Marketing Order Regulating the Handling of Spearmint Oil Produced in the Far West; Salable Quantities and Allotment Percentages for the 2019-2020 Marketing Year, 19703-19709 [2019-09149]
Download as PDF
<![CDATA[
Federal Register / Vol. 84, No. 87 / Monday, May 6, 2019 / Rules and Regulations
a State wildlife action plan, or species
identified by the Chief for special
consideration for funding.
(3) NRCS may provide cost-share
assistance for the activities that promote
the restoration, protection,
enhancement, maintenance, and
management of forest ecosystem
functions and values. Specific
restoration, protection, enhancement,
maintenance, and management
activities may be undertaken by the
landowner or other NRCS designee.
*
*
*
*
*
(c) * * *
(2) Land will be considered eligible
for enrollment in HFRP only if NRCS
determines that such private forest land
or private land being restored to forest
land will contribute to the maintenance,
restoration, or enhancement of the
habitat or measurably:
(i) Increase the likelihood of recovery
for a selected species listed under
section 4 of ESA; or
(ii) Improve the well-being of a
selected species that is a candidate for
listing under section 4 of ESA, or the
selected species is a State-listed species,
or deemed a species of greatest
conservation need by a State wildlife
action plan, or is a species identified by
the Chief for special consideration for
funding.
*
*
*
*
*
(d) * * *
(4) Land where the purposes of HFRP
would be undermined due to onsite or
offsite conditions, such as risk of
hazardous substances, unacceptable
encumbrances to title, permitted or
existing rights of way, infrastructure
development, or adjacent land uses.
§ 625.6
[Amended]
9. Amend § 625.6, in paragraph (a)(2),
by removing ‘‘or species’’ and adding
‘‘or deemed of greatest conservation
need under a State wildlife action plan,
or species’’ in their place.
■ 10. Amend § 625.8 as follows:
■ a. In paragraph (c)(2), remove ‘‘no
more than 10 annual payments of equal
or unequal size’’ and add ‘‘through
annual payments’’ in its place; and
■ b. Revise paragraphs (e) and (f).
The revisions read as follows:
■
§ 625.8 Compensation for easements and
30-year contracts.
jbell on DSK3GLQ082PROD with RULES
*
*
*
*
*
(e) The amount, terms, and conditions
of the cost-share assistance will be
subject to the following restrictions on
the costs of establishing or installing
NRCS-approved conservation practices
or implementing measures specified in
the HFRP restoration plan:
VerDate Sep<11>2014
16:48 May 03, 2019
Jkt 247001
(1) On enrolled land subject to a
permanent easement or an easement for
the maximum duration allowed under
State law, NRCS will offer to pay not
less than 75 percent nor more than 100
percent of the actual or average cost,
and;
(2) On enrolled land subject to a 30year easement or 30-year contract, NRCS
will offer to pay not more than 75
percent of the actual or average cost.
(f) On enrolled land subject to a 10year cost-share agreement without an
associated easement, NRCS will offer to
pay not more than 50 percent of the
actual or average costs.
§ 625.10
[Amend]
11. Amend § 625.10, paragraph (d), by
removing ‘‘easement,’’ and adding
‘‘easement, 30-year contract,’’ in its
place.
■ 12. Amend § 625.11, paragraph (a), by
adding a new second sentence to read
as follows:
■
§ 625.11 Easement participation
requirements.
(a) * * * An Indian Tribe may enroll
in HFRP through a 10-year cost-share
agreement as specified in § 625.9, a 30year contract as specified in § 625.12, or
a permanent easement as specified in
this part. * * *
*
*
*
*
*
PART 652—TECHNICAL SERVICE
PROVIDER ASSISTANCE
13. The authority citation for part 652
continues to read as follows:
■
Authority: 16 U.S.C. 3842.
14. Amend § 652.25 by adding
paragraphs (f) through (h) to read as
follows:
■
§ 652.25 Alternative application process
for individual certification.
*
*
*
*
*
(f) NRCS may also enter into an
agreement with a recommending
organization that NRCS determines has
an adequate accreditation program to
certify individuals as technical service
providers for specific practices or
categories of technical service in
accordance with this part.
(g) After submission of an Application
for Certification under § 652.21, NRCS
may certify an individual that has an
appropriate specialty certification,
including a sustainability specialty
certification, as qualified to provide
technical services for a specific practice,
category, or categories of technical
service.
(h) NRCS will identify, on its website,
which recommending organizations or
specialty certifications are recognized
PO 00000
Frm 00005
Fmt 4700
Sfmt 4700
19703
by NRCS as meeting NRCS quality
criteria for certification of individuals
under this part.
PART 1455—VOLUNTARY PUBLIC
ACCESS AND HABITAT INCENTIVE
PROGRAM
15. The authority citation for part
1455 continues to read as follows:
■
Authority: 15 U.S.C. 714b and 714c, and
16 U.S.C. 3839.
§ 1455.20
[Amend]
16. In § 1455.20, paragraph (c)(5), at
the end, remove the word ‘‘program’’
and add ‘‘program, including lands
enrolled in the Wetland Reserve
Easement component of the Agricultural
Conservation Easement Program, part
1468, subpart C of this chapter’’ in its
place.
■
Matthew Lohr,
Chief, Natural Resources Conservation
Service.
Robert Stephenson,
Executive Vice President, Commodity Credit
Corporation.
[FR Doc. 2019–09151 Filed 5–3–19; 8:45 am]
BILLING CODE 3410–16–P
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 985
[Doc. No. AMS–SC–18–0084; SC19–985–1
FR]
Marketing Order Regulating the
Handling of Spearmint Oil Produced in
the Far West; Salable Quantities and
Allotment Percentages for the 2019–
2020 Marketing Year
Agricultural Marketing Service,
USDA.
ACTION: Final rule.
AGENCY:
This final rule implements a
recommendation from the Far West
Spearmint Oil Administrative
Committee (Committee) to establish
salable quantities and allotment
percentages of Class 1 (Scotch) and
Class 3 (Native) spearmint oil produced
in Washington, Idaho, Oregon, and
designated parts of Nevada and Utah
(the Far West) for the 2019–2020
marketing year. This rule also removes
references to past volume regulation no
longer in effect.
DATES: Effective June 5, 2019.
FOR FURTHER INFORMATION CONTACT:
Barry Broadbent, Marketing Specialist,
or Gary Olson, Regional Director,
Northwest Marketing Field Office,
SUMMARY:
E:\FR\FM\06MYR1.SGM
06MYR1
jbell on DSK3GLQ082PROD with RULES
19704
Federal Register / Vol. 84, No. 87 / Monday, May 6, 2019 / Rules and Regulations
Marketing Order and Agreement
Division, Specialty Crops Program,
AMS, USDA; Telephone: (503) 326–
2724, Fax: (503) 326–7440, or Email:
Barry.Broadbent@usda.gov or
GaryD.Olson@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@usda.gov.
SUPPLEMENTARY INFORMATION: This
action, 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, as amended (7
CFR part 985), regulating the handling
of spearmint oil produced in the Far
West. 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. This rule is not intended
to have retroactive effect. Under 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
establishes quantities and percentages
for Class 1 (Scotch) and Class 3 (Native)
spearmint oil for the 2019–2020
marketing year, which begins on June 1,
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
VerDate Sep<11>2014
16:48 May 03, 2019
Jkt 247001
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. Such 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.
Pursuant to §§ 985.50, 985.51, and
985.52, the Order requires the
Committee to meet each year to consider
supply and demand of spearmint oil
and to adopt a marketing policy for the
ensuing marketing year. When such
considerations indicate a need to
establish or to maintain stable market
conditions through volume regulation,
the Committee recommends salable
quantity limitations and allotment
percentages to regulate the quantity of
Far West spearmint oil available to the
market.
According to § 985.12, ‘‘salable
quantity’’ is the total quantity of each
class of oil (Scotch or Native) that
handlers may purchase from, or handle
on behalf of, producers during a given
marketing year. The total industry
allotment base is the aggregate of all
allotment bases held individually by
producers as prescribed under
§ 985.53(d)(1). The total allotment base
is generally revised each year on June 1
due to producer base being lost because
of the ‘‘bona fide effort’’ production
provision of § 985.53(e).
Each producer’s prorated share of the
salable quantity of each class of oil, or
their ‘‘annual allotment’’ as defined in
§ 985.13, is calculated by using an
allotment percentage. The percentage is
derived by dividing the salable quantity
by the total industry allotment base for
that same class of oil.
The Committee met on October 17,
2018, to consider its marketing policy
for the 2019–2020 marketing year. At
that meeting, the Committee determined
that, based on the current market and
supply conditions, volume regulation
for both classes of oil is necessary. With
a 6–2 vote, the Committee
recommended a salable quantity and
allotment percentage for Scotch
spearmint oil of 832,081 pounds and 38
percent. The two members voting in
opposition to the recommendation
favored volume regulation, but at an
PO 00000
Frm 00006
Fmt 4700
Sfmt 4700
undesignated higher level than what
was proposed. The Committee voted
unanimously on its recommended
salable quantity and allotment
percentage for Native spearmint oil of
1,395,813 pounds and 56 percent.
Salable quantities and allotment
percentages have been placed into effect
each season since the Order’s inception
in 1980.
Scotch Spearmint Oil
The Committee’s recommended 2019–
2020 marketing year salable quantity
and allotment percentage for Scotch
spearmint oil represent an increase from
the previous year’s levels. The 2019–
2020 marketing year salable quantity of
832,081 pounds is 71,421 pounds more
than the 2018–2019 marketing year
salable quantity of 760,660 pounds. The
allotment percentage, recommended at
38 percent for the 2019–2020 marketing
year, is an increase from the 35 percent
in effect the previous year. The total
estimated allotment base for the coming
marketing year is estimated at 2,189,668
pounds. This figure represents a onepercent increase over the 2018–2019
marketing year total allotment base of
2,168,008.
The Committee considered several
factors in making its recommendation,
including the current and projected
future supply, estimated future demand,
production costs, and producer prices.
The Committee’s recommendation also
accounts for established acreage of
Scotch spearmint oil, consumer
demand, existing carry-in, reserve pool
volume, and increased production in
competing markets.
According to the Committee, as costs
of production have increased, many
producers have forgone new plantings
of Scotch spearmint. This has resulted
in a significant decline in production of
Scotch spearmint oil over past years.
Production has decreased from
1,113,346 pounds produced in 2016, to
817,857 pounds produced in 2017, and
to an estimated 671,662 pounds for
2018.
Industry reports also indicate that the
relatively low trade demand for Scotch
spearmint oil is likely the result of
decreased consumer demand for
spearmint-flavored products, especially
chewing gum in China and India.
Scotch spearmint oil sales have
averaged 794,808 pounds per year over
the last three years, and 902,076 pounds
over the last five years. For the 2018–
2019 crop, the Committee estimates
trade demand to be 805,000 pounds.
In addition, increasing production of
spearmint oil in competing markets,
most notably Canada and the U.S.
E:\FR\FM\06MYR1.SGM
06MYR1
jbell on DSK3GLQ082PROD with RULES
Federal Register / Vol. 84, No. 87 / Monday, May 6, 2019 / Rules and Regulations
Midwest, has also put downward
pressure on the Scotch market.
Given the general decline in demand
and anticipated market conditions for
the coming year, the Committee decided
it was prudent to estimate that the
Scotch spearmint oil trade demand for
the 2019–2020 marketing year trade is
805,000 pounds, unchanged from the
prior year. Should the established
volume regulation levels prove
insufficient to adequately supply the
market, the Committee has the authority
to recommend intra-seasonal increases,
as it has in previous marketing years.
The Committee calculated the
minimum salable quantity of Scotch
spearmint oil that will be required
during the 2019–2020 marketing year
(590,335 pounds) by subtracting the
estimated salable carry-in on June 1,
2019, (214,645) from the estimated trade
demand (805,000). This minimum
salable quantity represents the
minimum amount of Scotch spearmint
oil that may be needed to satisfy
estimated demand for the coming year.
To ensure that the market will be fully
supplied, the Committee recommended
a 2019–2020 marketing year salable
quantity of 832,081 pounds. The salable
quantity of 832,081 pounds, combined
with an estimated 214,645 pounds of
salable quantity carried in from the
previous year, will yield a total
available supply of 1,046,726 pounds
Scotch spearmint oil for the 2019–2020
marketing year, and leave an estimated
241,726 pounds of salable oil to carry
into the 2020–2021 marketing year.
Salable carry-in is the primary
measure of excess spearmint oil supply
under the Order, as it represents
overproduction in prior years that is
currently available to the market
without restriction. Under volume
regulation, spearmint oil that is
designated as salable continues to be
available to the market until it is sold
and may be marketed at any time at the
discretion of the owner. Salable
quantities established under volume
regulation over the last three seasons
have exceeded sales, leading to a
gradual build of Scotch spearmint oil
salable carry-in.
The Committee estimates that there
will be 215,757 pounds of salable carryin of Scotch spearmint oil on June 1,
2019. If current market conditions are
maintained and the Committee’s
projections are correct, salable carry-in
will increase to 241,726 pounds at the
beginning of the 2020–2021 marketing
year. This level is above the quantity
that the Committee generally considers
favorable (150,000 pounds). However,
the Committee anticipates that this
higher salable carry-in will be
VerDate Sep<11>2014
16:48 May 03, 2019
Jkt 247001
manageable given the expected
declining production levels of Scotch
spearmint oil. The Committee believes
that, given the current economic
conditions in the Scotch spearmint oil
industry, some Scotch spearmint oil
producers will not produce enough oil
in the 2019–2020 marketing year to fill
all of their base allotment. Therefore, it
is anticipated that the actual quantity of
Scotch spearmint oil carried into the
next marketing year will be less than the
quantity calculated above.
Spearmint oil held in reserve is oil
that has been produced in excess of a
producer’s marketing year allotment and
is not available to the market in the
current marketing year without an
increase in the salable quantity and
allotment percentage. Oil held in the
reserve pool is another indicator of
excess supply. Scotch spearmint oil
held in the reserve pool, which was
completely depleted at the beginning of
the 2014–2015 marketing year, has been
gradually increasing over the past five
years. The Committee reported that
there were 71,088 pounds of Scotch
spearmint oil held in the reserve pool as
of May 31, 2017. The reserve pool
increased to 202,638 pounds on May 31,
2018 but is expected to drop back down
to 115,473 pounds by May 31, 2019.
This quantity of reserve pool oil should
be an adequate buffer to supply the
market, if necessary, if the industry
experiences an unexpected increase in
demand.
The Committee recommended an
allotment percentage of 38 percent for
the 2019–2020 marketing year for
Scotch spearmint oil. During its October
17, 2018, meeting, the Committee
calculated an initial allotment
percentage by dividing the minimum
required salable quantity (590,355
pounds) by the total estimated allotment
base (2,189,688 pounds), resulting in 27
percent. However, producers and
handlers at the meeting indicated that
the computed percentage (27 percent)
might not adequately supply the
potential 2019–2020 Scotch spearmint
oil market demand and may also result
in inadequate carry-in for the
subsequent marketing year. After
deliberation, the Committee increased
the recommended allotment percentage
to 38 percent. The total estimated
allotment base (2,189,688 pounds) for
the 2019–2020 marketing year
multiplied by the salable allotment
percentage (38 percent) will yield
832,081 pounds, which is the
recommended salable quantity for the
2019–2020 marketing year.
The 2019–2020 marketing year
computational data for the Committee’s
recommendation is detailed below.
PO 00000
Frm 00007
Fmt 4700
Sfmt 4700
19705
(A) Estimated carry-in of Scotch
spearmint oil on June 1, 2019: 214,645
pounds. This figure is the difference
between the 2018–2019 marketing year
total available supply of 1,019,645
pounds and the 2018–2019 marketing
year estimated trade demand of 805,000
pounds.
(B) Estimated trade demand of Scotch
spearmint oil for the 2019–2020
marketing year: 805,000 pounds. This
figure was established at the Committee
meeting held on October 17, 2018.
(C) Salable quantity of Scotch
spearmint oil required from the 2019–
2020 marketing year production:
590,355 pounds. This figure is the
difference between the estimated 2019–
2020 marketing year trade demand
(805,000 pounds) and the estimated
carry-in on June 1, 2019 (214,645
pounds). This salable quantity
represents the minimum amount of
Scotch spearmint oil production that
may be needed to satisfy estimated
demand for the coming year.
(D) Total estimated Scotch spearmint
oil allotment base of for the 2019–2020
marketing year: 2,189,688 pounds. This
figure represents a one-percent increase
over the 2018–2019 total actual
allotment base of 2,168,008 pounds, as
prescribed by § 985.53(d)(1). The onepercent increase equals 21,680 pounds.
This total estimated allotment base is
generally revised each year on June 1 in
accordance with § 985.53(e).
(E) Computed Scotch spearmint oil
allotment percentage for the 2019–2020
marketing year: 27 percent. This
percentage is computed by dividing the
minimum required salable quantity
(590,355 pounds) by the total estimated
allotment base (2,189,688 pounds).
(F) Recommended Scotch spearmint
oil allotment percentage for the 2019–
2020 marketing year: 38 percent. This is
the Committee’s recommendation and is
based on the computed allotment
percentage (27 percent) and input from
producers and handlers at the October
17, 2018, meeting. The recommended
38-percent allotment percentage reflects
the Committee’s belief that the
computed percentage (27 percent) may
not adequately supply anticipated
2019–2020 Scotch spearmint oil market
demand.
(G) Recommended Scotch spearmint
oil salable quantity for the 2019–2020
marketing year: 832,081 pounds. This
figure is the product of the
recommended salable allotment
percentage (38 percent) and the total
estimated allotment base (2,189,688
pounds) for the 2019–2020 marketing
year.
(H) Estimated total available supply
of Scotch spearmint oil for the 2019–
E:\FR\FM\06MYR1.SGM
06MYR1
19706
Federal Register / Vol. 84, No. 87 / Monday, May 6, 2019 / Rules and Regulations
2020 marketing year: 1,046,726 pounds.
This figure is the sum of the 2019–2020
marketing year recommended salable
quantity (832,081 pounds) and the
estimated carry-in on June 1, 2019
(214,645 pounds).
For the reasons stated above, the
Committee believes that the
recommended salable quantity and
allotment percentage will adequately
satisfy trade demand, will result in a
reasonable carry-in for the following
year, and will contribute to the orderly
marketing of Scotch spearmint oil.
jbell on DSK3GLQ082PROD with RULES
Native Spearmint Oil
The Committee recommended a
Native spearmint oil salable quantity of
1,395,813 pounds and an allotment
percentage of 56 percent for the 2019–
2020 marketing year. These figures are,
respectively, 87,866 pounds and 3
percentage points higher than the levels
established for the 2018–2019 marketing
year.
The Committee utilized handlers’
anticipated sales estimates of Native
spearmint oil for the coming year,
historical and current Native spearmint
oil production, inventory statistics, and
international market data obtained from
consultants for the spearmint oil
industry to arrive at these
recommendations.
The Committee anticipates that 2018
production will total 1,477,128 pounds,
similar to last year’s production but
down from 1,694,684 pounds produced
in 2016. Committee figures show that
total Native spearmint acres remained
relatively static and that the estimated
yield, at 167.4 pounds per acre, was up
from 160.9 pounds per acre in 2017.
Sales of Native spearmint oil for the
2017–2018 marketing year spiked, up 21
percent from the previous year to
1,565,515 pounds. Sales for the current
marketing year have cooled a bit, but the
Committee still estimates sales through
the 2018–2019 marketing year of
1,450,000 pounds.
The Committee expects that only
8,005 pounds of salable Native
spearmint oil from prior years will be
carried into the 2019–2020 marketing
year. This amount is down from the
48,062 pounds of salable oil carried into
the 2018–2019 marketing year, and
143,011 pounds carried into the 2017–
2018 marketing year.
Further, the Committee estimates that
there will be 1,150,927 pounds of Native
spearmint oil in the reserve pool at the
beginning of the 2019–2020 marketing
year. This figure is 130,344 pounds
higher than the quantity of reserve pool
oil held by producers the previous year
and is consistent with the gradual
VerDate Sep<11>2014
16:48 May 03, 2019
Jkt 247001
increase in reserves experienced over
the past three marketing years.
The Committee expects end users of
Native spearmint oil to continue to rely
on Far West production as their main
source of high-quality Native spearmint
oil, but demand may be at lower
quantities than the past year moving
forward in response to long-term market
factors. A sharp spike in demand for
Native spearmint oil was experienced
by handlers late in the 2017–2018
marketing year, spurred by the
popularity of a new product in the
market. This sharp spike in demand
caused the remaining available 2017–
2018 marketing year salable quantity to
be depleted. While sales in the 2018–
2019 marketing year are expected to
come down from the prior year spike,
the Committee still anticipates demand
at relatively high levels.
The Committee estimates the 2019–
2020 marketing year Native spearmint
oil trade demand to be 1,400,000
pounds. This figure is based on input
provided by producers at six production
area meetings held in mid-October 2018,
as well as estimates provided by
handlers and other meeting participants
at the October 17, 2018, meeting. This
figure represents a decrease of 50,000
pounds from the previous year’s
estimate. The average estimated trade
demand for Native spearmint oil
derived from the producer meetings was
1,380,000 pounds, whereas the
handlers’ estimates ranged from
1,300,000 to 1,500,000 pounds. The
average of Native spearmint oil sales
over the last three years is 1,364,782
pounds. The quantity marketed over the
most recent full marketing year, 2017–
2018, was 1,565,515 pounds. However,
the Committee considers that year to be
an anomaly. The Committee chose to be
slightly conservative in the
establishment of its trade demand
estimate for the 2019–2020 marketing
year to avoid oversupplying the market.
The estimated 2019–2020 marketing
year carry-in of 8,005 pounds of Native
spearmint oil, plus the recommended
salable quantity of 1,395,813 pounds,
results in an estimated total available
supply of 1,403,818 pounds of oil
during the 2019–2020 marketing year.
With the corresponding estimated trade
demand of 1,400,000 pounds, the
Committee projects that 3,818 pounds of
oil will be carried into the 2019–2020
marketing year, resulting in a decrease
of 4,187 pounds year-over-year. The
Committee estimates that there will be
1,150,927 pounds of Native spearmint
oil held in the reserve pool at the
beginning of the 2019–2020 marketing
year. Should the industry experience an
unexpected increase in trade demand,
PO 00000
Frm 00008
Fmt 4700
Sfmt 4700
oil in the Native spearmint oil reserve
pool could be released to satisfy that
demand.
The Committee recommended an
allotment percentage of 56 percent for
the 2019–2020 marketing year. During
its October 17, 2018, meeting, the
Committee calculated an initial
allotment percentage by dividing the
minimum required salable quantity
(1,391,995 pounds) by the total
estimated allotment base (2,492,523
pounds), resulting in 55.8 percent.
However, producers and handlers at the
meeting expressed that the computed
percentage of 55.8 percent may not
adequately supply the potential 2019–
2020 Native spearmint oil market
demand or result in adequate carry-in
for the subsequent marketing year. After
deliberation, the Committee increased
the recommended allotment percentage
to 56 percent. The total estimated
allotment base (2,492,523 pounds) for
the 2019–2020 marketing year
multiplied by the recommended salable
allotment percentage (56 percent) yields
1,395,813 pounds, the recommended
salable quantity for the year.
The 2019–2020 marketing year
computational data for the Committee’s
recommendations is further outlined
below.
(A) Estimated carry-in of Native
spearmint oil on June 1, 2019: 8,005
pounds. This figure is the difference
between the revised 2018–2019
marketing year total available supply of
1,458,005 pounds and the revised 2018–
2019 marketing year estimated trade
demand of 1,450,000 pounds.
(B) Estimated trade demand of Native
spearmint oil for the 2019–2020
marketing year: 1,400,000 pounds. This
estimate was established by the
Committee at the October 17, 2018,
meeting.
(C) Salable quantity of Native
spearmint oil required from the 2019–
2020 marketing year production:
1,391,995 pounds. This figure is the
difference between the estimated 2019–
2020 marketing year estimated trade
demand (1,400,000 pounds) and the
estimated carry-in on June 1, 2019
(8,005 pounds). This is the minimum
amount of Native spearmint oil that the
Committee believes will be required to
meet the anticipated 2019–2020
marketing year trade demand.
(D) Total estimated allotment base of
Native spearmint oil for the 2019–2020
marketing year: 2,492,523 pounds. This
figure represents a one-percent increase
over the 2018–2019 total actual
allotment base of 2,467,845 pounds as
prescribed in § 985.53(d)(1). The onepercent increase equals 24,678 pounds
of oil. This estimate is generally revised
E:\FR\FM\06MYR1.SGM
06MYR1
jbell on DSK3GLQ082PROD with RULES
Federal Register / Vol. 84, No. 87 / Monday, May 6, 2019 / Rules and Regulations
each year on June 1, due to adjustments
resulting from the bona fide effort
production provisions of § 985.53(e).
(E) Computed Native spearmint oil
allotment percentage for the 2019–2020
marketing year: 55.8 percent. This
percentage is calculated by dividing the
required salable quantity (1,391,995
pounds) by the total estimated allotment
base (2,492,523 pounds) for the 2019–
2020 marketing year.
(F) Recommended Native spearmint
oil allotment percentage for the 2019–
2020 marketing year: 56 percent. This is
the Committee’s recommendation based
on the computed allotment percentage
(55.8 percent) and input from producers
and handlers at the October 17, 2018,
meeting. The recommended 56 percent
allotment percentage is also based on
the Committee’s belief that the
computed percentage (55.8 percent) may
not adequately supply the potential
market for Native spearmint oil in the
2019–2020 marketing year.
(G) Recommended Native spearmint
oil 2019–2020 marketing year salable
quantity: 1,395,813 pounds. This figure
is the product of the recommended
allotment percentage (56 percent) and
the total estimated allotment base
(2,492,523 pounds). This amount is
slightly less than the estimated trade
demand for the 2019–2020 marketing
year but could be increased as needed
through an intra-seasonal increase in the
salable quantity and allotment
percentage.
(H) Estimated available supply of
Native spearmint oil for the 2019–2020
marketing year: 1,403,808 pounds. This
figure is the sum of the 2019–2020
recommended salable quantity
(1,395,813 pounds) and the estimated
carry-in on June 1, 2019 (8,005 pounds).
The Committee’s recommended
Scotch and Native spearmint oil salable
quantities and allotment percentages of
832,081 pounds and 38 percent, and
1,395,813 pounds and 56 percent,
respectively, will match the available
supply of each class of spearmint oil to
the estimated demand of each, thus
avoiding extreme fluctuations in
inventories and prices. This rule is
similar to regulations issued in prior
seasons.
The salable quantities established in
this final rule are not expected to cause
a shortage of either class of spearmint
oil. Any unanticipated or additional
market demand for either class of
spearmint oil which may develop
during the marketing year could be
satisfied by an intra-seasonal increase in
the salable quantity and corresponding
allotment percentage. The Order
contains a provision in § 985.51 for
intra-seasonal increases to allow the
VerDate Sep<11>2014
16:48 May 03, 2019
Jkt 247001
Committee the flexibility to respond
quickly to changing market conditions.
Under volume regulation, producers
who produce more than their annual
allotments during the marketing year
may transfer such excess spearmint oil
to producers who have produced less
than their annual allotment. In addition,
on December 1 of each year, producers
who have not transferred their excess
spearmint oil to other producers must
place their excess spearmint oil
production into the reserve pool to be
released in the future in accordance
with market needs and under the
Committee’s direction.
USDA has reviewed the Committee’s
marketing policy statement for the
2019–2020 marketing year. The
Committee’s marketing policy
statement, a requirement whenever the
Committee recommends volume
regulation, meets the requirements of
§§ 985.50 and 985.51.
The establishment of salable
quantities and allotment percentages in
this rule is expected to fully satisfy
anticipated market needs. In
determining anticipated market needs,
the Committee considered historical
sales, as well as changes and trends in
production and demand. This rule also
provides producers with information
regarding the amount of spearmint oil
that should be produced for the 2019–
2020 season to meet anticipated market
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
rule 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.
Marketing orders issued pursuant to the
Act, and the rules issued thereunder, are
unique in that they are brought about
through group action of essentially
small entities acting on their own
behalf.
There are approximately 33 producers
and 90 producers of Scotch and Native
spearmint oil, respectively, in the
regulated production area and
approximately 8 spearmint oil handlers
subject to regulation under the Order.
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
PO 00000
Frm 00009
Fmt 4700
Sfmt 4700
19707
defined as those having annual receipts
of less than $750,000 (13 CFR 121.201).
The Committee reported that recent
producer prices for spearmint oil range
from $15.50 to $18.00 per pound. The
National Agricultural Statistics Service
(NASS) reported that the 2017 U.S.
season average spearmint oil producer
price per pound was $16.20.
Multiplying $16.20 per pound by 2016–
17 spearmint oil utilization of 2,186,751
million pounds yields a crop value
estimate of about $35.4 million. Total
2016–17 spearmint oil utilization,
reported by the Committee, is 621,236
pounds and 1,565,515 pounds for
Scotch and Native spearmint oil,
respectively.
Given the accounting requirements for
the volume regulation provisions of the
Order, the Committee maintains
accurate records of each producer’s
production and sales. Using the $16.20
average spearmint oil price, and
Committee production data for each
producer, the Committee estimates that
11 of the 33 Scotch spearmint oil
producers and 34 of the 90 Native
spearmint oil producers could be
classified as small entities under the
SBA definition.
There is no third party or
governmental entity that collects and
reports spearmint oil prices received by
spearmint oil handlers. However, the
Committee estimates an average
spearmint oil handling markup at
approximately 20 percent of the price
received by producers. Multiplying 1.20
by the 2016 producer price of $16.20
yields a handler f.o.b. price per pound
estimate of $19.44.
Multiplying this handler f.o.b price by
spearmint oil utilization of 2,186,751
pounds results in an estimated handlerlevel spearmint oil value of $42.5
million. Dividing this figure by the
number of handlers (8) yields estimated
average annual handler receipts of about
$5.3 million, which is below the SBA
threshold for small agricultural service
firms.
Furthermore, using confidential data
on pounds handled by each handler,
and the abovementioned estimated
handler price per pound, the Committee
reported that it is likely that at least two
of the eight handlers had 2017–2018
marketing year spearmint oil sales value
that exceeded the SBA threshold.
Therefore, in view of the foregoing,
the majority of producers of spearmint
oil may be classified as large entities
and the majority of handlers of
spearmint oil may be classified as small
entities.
This final rule establishes the quantity
of spearmint oil produced in the Far
West, by class, which handlers may
E:\FR\FM\06MYR1.SGM
06MYR1
jbell on DSK3GLQ082PROD with RULES
19708
Federal Register / Vol. 84, No. 87 / Monday, May 6, 2019 / Rules and Regulations
purchase from, or handle on behalf of,
producers during the 2019–2020
marketing year. The Committee
recommended this action to help
maintain stability in the spearmint oil
market by matching supply to estimated
demand, thereby avoiding extreme
fluctuations in supplies and prices.
Establishing quantities that may be
purchased or handled during the
marketing year through volume
regulations allows producers to
coordinate their spearmint oil
production with the expected market
demand. Authority for this action is
provided in §§ 985.50, 985.51, and
985.52.
The Committee estimated trade
demand for the 2019–2020 marketing
year for both classes of oil at 2,205,000
pounds and expects that the combined
salable carry-in will be 222,650 pounds.
The combined required salable quantity
is 1,982,350 pounds. Under volume
regulation, total sales of spearmint oil
by producers for the 2019–2020
marketing year will be held to 2,450,544
pounds (the salable quantity established
for both classes of spearmint oil of
2,227,894 pounds, plus 222,650 pounds
of carry-in). This total available supply
of 2,450,544 pounds should be more
than adequate to supply the 2,205,000
pounds of anticipated total trade
demand for spearmint oil. In addition,
as of May 31, 2018, the total reserve
pool for both classes of spearmint oil
stood at 1,223,221 pounds. Furthermore,
that quantity is expected to rise over the
course of the 2018–2019 marketing year
to 1,266,400. Should trade demand
increase unexpectedly during the 2019–
2020 marketing year, reserve pool
spearmint oil could be released into the
market to supply that increase in
demand.
The established allotment
percentages, upon which 2019–2020
producer allotments are based, are 38
percent for Scotch spearmint oil and 56
percent for Native spearmint oil.
Without volume regulation, producers
would not be held to these allotment
levels, and could sell unrestricted
quantities of spearmint oil. The USDA
econometric model estimated that the
season average producer price per
pound (from both classes of spearmint
oil) would decline about $2.20 per
pound because of the higher quantities
of spearmint oil that would be produced
and marketed without volume
regulation. The surplus situation for the
spearmint oil market that would exist
without volume regulation in 2019–
2020 also would likely dampen
prospects for improved producer prices
in future years because of the buildup
in stocks.
VerDate Sep<11>2014
16:48 May 03, 2019
Jkt 247001
The use of volume regulation allows
the industry to fully supply spearmint
oil markets while avoiding the negative
consequences of over-supplying these
markets. The use of volume regulation
is believed to have little or no effect on
consumer prices of products containing
spearmint oil and will not result in
fewer retail sales of such products.
The Committee discussed alternatives
to its recommended volume regulation
levels for both classes of spearmint oil,
including not regulating during the
2019–2020 marketing year. The
Committee rejected the idea of not
regulating any volume for either class of
spearmint oil because of the severe,
price-depressing effects that would
likely occur without volume regulation.
The Committee also discussed and
considered salable quantities and
allotment percentages that were above
and below the levels that were
ultimately recommended for both
classes of spearmint oil. Ultimately, the
action taken by the Committee was to
recommend increasing the salable
quantity and allotment percentage for
both Scotch and Native spearmint oil
from the levels established for the 2018–
2019 marketing year.
As noted earlier, the Committee’s
recommendation to establish salable
quantities and allotment percentages for
both classes of spearmint oil was made
after careful consideration of all
available information including: (1) The
estimated quantity of salable oil of each
class held by producers and handlers;
(2) the estimated demand for each class
of oil; (3) the prospective production of
each class of oil; (4) the total of
allotment bases of each class of oil for
the current marketing year and the
estimated total of allotment bases of
each class for the ensuing marketing
year; (5) the quantity of reserve oil, by
class, in storage; (6) producer prices of
oil, including prices for each class of oil;
and (7) general market conditions for
each class of oil, including whether the
estimated season average price to
producers is likely to exceed parity.
Based on its review, the Committee
believes that the salable quantities and
allotment percentages established in
this rule will achieve the objectives
sought. The Committee also believes
that, should there be no volume
regulation in effect for the upcoming
marketing year, the Far West spearmint
oil industry would return to the
pronounced cyclical price patterns that
occurred prior to the promulgation of
the Order. As previously stated, annual
salable quantities and allotment
percentages have been issued for both
classes of spearmint oil since the
Order’s inception. The salable quantities
PO 00000
Frm 00010
Fmt 4700
Sfmt 4700
and allotment percentages established
herein are expected to facilitate the goal
of maintaining orderly marketing
conditions for Far West spearmint oil
for the 2019–2020 and future marketing
years.
Costs to producers and handlers, large
and small, resulting from this action are
expected to be offset by the benefits
derived from a more stable market and
increased returns. The benefits of this
rule are expected to be equally available
to all producers and handlers regardless
of their size.
In accordance with the Paperwork
Reduction Act of 1995 (44 U.S.C.
Chapter 35), the Order’s information
collection requirements have been
previously approved by 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 would be submitted to
OMB for approval.
This rule establishes salable
quantities and allotment percentages for
Scotch spearmint oil and Native
spearmint oil produced in the Far West
during the 2019–2020 marketing year.
Accordingly, this rule does not impose
any additional reporting or
recordkeeping requirements on either
small or large Far West spearmint oil
producers or 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.
USDA has not identified any relevant
Federal rules that duplicate, overlap, or
conflict with this final rule.
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.
A proposed rule concerning this
action was published in the Federal
Register on February 15, 2019 (84 FR
4381). Copies of the proposed rule were
also mailed or sent via facsimile to all
Far West spearmint oil handlers. The
proposal was made available through
the internet by USDA and the Office of
the Federal Register. A 30-day comment
period ending March 18, 2019, was
provided for interested persons to
respond to the proposal. No comments
were received during the comment
period. Accordingly, no changes will be
made to the rule as proposed.
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/
E:\FR\FM\06MYR1.SGM
06MYR1
Federal Register / Vol. 84, No. 87 / Monday, May 6, 2019 / Rules and Regulations
rules-regulations/moa/small-businesses.
Any questions about the compliance
guide should be sent to Richard Lower
at the previously mentioned address in
the FOR FURTHER INFORMATION CONTACT
section.
After consideration of all relevant
material presented, including the
information and recommendation
submitted by the Committee and other
available information, it is hereby found
that this rule, will tend to effectuate the
declared policy of the Act.
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
1. The authority citation for 7 CFR
part 985 continues to read as follows:
■
Authority: 7 U.S.C. 601–674.
2. Section 985.234 is added to read as
follows:
■
§ 985.234 Salable quantities and allotment
percentages—2019–2020 marketing year.
The salable quantity and allotment
percentage for each class of spearmint
oil during the marketing year beginning
on June 1, 2019, shall be as follows:
(a) Class 1 (Scotch) oil—a salable
quantity of 832,081 pounds and an
allotment percentage of 38 percent.
(b) Class 3 (Native) oil—a salable
quantity of 1,395,813 pounds and an
allotment percentage of 56 percent.
§ 985.236
■
[Removed]
3. Remove § 985.236.
Dated: April 30, 2019.
Bruce Summers,
Administrator, Agricultural Marketing
Service.
[FR Doc. 2019–09149 Filed 5–3–19; 8:45 am]
jbell on DSK3GLQ082PROD with RULES
BILLING CODE 3410–02–P
VerDate Sep<11>2014
16:48 May 03, 2019
Jkt 247001
DEPARTMENT OF TRANSPORTATION
Federal Aviation Administration
14 CFR Part 39
[Docket No. FAA–2018–1019; Product
Identifier 2018–NE–05–AD; Amendment 39–
19622; AD 2019–08–01]
RIN 2120–AA64
19709
information at the FAA, Engine &
Propeller Standards Branch, 1200
District Avenue, Burlington, MA, 01803.
For information on the availability of
this material at the FAA, call 781–238–
7759. It is also available on the internet
at https://www.regulations.gov by
searching for and locating Docket No.
FAA–2018–1019.
Examining the AD Docket
Airworthiness Directives; RECARO
Aircraft Seating GmbH & Co. KG
Federal Aviation
Administration (FAA), DOT.
ACTION: Final rule; request for
comments.
AGENCY:
We are adopting a new
airworthiness directive (AD) for certain
RECARO Aircraft Seating GmbH & Co.
KG (RECARO) Model 3510A and 3510D
passenger seats. This AD requires
modification and re-identification of all
affected RECARO model passenger
seats. This AD was prompted by an
analysis that the affected RECARO
model passenger seats contain a seat
pan assembly design that can trap a
person using the seat to assist during an
emergency evacuation. We are issuing
this AD to address the unsafe condition
on these products.
DATES: This AD is effective May 21,
2019.
The Director of the Federal Register
approved the incorporation by reference
of certain publications listed in this AD
as of May 21, 2019.
We must receive comments on this
AD by June 20, 2019.
ADDRESSES: You may send comments,
using the procedures found in 14 CFR
11.43 and 11.45, by any of the following
methods:
• Federal eRulemaking Portal: Go to
https://www.regulations.gov. Follow the
instructions for submitting comments.
• Fax: 202–493–2251.
• Mail: U.S. Department of
Transportation, Docket Operations, M–
30, West Building Ground Floor, Room
W12–140, 1200 New Jersey Avenue SE,
Washington, DC, 20590.
• Hand Delivery: U.S. Department of
Transportation, Docket Operations, M–
30, West Building Ground Floor, Room
W12–140, 1200 New Jersey Avenue SE,
Washington, DC 20590, between 9 a.m.
and 5 p.m., Monday through Friday,
except Federal holidays.
For service information identified in
this final rule, contact RECARO Aircraft
Seating GmbH & Co. KG, Daimlerstrasse
21, 74523 Schwabisch Hall, Germany;
phone: 49 791 503 7855; fax: 49 791 503
7935; email: technical.support@recaroas.com. You may view this service
SUMMARY:
PO 00000
Frm 00011
Fmt 4700
Sfmt 4700
You may examine the AD docket on
the internet at https://
www.regulations.gov by searching for
and locating Docket No. FAA–2018–
1019; or in person at Docket Operations
between 9 a.m. and 5 p.m., Monday
through Friday, except Federal holidays.
The AD docket contains this final rule,
the mandatory continuing airworthiness
information (MCAI), the regulatory
evaluation, any comments received, and
other information. The street address for
Docket Operations (phone: 800–647–
5527) is listed above. Comments will be
available in the AD docket shortly after
receipt.
FOR FURTHER INFORMATION CONTACT:
Dorie Resnik, Aerospace Engineer,
Boston ACO Branch, FAA, 1200 District
Avenue, Burlington, MA, 01803; phone:
781–238–7693; fax: 781–238–7199;
email: dorie.resnik@faa.gov.
SUPPLEMENTARY INFORMATION:
Discussion
The European Union Aviation Safety
Agency (EASA), which is the Technical
Agent for the Member States of the
European Community, has issued EASA
AD 2017–0192, dated September 28,
2017 (referred to after this as ‘‘the
MCAI’’), to address an unsafe condition
for the specified products. The MCAI
states:
Analyses and test results have shown that
the seat pan design of certain RECARO model
3510A and 3510D passenger seats, when
installed next to a Type III over-wing
emergency exit, is insufficiently stable to
sustain the loads applied by a person who
would use the seat as assistance means in
case of an emergency evacuation. Body parts
(e.g., knees and feet) could slide through and
get trapped. This condition, if not corrected,
could restrict or significantly delay an
emergency evacuation, possibly resulting in
injury to occupants.
To address this potential unsafe condition,
RECARO issued SB 3510–25–609, SB 3510–
25–752 and SB 3510–25–753, providing
modification instructions to replace the seat
pan and/or pan attachment package with a
new one, that has a more robust design, and
to re-identify modified seats with a different
P/N.
For the reasons described above, this
[EASA] AD requires modification of the
affected seats and prohibits installation of
any unmodified seat.
E:\FR\FM\06MYR1.SGM
06MYR1
]]>Agencies
[Federal Register Volume 84, Number 87 (Monday, May 6, 2019)]
[Rules and Regulations]
[Pages 19703-19709]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-09149]
-----------------------------------------------------------------------
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 985
[Doc. No. AMS-SC-18-0084; SC19-985-1 FR]
Marketing Order Regulating the Handling of Spearmint Oil Produced
in the Far West; Salable Quantities and Allotment Percentages for the
2019-2020 Marketing Year
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: This final rule implements a recommendation from the Far West
Spearmint Oil Administrative Committee (Committee) to establish salable
quantities and allotment percentages of Class 1 (Scotch) and Class 3
(Native) spearmint oil produced in Washington, Idaho, Oregon, and
designated parts of Nevada and Utah (the Far West) for the 2019-2020
marketing year. This rule also removes references to past volume
regulation no longer in effect.
DATES: Effective June 5, 2019.
FOR FURTHER INFORMATION CONTACT: Barry Broadbent, Marketing Specialist,
or Gary Olson, Regional Director, Northwest Marketing Field Office,
[[Page 19704]]
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 action, 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, as
amended (7 CFR part 985), regulating the handling of spearmint oil
produced in the Far West. 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'[thinsp]'' (February 2, 2017).
This final rule has been reviewed under Executive Order 12988,
Civil Justice Reform. This rule is not intended to have retroactive
effect. Under 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 establishes quantities and percentages for
Class 1 (Scotch) and Class 3 (Native) spearmint oil for the 2019-2020
marketing year, which begins on June 1, 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. Such 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.
Pursuant to Sec. Sec. 985.50, 985.51, and 985.52, the Order
requires the Committee to meet each year to consider supply and demand
of spearmint oil and to adopt a marketing policy for the ensuing
marketing year. When such considerations indicate a need to establish
or to maintain stable market conditions through volume regulation, the
Committee recommends salable quantity limitations and allotment
percentages to regulate the quantity of Far West spearmint oil
available to the market.
According to Sec. 985.12, ``salable quantity'' is the total
quantity of each class of oil (Scotch or Native) that handlers may
purchase from, or handle on behalf of, producers during a given
marketing year. The total industry allotment base is the aggregate of
all allotment bases held individually by producers as prescribed under
Sec. 985.53(d)(1). The total allotment base is generally revised each
year on June 1 due to producer base being lost because of the ``bona
fide effort'' production provision of Sec. 985.53(e).
Each producer's prorated share of the salable quantity of each
class of oil, or their ``annual allotment'' as defined in Sec. 985.13,
is calculated by using an allotment percentage. The percentage is
derived by dividing the salable quantity by the total industry
allotment base for that same class of oil.
The Committee met on October 17, 2018, to consider its marketing
policy for the 2019-2020 marketing year. At that meeting, the Committee
determined that, based on the current market and supply conditions,
volume regulation for both classes of oil is necessary. With a 6-2
vote, the Committee recommended a salable quantity and allotment
percentage for Scotch spearmint oil of 832,081 pounds and 38 percent.
The two members voting in opposition to the recommendation favored
volume regulation, but at an undesignated higher level than what was
proposed. The Committee voted unanimously on its recommended salable
quantity and allotment percentage for Native spearmint oil of 1,395,813
pounds and 56 percent. Salable quantities and allotment percentages
have been placed into effect each season since the Order's inception in
1980.
Scotch Spearmint Oil
The Committee's recommended 2019-2020 marketing year salable
quantity and allotment percentage for Scotch spearmint oil represent an
increase from the previous year's levels. The 2019-2020 marketing year
salable quantity of 832,081 pounds is 71,421 pounds more than the 2018-
2019 marketing year salable quantity of 760,660 pounds. The allotment
percentage, recommended at 38 percent for the 2019-2020 marketing year,
is an increase from the 35 percent in effect the previous year. The
total estimated allotment base for the coming marketing year is
estimated at 2,189,668 pounds. This figure represents a one-percent
increase over the 2018-2019 marketing year total allotment base of
2,168,008.
The Committee considered several factors in making its
recommendation, including the current and projected future supply,
estimated future demand, production costs, and producer prices. The
Committee's recommendation also accounts for established acreage of
Scotch spearmint oil, consumer demand, existing carry-in, reserve pool
volume, and increased production in competing markets.
According to the Committee, as costs of production have increased,
many producers have forgone new plantings of Scotch spearmint. This has
resulted in a significant decline in production of Scotch spearmint oil
over past years. Production has decreased from 1,113,346 pounds
produced in 2016, to 817,857 pounds produced in 2017, and to an
estimated 671,662 pounds for 2018.
Industry reports also indicate that the relatively low trade demand
for Scotch spearmint oil is likely the result of decreased consumer
demand for spearmint-flavored products, especially chewing gum in China
and India. Scotch spearmint oil sales have averaged 794,808 pounds per
year over the last three years, and 902,076 pounds over the last five
years. For the 2018-2019 crop, the Committee estimates trade demand to
be 805,000 pounds.
In addition, increasing production of spearmint oil in competing
markets, most notably Canada and the U.S.
[[Page 19705]]
Midwest, has also put downward pressure on the Scotch market.
Given the general decline in demand and anticipated market
conditions for the coming year, the Committee decided it was prudent to
estimate that the Scotch spearmint oil trade demand for the 2019-2020
marketing year trade is 805,000 pounds, unchanged from the prior year.
Should the established volume regulation levels prove insufficient to
adequately supply the market, the Committee has the authority to
recommend intra-seasonal increases, as it has in previous marketing
years.
The Committee calculated the minimum salable quantity of Scotch
spearmint oil that will be required during the 2019-2020 marketing year
(590,335 pounds) by subtracting the estimated salable carry-in on June
1, 2019, (214,645) from the estimated trade demand (805,000). This
minimum salable quantity represents the minimum amount of Scotch
spearmint oil that may be needed to satisfy estimated demand for the
coming year. To ensure that the market will be fully supplied, the
Committee recommended a 2019-2020 marketing year salable quantity of
832,081 pounds. The salable quantity of 832,081 pounds, combined with
an estimated 214,645 pounds of salable quantity carried in from the
previous year, will yield a total available supply of 1,046,726 pounds
Scotch spearmint oil for the 2019-2020 marketing year, and leave an
estimated 241,726 pounds of salable oil to carry into the 2020-2021
marketing year.
Salable carry-in is the primary measure of excess spearmint oil
supply under the Order, as it represents overproduction in prior years
that is currently available to the market without restriction. Under
volume regulation, spearmint oil that is designated as salable
continues to be available to the market until it is sold and may be
marketed at any time at the discretion of the owner. Salable quantities
established under volume regulation over the last three seasons have
exceeded sales, leading to a gradual build of Scotch spearmint oil
salable carry-in.
The Committee estimates that there will be 215,757 pounds of
salable carry-in of Scotch spearmint oil on June 1, 2019. If current
market conditions are maintained and the Committee's projections are
correct, salable carry-in will increase to 241,726 pounds at the
beginning of the 2020-2021 marketing year. This level is above the
quantity that the Committee generally considers favorable (150,000
pounds). However, the Committee anticipates that this higher salable
carry-in will be manageable given the expected declining production
levels of Scotch spearmint oil. The Committee believes that, given the
current economic conditions in the Scotch spearmint oil industry, some
Scotch spearmint oil producers will not produce enough oil in the 2019-
2020 marketing year to fill all of their base allotment. Therefore, it
is anticipated that the actual quantity of Scotch spearmint oil carried
into the next marketing year will be less than the quantity calculated
above.
Spearmint oil held in reserve is oil that has been produced in
excess of a producer's marketing year allotment and is not available to
the market in the current marketing year without an increase in the
salable quantity and allotment percentage. Oil held in the reserve pool
is another indicator of excess supply. Scotch spearmint oil held in the
reserve pool, which was completely depleted at the beginning of the
2014-2015 marketing year, has been gradually increasing over the past
five years. The Committee reported that there were 71,088 pounds of
Scotch spearmint oil held in the reserve pool as of May 31, 2017. The
reserve pool increased to 202,638 pounds on May 31, 2018 but is
expected to drop back down to 115,473 pounds by May 31, 2019. This
quantity of reserve pool oil should be an adequate buffer to supply the
market, if necessary, if the industry experiences an unexpected
increase in demand.
The Committee recommended an allotment percentage of 38 percent for
the 2019-2020 marketing year for Scotch spearmint oil. During its
October 17, 2018, meeting, the Committee calculated an initial
allotment percentage by dividing the minimum required salable quantity
(590,355 pounds) by the total estimated allotment base (2,189,688
pounds), resulting in 27 percent. However, producers and handlers at
the meeting indicated that the computed percentage (27 percent) might
not adequately supply the potential 2019-2020 Scotch spearmint oil
market demand and may also result in inadequate carry-in for the
subsequent marketing year. After deliberation, the Committee increased
the recommended allotment percentage to 38 percent. The total estimated
allotment base (2,189,688 pounds) for the 2019-2020 marketing year
multiplied by the salable allotment percentage (38 percent) will yield
832,081 pounds, which is the recommended salable quantity for the 2019-
2020 marketing year.
The 2019-2020 marketing year computational data for the Committee's
recommendation is detailed below.
(A) Estimated carry-in of Scotch spearmint oil on June 1, 2019:
214,645 pounds. This figure is the difference between the 2018-2019
marketing year total available supply of 1,019,645 pounds and the 2018-
2019 marketing year estimated trade demand of 805,000 pounds.
(B) Estimated trade demand of Scotch spearmint oil for the 2019-
2020 marketing year: 805,000 pounds. This figure was established at the
Committee meeting held on October 17, 2018.
(C) Salable quantity of Scotch spearmint oil required from the
2019-2020 marketing year production: 590,355 pounds. This figure is the
difference between the estimated 2019-2020 marketing year trade demand
(805,000 pounds) and the estimated carry-in on June 1, 2019 (214,645
pounds). This salable quantity represents the minimum amount of Scotch
spearmint oil production that may be needed to satisfy estimated demand
for the coming year.
(D) Total estimated Scotch spearmint oil allotment base of for the
2019-2020 marketing year: 2,189,688 pounds. This figure represents a
one-percent increase over the 2018-2019 total actual allotment base of
2,168,008 pounds, as prescribed by Sec. 985.53(d)(1). The one-percent
increase equals 21,680 pounds. This total estimated allotment base is
generally revised each year on June 1 in accordance with Sec.
985.53(e).
(E) Computed Scotch spearmint oil allotment percentage for the
2019-2020 marketing year: 27 percent. This percentage is computed by
dividing the minimum required salable quantity (590,355 pounds) by the
total estimated allotment base (2,189,688 pounds).
(F) Recommended Scotch spearmint oil allotment percentage for the
2019-2020 marketing year: 38 percent. This is the Committee's
recommendation and is based on the computed allotment percentage (27
percent) and input from producers and handlers at the October 17, 2018,
meeting. The recommended 38-percent allotment percentage reflects the
Committee's belief that the computed percentage (27 percent) may not
adequately supply anticipated 2019-2020 Scotch spearmint oil market
demand.
(G) Recommended Scotch spearmint oil salable quantity for the 2019-
2020 marketing year: 832,081 pounds. This figure is the product of the
recommended salable allotment percentage (38 percent) and the total
estimated allotment base (2,189,688 pounds) for the 2019-2020 marketing
year.
(H) Estimated total available supply of Scotch spearmint oil for
the 2019-
[[Page 19706]]
2020 marketing year: 1,046,726 pounds. This figure is the sum of the
2019-2020 marketing year recommended salable quantity (832,081 pounds)
and the estimated carry-in on June 1, 2019 (214,645 pounds).
For the reasons stated above, the Committee believes that the
recommended salable quantity and allotment percentage will adequately
satisfy trade demand, will result in a reasonable carry-in for the
following year, and will contribute to the orderly marketing of Scotch
spearmint oil.
Native Spearmint Oil
The Committee recommended a Native spearmint oil salable quantity
of 1,395,813 pounds and an allotment percentage of 56 percent for the
2019-2020 marketing year. These figures are, respectively, 87,866
pounds and 3 percentage points higher than the levels established for
the 2018-2019 marketing year.
The Committee utilized handlers' anticipated sales estimates of
Native spearmint oil for the coming year, historical and current Native
spearmint oil production, inventory statistics, and international
market data obtained from consultants for the spearmint oil industry to
arrive at these recommendations.
The Committee anticipates that 2018 production will total 1,477,128
pounds, similar to last year's production but down from 1,694,684
pounds produced in 2016. Committee figures show that total Native
spearmint acres remained relatively static and that the estimated
yield, at 167.4 pounds per acre, was up from 160.9 pounds per acre in
2017. Sales of Native spearmint oil for the 2017-2018 marketing year
spiked, up 21 percent from the previous year to 1,565,515 pounds. Sales
for the current marketing year have cooled a bit, but the Committee
still estimates sales through the 2018-2019 marketing year of 1,450,000
pounds.
The Committee expects that only 8,005 pounds of salable Native
spearmint oil from prior years will be carried into the 2019-2020
marketing year. This amount is down from the 48,062 pounds of salable
oil carried into the 2018-2019 marketing year, and 143,011 pounds
carried into the 2017-2018 marketing year.
Further, the Committee estimates that there will be 1,150,927
pounds of Native spearmint oil in the reserve pool at the beginning of
the 2019-2020 marketing year. This figure is 130,344 pounds higher than
the quantity of reserve pool oil held by producers the previous year
and is consistent with the gradual increase in reserves experienced
over the past three marketing years.
The Committee expects end users of Native spearmint oil to continue
to rely on Far West production as their main source of high-quality
Native spearmint oil, but demand may be at lower quantities than the
past year moving forward in response to long-term market factors. A
sharp spike in demand for Native spearmint oil was experienced by
handlers late in the 2017-2018 marketing year, spurred by the
popularity of a new product in the market. This sharp spike in demand
caused the remaining available 2017-2018 marketing year salable
quantity to be depleted. While sales in the 2018-2019 marketing year
are expected to come down from the prior year spike, the Committee
still anticipates demand at relatively high levels.
The Committee estimates the 2019-2020 marketing year Native
spearmint oil trade demand to be 1,400,000 pounds. This figure is based
on input provided by producers at six production area meetings held in
mid-October 2018, as well as estimates provided by handlers and other
meeting participants at the October 17, 2018, meeting. This figure
represents a decrease of 50,000 pounds from the previous year's
estimate. The average estimated trade demand for Native spearmint oil
derived from the producer meetings was 1,380,000 pounds, whereas the
handlers' estimates ranged from 1,300,000 to 1,500,000 pounds. The
average of Native spearmint oil sales over the last three years is
1,364,782 pounds. The quantity marketed over the most recent full
marketing year, 2017-2018, was 1,565,515 pounds. However, the Committee
considers that year to be an anomaly. The Committee chose to be
slightly conservative in the establishment of its trade demand estimate
for the 2019-2020 marketing year to avoid oversupplying the market.
The estimated 2019-2020 marketing year carry-in of 8,005 pounds of
Native spearmint oil, plus the recommended salable quantity of
1,395,813 pounds, results in an estimated total available supply of
1,403,818 pounds of oil during the 2019-2020 marketing year. With the
corresponding estimated trade demand of 1,400,000 pounds, the Committee
projects that 3,818 pounds of oil will be carried into the 2019-2020
marketing year, resulting in a decrease of 4,187 pounds year-over-year.
The Committee estimates that there will be 1,150,927 pounds of Native
spearmint oil held in the reserve pool at the beginning of the 2019-
2020 marketing year. Should the industry experience an unexpected
increase in trade demand, oil in the Native spearmint oil reserve pool
could be released to satisfy that demand.
The Committee recommended an allotment percentage of 56 percent for
the 2019-2020 marketing year. During its October 17, 2018, meeting, the
Committee calculated an initial allotment percentage by dividing the
minimum required salable quantity (1,391,995 pounds) by the total
estimated allotment base (2,492,523 pounds), resulting in 55.8 percent.
However, producers and handlers at the meeting expressed that the
computed percentage of 55.8 percent may not adequately supply the
potential 2019-2020 Native spearmint oil market demand or result in
adequate carry-in for the subsequent marketing year. After
deliberation, the Committee increased the recommended allotment
percentage to 56 percent. The total estimated allotment base (2,492,523
pounds) for the 2019-2020 marketing year multiplied by the recommended
salable allotment percentage (56 percent) yields 1,395,813 pounds, the
recommended salable quantity for the year.
The 2019-2020 marketing year computational data for the Committee's
recommendations is further outlined below.
(A) Estimated carry-in of Native spearmint oil on June 1, 2019:
8,005 pounds. This figure is the difference between the revised 2018-
2019 marketing year total available supply of 1,458,005 pounds and the
revised 2018-2019 marketing year estimated trade demand of 1,450,000
pounds.
(B) Estimated trade demand of Native spearmint oil for the 2019-
2020 marketing year: 1,400,000 pounds. This estimate was established by
the Committee at the October 17, 2018, meeting.
(C) Salable quantity of Native spearmint oil required from the
2019-2020 marketing year production: 1,391,995 pounds. This figure is
the difference between the estimated 2019-2020 marketing year estimated
trade demand (1,400,000 pounds) and the estimated carry-in on June 1,
2019 (8,005 pounds). This is the minimum amount of Native spearmint oil
that the Committee believes will be required to meet the anticipated
2019-2020 marketing year trade demand.
(D) Total estimated allotment base of Native spearmint oil for the
2019-2020 marketing year: 2,492,523 pounds. This figure represents a
one-percent increase over the 2018-2019 total actual allotment base of
2,467,845 pounds as prescribed in Sec. 985.53(d)(1). The one-percent
increase equals 24,678 pounds of oil. This estimate is generally
revised
[[Page 19707]]
each year on June 1, due to adjustments resulting from the bona fide
effort production provisions of Sec. 985.53(e).
(E) Computed Native spearmint oil allotment percentage for the
2019-2020 marketing year: 55.8 percent. This percentage is calculated
by dividing the required salable quantity (1,391,995 pounds) by the
total estimated allotment base (2,492,523 pounds) for the 2019-2020
marketing year.
(F) Recommended Native spearmint oil allotment percentage for the
2019-2020 marketing year: 56 percent. This is the Committee's
recommendation based on the computed allotment percentage (55.8
percent) and input from producers and handlers at the October 17, 2018,
meeting. The recommended 56 percent allotment percentage is also based
on the Committee's belief that the computed percentage (55.8 percent)
may not adequately supply the potential market for Native spearmint oil
in the 2019-2020 marketing year.
(G) Recommended Native spearmint oil 2019-2020 marketing year
salable quantity: 1,395,813 pounds. This figure is the product of the
recommended allotment percentage (56 percent) and the total estimated
allotment base (2,492,523 pounds). This amount is slightly less than
the estimated trade demand for the 2019-2020 marketing year but could
be increased as needed through an intra-seasonal increase in the
salable quantity and allotment percentage.
(H) Estimated available supply of Native spearmint oil for the
2019-2020 marketing year: 1,403,808 pounds. This figure is the sum of
the 2019-2020 recommended salable quantity (1,395,813 pounds) and the
estimated carry-in on June 1, 2019 (8,005 pounds).
The Committee's recommended Scotch and Native spearmint oil salable
quantities and allotment percentages of 832,081 pounds and 38 percent,
and 1,395,813 pounds and 56 percent, respectively, will match the
available supply of each class of spearmint oil to the estimated demand
of each, thus avoiding extreme fluctuations in inventories and prices.
This rule is similar to regulations issued in prior seasons.
The salable quantities established in this final rule are not
expected to cause a shortage of either class of spearmint oil. Any
unanticipated or additional market demand for either class of spearmint
oil which may develop during the marketing year could be satisfied by
an intra-seasonal increase in the salable quantity and corresponding
allotment percentage. The Order contains a provision in Sec. 985.51
for intra-seasonal increases to allow the Committee the flexibility to
respond quickly to changing market conditions.
Under volume regulation, producers who produce more than their
annual allotments during the marketing year may transfer such excess
spearmint oil to producers who have produced less than their annual
allotment. In addition, on December 1 of each year, producers who have
not transferred their excess spearmint oil to other producers must
place their excess spearmint oil production into the reserve pool to be
released in the future in accordance with market needs and under the
Committee's direction.
USDA has reviewed the Committee's marketing policy statement for
the 2019-2020 marketing year. The Committee's marketing policy
statement, a requirement whenever the Committee recommends volume
regulation, meets the requirements of Sec. Sec. 985.50 and 985.51.
The establishment of salable quantities and allotment percentages
in this rule is expected to fully satisfy anticipated market needs. In
determining anticipated market needs, the Committee considered
historical sales, as well as changes and trends in production and
demand. This rule also provides producers with information regarding
the amount of spearmint oil that should be produced for the 2019-2020
season to meet anticipated market 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 rule 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. Marketing orders issued
pursuant to the Act, and the rules issued thereunder, are unique in
that they are brought about through group action of essentially small
entities acting on their own behalf.
There are approximately 33 producers and 90 producers of Scotch and
Native spearmint oil, respectively, in the regulated production area
and approximately 8 spearmint oil handlers subject to regulation under
the Order. 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).
The Committee reported that recent producer prices for spearmint
oil range from $15.50 to $18.00 per pound. The National Agricultural
Statistics Service (NASS) reported that the 2017 U.S. season average
spearmint oil producer price per pound was $16.20. Multiplying $16.20
per pound by 2016-17 spearmint oil utilization of 2,186,751 million
pounds yields a crop value estimate of about $35.4 million. Total 2016-
17 spearmint oil utilization, reported by the Committee, is 621,236
pounds and 1,565,515 pounds for Scotch and Native spearmint oil,
respectively.
Given the accounting requirements for the volume regulation
provisions of the Order, the Committee maintains accurate records of
each producer's production and sales. Using the $16.20 average
spearmint oil price, and Committee production data for each producer,
the Committee estimates that 11 of the 33 Scotch spearmint oil
producers and 34 of the 90 Native spearmint oil producers could be
classified as small entities under the SBA definition.
There is no third party or governmental entity that collects and
reports spearmint oil prices received by spearmint oil handlers.
However, the Committee estimates an average spearmint oil handling
markup at approximately 20 percent of the price received by producers.
Multiplying 1.20 by the 2016 producer price of $16.20 yields a handler
f.o.b. price per pound estimate of $19.44.
Multiplying this handler f.o.b price by spearmint oil utilization
of 2,186,751 pounds results in an estimated handler-level spearmint oil
value of $42.5 million. Dividing this figure by the number of handlers
(8) yields estimated average annual handler receipts of about $5.3
million, which is below the SBA threshold for small agricultural
service firms.
Furthermore, using confidential data on pounds handled by each
handler, and the abovementioned estimated handler price per pound, the
Committee reported that it is likely that at least two of the eight
handlers had 2017-2018 marketing year spearmint oil sales value that
exceeded the SBA threshold.
Therefore, in view of the foregoing, the majority of producers of
spearmint oil may be classified as large entities and the majority of
handlers of spearmint oil may be classified as small entities.
This final rule establishes the quantity of spearmint oil produced
in the Far West, by class, which handlers may
[[Page 19708]]
purchase from, or handle on behalf of, producers during the 2019-2020
marketing year. The Committee recommended this action to help maintain
stability in the spearmint oil market by matching supply to estimated
demand, thereby avoiding extreme fluctuations in supplies and prices.
Establishing quantities that may be purchased or handled during the
marketing year through volume regulations allows producers to
coordinate their spearmint oil production with the expected market
demand. Authority for this action is provided in Sec. Sec. 985.50,
985.51, and 985.52.
The Committee estimated trade demand for the 2019-2020 marketing
year for both classes of oil at 2,205,000 pounds and expects that the
combined salable carry-in will be 222,650 pounds. The combined required
salable quantity is 1,982,350 pounds. Under volume regulation, total
sales of spearmint oil by producers for the 2019-2020 marketing year
will be held to 2,450,544 pounds (the salable quantity established for
both classes of spearmint oil of 2,227,894 pounds, plus 222,650 pounds
of carry-in). This total available supply of 2,450,544 pounds should be
more than adequate to supply the 2,205,000 pounds of anticipated total
trade demand for spearmint oil. In addition, as of May 31, 2018, the
total reserve pool for both classes of spearmint oil stood at 1,223,221
pounds. Furthermore, that quantity is expected to rise over the course
of the 2018-2019 marketing year to 1,266,400. Should trade demand
increase unexpectedly during the 2019-2020 marketing year, reserve pool
spearmint oil could be released into the market to supply that increase
in demand.
The established allotment percentages, upon which 2019-2020
producer allotments are based, are 38 percent for Scotch spearmint oil
and 56 percent for Native spearmint oil. Without volume regulation,
producers would not be held to these allotment levels, and could sell
unrestricted quantities of spearmint oil. The USDA econometric model
estimated that the season average producer price per pound (from both
classes of spearmint oil) would decline about $2.20 per pound because
of the higher quantities of spearmint oil that would be produced and
marketed without volume regulation. The surplus situation for the
spearmint oil market that would exist without volume regulation in
2019-2020 also would likely dampen prospects for improved producer
prices in future years because of the buildup in stocks.
The use of volume regulation allows the industry to fully supply
spearmint oil markets while avoiding the negative consequences of over-
supplying these markets. The use of volume regulation is believed to
have little or no effect on consumer prices of products containing
spearmint oil and will not result in fewer retail sales of such
products.
The Committee discussed alternatives to its recommended volume
regulation levels for both classes of spearmint oil, including not
regulating during the 2019-2020 marketing year. The Committee rejected
the idea of not regulating any volume for either class of spearmint oil
because of the severe, price-depressing effects that would likely occur
without volume regulation. The Committee also discussed and considered
salable quantities and allotment percentages that were above and below
the levels that were ultimately recommended for both classes of
spearmint oil. Ultimately, the action taken by the Committee was to
recommend increasing the salable quantity and allotment percentage for
both Scotch and Native spearmint oil from the levels established for
the 2018-2019 marketing year.
As noted earlier, the Committee's recommendation to establish
salable quantities and allotment percentages for both classes of
spearmint oil was made after careful consideration of all available
information including: (1) The estimated quantity of salable oil of
each class held by producers and handlers; (2) the estimated demand for
each class of oil; (3) the prospective production of each class of oil;
(4) the total of allotment bases of each class of oil for the current
marketing year and the estimated total of allotment bases of each class
for the ensuing marketing year; (5) the quantity of reserve oil, by
class, in storage; (6) producer prices of oil, including prices for
each class of oil; and (7) general market conditions for each class of
oil, including whether the estimated season average price to producers
is likely to exceed parity.
Based on its review, the Committee believes that the salable
quantities and allotment percentages established in this rule will
achieve the objectives sought. The Committee also believes that, should
there be no volume regulation in effect for the upcoming marketing
year, the Far West spearmint oil industry would return to the
pronounced cyclical price patterns that occurred prior to the
promulgation of the Order. As previously stated, annual salable
quantities and allotment percentages have been issued for both classes
of spearmint oil since the Order's inception. The salable quantities
and allotment percentages established herein are expected to facilitate
the goal of maintaining orderly marketing conditions for Far West
spearmint oil for the 2019-2020 and future marketing years.
Costs to producers and handlers, large and small, resulting from
this action are expected to be offset by the benefits derived from a
more stable market and increased returns. The benefits of this rule are
expected to be equally available to all producers and handlers
regardless of their size.
In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C.
Chapter 35), the Order's information collection requirements have been
previously approved by 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 would be
submitted to OMB for approval.
This rule establishes salable quantities and allotment percentages
for Scotch spearmint oil and Native spearmint oil produced in the Far
West during the 2019-2020 marketing year. Accordingly, this rule does
not impose any additional reporting or recordkeeping requirements on
either small or large Far West spearmint oil producers or 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. USDA has not
identified any relevant Federal rules that duplicate, overlap, or
conflict with this final rule.
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.
A proposed rule concerning this action was published in the Federal
Register on February 15, 2019 (84 FR 4381). Copies of the proposed rule
were also mailed or sent via facsimile to all Far West spearmint oil
handlers. The proposal was made available through the internet by USDA
and the Office of the Federal Register. A 30-day comment period ending
March 18, 2019, was provided for interested persons to respond to the
proposal. No comments were received during the comment period.
Accordingly, no changes will be made to the rule as proposed.
A small business guide on complying with fruit, vegetable, and
specialty crop marketing agreements and orders may be viewed at: http:/
/www.ams.usda.gov/
[[Page 19709]]
rules-regulations/moa/small-businesses. Any questions about the
compliance guide should be sent to Richard Lower at the previously
mentioned address in the FOR FURTHER INFORMATION CONTACT section.
After consideration of all relevant material presented, including
the information and recommendation submitted by the Committee and other
available information, it is hereby found that this rule, will tend to
effectuate the declared policy of the Act.
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 7 CFR part 985 continues to read as
follows:
Authority: 7 U.S.C. 601-674.
0
2. Section 985.234 is added to read as follows:
Sec. 985.234 Salable quantities and allotment percentages--2019-2020
marketing year.
The salable quantity and allotment percentage for each class of
spearmint oil during the marketing year beginning on June 1, 2019,
shall be as follows:
(a) Class 1 (Scotch) oil--a salable quantity of 832,081 pounds and
an allotment percentage of 38 percent.
(b) Class 3 (Native) oil--a salable quantity of 1,395,813 pounds
and an allotment percentage of 56 percent.
Sec. 985.236 [Removed]
0
3. Remove Sec. 985.236.
Dated: April 30, 2019.
Bruce Summers,
Administrator, Agricultural Marketing Service.
[FR Doc. 2019-09149 Filed 5-3-19; 8:45 am]
BILLING CODE 3410-02-P
