Irish Potatoes Grown in Colorado; Modification of the Handling Regulation for Area No. 2, 50406-50408 [2016-18114]
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50406
Proposed Rules
Federal Register
Vol. 81, No. 147
Monday, August 1, 2016
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 Part 948
[Doc. No. AMS–SC–16–0042; SC16–948–1
PR]
Irish Potatoes Grown in Colorado;
Modification of the Handling
Regulation for Area No. 2
Agricultural Marketing Service,
USDA.
ACTION: Proposed rule.
AGENCY:
This proposed rule would
implement a recommendation from the
Colorado Potato Administrative
Committee, Area No. 2 (Committee) to
revise the grade requirement currently
prescribed for 11⁄2-inch minimum to
21⁄4-inch maximum diameter (Size B)
potatoes under the Colorado potato
marketing order (order). The Committee
locally administers the order and is
comprised of producers and handlers of
potatoes operating within the area of
production. This action would relax the
current minimum grade requirement for
Size B red potatoes from U.S.
Commercial grade or better to U.S. No.
2 grade or better. Relaxing this grade
requirement would allow area handlers
to supply new markets with U.S. No. 2
grade Size B red potatoes and is
expected to benefit producers, handlers,
and consumers.
DATES: Comments must be received by
September 30, 2016.
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, Specialty Crops 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
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SUMMARY:
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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 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 the
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, Specialty
Crops 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 Antoinette
Carter, Marketing Order and Agreement
Division, Specialty Crops Program,
AMS, USDA, 1400 Independence
Avenue SW., STOP 0237, Washington,
DC 20250–0237; Telephone: (202) 720–
2491, Fax: (202) 720–8938, or Email:
Antoinette.Carter@ams.usda.gov.
SUPPLEMENTARY INFORMATION: This
proposal 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 proposed rule in
conformance with Executive Orders
12866, 13563, and 13175.
This proposal 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
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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 proposal invites comments on
revisions to the grade requirement
currently prescribed for Size B potatoes
under the order. This proposal would
relax the current minimum grade
requirement for Size B red potatoes from
U.S. Commercial grade to U.S. No. 2
grade. This change was unanimously
recommended by the Committee at a
meeting held on March 17, 2016.
Section 948.22 authorizes the
issuance of grade, size, quality,
maturity, pack, and container
regulations for potatoes grown in the
order’s production area. Section 948.21
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 definitions
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
requirements specific to the handling of
potatoes grown in Area 2 are contained
in § 948.386 of the order. The current
handling regulation requires that, for all
varieties, Size B potatoes (11⁄2-inch
minimum to 21⁄4-inch maximum
diameter as designated in the U.S.
Standards for Grades of Potatoes) may
be handled under the order, if such
potatoes meet or exceed the
requirements of the U.S. Commercial
grade.
At the March 17, 2016, Committee
meeting, industry participants indicated
to the Committee that there is demand
in several markets, including the food
service market, for Size B, U.S. No. 2
grade red potatoes. They further stated
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Federal Register / Vol. 81, No. 147 / Monday, August 1, 2016 / Proposed Rules
sradovich on DSK3GMQ082PROD with PROPOSALS
that the order’s current grade
requirement for Size B potatoes (U.S.
Commercial grade or better) precludes
handlers from supplying this growing
and profitable market. Relaxing the
grade requirement for Size B red
potatoes would allow area handlers to
compete with other domestic potato
producing regions. This change would
effectively lower the allowable grade for
red varieties of Size B potatoes from
U.S. Commercial grade or better to U.S.
No. 2 grade or better.
Relaxing the grade requirement to
allow shipments of U.S. No. 2 grade
Size B red potatoes would make more
potatoes available to consumers and
would 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 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.
There are approximately 66 handlers
of Colorado Area No. 2 potatoes subject
to regulation under the order and
approximately 150 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 $7,500,000, and small
agricultural producers are defined as
those having annual receipts of less than
$750,000 (13 CFR 121.201).
During the 2014–2015 marketing year,
the most recent full marketing year for
which statistics are available,
14,075,876 hundredweight of Colorado
Area No. 2 potatoes were inspected
under the order and sold into the fresh
market. Based on information reported
by USDA’s Market News Service, the
average f.o.b. shipping point price for
the 2014–2015 Colorado potato crop
was $8.60 per hundredweight.
Multiplying $8.60 by the shipment
quantity of 14,075,876 hundredweight
yields an annual crop revenue estimate
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of $121,052,534. The average annual
fresh potato revenue for each of the 66
handlers is therefore calculated to be
$1,834,129 ($121,052,534 divided by
66), which is less than the SBA
threshold of $7,500,000. Consequently,
on average most of the 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 2014 Colorado fall potato
crop was $8.25 per hundredweight.
Multiplying $8.25 by the shipment
quantity of 14,075,876 hundredweight
yields an annual crop revenue estimate
of $116,125,977. The average annual
fresh potato revenue for each of the 150
Colorado Area No. 2 potato producers is
therefore calculated to be approximately
$774,173 ($116,125,977 divided by 150),
which is greater than the SBA threshold
of $750,000. Consequently, on average,
many of the Area No. 2 Colorado potato
producers may not be classified as small
entities.
This proposal would relax the
minimum grade requirement prescribed
for 11⁄2-inch minimum diameter to 21⁄4inch maximum diameter (Size B) red
potatoes under the order. Currently, the
handling of Size B potatoes is allowed
if the potatoes otherwise meet or exceed
the requirements of the U.S.
Commercial grade standard. This
change would effectively lower the
minimum grade requirement for Size B
red potatoes from U.S. Commercial
grade or better to U.S. No. 2 grade or
better. Relaxing the grade requirement
would allow Colorado Area 2 handlers
to supply markets with U.S. No. 2 grade
Size B red potatoes and enable them to
better compete with the other domestic
potato producing regions. The proposed
change in the handling regulations is
expected to benefit producers, handlers,
and consumers. All other requirements
in the order’s handling regulations
would remain unchanged. Authority for
this action is contained in §§ 948.20,
948.21, and 948.22 of the order.
This relaxation is expected to benefit
producers, handlers, and consumers of
Colorado Area 2 potatoes by allowing a
greater quantity of potatoes from the
production area to enter the fresh
market. The 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 proposed rule, the Committee
determined that a relaxation in the
grade requirement for Size B red
potatoes would meet the industry’s
current needs while maintaining the
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50407
integrity of the order’s quality
objectives. During its deliberations, the
Committee considered making no
changes to the handling regulation, as
well as relaxing the grade requirement
for all Size B potatoes. The Committee
believes that a relaxation in the
handling regulation for Size B red
potatoes is necessary to allow handlers
to pursue new markets, but lowering the
grade requirement for all other types
and varieties of Size B potatoes to U.S.
No. 2 grade or better could erode the
quality reputation of the area’s
production. Therefore, the Committee
found that there were no other viable
alternatives to the proposal as
recommended.
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
minimum grade requirement under the
Colorado Area 2 potato marketing order.
Accordingly, this action would 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.
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 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 March
17, 2016, 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.
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Federal Register / Vol. 81, No. 147 / Monday, August 1, 2016 / Proposed Rules
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/
rules-regulations/moa/small-businesses.
Any questions about the compliance
guide should be sent to Antoinette
Carter at the previously mentioned
address in the FOR FURTHER INFORMATION
CONTACT section.
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 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 proposed to
be 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, paragraph (a)(3) is
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, except that
red varieties may be U.S. No. 2 grade or
better.
*
*
*
*
*
Dated: July 27, 2016.
Elanor Starmer,
Administrator, Agricultural Marketing
Service.
[FR Doc. 2016–18114 Filed 7–29–16; 8:45 am]
BILLING CODE 3410–02–P
ENVIRONMENTAL PROTECTION
AGENCY
40 CFR Part 51
sradovich on DSK3GMQ082PROD with PROPOSALS
[EPA–HQ–OAR–2015–0041; FRL–9949–76–
OAR]
RIN 2060–AR94
Air Quality: Revision to the Regulatory
Definition of Volatile Organic
Compounds—Exclusion of 1,1,2,2Tetrafluoro-1-(2,2,2-trifluoroethoxy)
Ethane (HFE–347pcf2)
Environmental Protection
Agency (EPA).
AGENCY:
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18:44 Jul 29, 2016
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ACTION:
I. General Information
Proposed rule.
The Environmental Protection
Agency (EPA) is proposing to revise the
regulatory definition of volatile organic
compounds (VOC) under the Clean Air
Act (CAA). This proposed revision
would add 1,1,2,2-Tetrafluoro-1-(2,2,2trifluoroethoxy) ethane (also known as
HFE–347pcf2; CAS number 406–78–0)
to the list of compounds excluded from
the regulatory definition of VOC on the
basis that this compound makes a
negligible contribution to tropospheric
ozone formation. In the ‘‘Rules and
Regulations’’ section of this Federal
Register, we are making this same
amendment as a direct final rule
without a prior proposed rule. If we
receive no adverse comment, we will
not take further action on this proposed
rule.
SUMMARY:
Written comments must be
received on or before August 31, 2016.
DATES:
Submit your comments,
identified by Docket ID No. EPA–HQ–
OAR–2015–0041, at https://
www.regulations.gov. Follow the online
instructions for submitting comments.
Once submitted, comments cannot be
edited or removed from Regulations.gov.
The EPA may publish any comment
received to its public docket. Do not
submit electronically any information
you consider to be Confidential
Business Information (CBI) or other
information whose disclosure is
restricted by statute. Multimedia
submissions (audio, video, etc.) must be
accompanied by a written comment.
The written comment is considered the
official comment and should include
discussion of all points you wish to
make. The EPA will generally not
consider comments or comment
contents located outside of the primary
submission (i.e. on the web, cloud, or
other file sharing system). For
additional submission methods, the full
EPA public comment policy,
information about CBI or multimedia
submissions, and general guidance on
making effective comments, please visit
https://www2.epa.gov/dockets/
commenting-epa-dockets.
ADDRESSES:
FOR FURTHER INFORMATION CONTACT:
Souad Benromdhane, Office of Air
Quality Planning and Standards, Health
and Environmental Impacts Division,
Mail Code C539–07, Environmental
Protection Agency, Research Triangle
Park, NC 27711; telephone: (919) 541–
4359; fax number: (919) 541–5315;
email address: benromdhane.souad@
epa.gov.
SUPPLEMENTARY INFORMATION:
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A. Why is the EPA issuing this proposed
rule?
This document proposes to revise the
EPA’s regulatory definition of VOC for
purposes of preparing state
implementation plans (SIPs) to attain
the national ambient air quality
standards (NAAQS) for ozone under
title I of the CAA by adding HFE–
347pcf2 to the list of compounds
excluded from the regulatory definition
of VOC on the basis that this compound
makes a negligible contribution to
tropospheric ozone formation. We have
published a direct final rule in the
‘‘Rules and Regulations’’ section of this
Federal Register because we view this
action as a noncontroversial action and
anticipate no adverse comment. We
have explained our reasons for this
action in the preamble to the direct final
rule.
If we receive no adverse comment, we
will not take further action on this
proposed rule. If we receive adverse
comment, we will withdraw the direct
final rule and it will not take effect. We
would address all public comments in
any subsequent final rule based on this
proposed rule.
We do not intend to institute a second
comment period on this action. Any
parties interested in commenting must
do so at this time. For further
information, please see the information
provided in the ADDRESSES section of
this document.
B. Does this action apply to me?
Entities potentially affected by this
direct final rule include, but are not
necessarily limited to, state and local air
pollution control agencies that adopt
and implement regulations to control air
emissions of VOC; and industries
manufacturing and/or using HFE–
347pcf2 as a precision cleaning agent to
remove contaminates including oil, flux,
fingerprints from items like medical
devices, artificial implants, crucial
military and aerospace items, electric
components, printed circuit boards,
optics, jewelry, ball bearings, aircraft
guidance systems, film, relays and a
variety of metal components, among
others. In addition to being available in
the docket, an electronic copy of this
proposal will also be available on the
World Wide Web. Following signature
by the EPA Administrator, a copy of this
action will be posted on the EPA’s Web
site https://www.epa.gov/airquality/
ozonepollution/actions.html#impl.
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]]>Agencies
[Federal Register Volume 81, Number 147 (Monday, August 1, 2016)]
[Proposed Rules]
[Pages 50406-50408]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-18114]
========================================================================
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. 81, No. 147 / Monday, August 1, 2016 /
Proposed Rules
[[Page 50406]]
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 948
[Doc. No. AMS-SC-16-0042; SC16-948-1 PR]
Irish Potatoes Grown in Colorado; Modification of the Handling
Regulation for Area No. 2
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Proposed rule.
-----------------------------------------------------------------------
SUMMARY: This proposed rule would implement a recommendation from the
Colorado Potato Administrative Committee, Area No. 2 (Committee) to
revise the grade requirement currently prescribed for 1\1/2\-inch
minimum to 2\1/4\-inch maximum diameter (Size B) potatoes under the
Colorado potato marketing order (order). The Committee locally
administers the order and is comprised of producers and handlers of
potatoes operating within the area of production. This action would
relax the current minimum grade requirement for Size B red potatoes
from U.S. Commercial grade or better to U.S. No. 2 grade or better.
Relaxing this grade requirement would allow area handlers to supply new
markets with U.S. No. 2 grade Size B red potatoes and is expected to
benefit producers, handlers, and consumers.
DATES: Comments must be received by September 30, 2016.
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, Specialty Crops 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 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 the 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, Specialty Crops 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 Antoinette Carter, Marketing Order and
Agreement Division, Specialty Crops Program, AMS, USDA, 1400
Independence Avenue SW., STOP 0237, Washington, DC 20250-0237;
Telephone: (202) 720-2491, Fax: (202) 720-8938, or Email:
Antoinette.Carter@ams.usda.gov.
SUPPLEMENTARY INFORMATION: This proposal 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 proposed rule
in conformance with Executive Orders 12866, 13563, and 13175.
This proposal 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.
This proposal invites comments on revisions to the grade
requirement currently prescribed for Size B potatoes under the order.
This proposal would relax the current minimum grade requirement for
Size B red potatoes from U.S. Commercial grade to U.S. No. 2 grade.
This change was unanimously recommended by the Committee at a meeting
held on March 17, 2016.
Section 948.22 authorizes the issuance of grade, size, quality,
maturity, pack, and container regulations for potatoes grown in the
order's production area. Section 948.21 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 definitions 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 requirements 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, for all
varieties, Size B potatoes (1\1/2\-inch minimum to 2\1/4\-inch maximum
diameter as designated in the U.S. Standards for Grades of Potatoes)
may be handled under the order, if such potatoes meet or exceed the
requirements of the U.S. Commercial grade.
At the March 17, 2016, Committee meeting, industry participants
indicated to the Committee that there is demand in several markets,
including the food service market, for Size B, U.S. No. 2 grade red
potatoes. They further stated
[[Page 50407]]
that the order's current grade requirement for Size B potatoes (U.S.
Commercial grade or better) precludes handlers from supplying this
growing and profitable market. Relaxing the grade requirement for Size
B red potatoes would allow area handlers to compete with other domestic
potato producing regions. This change would effectively lower the
allowable grade for red varieties of Size B potatoes from U.S.
Commercial grade or better to U.S. No. 2 grade or better.
Relaxing the grade requirement to allow shipments of U.S. No. 2
grade Size B red potatoes would make more potatoes available to
consumers and would 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 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.
There are approximately 66 handlers of Colorado Area No. 2 potatoes
subject to regulation under the order and approximately 150 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 $7,500,000, and small agricultural
producers are defined as those having annual receipts of less than
$750,000 (13 CFR 121.201).
During the 2014-2015 marketing year, the most recent full marketing
year for which statistics are available, 14,075,876 hundredweight of
Colorado Area No. 2 potatoes were inspected under the order and sold
into the fresh market. Based on information reported by USDA's Market
News Service, the average f.o.b. shipping point price for the 2014-2015
Colorado potato crop was $8.60 per hundredweight. Multiplying $8.60 by
the shipment quantity of 14,075,876 hundredweight yields an annual crop
revenue estimate of $121,052,534. The average annual fresh potato
revenue for each of the 66 handlers is therefore calculated to be
$1,834,129 ($121,052,534 divided by 66), which is less than the SBA
threshold of $7,500,000. Consequently, on average most of the 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
2014 Colorado fall potato crop was $8.25 per hundredweight. Multiplying
$8.25 by the shipment quantity of 14,075,876 hundredweight yields an
annual crop revenue estimate of $116,125,977. The average annual fresh
potato revenue for each of the 150 Colorado Area No. 2 potato producers
is therefore calculated to be approximately $774,173 ($116,125,977
divided by 150), which is greater than the SBA threshold of $750,000.
Consequently, on average, many of the Area No. 2 Colorado potato
producers may not be classified as small entities.
This proposal would relax the minimum grade requirement prescribed
for 1\1/2\-inch minimum diameter to 2\1/4\-inch maximum diameter (Size
B) red potatoes under the order. Currently, the handling of Size B
potatoes is allowed if the potatoes otherwise meet or exceed the
requirements of the U.S. Commercial grade standard. This change would
effectively lower the minimum grade requirement for Size B red potatoes
from U.S. Commercial grade or better to U.S. No. 2 grade or better.
Relaxing the grade requirement would allow Colorado Area 2 handlers to
supply markets with U.S. No. 2 grade Size B red potatoes and enable
them to better compete with the other domestic potato producing
regions. The proposed change in the handling regulations is expected to
benefit producers, handlers, and consumers. All other requirements in
the order's handling regulations would remain unchanged. Authority for
this action is contained in Sec. Sec. 948.20, 948.21, and 948.22 of
the order.
This relaxation is expected to benefit producers, handlers, and
consumers of Colorado Area 2 potatoes by allowing a greater quantity of
potatoes from the production area to enter the fresh market. The
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 proposed rule, the
Committee determined that a relaxation in the grade requirement for
Size B red potatoes would meet the industry's current needs while
maintaining the integrity of the order's quality objectives. During its
deliberations, the Committee considered making no changes to the
handling regulation, as well as relaxing the grade requirement for all
Size B potatoes. The Committee believes that a relaxation in the
handling regulation for Size B red potatoes is necessary to allow
handlers to pursue new markets, but lowering the grade requirement for
all other types and varieties of Size B potatoes to U.S. No. 2 grade or
better could erode the quality reputation of the area's production.
Therefore, the Committee found that there were no other viable
alternatives to the proposal as recommended.
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 minimum grade requirement under the
Colorado Area 2 potato marketing order. Accordingly, this action would
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.
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 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 March 17,
2016, 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.
[[Page 50408]]
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/rules-regulations/moa/small-businesses. Any questions
about the compliance guide should be sent to Antoinette Carter at the
previously mentioned address in the FOR FURTHER INFORMATION CONTACT
section.
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 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
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. In Sec. 948.386, paragraph (a)(3) is 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, except that red varieties may be U.S.
No. 2 grade or better.
* * * * *
Dated: July 27, 2016.
Elanor Starmer,
Administrator, Agricultural Marketing Service.
[FR Doc. 2016-18114 Filed 7-29-16; 8:45 am]
BILLING CODE 3410-02-P
