Irish Potatoes Grown in Colorado; Relaxation of the Handling Regulation for Area No. 3, 30129-30130 [2015-12751]

Agencies

• Agricultural Marketing Service
• DEPARTMENT OF AGRICULTURE

[Federal Register Volume 80, Number 101 (Wednesday, May 27, 2015)]
[Rules and Regulations]
[Pages 30129-30130]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-12751]



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Federal Register / Vol. 80, No. 101 / Wednesday, May 27, 2015 / Rules 
and Regulations

[[Page 30129]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 948

[Doc. No. AMS-FV-14-0092; FV15-948-1 FIR]


Irish Potatoes Grown in Colorado; Relaxation of the Handling 
Regulation for Area No. 3

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Affirmation of interim rule as final rule.

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SUMMARY: The Department of Agriculture (USDA) is adopting, as a final 
rule, without change, an interim rule implementing a recommendation 
from the Colorado Potato Administrative Committee, Area No. 3 
(Committee) that relaxed the minimum quantity exception for potatoes 
handled under the Colorado potato marketing order, Area No. 3 (order). 
The Committee locally administers the order and is comprised of 
producers and handlers of potatoes operating within the production 
area. This rule increases 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. This action is expected to 
benefit producers and handlers.

DATES: Effective May 28, 2015.

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 obtain information on complying with this and 
other marketing order and agreement regulations by viewing a guide at 
the following Web site: https://www.ams.usda.gov/MarketingOrdersSmallBusinessGuide ; or 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 rule is issued under Marketing 
Agreement No. 97 and Order No. 948, both as amended (7 CFR part 948), 
regulating the handling of Irish potatoes grown in Colorado, 
hereinafter referred to as the ``order.'' The order is effective under 
the Agricultural Marketing Agreement Act of 1937, as amended (7 U.S.C. 
601-674), hereinafter referred to as the ``Act.''
    The Department of Agriculture (USDA) is issuing this rule in 
conformance with Executive Orders 12866, 13563, and 13175.
    The handling of Colorado Area No. 3 potatoes is regulated by 7 CFR 
part 948. Prior to this change, the minimum quantity exception for 
potatoes was 1,000 pounds. The Committee unanimously recommended 
increasing the minimum quantity exception to be consistent with the 
approximate weight of one pallet of potatoes. The recommendation was 
made at the request of producers and handlers who wanted greater 
flexibility in distributing smaller quantities of potatoes. Therefore, 
this rule continues in effect the rule that relaxed the quantity of 
potatoes that may be handled without regard to the requirements of 
Sec.  948.387(a) and (b) of the order from 1,000 to 2,000 pounds.
    In an interim rule published in the Federal Register on January 22, 
2015, and effective on January 23, 2015, (80 FR 3140, Doc. No. AMS-FV-
14-0092; FV15-948-1 IR), Sec.  948.387(f) was amended by increasing the 
minimum quantity from 1,000 to 2,000 pounds of potatoes.

Final 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 final 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 6 handlers of Colorado Area No. 3 potatoes 
subject to regulation under the order and approximately 6 producers in 
the regulated production area. Small agricultural service firms 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 2013-2014 fiscal period, the most recent for which 
statistics are available, 663,025 hundredweight of Colorado Area No. 3 
potatoes were inspected under the order and sold into the fresh market. 
The USDA Market News Service reported a 2013-2014 average f.o.b. price 
of $10.70 per hundredweight. Multiplying $10.70 by the shipment 
quantity of 663,025 hundredweight yields a shipping point revenue 
estimate of $7,094,368. The average annual fresh potato revenue for 
each of the 6 Colorado Area No. 3 potato handlers is therefore 
calculated to be approximately $1,182,395 ($7,094,368 divided by 6), 
which is less than the SBA threshold of $7,000,000. In view of the 
foregoing, the majority of Colorado Area No. 3 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 
2013 Colorado fall potato crop was $7.25 per hundredweight. Multiplying 
$7.25 by the shipment quantity of 663,025 hundredweight yields an 
annual crop revenue estimate of $4,806,931. The average annual fresh 
potato revenue for each of the 6 Colorado Area No. 3 potato producers 
is therefore calculated to be approximately $801,155 ($4,806,931 
divided by 6), which is greater than the SBA threshold of $750,000. 
Consequently, on average, most of the Colorado Area No. 3 potato

[[Page 30130]]

producers may not be classified as small entities.
    This rule continues in effect the action that relaxed the quantity 
of potatoes that may be handled without regard to the requirements of 
Sec.  948.387(a) and (b) of the order from 1,000 to 2,000 pounds. 
Authority for the establishment and modification of a minimum quantity 
exception is provided in Sec.  948.22(b)(2) of the order. This rule 
amends the provisions in Sec.  948.387(f).
    This action is not expected to increase the costs associated with 
the order's requirements. Rather, it is anticipated that this change 
will have a beneficial impact. The Committee believes it will 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 of both time and inspection 
fees, which is high in relation to the small value (approximately 
$214.00 per pallet) of these transactions. This action will allow 
shipments of up to 2,000 pounds of potatoes without regard to the 
order's handling requirements and the related costs. The benefits for 
this rule are expected to be equally available to all fresh potato 
producers and handlers, regardless of their size.
    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 rule will not impose any additional reporting or recordkeeping 
requirements on either small or large Colorado Area No. 3 potato 
handlers. As with all Federal marketing order programs, reports and 
forms are periodically reviewed to reduce information requirements and 
duplication by industry and public sector agencies. In addition, USDA 
has not identified any relevant Federal rules that duplicate, overlap 
or conflict with this rule.
    Further, the Committee's meeting was widely publicized throughout 
the Colorado Area No. 3 potato industry and all interested persons were 
invited to attend the meeting and participate in Committee 
deliberations. Like all Committee meetings, the May 14, 2014, meeting 
was a public meeting and all entities, both large and small, were able 
to express their views on this issue.
    Comments on the interim rule were required to be received on or 
before March 23, 2015. One comment was received during the comment 
period in response to the proposal. The commenter opposed the proposed 
relaxation. The recommendations made by the commenter were to withdraw 
the change or to increase the exemption to 20,000 pounds. An increase 
of the minimum quantity exception to 20,000 pounds would eliminate the 
need for the order, which is not the recommendation of the industry. 
Also, this action was initiated from a unanimous recommendation of the 
Committee, which represents a cross-section of the Colorado Area No. 3 
potato industry. Accordingly, no changes will be made to the rule.
    To view the interim rule, go to: https://www.regulations.gov/#!docketDetail;D=AMS-FV-14-0092.
    This action also affirms information contained in the interim rule 
concerning Executive Orders 12866, 12988, 13175, and 13563; the 
Paperwork Reduction Act (44 U.S.C. Chapter 35); and the E-Gov Act (44 
U.S.C. 101).
    After consideration of all relevant material presented, it is found 
that finalizing the interim rule, without change, as published in the 
Federal Register (80 FR 3140, January 22, 2015) will tend to effectuate 
the declared policy of the Act.

List of Subjects in 7 CFR Part 948

    Marketing agreements, Potatoes, Reporting and recordkeeping 
requirements.

    Accordingly, the interim rule that amended 7 CFR part 948 and that 
was published at 80 FR 3140 on January 22, 2015, is adopted as a final 
rule, without change.

    Dated: May 21, 2015.
Rex A. Barnes,
Associate Administrator, Agricultural Marketing Service.
[FR Doc. 2015-12751 Filed 5-26-15; 8:45 am]
 BILLING CODE 3410-02-P