Marketing Order Regulating the Handling of Spearmint Oil Produced in the Far West; Revision of the Salable Quantity and Allotment Percentage for Class 3 (Native) Spearmint Oil for the 2018-2019 Marketing Year, 17055-17059 [2019-08180]
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17055
Rules and Regulations
Federal Register
Vol. 84, No. 79
Wednesday, April 24, 2019
This section of the FEDERAL REGISTER
contains regulatory documents having general
applicability and legal effect, most of which
are keyed to and codified in the Code of
Federal Regulations, which is published under
50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by
the Superintendent of Documents.
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 985
[Doc. No. AMS–SC–17–0073; SC18–985–1A
FR]
Marketing Order Regulating the
Handling of Spearmint Oil Produced in
the Far West; Revision of the Salable
Quantity and Allotment Percentage for
Class 3 (Native) Spearmint Oil for the
2018–2019 Marketing Year
Agricultural Marketing Service,
USDA.
ACTION: Final rule.
AGENCY:
This rule implements a
recommendation from the Far West
Spearmint Oil Administrative
Committee (Committee) to increase the
quantity of Class 3 (Native) spearmint
oil that handlers may purchase from, or
handle on behalf of, producers during
the 2018–2019 marketing year. The
Committee recommended this action to
ensure that the Native spearmint oil
market is adequately supplied through
the end of the current marketing year.
DATES: Effective April 25, 2019.
FOR FURTHER INFORMATION CONTACT:
Barry Broadbent, Senior 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:
Barry.Broadbent@ams.usda.gov or
GaryD.Olson@ams.usda.gov.
Small businesses may request
information on complying with this
regulation by contacting Richard Lower,
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:
Richard.Lower@ams.usda.gov.
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SUMMARY:
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This final
rule, pursuant to 5 U.S.C. 553, amends
regulations issued to carry out a
marketing order as defined in 7 CFR
900.2(j). This rule is issued under
Marketing Order No. 985 (7 CFR part
985), as amended, regulating the
handling of spearmint oil produced in
the Far West (Washington, Idaho,
Oregon, and designated parts of Nevada
and Utah). Part 985 (referred to as ‘‘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
Committee locally administers the
Order and is comprised of spearmint oil
producers operating within the area of
production, and a public member.
The Department of Agriculture
(USDA) is issuing this final rule in
conformance with Executive Orders
13563 and 13175. This action falls
within a category of regulatory actions
that the Office of Management and
Budget (OMB) exempted from Executive
Order 12866 review. Additionally,
because this rule does not meet the
definition of a significant regulatory
action, it does not trigger the
requirements contained in Executive
Order 13771. See OMB’s Memorandum
titled ‘‘Interim Guidance Implementing
Section 2 of the Executive Order of
January 30, 2017, titled ‘Reducing
Regulation and Controlling Regulatory
Costs’ ’’ (February 2, 2017).
This final rule has been reviewed
under Executive Order 12988, Civil
Justice Reform. Under the provisions of
the Order now in effect, salable
quantities and allotment percentages
may be established for classes of
spearmint oil produced in the Far West.
This rule increases the quantity of
Native spearmint oil produced in the
Far West that handlers may purchase
from, or handle on behalf of, producers
during the 2018–2019 marketing year,
which ends on May 31, 2019.
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
SUPPLEMENTARY INFORMATION:
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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 rule revises the quantity of
Native spearmint oil that handlers may
purchase from, or handle on behalf of,
producers during the 2018–2019
marketing year. The salable quantity
and allotment percentage for Native
spearmint oil for the 2018–2019
marketing year was initially established
at 1,307,947 pounds and 53 percent,
respectively, in a final rule published in
the Federal Register on July 24, 2018
(83 FR 34935). This rule increases the
Native spearmint oil salable quantity
from 1,307,947 pounds to 1,431,350
pounds and the allotment percentage
from 53 percent to 58 percent.
Under the volume regulation
provisions of the Order, the Committee
meets each year to adopt a marketing
policy for the ensuing year. When the
Committee’s marketing policy
considerations indicate a need to limit
the quantity of spearmint oil available to
the market to establish or maintain
orderly marketing conditions, the
Committee submits a recommendation
to the Secretary of Agriculture for
volume regulation.
Volume regulation under the Order is
effectuated through the establishment of
a salable quantity and allotment
percentage applicable to each class of
spearmint oil handled in the production
area during a marketing year. The
salable quantity is the total quantity of
each class of oil that handlers may
purchase from, or handle on behalf of,
producers during a given marketing
year. The allotment percentage for each
class of oil is derived by dividing the
salable quantity by the total industry
allotment base for that same class of oil.
The total industry allotment base is the
aggregate of all allotment base held
individually by producers. Producer
allotment base is the quantity of each
class of spearmint oil that the
Committee has determined is
representative of a producer’s spearmint
oil production. Each producer is allotted
a pro rata share of the total salable
quantity of each class of spearmint oil
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each marketing year. Each producer’s
annual allotment is determined by
applying the allotment percentage to the
producer’s individual allotment base for
each applicable class of spearmint oil.
The full Committee met on October
25, 2017, to consider its marketing
policy for the 2018–2019 marketing
year. At that meeting, the Committee
determined that marketing conditions
indicated a need for volume regulation
of both classes of spearmint oil (Scotch
and Native) for the 2018–2019
marketing year. The Committee
recommended salable quantities of
760,660 pounds and 1,307,947 pounds,
and allotment percentages of 35 percent
and 53 percent, respectively, for Scotch
and Native spearmint oil. A proposed
rule to that effect was published in the
Federal Register on April 6, 2018 (83 FR
14766). Comments on the proposed rule
were solicited from interested persons
until June 5, 2018. No comments were
received. Subsequently, a final rule
establishing the salable quantities and
allotment percentages for Scotch and
Native spearmint oil for the 2018–2019
marketing year was published in the
Federal Register on July 24, 2018 (83 FR
34935).
Pursuant to authority contained in
§§ 985.50, 985.51, and 985.52, the full
eight-member Committee met again on
July 18, 2018, to evaluate the current
year’s volume control regulation. At the
meeting, the Committee assessed the
current market conditions for spearmint
oil in relation to the salable quantities
and allotment percentages established
for the 2018–2019 marketing year. The
Committee considered a number of
factors, including the current and
projected supply and the estimated
future demand for all classes of
spearmint oil. The Committee
determined that the established salable
quantity and allotment percentage in
effect for Native spearmint oil for the
2018–2019 marketing year should be
increased to accommodate a rise in
market demand for that class of
spearmint oil.
At the July 18, 2018, meeting, the
Committee staff reported that estimated
demand for Native spearmint oil for the
2018–2019 marketing year was greater
than previously anticipated. The
Committee initially estimated the trade
demand for Native spearmint oil for the
2018–2019 marketing year to be
1,306,625. In a unanimous vote, the
Committee revised its estimated trade
demand for the 2018–2019 marketing
year from 1,306,625 pounds to
1,400,000 pounds. In addition, the
Committee recommended increasing the
2018–2019 marketing year Native
spearmint oil salable quantity from
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1,307,947 pounds to 1,357,315 pounds
and the allotment percentage from 53
percent to 55 percent. The motion to
recommend to the Secretary to increase
the salable quantity and allotment
percentage also passed unanimously.
A proposed rule concerning this
action was published in the Federal
Register on October 9, 2018 (83 FR
50527). A 60-day comment period
ending December 10, 2018, was
provided to allow interested persons to
respond to the proposal.
During the proposed rule comment
period, the Committee met again on
October 17, 2018, to further discuss the
changing Native spearmint oil market
environment. The Order requires that
producers and handlers report to the
Committee all production and
disposition of spearmint oil within the
Order’s production area. Using the
information collected for the 2018–2019
and prior marketing years, the
Committee staff reported that current
marketing year trade statistics indicate
demand for Native spearmint oil is
greater than previously estimated.
Further, the industry consensus of those
in attendance at the meeting was that
trade demand should remain strong
throughout the year.
As such, in a unanimous action, the
Committee again revised its 2018–2019
marketing year estimated trade demand
for Native spearmint oil from 1,400,000
pounds to 1,450,000 pounds.
Accordingly, the Committee also voted
unanimously to recommend to USDA,
via a public comment on the proposed
rule (83 FR 50527), to increase the
salable quantity and allotment
percentage to 1,431,350 pounds and 58
percent, respectively. These numbers
were derived by recalculating the
salable quantity and allotment
percentage to incorporate the increase in
Native allotment base revealed by the
updated industry data. These
calculations are fully discussed below.
The Committee recommended this
quantity to fully supply anticipated
demand (1,450,000 pounds) for the rest
of the 2018–2019 marketing year and to
carry-out an estimated 8,005 pounds of
salable oil into the 2019–2020 marketing
year.
After receiving the Committee’s
recommendation to amend the original
proposal (submitted via public
comment) and the other comments
submitted during the comment period,
USDA reviewed the updated industry
information on the price, supply, and
demand of Native spearmint oil
supplied by the Committee and
determined that additional oil, in excess
of the level specified in the proposed
rule, is necessary to fully supply the
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market for the 2018–2019 marketing
year. As such, this final rule makes
additional amounts of Native spearmint
oil available to the market by increasing
the salable quantity and allotment
percentage previously established under
the Order for the 2018–2019 marketing
year. This rule increases the Native
spearmint oil salable quantity by
123,403 pounds to 1,431,350 pounds
and raises the allotment percentage 5
percentage points to 58 percent.
The additional Native spearmint oil
will be made available from the release
of oil held by producers in the reserve
pool. As of May 31, 2018, the
Committee records show that the
reserve pool for Native spearmint oil
contained 1,020,583 pounds of oil. This
action will help reduce the quantity of
Native spearmint oil held in reserve.
The Committee considers the level of
Native spearmint oil currently held in
reserve to be excessive relative to
market conditions.
The increased quantity of Native
spearmint oil (123,403 pounds) that will
be made available to the market as a
result of this rule will ensure that
market demand is fully satisfied in the
current year and approximately 8,005
pounds of Native spearmint oil salable
inventory will be available to carry-over
for the start of the 2019–2020 marketing
year, which begins on June 1, 2019.
In making the recommendation to
increase the salable quantity and
allotment percentage of Native
spearmint oil for the 2018–2019
marketing year, the Committee
considered newly gathered price,
supply, and demand information
collected through industry producer and
handler reports and comments provided
by those in attendance at the October
17, 2018, meeting. USDA has also
reviewed the newly reported data and
has concluded that the proposed
increase would meet the needs of the
industry.
This rule increases the 2018–2019
marketing year Native spearmint oil
salable quantity by 123,403 pounds to a
total of 1,431,350 pounds. Actual sales
of Native spearmint oil for the 2017–
2018 marketing year totaled 1,565,515
pounds. The 5-year average of Native
spearmint oil sales is 1,365,377 pounds.
The Committee estimates that this
action will result in 8,005 pounds of
salable Native spearmint oil being
carried into the 2019–2020 marketing
year which begins June 1, 2019. While
8,005 pounds is a relatively low
quantity of salable Native spearmint oil
to begin the marketing year, reserve pool
oil could be released into the market
under a future relaxation of the volume
regulation should it be necessary to
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adequately supply the market prior to
the beginning of the 2019–2020
marketing year. The Committee
estimates that a total of 1,082,257
pounds of Native spearmint oil
(1,020,583 currently in reserve and an
estimated 61,674 pounds of excess oil
produced during the 2018 crop year)
will be available from the reserve pool,
if needed.
As mentioned previously, when the
2018–2019 marketing policy statement
was drafted, handlers estimated the
demand for Native spearmint oil for the
2018–2019 marketing year to be
1,306,625 pounds. The Committee’s
initial recommendation for the
establishment of the Native spearmint
oil salable quantity and allotment
percentage for the 2018–2019 marketing
year was based on that estimate. The
Committee did not anticipate the level
of demand that the Native spearmint oil
market is currently experiencing and
did not account for it when the
marketing policy for the 2018–2019
marketing year was adopted.
At the July 18, 2018, meeting, the
Committee revised its estimate of Native
spearmint oil trade demand to 1,400,000
pounds. The Committee further revised
its estimate of trade demand to
1,450,000 at its October 17, 2018,
meeting. The Committee believes that
the supply of Native spearmint oil
available to the market under the
initially established salable quantity and
allotment percentage would be
insufficient to satisfy the current level of
demand for oil at reasonable price
levels. The Committee further believes
that the increase in the salable quantity
and allotment percentage established by
this action is vital to ensuring an
adequate supply of Native spearmint oil
is available to the market moving
forward.
The Committee’s stated intent in the
use of the Order’s volume control
regulation is to keep adequate supplies
of spearmint oil available to meet
market needs and to maintain orderly
marketing conditions. With that in
mind, the Committee developed its
recommendation for increasing the
Native spearmint oil salable quantity
and allotment percentage for the 2018–
2019 marketing year based on the
information discussed above, as well as
the summary data outlined below.
(A) Initial estimated 2018–2019
Native allotment base—2,467,825
pounds. This is the allotment base
estimate upon which the original 2018–
2019 marketing year salable quantity
and allotment percentage was based.
(B) Revised 2018–2019 Native
allotment base—2,467,845 pounds. This
is 20 pounds more than the initial
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estimated allotment base of 2,467,825
pounds. The difference is the result of
annual adjustments made to the
allotment base at the beginning of the
marketing year in accordance with the
provisions of the Order.
(C) Initial 2018–2019 Native allotment
percentage—53 percent. This was
unanimously recommended by the
Committee on October 25, 2017.
(D) Initial 2018–2019 Native salable
quantity—1,307,947 pounds. This figure
is 53 percent of the original estimated
2018–2019 marketing year allotment
base of 2,467,825 pounds.
(E) Adjusted initial 2018–2019 Native
salable quantity—1,307,958 pounds.
This figure reflects the salable quantity
actually available at the beginning of the
2018–2019 marketing year. This
quantity is derived by applying the
initial 53 percent allotment percentage
to the revised allotment base of
2,467,845.
(F) Revision to the 2018–2019 Native
salable quantity and allotment
percentage:
(1) Proposed increase in the 2018–
2019 Native allotment percentage—2
percentage points. The Committee
initially recommended an increase of 2
percentage points over the initial Native
allotment percentage at its July 17, 2018,
meeting.
(2) Proposed 2018–2019 Native
allotment percentage—55 percent. This
number was derived by adding the
increase of 2 percentage points to the
initially established 2018–2019
allotment percentage of 53 percent.
(3) Increase in the 2018–2019 Native
allotment percentage established by this
final rule—a total of 5 percentage
points. The Committee initially
recommended an increase of 2
percentage points over the initial Native
allotment percentage at its July 17, 2018,
meeting. At its October 17, 2018,
meeting, the Committee voted
unanimously to recommend to USDA,
via a public comment on the proposed
rule (83 FR 50527), to increase the
salable quantity and allotment
percentage to 1,431,350 pounds and 58
percent, respectively. Based on
comments received, including the
Committee’s recommendation, and a
thorough review of all information
presented, USDA is increasing the
Native spearmint oil allotment
percentage by a total of 5 percentage
points.
(4) Final revised 2018–2019 Native
allotment percentage—58 percent. This
number was derived by adding the
increase of 5 percentage points to the
initially established 2018–2019
allotment percentage of 53 percent.
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(5) Final revised 2018–2019 Native
salable quantity—1,431,350 pounds.
This amount is 58 percent of the revised
2018–2019 allotment base of 2,467,845
pounds.
(6) Computed increase in the 2018–
2019 Native salable quantity as a result
of this revision—123,403 pounds. This
figure represents the difference between
the initially established salable quantity
of 1,307,947 pounds and the increased
salable quantity of 1,431,350 pounds
effectuated by this final rule.
Scotch spearmint oil is also regulated
by the Order. As mentioned previously,
a salable quantity and allotment
percentage for Scotch spearmint oil for
the 2018–2019 marketing year was
established in a final rule published in
the Federal Register on July 24, 2018
(83 FR 34935). At the July 18, 2018,
meeting, the Committee considered the
projected production, inventory, and
marketing conditions for Scotch
spearmint oil for the 2018–2019
marketing year. After receiving reports
from the Committee staff and comments
from the industry, the consensus of the
Committee was that the established
salable quantity and allotment
percentage for Scotch spearmint oil was
appropriate for the current market
conditions. Therefore, the Committee
recommended no further action with
regard to Scotch spearmint oil for the
2018–2019 marketing year.
This final rule relaxes the volume
regulation of Native spearmint oil and
will allow producers to meet market
demand and improve producer returns.
In conjunction with the issuance of this
rule, the Committee’s revised marketing
policy statement for the 2018–2019
marketing year has been reviewed by
USDA.
The increase in the Native spearmint
oil salable quantity and allotment
percentage is expected to account for
the anticipated market needs for that
class of oil. In determining anticipated
market needs, the Committee
considered changes and trends in
historical sales, production, and
demand.
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
businesses subject to such actions in
order that small businesses will not be
unduly or disproportionately burdened.
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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 eight spearmint oil handlers
subject to regulation under the Order,
and approximately 43 producers of
Scotch spearmint oil and approximately
95 producers of Native spearmint oil 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).
Based on the SBA’s definition of
small entities, the Committee estimates
that only two of the eight handlers
regulated by the Order could be
considered small entities. Most of the
handlers are large corporations involved
in the international trading of essential
oils and the products of essential oils.
In addition, the Committee estimates
that 12 of the 43 Scotch spearmint oil
producers and 31 of the 95 Native
spearmint oil producers could be
classified as small entities under the
SBA definition. Thus, the majority of
handlers and producers of Far West
spearmint oil may not be classified as
small entities.
The use of volume control regulation
allows the spearmint oil industry to
fully supply spearmint oil markets
while avoiding the negative
consequences of over-supplying these
markets. Without volume control
regulation, the supply and price of
spearmint oil would likely fluctuate
widely. Periods of oversupply could
result in low producer prices and a large
volume of oil stored and carried over to
future crop years. Periods of
undersupply could lead to excessive
price spikes and drive end users to
source flavoring needs from other
markets, potentially causing long-term
economic damage to the domestic
spearmint oil industry. The Order’s
volume control provisions have been
successfully implemented in the
domestic spearmint oil industry since
1980 and provide benefits for producers,
handlers, manufacturers, and
consumers.
This rule increases the quantity of
Native spearmint oil that handlers may
purchase from, or handle on behalf of,
producers during the 2018–2019
marketing year, which ends May 31,
2019. The 2018–2019 marketing year
Native spearmint oil salable quantity
was initially established at 1,307,947
pounds, and the allotment percentage
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initially set at 53 percent, in a final rule
published in the Federal Register on
July 24, 2018 (83 FR 34935). This final
rule increases the Native spearmint oil
salable quantity to 1,431,350 pounds
and the allotment percentage to 58
percent.
Based on the information and market
projections presented at the July 18 and
October 17, 2018, meetings, the
Committee considered several
alternatives to this increase. The
Committee considered leaving the
salable quantity and allotment
percentage unchanged and also
considered other potential levels of
increase. The Committee initially
recommended increasing the salable
quantity to 1,357,315 pounds and the
allotment percentage to 55 percent.
After further consideration, the
Committee recommended, via a
comment submitted during the
rulemaking process, establishing the
salable quantity at 1,431,350 pounds
and the allotment percentage at 58
percent.
The Committee reached its final
recommendation to increase the salable
quantity and allotment percentage for
Native spearmint oil after careful
consideration of all available
information and input from all
interested industry participants. The
Committee believes that the volume
regulation levels effectuated herein will
achieve the desired objectives. Without
the increase, the Committee believes the
industry will not be able to satisfactorily
meet market demand at reasonable
prices.
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 OMB and
assigned OMB No. 0581–0178, Specialty
Crops. No changes are necessary in
those requirements as a result of this
action. Should any changes become
necessary, they will be submitted to
OMB for approval.
This final rule relaxes the volume
regulation requirements established
under the Order for the 2018–2019
marketing year. This action will not
impose any additional reporting or
recordkeeping requirements on either
small or large spearmint oil handlers. As
with all Federal marketing order
programs, reports and forms are
periodically reviewed to reduce
information requirements and
duplication by industry and public
sector agencies.
AMS is committed to complying with
the E-Government Act, to promote the
use of the internet and other
information technologies to provide
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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 action.
The Committee’s July 18 and October
17, 2018, meetings were widely
publicized throughout the Far West
spearmint oil industry, and all
interested persons were invited to
attend the meetings and participate in
Committee deliberations on all issues.
The meetings were public, and all
entities, both large and small, were able
to express views on this issue.
A proposed rule concerning this
action was published in the Federal
Register on October 9, 2018 (83 FR
50527). Copies of the proposed rule
were sent via email to all Committee
members and Far West spearmint oil
handlers. The proposed rule was made
available through the internet by USDA
and the Office of the Federal Register.
A 60-day comment period ending
December 10, 2018, was provided to
allow interested persons to respond to
the proposal. Three comments were
received, including a comment
submitted by the Committee manager on
behalf of the Committee.
All three comments submitted were in
support of increasing the salable
quantity and allotment percentage of
Native spearmint oil for the 2018–2019
marketing year. Further, the
commenters recommended increasing
the salable quantity and allotment
percentage to a higher level than the one
published in the proposed rule.
Specifically, the commenters
recommended establishing a salable
quantity and allotment percentage of
1,431,350 pounds and 58 percent,
respectively. The increased salable
quantity and allotment percentage level
recommended by the commenters for
Native spearmint oil was 74,035 pounds
and 3 percentage points higher than the
level of increase proposed in the
proposed rule. USDA considered the
comments and updated Committee
price, production and demand data
submitted, and agrees that the
recommended increased volume
regulation is justified by current market
conditions and is consistent with the
requirements of the Order. Therefore,
the salable quantity and allotment
percentage, as proposed, have been
revised accordingly in this final rule.
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 Richard Lower
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Federal Register / Vol. 84, No. 79 / Wednesday, April 24, 2019 / Rules and Regulations
at the previously mentioned address in
the FOR FURTHER INFORMATION CONTACT
section.
USDA has determined that good cause
exists for not postponing the effective
date of this rule until 30 days after
publication in the Federal Register.
This final rule increases the saleable
quantity and allotment percentage of
Native spearmint oil for the 2018–2019
marketing year. Because this final rule
relaxes the volume regulation
requirements established under the
Order for Native spearmint oil for the
2018–2019 marketing year, good cause
exists to not delay the effective date of
this rule.
List of Subjects in 7 CFR Part 985
DATES:
Marketing agreements, Oils and fats,
Reporting and recordkeeping
requirements, Spearmint oil.
For the reasons set forth in the
preamble, 7 CFR part 985 is amended as
follows:
PART 985—MARKETING ORDER
REGULATING THE HANDLING OF
SPEARMINT OIL PRODUCED IN THE
FAR WEST
Authority: 7 U.S.C. 601–674.
2. In § 985.233, revise paragraph (b) to
read as follows:
■
§ 985.233 Salable quantities and allotment
percentages.
*
*
*
*
*
(b) Class 3 (Native) oil—a salable
quantity of 1,431,350 pounds and an
allotment percentage of 58 percent.
Dated: April 18, 2019.
Bruce Summers,
Administrator, Agricultural Marketing
Service.
[FR Doc. 2019–08180 Filed 4–23–19; 8:45 am]
BILLING CODE 3410–02–P
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 1209
[Document Number AMS–SC–18–0009]
jbell on DSK30RV082PROD with RULES
Mushroom Promotion, Research, and
Consumer Information Order;
Reallocation of Council Membership
Agricultural Marketing Service,
USDA.
ACTION: Final rule.
AGENCY:
This rule reallocates the
membership of the Mushroom Council
15:47 Apr 23, 2019
Jkt 247001
FOR FURTHER INFORMATION CONTACT:
Marlene Betts, Marketing Specialist,
Promotion and Economics Division,
Specialty Crops Program, AMS, USDA,
1400 Independence Avenue SW, Room
1406–S, Stop 0244, Washington, DC
20250–0244; telephone: (202) 720–9915;
facsimile (202) 205–2800; or electronic
mail: Marlene.Betts@ams.usda.gov.
This rule
affecting 7 CFR part 1209 is authorized
under the Mushroom Promotion,
Research, and Consumer Information
Act of 1990 (Act) (7 U.S.C. 6101–6112).
1. The authority citation for part 985
continues to read as follows:
VerDate Sep<11>2014
Effective Date: May 24, 2019.
SUPPLEMENTARY INFORMATION:
■
SUMMARY:
(Council) under the Agricultural
Marketing Service’s (AMS) regulations
regarding a national research and
promotion program for mushrooms. The
Council administers the regulations
with oversight by the U.S. Department
of Agriculture (USDA). This rule was
recommended by the Council after a
review of the geographic distribution of
the volume of mushroom production
throughout the United States and the
volume of imports. This rule revises the
number of Council members in two of
the four geographic regions under the
program. This action is necessary to
provide for equitable representation of
producers and importers on the Council.
Executive Orders 12866, 13563, and
13771
Executive Orders 12866 and 13563
direct agencies to assess all costs and
benefits of available regulatory
alternatives and, if regulation is
necessary, to select regulatory
approaches that maximize net benefits
(including potential economic,
environmental, public health and safety
effects, distributive impacts and equity).
Executive Order 13563 emphasizes the
importance of quantifying both costs
and benefits, reducing costs,
harmonizing rules and promoting
flexibility. This rulemaking has been
determined to be not significant for
purposes of Executive Order 13563.
This action falls within a category of
regulatory actions that the Office of
Management and Budget (OMB)
exempted from Executive Order 12866
review. Additionally, because this rule
does not meet the definition of a
significant regulatory action it does not
trigger the requirements contained in
Executive Order 13771. See OMB’s
Memorandum titled ‘‘Interim Guidance
Implementing Section 2 of the Executive
Order of January 30, 2017, titled
‘Reducing Regulation and Controlling
Regulatory Costs’ ’’ (February 2, 2017).
PO 00000
Frm 00005
Fmt 4700
Sfmt 4700
17059
Executive Order 13175
This action has been reviewed in
accordance with the requirements of
Executive Order 13175, Consultation
and Coordination with Indian Tribal
Governments. The review reveals that
this regulation would not have
substantial and direct effects on Tribal
governments and would not have
significant Tribal implications.
Executive Order 12988
This rule has been reviewed under
Executive Order 12988, Civil Justice
Reform. It is not intended to have
retroactive effect. Section 1930 of the
Act (7 U.S.C. 6109) provides that it shall
not affect or preempt any other Federal
or State law authorizing promotion or
research relating to mushrooms.
Under section 1927 of the Act (7
U.S.C. 6106), a person subject to an
order issued under the Act may file a
written petition with USDA stating that
an order, any provision of the order, or
any obligation imposed in connection
with the order, is not established in
accordance with the law, and request a
modification of the order or an
exemption from the order. Any petition
filed challenging an order, any
provision of an order, or any obligation
imposed in connection with the order,
shall be filed within two years after the
effective date of an order, provision, or
obligation subject to challenge in the
petition. The petitioner will have the
opportunity for a hearing on the
petition. Thereafter, USDA will issue a
ruling on the petition. The Act provides
that the district court of the United
States for any district in which the
petitioner resides or conducts business
shall have the jurisdiction to review a
final ruling on the petition, if the
petitioner files a complaint for that
purpose not later than 20 days after the
date of the entry of USDA’s final ruling.
Background
This rule reallocates the membership
of the Council established under the
Mushroom Promotion, Research, and
Consumer Information Order (Order).
The Order (7 CFR part 1209) is
administered by the Council with
oversight by USDA. This action was
recommended by the Council after a
review of the geographic distribution of
the volume of mushroom production
throughout the United States and the
volume of imports. This rule revises the
number of Council members
representing two of the four regions
under the program. This action is
necessary to provide for equitable
representation of producers and
importers on the Council.
E:\FR\FM\24APR1.SGM
24APR1
]]>Agencies
[Federal Register Volume 84, Number 79 (Wednesday, April 24, 2019)]
[Rules and Regulations]
[Pages 17055-17059]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-08180]
========================================================================
Rules and Regulations
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains regulatory documents
having general applicability and legal effect, most of which are keyed
to and codified in the Code of Federal Regulations, which is published
under 50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by the Superintendent of Documents.
========================================================================
Federal Register / Vol. 84, No. 79 / Wednesday, April 24, 2019 /
Rules and Regulations
[[Page 17055]]
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 985
[Doc. No. AMS-SC-17-0073; SC18-985-1A FR]
Marketing Order Regulating the Handling of Spearmint Oil Produced
in the Far West; Revision of the Salable Quantity and Allotment
Percentage for Class 3 (Native) Spearmint Oil for the 2018-2019
Marketing Year
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: This rule implements a recommendation from the Far West
Spearmint Oil Administrative Committee (Committee) to increase the
quantity of Class 3 (Native) spearmint oil that handlers may purchase
from, or handle on behalf of, producers during the 2018-2019 marketing
year. The Committee recommended this action to ensure that the Native
spearmint oil market is adequately supplied through the end of the
current marketing year.
DATES: Effective April 25, 2019.
FOR FURTHER INFORMATION CONTACT: Barry Broadbent, Senior 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: [email protected] or [email protected].
Small businesses may request information on complying with this
regulation by contacting Richard Lower, 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: [email protected].
SUPPLEMENTARY INFORMATION: This final rule, pursuant to 5 U.S.C. 553,
amends regulations issued to carry out a marketing order as defined in
7 CFR 900.2(j). This rule is issued under Marketing Order No. 985 (7
CFR part 985), as amended, regulating the handling of spearmint oil
produced in the Far West (Washington, Idaho, Oregon, and designated
parts of Nevada and Utah). Part 985 (referred to as ``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
Committee locally administers the Order and is comprised of spearmint
oil producers operating within the area of production, and a public
member.
The Department of Agriculture (USDA) is issuing this final rule in
conformance with Executive Orders 13563 and 13175. This action falls
within a category of regulatory actions that the Office of Management
and Budget (OMB) exempted from Executive Order 12866 review.
Additionally, because this rule does not meet the definition of a
significant regulatory action, it does not trigger the requirements
contained in Executive Order 13771. See OMB's Memorandum titled
``Interim Guidance Implementing Section 2 of the Executive Order of
January 30, 2017, titled `Reducing Regulation and Controlling
Regulatory Costs' '' (February 2, 2017).
This final rule has been reviewed under Executive Order 12988,
Civil Justice Reform. Under the provisions of the Order now in effect,
salable quantities and allotment percentages may be established for
classes of spearmint oil produced in the Far West. This rule increases
the quantity of Native spearmint oil produced in the Far West that
handlers may purchase from, or handle on behalf of, producers during
the 2018-2019 marketing year, which ends on May 31, 2019.
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 rule revises the quantity of Native spearmint oil that
handlers may purchase from, or handle on behalf of, producers during
the 2018-2019 marketing year. The salable quantity and allotment
percentage for Native spearmint oil for the 2018-2019 marketing year
was initially established at 1,307,947 pounds and 53 percent,
respectively, in a final rule published in the Federal Register on July
24, 2018 (83 FR 34935). This rule increases the Native spearmint oil
salable quantity from 1,307,947 pounds to 1,431,350 pounds and the
allotment percentage from 53 percent to 58 percent.
Under the volume regulation provisions of the Order, the Committee
meets each year to adopt a marketing policy for the ensuing year. When
the Committee's marketing policy considerations indicate a need to
limit the quantity of spearmint oil available to the market to
establish or maintain orderly marketing conditions, the Committee
submits a recommendation to the Secretary of Agriculture for volume
regulation.
Volume regulation under the Order is effectuated through the
establishment of a salable quantity and allotment percentage applicable
to each class of spearmint oil handled in the production area during a
marketing year. The salable quantity is the total quantity of each
class of oil that handlers may purchase from, or handle on behalf of,
producers during a given marketing year. The allotment percentage for
each class of oil is derived by dividing the salable quantity by the
total industry allotment base for that same class of oil. The total
industry allotment base is the aggregate of all allotment base held
individually by producers. Producer allotment base is the quantity of
each class of spearmint oil that the Committee has determined is
representative of a producer's spearmint oil production. Each producer
is allotted a pro rata share of the total salable quantity of each
class of spearmint oil
[[Page 17056]]
each marketing year. Each producer's annual allotment is determined by
applying the allotment percentage to the producer's individual
allotment base for each applicable class of spearmint oil.
The full Committee met on October 25, 2017, to consider its
marketing policy for the 2018-2019 marketing year. At that meeting, the
Committee determined that marketing conditions indicated a need for
volume regulation of both classes of spearmint oil (Scotch and Native)
for the 2018-2019 marketing year. The Committee recommended salable
quantities of 760,660 pounds and 1,307,947 pounds, and allotment
percentages of 35 percent and 53 percent, respectively, for Scotch and
Native spearmint oil. A proposed rule to that effect was published in
the Federal Register on April 6, 2018 (83 FR 14766). Comments on the
proposed rule were solicited from interested persons until June 5,
2018. No comments were received. Subsequently, a final rule
establishing the salable quantities and allotment percentages for
Scotch and Native spearmint oil for the 2018-2019 marketing year was
published in the Federal Register on July 24, 2018 (83 FR 34935).
Pursuant to authority contained in Sec. Sec. 985.50, 985.51, and
985.52, the full eight-member Committee met again on July 18, 2018, to
evaluate the current year's volume control regulation. At the meeting,
the Committee assessed the current market conditions for spearmint oil
in relation to the salable quantities and allotment percentages
established for the 2018-2019 marketing year. The Committee considered
a number of factors, including the current and projected supply and the
estimated future demand for all classes of spearmint oil. The Committee
determined that the established salable quantity and allotment
percentage in effect for Native spearmint oil for the 2018-2019
marketing year should be increased to accommodate a rise in market
demand for that class of spearmint oil.
At the July 18, 2018, meeting, the Committee staff reported that
estimated demand for Native spearmint oil for the 2018-2019 marketing
year was greater than previously anticipated. The Committee initially
estimated the trade demand for Native spearmint oil for the 2018-2019
marketing year to be 1,306,625. In a unanimous vote, the Committee
revised its estimated trade demand for the 2018-2019 marketing year
from 1,306,625 pounds to 1,400,000 pounds. In addition, the Committee
recommended increasing the 2018-2019 marketing year Native spearmint
oil salable quantity from 1,307,947 pounds to 1,357,315 pounds and the
allotment percentage from 53 percent to 55 percent. The motion to
recommend to the Secretary to increase the salable quantity and
allotment percentage also passed unanimously.
A proposed rule concerning this action was published in the Federal
Register on October 9, 2018 (83 FR 50527). A 60-day comment period
ending December 10, 2018, was provided to allow interested persons to
respond to the proposal.
During the proposed rule comment period, the Committee met again on
October 17, 2018, to further discuss the changing Native spearmint oil
market environment. The Order requires that producers and handlers
report to the Committee all production and disposition of spearmint oil
within the Order's production area. Using the information collected for
the 2018-2019 and prior marketing years, the Committee staff reported
that current marketing year trade statistics indicate demand for Native
spearmint oil is greater than previously estimated. Further, the
industry consensus of those in attendance at the meeting was that trade
demand should remain strong throughout the year.
As such, in a unanimous action, the Committee again revised its
2018-2019 marketing year estimated trade demand for Native spearmint
oil from 1,400,000 pounds to 1,450,000 pounds. Accordingly, the
Committee also voted unanimously to recommend to USDA, via a public
comment on the proposed rule (83 FR 50527), to increase the salable
quantity and allotment percentage to 1,431,350 pounds and 58 percent,
respectively. These numbers were derived by recalculating the salable
quantity and allotment percentage to incorporate the increase in Native
allotment base revealed by the updated industry data. These
calculations are fully discussed below. The Committee recommended this
quantity to fully supply anticipated demand (1,450,000 pounds) for the
rest of the 2018-2019 marketing year and to carry-out an estimated
8,005 pounds of salable oil into the 2019-2020 marketing year.
After receiving the Committee's recommendation to amend the
original proposal (submitted via public comment) and the other comments
submitted during the comment period, USDA reviewed the updated industry
information on the price, supply, and demand of Native spearmint oil
supplied by the Committee and determined that additional oil, in excess
of the level specified in the proposed rule, is necessary to fully
supply the market for the 2018-2019 marketing year. As such, this final
rule makes additional amounts of Native spearmint oil available to the
market by increasing the salable quantity and allotment percentage
previously established under the Order for the 2018-2019 marketing
year. This rule increases the Native spearmint oil salable quantity by
123,403 pounds to 1,431,350 pounds and raises the allotment percentage
5 percentage points to 58 percent.
The additional Native spearmint oil will be made available from the
release of oil held by producers in the reserve pool. As of May 31,
2018, the Committee records show that the reserve pool for Native
spearmint oil contained 1,020,583 pounds of oil. This action will help
reduce the quantity of Native spearmint oil held in reserve. The
Committee considers the level of Native spearmint oil currently held in
reserve to be excessive relative to market conditions.
The increased quantity of Native spearmint oil (123,403 pounds)
that will be made available to the market as a result of this rule will
ensure that market demand is fully satisfied in the current year and
approximately 8,005 pounds of Native spearmint oil salable inventory
will be available to carry-over for the start of the 2019-2020
marketing year, which begins on June 1, 2019.
In making the recommendation to increase the salable quantity and
allotment percentage of Native spearmint oil for the 2018-2019
marketing year, the Committee considered newly gathered price, supply,
and demand information collected through industry producer and handler
reports and comments provided by those in attendance at the October 17,
2018, meeting. USDA has also reviewed the newly reported data and has
concluded that the proposed increase would meet the needs of the
industry.
This rule increases the 2018-2019 marketing year Native spearmint
oil salable quantity by 123,403 pounds to a total of 1,431,350 pounds.
Actual sales of Native spearmint oil for the 2017-2018 marketing year
totaled 1,565,515 pounds. The 5-year average of Native spearmint oil
sales is 1,365,377 pounds.
The Committee estimates that this action will result in 8,005
pounds of salable Native spearmint oil being carried into the 2019-2020
marketing year which begins June 1, 2019. While 8,005 pounds is a
relatively low quantity of salable Native spearmint oil to begin the
marketing year, reserve pool oil could be released into the market
under a future relaxation of the volume regulation should it be
necessary to
[[Page 17057]]
adequately supply the market prior to the beginning of the 2019-2020
marketing year. The Committee estimates that a total of 1,082,257
pounds of Native spearmint oil (1,020,583 currently in reserve and an
estimated 61,674 pounds of excess oil produced during the 2018 crop
year) will be available from the reserve pool, if needed.
As mentioned previously, when the 2018-2019 marketing policy
statement was drafted, handlers estimated the demand for Native
spearmint oil for the 2018-2019 marketing year to be 1,306,625 pounds.
The Committee's initial recommendation for the establishment of the
Native spearmint oil salable quantity and allotment percentage for the
2018-2019 marketing year was based on that estimate. The Committee did
not anticipate the level of demand that the Native spearmint oil market
is currently experiencing and did not account for it when the marketing
policy for the 2018-2019 marketing year was adopted.
At the July 18, 2018, meeting, the Committee revised its estimate
of Native spearmint oil trade demand to 1,400,000 pounds. The Committee
further revised its estimate of trade demand to 1,450,000 at its
October 17, 2018, meeting. The Committee believes that the supply of
Native spearmint oil available to the market under the initially
established salable quantity and allotment percentage would be
insufficient to satisfy the current level of demand for oil at
reasonable price levels. The Committee further believes that the
increase in the salable quantity and allotment percentage established
by this action is vital to ensuring an adequate supply of Native
spearmint oil is available to the market moving forward.
The Committee's stated intent in the use of the Order's volume
control regulation is to keep adequate supplies of spearmint oil
available to meet market needs and to maintain orderly marketing
conditions. With that in mind, the Committee developed its
recommendation for increasing the Native spearmint oil salable quantity
and allotment percentage for the 2018-2019 marketing year based on the
information discussed above, as well as the summary data outlined
below.
(A) Initial estimated 2018-2019 Native allotment base--2,467,825
pounds. This is the allotment base estimate upon which the original
2018-2019 marketing year salable quantity and allotment percentage was
based.
(B) Revised 2018-2019 Native allotment base--2,467,845 pounds. This
is 20 pounds more than the initial estimated allotment base of
2,467,825 pounds. The difference is the result of annual adjustments
made to the allotment base at the beginning of the marketing year in
accordance with the provisions of the Order.
(C) Initial 2018-2019 Native allotment percentage--53 percent. This
was unanimously recommended by the Committee on October 25, 2017.
(D) Initial 2018-2019 Native salable quantity--1,307,947 pounds.
This figure is 53 percent of the original estimated 2018-2019 marketing
year allotment base of 2,467,825 pounds.
(E) Adjusted initial 2018-2019 Native salable quantity--1,307,958
pounds. This figure reflects the salable quantity actually available at
the beginning of the 2018-2019 marketing year. This quantity is derived
by applying the initial 53 percent allotment percentage to the revised
allotment base of 2,467,845.
(F) Revision to the 2018-2019 Native salable quantity and allotment
percentage:
(1) Proposed increase in the 2018-2019 Native allotment
percentage--2 percentage points. The Committee initially recommended an
increase of 2 percentage points over the initial Native allotment
percentage at its July 17, 2018, meeting.
(2) Proposed 2018-2019 Native allotment percentage--55 percent.
This number was derived by adding the increase of 2 percentage points
to the initially established 2018-2019 allotment percentage of 53
percent.
(3) Increase in the 2018-2019 Native allotment percentage
established by this final rule--a total of 5 percentage points. The
Committee initially recommended an increase of 2 percentage points over
the initial Native allotment percentage at its July 17, 2018, meeting.
At its October 17, 2018, meeting, the Committee voted unanimously to
recommend to USDA, via a public comment on the proposed rule (83 FR
50527), to increase the salable quantity and allotment percentage to
1,431,350 pounds and 58 percent, respectively. Based on comments
received, including the Committee's recommendation, and a thorough
review of all information presented, USDA is increasing the Native
spearmint oil allotment percentage by a total of 5 percentage points.
(4) Final revised 2018-2019 Native allotment percentage--58
percent. This number was derived by adding the increase of 5 percentage
points to the initially established 2018-2019 allotment percentage of
53 percent.
(5) Final revised 2018-2019 Native salable quantity--1,431,350
pounds. This amount is 58 percent of the revised 2018-2019 allotment
base of 2,467,845 pounds.
(6) Computed increase in the 2018-2019 Native salable quantity as a
result of this revision--123,403 pounds. This figure represents the
difference between the initially established salable quantity of
1,307,947 pounds and the increased salable quantity of 1,431,350 pounds
effectuated by this final rule.
Scotch spearmint oil is also regulated by the Order. As mentioned
previously, a salable quantity and allotment percentage for Scotch
spearmint oil for the 2018-2019 marketing year was established in a
final rule published in the Federal Register on July 24, 2018 (83 FR
34935). At the July 18, 2018, meeting, the Committee considered the
projected production, inventory, and marketing conditions for Scotch
spearmint oil for the 2018-2019 marketing year. After receiving reports
from the Committee staff and comments from the industry, the consensus
of the Committee was that the established salable quantity and
allotment percentage for Scotch spearmint oil was appropriate for the
current market conditions. Therefore, the Committee recommended no
further action with regard to Scotch spearmint oil for the 2018-2019
marketing year.
This final rule relaxes the volume regulation of Native spearmint
oil and will allow producers to meet market demand and improve producer
returns. In conjunction with the issuance of this rule, the Committee's
revised marketing policy statement for the 2018-2019 marketing year has
been reviewed by USDA.
The increase in the Native spearmint oil salable quantity and
allotment percentage is expected to account for the anticipated market
needs for that class of oil. In determining anticipated market needs,
the Committee considered changes and trends in historical sales,
production, and demand.
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
businesses subject to such actions in order that small businesses will
not be unduly or disproportionately burdened.
[[Page 17058]]
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 eight spearmint oil handlers subject to regulation under
the Order, and approximately 43 producers of Scotch spearmint oil and
approximately 95 producers of Native spearmint oil 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).
Based on the SBA's definition of small entities, the Committee
estimates that only two of the eight handlers regulated by the Order
could be considered small entities. Most of the handlers are large
corporations involved in the international trading of essential oils
and the products of essential oils. In addition, the Committee
estimates that 12 of the 43 Scotch spearmint oil producers and 31 of
the 95 Native spearmint oil producers could be classified as small
entities under the SBA definition. Thus, the majority of handlers and
producers of Far West spearmint oil may not be classified as small
entities.
The use of volume control regulation allows the spearmint oil
industry to fully supply spearmint oil markets while avoiding the
negative consequences of over-supplying these markets. Without volume
control regulation, the supply and price of spearmint oil would likely
fluctuate widely. Periods of oversupply could result in low producer
prices and a large volume of oil stored and carried over to future crop
years. Periods of undersupply could lead to excessive price spikes and
drive end users to source flavoring needs from other markets,
potentially causing long-term economic damage to the domestic spearmint
oil industry. The Order's volume control provisions have been
successfully implemented in the domestic spearmint oil industry since
1980 and provide benefits for producers, handlers, manufacturers, and
consumers.
This rule increases the quantity of Native spearmint oil that
handlers may purchase from, or handle on behalf of, producers during
the 2018-2019 marketing year, which ends May 31, 2019. The 2018-2019
marketing year Native spearmint oil salable quantity was initially
established at 1,307,947 pounds, and the allotment percentage initially
set at 53 percent, in a final rule published in the Federal Register on
July 24, 2018 (83 FR 34935). This final rule increases the Native
spearmint oil salable quantity to 1,431,350 pounds and the allotment
percentage to 58 percent.
Based on the information and market projections presented at the
July 18 and October 17, 2018, meetings, the Committee considered
several alternatives to this increase. The Committee considered leaving
the salable quantity and allotment percentage unchanged and also
considered other potential levels of increase. The Committee initially
recommended increasing the salable quantity to 1,357,315 pounds and the
allotment percentage to 55 percent. After further consideration, the
Committee recommended, via a comment submitted during the rulemaking
process, establishing the salable quantity at 1,431,350 pounds and the
allotment percentage at 58 percent.
The Committee reached its final recommendation to increase the
salable quantity and allotment percentage for Native spearmint oil
after careful consideration of all available information and input from
all interested industry participants. The Committee believes that the
volume regulation levels effectuated herein will achieve the desired
objectives. Without the increase, the Committee believes the industry
will not be able to satisfactorily meet market demand at reasonable
prices.
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 OMB and assigned OMB No. 0581-0178, Specialty
Crops. No changes are necessary in those requirements as a result of
this action. Should any changes become necessary, they will be
submitted to OMB for approval.
This final rule relaxes the volume regulation requirements
established under the Order for the 2018-2019 marketing year. This
action will not impose any additional reporting or recordkeeping
requirements on either small or large spearmint oil handlers. As with
all Federal marketing order programs, reports and forms are
periodically reviewed to reduce information requirements and
duplication by industry and public sector agencies.
AMS is committed to complying with the E-Government Act, to promote
the use of the internet and other information technologies to provide
increased opportunities for citizen access to Government information
and services, and for other purposes.
USDA has not identified any relevant Federal rules that duplicate,
overlap, or conflict with this action.
The Committee's July 18 and October 17, 2018, meetings were widely
publicized throughout the Far West spearmint oil industry, and all
interested persons were invited to attend the meetings and participate
in Committee deliberations on all issues. The meetings were public, and
all entities, both large and small, were able to express views on this
issue.
A proposed rule concerning this action was published in the Federal
Register on October 9, 2018 (83 FR 50527). Copies of the proposed rule
were sent via email to all Committee members and Far West spearmint oil
handlers. The proposed rule was made available through the internet by
USDA and the Office of the Federal Register. A 60-day comment period
ending December 10, 2018, was provided to allow interested persons to
respond to the proposal. Three comments were received, including a
comment submitted by the Committee manager on behalf of the Committee.
All three comments submitted were in support of increasing the
salable quantity and allotment percentage of Native spearmint oil for
the 2018-2019 marketing year. Further, the commenters recommended
increasing the salable quantity and allotment percentage to a higher
level than the one published in the proposed rule. Specifically, the
commenters recommended establishing a salable quantity and allotment
percentage of 1,431,350 pounds and 58 percent, respectively. The
increased salable quantity and allotment percentage level recommended
by the commenters for Native spearmint oil was 74,035 pounds and 3
percentage points higher than the level of increase proposed in the
proposed rule. USDA considered the comments and updated Committee
price, production and demand data submitted, and agrees that the
recommended increased volume regulation is justified by current market
conditions and is consistent with the requirements of the Order.
Therefore, the salable quantity and allotment percentage, as proposed,
have been revised accordingly in this final rule.
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 Richard Lower
[[Page 17059]]
at the previously mentioned address in the FOR FURTHER INFORMATION
CONTACT section.
USDA has determined that good cause exists for not postponing the
effective date of this rule until 30 days after publication in the
Federal Register. This final rule increases the saleable quantity and
allotment percentage of Native spearmint oil for the 2018-2019
marketing year. Because this final rule relaxes the volume regulation
requirements established under the Order for Native spearmint oil for
the 2018-2019 marketing year, good cause exists to not delay the
effective date of this rule.
List of Subjects in 7 CFR Part 985
Marketing agreements, Oils and fats, Reporting and recordkeeping
requirements, Spearmint oil.
For the reasons set forth in the preamble, 7 CFR part 985 is
amended as follows:
PART 985--MARKETING ORDER REGULATING THE HANDLING OF SPEARMINT OIL
PRODUCED IN THE FAR WEST
0
1. The authority citation for part 985 continues to read as follows:
Authority: 7 U.S.C. 601-674.
0
2. In Sec. 985.233, revise paragraph (b) to read as follows:
Sec. 985.233 Salable quantities and allotment percentages.
* * * * *
(b) Class 3 (Native) oil--a salable quantity of 1,431,350 pounds
and an allotment percentage of 58 percent.
Dated: April 18, 2019.
Bruce Summers,
Administrator, Agricultural Marketing Service.
[FR Doc. 2019-08180 Filed 4-23-19; 8:45 am]
BILLING CODE 3410-02-P
