—VEGETABLES: IMPORT
REGULATIONS
3. In § 980.1, paragraph (c) is revised
to read as follows:
■
§ 980.1
Import regulations; Irish potatoes.
*
*
*
*
*
(c) Minimum quantities. Any
importation which, in the aggregate,
does not exceed 500 pounds of red
skinned, round type or long type
potatoes, or 2,000 pounds for all other
round type potatoes, may be imported
without regard to the provisions of this
section.
*
*
*
*
*
Dated: September 29, 2014.
Rex A. Barnes,
Associate Administrator, Agricultural
Marketing Service.
[FR Doc. 2014–23524 Filed 10–3–14; 8:45 am]
BILLING CODE 3410–02–P
NATIONAL AERONAUTICS AND
SPACE ADMINISTRATION
14 CFR Part 1245
[Docket No: 2700–0010]
List of Subjects
RIN 2700–AE02
7 CFR Part 948
Marketing agreements, Potatoes,
Reporting and recordkeeping
requirements.
Patents and Other Intellectual Property
Rights
AGENCY:
7 CFR Part 980
Food grades and standards, Imports,
Marketing agreements, Onions, Potatoes,
Tomatoes.
For the reasons set forth above, 7 CFR
parts 948 and 980 are proposed to be
amended as follows:
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National Aeronautics and
Space Administration.
ACTION: Proposed rule.
NASA is proposing to amend
its patent waivers regulations to update
citations and the patent waiver policy,
and to clarify and update the patent
waiver procedures, so they are more in
line with the National Aeronautics and
SUMMARY:
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Agencies
[Federal Register Volume 79, Number 193 (Monday, October 6, 2014)]
[Proposed Rules]
[Pages 60117-60119]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-23524]
========================================================================
Proposed Rules
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains notices to the public of
the proposed issuance of rules and regulations. The purpose of these
notices is to give interested persons an opportunity to participate in
the rule making prior to the adoption of the final rules.
========================================================================
Federal Register / Vol. 79, No. 193 / Monday, October 6, 2014 /
Proposed Rules
[[Page 60117]]
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Parts 948 and 980
[Doc. No. AMS-FV-13-0073; FV13-948-3 PR]
Irish Potatoes Grown in Colorado and Imported Irish Potatoes;
Relaxation of the Handling Regulation for Area No. 2 and Import
Regulations
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Proposed rule.
-----------------------------------------------------------------------
SUMMARY: This proposed rule invites comments on a revision to the
minimum quantity exception 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 action would increase the quantity of potatoes that
may be handled under the order without regard to the order's handling
regulation requirements from 1,000 to 2,000 pounds. The change in the
import regulation is required under section 8e of the Agricultural
Marketing Agreement Act of 1937. This action would allow the
importation which, in the aggregate, does not exceed 2,000 pounds for
all other round type potatoes, except red skinned, round type or long
type potatoes that continue to remain at a 500 pound limit, to be
imported without regard to the import regulations. This action is
expected to benefit producers, handlers, and importers.
DATES: Comments must be received by December 5, 2014.
ADDRESSES: Interested persons are invited to submit written comments
concerning this proposal. 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: http://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: http://www.regulations.gov. All comments submitted in response to this
proposal 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 comments will be made public on the internet at the
address provided above.
FOR FURTHER INFORMATION CONTACT: Sue Coleman, Marketing Specialist, or
Gary D. 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:
Sue.Coleman@ams.usda.gov or GaryD.Olson@ams.usda.gov.
Small businesses may request information on complying with this
regulation by contacting Jeffrey Smutny, 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: Jeffrey.Smutny@ams.usda.gov.
SUPPLEMENTARY INFORMATION: This proposed rule is issued under Marketing
Agreement No. 97 and Order No. 948, both as amended (7 CFR part 948),
regulating the handling of Irish potatoes grown in Colorado,
hereinafter referred to as the ``order.'' The order is effective under
the Agricultural Marketing Agreement Act of 1937, as amended (7 U.S.C.
601-674), hereinafter referred to as the ``Act.''
This proposed rule is also issued under section 8e of the Act,
which provides that whenever certain specified commodities, including
Irish potatoes, are regulated under a Federal marketing order, imports
of these commodities into the United States are prohibited unless they
meet the same or comparable grade, size, quality, or maturity
requirements as those in effect for the domestically produced
commodities.
The Department of Agriculture (USDA) is issuing this proposed rule
in conformance with Executive Orders 12866, 13563, and 13175.
This proposed rule has been reviewed under Executive Order 12988,
Civil Justice Reform. This proposed rule is not intended to have
retroactive effect.
The Act provides that administrative proceedings must be exhausted
before parties may file suit in court. Under section 608c(15)(A) of the
Act, any handler subject to an order may file with USDA a petition
stating that the order, any provision of the order, or any obligation
imposed in connection with the order is not in accordance with law and
request a modification of the order or to be exempted therefrom. A
handler is afforded the opportunity for a hearing on the petition.
After the hearing, USDA would rule on the petition. The Act provides
that the district court of the United States in any district in which
the handler is an inhabitant, or has his or her principal place of
business, has jurisdiction to review USDA's ruling on the petition,
provided an action is filed not later than 20 days after the date of
the entry of the ruling.
There are no administrative procedures which must be exhausted
prior to any judicial challenge to the provisions of import regulations
issued under section 8e of the Act.
This proposal invites comments on a revision to the minimum
quantity exception currently prescribed in the handling regulation for
potatoes handled under the order. This proposal would increase the
quantity of potatoes that may be handled without regard to the order's
handling regulation from 1,000 to 2,000 pounds. Relaxing the minimum
quantity exception is expected to benefit producers, handlers, and
importers. The rule was unanimously recommended by the Committee at a
meeting on July 18, 2013.
Section 948.4 of the order divides the State of Colorado into three
areas of regulation for marketing order purposes. These areas include:
Area No. 1, commonly known as the Western Slope; Area No. 2, commonly
known as San Luis Valley; and, Area No. 3, which consists of the
remaining producing areas within the State of Colorado not included in
the definition of Area No. 1 or Area No. 2. Currently, the order only
regulates the handling of potatoes
[[Page 60118]]
produced in Area No. 2 and Area No. 3. Regulation for Area No. 1 has
been suspended.
Section 948.50 of the order establishes committees as
administrative agencies for each of the areas set forth under Sec.
948.4. Section 948.22(a) of the order authorizes the issuance of grade,
size, quality, maturity, pack, and container regulations for potatoes
grown in the order's production area. Further, section 948.22(b)(2) of
the order provides authority for each area committee to recommend
modification of regulations to provide for minimum quantities that
should be relieved of regulatory or administrative obligations.
Section 948.386 of the order's administrative rules prescribes
grade, size, maturity, and inspection requirements for Colorado Area
No. 2 potatoes. Paragraph (f) of that section prescribes the minimum
quantity of potatoes that are exempt from regulation. Currently, each
person may handle up to 1,000 pounds of potatoes without regard to the
order's grade, size, maturity, and inspection requirements.
At its meeting on July 18, 2013, the Committee unanimously
recommended increasing the order's minimum quantity exception from
1,000 to 2,000 pounds. The recommendation was made at the request of
producers and handlers who wanted greater flexibility in distributing
smaller quantities of potatoes. In its deliberations, the Committee
commented that 2,000 pounds is consistent with the current weight of a
pallet of potatoes. One pallet is typically the smallest lot of
potatoes distributed, since most delivery vehicles are now capable of
transporting at least 2,000 pounds.
Handlers also feel that the value of one pallet of potatoes does
not warrant the cost of complying with the order's regulations. Based
on an estimated average f.o.b. price of $12.60, the value of one pallet
of potatoes is approximately $225.00. Increasing the minimum quantity
exception from 1,000 to 2,000 pounds of potatoes would allow a handler
to ship one pallet of potatoes without regard to the order's grade,
size, maturity, and inspection requirements. Relaxing the minimum
quantity is expected to benefit producers, handlers, and importers.
Section 8e of the Act provides that when certain domestically
produced commodities, including Irish potatoes, are regulated under a
Federal marketing order, imports of that commodity must meet the same
or comparable grade, size, quality, and maturity requirements. Whenever
two or more marketing orders regulating the same commodity produced in
different areas of the United States are concurrently in effect, the
importation into the United States of any such commodity shall be
prohibited unless it complies with the grade, size, quality and
maturity provisions of the order which, as determined by the Secretary
of Agriculture, regulates the commodity produced in the area with which
the imported commodity is in most direct competition (7 U.S.C. 608e-
(a)). Section 980.1(b)(2) of the Vegetable Import Regulations specifies
that potatoes imported into the United States are in most direct
competition with potatoes of the same type produced in the area covered
by this order. Since this action would increase the minimum quantity
exemption under the domestic handling regulations, a corresponding
change to the import regulations must also be considered.
Minimum grade, size, quality, and maturity requirements for Irish
potatoes imported into the United States are currently in effect under
Sec. 980.1 (7 CFR 980.1). The minimum quantity exemption is specified
in Sec. 980.1(c). The exemption for red skinned, round type or long
type potatoes would remain at a 500 pound limit. This proposal would
increase the quantity for all other round type potatoes that may be
imported without regard to the import regulation requirements from
1,000 to 2,000 pounds. The metric equivalent for 1,000 pounds is
453.592 kilograms and 2,000 pounds is 907.185 kilograms. The increase
in the minimum quantity exemption for imports of potatoes would have a
beneficial impact on importers. This proposed rule would provide
flexibility in the importation and distribution of smaller quantities
of 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
businesses subject to such actions in order that small businesses will
not be unduly or disproportionately burdened. Marketing orders issued
pursuant to the Act, and rules issued thereunder, are unique in that
they are brought about through group action of essentially small
entities acting on their own behalf. Import regulations issued under
the Act are based on those established under Federal marketing orders.
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. There are approximately 240 importers
of potatoes. Small agricultural service firms (handlers and importers)
are defined by the Small Business Administration (SBA) 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 (13 CFR 121.201).
During the 2011-2012 fiscal period, the most recent for which
statistics are available, 15,072,963 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 $12.60 per
hundredweight, the Committee estimates that 66 Area No. 2 handlers, or
about 83 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 the
2011 Colorado fall potato crop was $10.70 per hundredweight.
Multiplying $10.70 by the shipment quantity of 15,072,963 hundredweight
yields an annual crop revenue estimate of $161,280,704. The average
annual fresh potato revenue for each of the 180 Colorado Area No. 2
potato producers is therefore calculated to be approximately $896,000
($161,280,704 divided by 180), which is greater than the SBA threshold
of $750,000. Consequently, on average, many of the Colorado Area No. 2
potato producers may not be classified as small entities.
Information from the Foreign Agricultural Service, USDA, indicates
that the dollar value of imports of the type of potatoes affected by
this rule ranged from approximately $55.8 million in 2009 to $ 56.5
million in 2013. Using these values, the majority of importers of the
type of potatoes affected by this rule would have annual receipts of
less than $7,000,000 and may be classified as small entities.
Canada is the major potato-producing country exporting potatoes to
the United States. In 2013, affected shipments of potatoes imported
into the United States totaled around 3,479,468 hundredweight. Of that
amount, 3,479,383 hundredweight were imported from Canada, 59
hundredweight were imported from Ecuador, and 26 hundredweight were
imported from Peru.
This proposal would revise the quantity of potatoes that may be
handled without regard to the
[[Page 60119]]
requirements of Sec. 948.386(a), (b), and (c) of the order from 1,000
to 2,000 pounds and makes a corresponding change to the potato import
regulation. At the July 18, 2013 meeting, the Committee unanimously
recommended increasing the minimum quantity exception to be consistent
with the approximate weight of one pallet of potatoes. Authority for
the establishment and modification of a minimum quantity exception is
provided in Sec. 948.22(b)(2) of the order. This proposed rule amends
the provisions in Sec. Sec. 948.386(f) and 980.1(c). The change in the
import regulation is required under section 8e of the Act.
This action is not expected to increase the costs associated with
the order's requirements or the potato import regulation. Rather, it is
anticipated that this proposed change will have a beneficial impact.
The Committee believes it would provide greater flexibility in the
distribution of small quantities of potatoes. Currently, the
distribution of potatoes between 1,000 and 2,000 pounds requires an
inspection and certification that the product conforms to the grade,
size, and maturity requirements of the order. This translates into a
cost for handlers and importers of both time and inspection fees, which
is high in relation to the small value (approximately $225.00 per
pallet) of these transactions. This action would allow shipments up to
2,000 pounds of potatoes without regard to the order's grade, size,
maturity, and inspection requirements and the related costs. The
benefits for this proposed rule are expected to be equally available to
all fresh potato producers, handlers, and importers, regardless of
their size.
As an alternative to the proposal, the Committee discussed leaving
the handling regulation unchanged. The Committee rejected this idea
because a pallet of potatoes weighs approximately 2,000 pounds and the
1,000 pound minimum quantity exception did not accommodate this size
shipment. No other alternatives were discussed.
In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C.
Chapter 35), the order's information collection requirements have been
previously approved by the Office of Management and Budget (OMB) and
assigned OMB No. 0581-0178 (Generic Vegetable and Specialty Crops). No
changes in those requirements as a result of this action are necessary.
Should any changes become necessary, they would be submitted to OMB for
approval.
This proposed rule would relax the minimum quantity exception under
the order from 1,000 to 2,000 pounds. Accordingly, this action would
not impose any additional reporting or recordkeeping requirements on
either small or large Colorado Area No. 2 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.
USDA has not identified any relevant Federal rules that duplicate,
overlap or conflict with this proposed rule.
In addition, the Committee's meeting was widely publicized
throughout the Colorado Area No. 2 potato industry and all interested
persons were invited to attend the meeting and participate in Committee
deliberations on all issues. Like all Committee meetings, the July 18,
2013, meeting was a public meeting and all entities, both large and
small, were able to express views on this issue. Finally, interested
persons are invited to submit comments on this proposed rule, including
the regulatory and informational impacts of this action on small
businesses.
A small business guide on complying with fruit, vegetable, and
specialty crop marketing agreements and orders may be viewed at: http://www.ams.usda.gov/MarketingOrdersSmallBusinessGuide. Any questions
about the compliance guide should be sent to Jeffrey Smutny at the
previously mentioned address in the FOR FURTHER INFORMATION CONTACT
section.
In accordance with section 8e of the Act, the United States Trade
Representative has concurred with the issuance of this proposed rule.
A 60-day comment period is provided to allow interested persons to
respond to this proposal. All written comments timely received will be
considered before a final determination is made on this matter.
List of Subjects
7 CFR Part 948
Marketing agreements, Potatoes, Reporting and recordkeeping
requirements.
7 CFR Part 980
Food grades and standards, Imports, Marketing agreements, Onions,
Potatoes, Tomatoes.
For the reasons set forth above, 7 CFR parts 948 and 980 are
proposed to be 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. Revise Sec. 948.386(f) to read as follows:
Sec. 948.386 Handling regulation.
* * * * *
(f) Minimum quantity. For purposes of regulation under this part,
each person may handle up to but not to exceed 2,000 pounds of potatoes
without regard to the requirements of paragraphs (a), (b), and (c) of
this section, but this exception shall not apply to any shipment which
exceeds 2,000 pounds of potatoes.
* * * * *
PART 980--VEGETABLES: IMPORT REGULATIONS
0
3. In Sec. 980.1, paragraph (c) is revised to read as follows:
Sec. 980.1 Import regulations; Irish potatoes.
* * * * *
(c) Minimum quantities. Any importation which, in the aggregate,
does not exceed 500 pounds of red skinned, round type or long type
potatoes, or 2,000 pounds for all other round type potatoes, may be
imported without regard to the provisions of this section.
* * * * *
Dated: September 29, 2014.
Rex A. Barnes,
Associate Administrator, Agricultural Marketing Service.
[FR Doc. 2014-23524 Filed 10-3-14; 8:45 am]
BILLING CODE 3410-02-P