Marketing Order Regulating the Handling of Spearmint Oil Produced in the Far West; Salable Quantities and Allotment Percentages for the 2021-2022 Marketing Year, 20038-20044 [2021-07829]
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Federal Register / Vol. 86, No. 72 / Friday, April 16, 2021 / Proposed Rules
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DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 985
[Doc. No. AMS–SC–20–0087; SC21–985–1
PR]
Marketing Order Regulating the
Handling of Spearmint Oil Produced in
the Far West; Salable Quantities and
Allotment Percentages for the 2021–
2022 Marketing Year
Agricultural Marketing Service,
USDA.
ACTION: Proposed rule.
AGENCY:
This proposed rule invites
comments on a recommendation from
the Far West Spearmint Oil
Administrative Committee (Committee)
to establish salable quantities and
allotment percentages for 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 2021–
2022 marketing year.
DATES: Comments must be received by
June 15, 2021.
ADDRESSES: Interested persons are
invited to submit written comments
concerning this proposed rule.
Comments must be sent to the Docket
Clerk, Marketing Order and Agreement
Division, Specialty Crops Program,
AMS, USDA, 1400 Independence
Avenue SW, STOP 0237, Washington,
DC 20250–0237; or internet: https://
www.regulations.gov. Comments should
reference the document number and the
date and page number of this issue of
the Federal Register and will be made
available for public inspection in the
Office of the Docket Clerk during regular
business hours or can be viewed at:
https://www.regulations.gov. All
comments submitted in response to this
proposal will be included in the record
and will be made available to the
public. Please be advised that the
identity of the individuals or entities
submitting the comments will be made
public on the internet at the address
provided above.
FOR FURTHER INFORMATION CONTACT:
Joshua R. Wilde, Marketing Specialist,
or Gary Olson, Regional Director,
Northwest Marketing Field Office,
Marketing Order and Agreement
Division, Specialty Crops Program,
AMS, USDA; Telephone: (503) 326–
2724, or email: Joshua.R.Wilde@
usda.gov or GaryD.Olson@usda.gov.
Small businesses may request
information on complying with this
regulation by contacting Richard Lower,
SUMMARY:
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Marketing Order and Agreement
Division, Specialty Crops Program,
AMS, USDA, 1400 Independence
Avenue SW, STOP 0237, Washington,
DC 20250–0237; Telephone: (202) 720–
2491, or email: Richard.Lower@
usda.gov.
This
action, pursuant to 5 U.S.C. 553,
proposes an amendment to regulations
issued to carry out a marketing order as
defined in 7 CFR 900.2(j). This proposed
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 proposed 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.
This proposed 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
proposed rule would establish
quantities and allotment percentages for
Scotch and Native spearmint oil for the
2021–2022 marketing year, which
begins on June 1, 2021.
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 a marketing order
may file with USDA a petition stating
that the marketing order, any provision
of the marketing order, or any obligation
imposed in connection with the
marketing order is not in accordance
with law and request a modification of
the marketing 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 (U.S.) 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
SUPPLEMENTARY INFORMATION:
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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 producer
allotments 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 revised each year on June 1 to account
for producer base being lost as a result
of the ‘‘bona fide effort’’ production
provision of § 985.53(e) and additional
base made available pursuant to the
provisions of § 985.153.
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 allotment
percentage is derived by dividing the
salable quantity of each class of
spearmint oil by the total industry
allotment base for that same class of oil.
The Committee met on October 14,
2020, to consider its marketing policy
for the 2021–2022 marketing year. At
that meeting, the Committee determined
that, based on the current market and
supply conditions, volume regulation
for both classes of oil would be
necessary. With a 6–1 vote, the
Committee recommended a salable
quantity and allotment percentage for
Scotch spearmint oil of 846,684 pounds
and 38 percent. The member voting in
opposition to the recommendation
favored volume regulation but
supported an unspecified lower salable
quantity and allotment percent than
what was recommended. The
Committee voted six in favor, with one
abstention, to recommend a salable
quantity and allotment percentage for
Native spearmint oil of 938,397 pounds
and 37 percent. The member abstaining
did not give a reason.
This proposed action would establish
the amount of Scotch and Native
spearmint oil that handlers may
purchase from, or handle on behalf of,
producers during the 2021–2022
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marketing year, which begins on June 1,
2021. Salable quantities and allotment
percentages have been placed into effect
each season since the Order’s inception
in 1980.
Scotch Spearmint Oil
The Committee recommended a
Scotch spearmint oil salable quantity of
846,684 pounds and an allotment
percentage of 38 percent for the 2021–
2022 marketing year. The proposed
2021–2022 marketing year salable
quantity of 846,684 pounds is 8,355
pounds more than the 2020–2021
marketing year salable quantity of
838,329 pounds. The allotment
percentage, recommended at 38 percent
for the 2021–2022 marketing year, is the
same as the percentage in effect the
previous year. The total allotment base
for the coming marketing year is
estimated to be 2,228,116 pounds. This
figure represents a one-percent increase
over the 2020–2021 marketing year total
allotment base of 2,206,055 pounds. The
salable quantity (846,684 pounds) is the
product of total allotment base
(2,228,116 pounds) times the allotment
percentage (38 percent).
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 the established acreage of
Scotch spearmint, consumer demand,
existing carry-in, reserve pool volume,
and increased production in competing
markets.
According to the Committee, as costs
of production have increased and
spearmint oil prices have decreased,
many producers have forgone new
plantings of Scotch spearmint. This has
resulted in a significant decline in
production of Scotch spearmint oil in
recent years. Production has decreased
from 1,113,346 pounds produced in
2016 to an estimated 498,322 pounds of
Scotch spearmint oil produced in 2020.
Industry reports indicate that trade
demand for Far West Scotch spearmint
oil has decreased over the past five
years as international markets for
spearmint-flavored products have
slowed. Sales of Far West Scotch
spearmint oil have averaged 740,216
pounds per year over the last five years
but have averaged only 645,965 pounds
over the last three years. In addition to
declining spearmint oil demand,
increasing production of Scotch
spearmint oil in competing markets,
most notably by Canadian producers,
has put additional downward pressure
on the Far West Scotch spearmint oil
market.
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Given the general decline in demand
and anticipated market conditions for
the coming year, the Committee
estimates that Scotch spearmint oil
trade demand for the 2021–2022
marketing year trade will be 623,000
pounds, which is 19,000 pounds higher
than the 2020–2021 estimate, but still
down from the three-year average of
actual sales. Should the proposed
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 would be required
during the 2021–2022 marketing year
(359,424 pounds) by subtracting the
estimated salable carry-in (263,576
pounds) on June 1, 2021, from the
estimated trade demand (623,000
pounds). This minimum salable
quantity represents the estimated
minimum amount of Scotch spearmint
oil that would be needed to satisfy
estimated trade demand for the coming
year. To ensure that the market would
be fully supplied, the Committee
recommended a 2021–2022 marketing
year salable quantity of 846,684 pounds.
The recommended salable quantity,
combined with an estimated 263,576
pounds of salable quantity carried in
from the previous year, would yield a
total available supply of 1,110,260
pounds of Scotch spearmint oil for the
2021–2022 marketing year. With the
recommended salable quantity and
current market environment, the
Committee estimates that as much as
487,260 pounds of salable Scotch
spearmint oil could be carried into the
2022–2023 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 four seasons
have exceeded sales, leading to a
gradual build of Scotch spearmint oil
salable carry-in.
The Committee estimates that there
will be 263,576 pounds of salable carryin of Scotch spearmint oil on June 1,
2021. If current market conditions are
maintained and the Committee’s
projections are correct, salable carry-in
would increase to 487,260 pounds at the
beginning of the 2022–2023 marketing
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year. This level would be above the
quantity that the Committee generally
considers favorable (150,000 pounds).
However, the Committee believes that,
given the current economic conditions
in the Scotch spearmint oil industry,
some Scotch spearmint oil producers
may not produce enough oil in the
2021–2022 marketing year to fill all of
their annual allotment. The Committee
estimates that as much as 245,352
pounds of 2020–2021 marketing year
annual allotment may not be filled by
producers. While the Committee has not
projected unused base allotment for the
2021–2022 marketing year and did not
incorporate this factor in its
recommendation, it anticipates that the
actual quantity of Scotch spearmint oil
carried into the following marketing
year will be significantly less than the
quantity calculated above (487,260
pounds).
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 was 67,645
pounds as of May 31, 2020, down from
132,984 pounds as of May 31, 2019.
However, the Scotch spearmint oil
reserve is expected to rebound slightly
to an estimated 83,608 pounds by the
end of the 2020–2021 marketing year.
This quantity of reserve pool oil should
be an adequate buffer to supply the
market, if necessary, should the
industry experience an unexpected
increase in demand.
The Committee recommended an
allotment percentage of 38 percent for
the 2021–2022 marketing year for
Scotch spearmint oil. During its October
14, 2020, meeting, the Committee
calculated an initial allotment
percentage by dividing the minimum
required salable quantity (359,424
pounds) by the total estimated allotment
base (2,228,116 pounds), resulting in
16.1 percent. However, producers and
handlers at the meeting indicated that
the computed percentage (16.1 percent)
might not adequately supply potential
2021–2022 Scotch spearmint oil market
demand and may also result in a less
than desirable carry-in for the
subsequent marketing year. After
deliberation, the Committee increased
the recommended allotment percentage
to 38 percent. The total estimated
allotment base (2,228,116 pounds) for
the 2021–2022 marketing year,
multiplied by the recommended salable
allotment percentage (38 percent),
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yields 846,684 pounds, which is the
recommended salable quantity for the
2021–2022 marketing year.
The 2021–2022 marketing year
computational data for the Committee’s
recommendations is detailed below.
(A) Estimated carry-in of Scotch
spearmint oil on June 1, 2021: 263,576
pounds. This figure is the difference
between the 2020–2021 marketing year
total available supply of 867,576 pounds
and the 2020–2021 marketing year
estimated trade demand of 604,000
pounds. The estimated 2020–2021
marketing year trade demand was
revised down from the original estimate
of 750,000 pounds by the Committee at
its October 14, 2020, meeting.
(B) Estimated trade demand of Scotch
spearmint oil for the 2021–2022
marketing year: 623,000 pounds. This
figure was established at the Committee
meeting held on October 14, 2020.
(C) Salable quantity of Scotch
spearmint oil required from the 2021–
2022 marketing year production:
359,424 pounds. This figure is the
difference between the estimated 2021–
2022 marketing year trade demand
(623,000 pounds) and the estimated
carry-in on June 1, 2021 (263,576
pounds). This salable quantity
represents the minimum amount of
Scotch spearmint oil that would be
needed to satisfy estimated demand for
the coming year.
(D) Total estimated Scotch spearmint
oil allotment base of for the 2021–2022
marketing year: 2,228,116 pounds. This
figure represents a one-percent increase
over the 2020–2021 total actual
allotment base of 2,206,055 pounds, as
prescribed by § 985.53. The one-percent
increase equals 22,061 pounds. This
total estimated allotment base is revised
each year on June 1 in accordance with
§ 985.53(e).
(E) Computed Scotch spearmint oil
allotment percentage for the 2021–2022
marketing year: 16.1 percent. This
percentage is computed by dividing the
minimum required salable quantity
(359,424 pounds) by the total estimated
allotment base (2,228,116 pounds).
(F) Recommended Scotch spearmint
oil allotment percentage for the 2021–
2022 marketing year: 38 percent. This is
the Committee’s recommendation and is
based on the computed allotment
percentage (16.1 percent) and input
from producers and handlers at the
October 14, 2020, meeting. The
recommended 38 percent allotment
percentage reflects the Committee’s
belief that the computed percentage
(16.1 percent) may not adequately
supply the anticipated 2021–2022
marketing year Scotch spearmint oil
market demand.
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(G) Recommended Scotch spearmint
oil salable quantity for the 2021–2022
marketing year: 846,684 pounds. This
figure is the product of the
recommended salable allotment
percentage (38 percent) and the total
estimated allotment base (2,228,116
pounds) for the 2021–2022 marketing
year.
(H) Estimated total available supply
of Scotch spearmint oil for the 2021–
2022 marketing year: 1,110,260 pounds.
This figure is the sum of the 2021–2022
marketing year recommended salable
quantity (846,684 pounds) and the
estimated carry-in on June 1, 2021
(263,576 pounds).
For the reasons stated above, the
Committee believes that the
recommended salable quantity and
allotment percentage would adequately
satisfy trade demand, would result in a
reasonable carry-in for the following
year, and would contribute to the
orderly marketing of Scotch spearmint
oil.
Native Spearmint Oil
The Committee recommended a
Native spearmint oil salable quantity of
938,397 pounds and an allotment
percentage of 37 percent for the 2021–
2022 marketing year. These figures are,
respectively, 292,089 pounds and 12
percentage points lower than the levels
established for the 2020–2021 marketing
year.
The Committee utilized handlers’
estimated trade demand 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 2021
Native spearmint oil production will
total 1,181,230 pounds, down
substantially from the previous year’s
production of 1,493,686 pounds.
Committee records show an estimated
7,957 acres of Native spearmint
production in the Far West in 2020
compared to an estimated 9,013 acres of
Native spearmint production in 2019.
Sales of Native spearmint oil have
also been declining, falling from a high
of 1,565,515 pounds in the 2017–2018
marketing year to 1,076,906 pounds
over the 2019–2020 marketing year, the
last full year of reported sales. The
Committee estimates that trade demand
for Native spearmint oil will be
1,059,167 pounds for the 2020–2021
marketing year, well below the 5-year
sales average of 1,283,266 pounds.
The Committee expects that 694,137
pounds of salable Native spearmint oil
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from prior years will be carried into the
2021–2022 marketing year. This amount
is up from the 522,818 pounds of salable
oil carried into the 2020–2021
marketing year and well above the level
that the Committee generally considers
favorable.
Further, the Committee estimated that
there will be 1,130,264 pounds of Native
spearmint oil in the reserve pool at the
beginning of the 2021–2022 marketing
year. This figure is 49,256 pounds lower
than the quantity of reserve pool oil
held by producers on June 1, 2020, but
is still higher than the level that the
Committee believes is optimal. This
modest decline in the reserve oil
reverses the recent trend of gradual
increases that the industry has
experienced over the past several
marketing years.
The Committee expects end users of
Native spearmint oil to continue to rely
on Far West production as their primary
source of high-quality Native spearmint
oil. Overseas production of Native
spearmint has declined in recent years.
As a result, U.S. exports of Native
spearmint oil have been increasing since
2018. However, the increase in domestic
production from other states outside the
Far West region has more than offset the
decline in foreign production of Native
spearmint oil. For instance, production
of Native spearmint oil in the U.S.
Midwest region has spiked in recent
years, rising from fewer than 2,000 acres
in 2016 to approximately 5,500 acres in
2020. Additionally, the sharp increase
in demand for Native spearmint
experienced during the 2017–2018
marketing year has tapered off in recent
years. These factors have contributed to
declining trade demand for Far West
Native spearmint oil and led to
downward pressure on producer prices.
The Committee chose to be cautiously
optimistic in the establishment of its
trade demand estimate for the 2021–
2022 marketing year to ensure that the
market would be adequately supplied.
At the October 14, 2020, meeting, the
Committee estimated the 2021–2022
marketing year Native spearmint oil
trade demand to be 1,125,000 pounds.
This figure is based on input provided
by producers at nine production area
meetings held in early October 2020, as
well as estimates provided by handlers
and other meeting participants. This
figure represents an increase of 65,833
pounds from the previous year’s revised
trade demand estimate. The average
estimated trade demand for Native
spearmint oil derived from the area
producer meetings was 1,105,556
pounds, whereas the handlers’ estimates
ranged from 900,000 to 1,300,000
pounds. The average of Native
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spearmint oil sales over the last three
years was 1,295,832 pounds. The
quantity marketed over the most recent
full marketing year, 2019–2020, was
1,076,906 pounds.
The estimated June 1, 2021, carry-in
of 694,137 pounds of Native spearmint
oil, plus the recommended 2021–2022
marketing year salable quantity of
938,397 pounds, would result in an
estimated total available supply of
1,632,534 pounds of Native spearmint
oil during the 2021–2022 marketing
year. With the corresponding estimated
trade demand of 1,125,000 pounds, the
Committee projects that 507,534 pounds
of oil will be carried into the 2022–2023
marketing year. This would result in a
year-over-year decrease of 186,603
pounds. The Committee estimates that
there will be 1,130,264 pounds of Native
spearmint oil held in the reserve pool at
the beginning of the 2021–2022
marketing year. Should the industry
experience an unexpected increase in
trade demand, oil in the Native
spearmint oil reserve pool could be
released through an intra-seasonal
increase to satisfy that demand.
The Committee recommended a
producer allotment percentage of 37
percent for the 2021–2022 marketing
year. During its October 14, 2020,
meeting, the Committee calculated an
initial producer allotment percentage of
17 percent by dividing the minimum
required salable quantity to satisfy
estimated trade demand (430,863
pounds) by the total allotment base
(2,536,208 pounds). However, producers
and handlers at the meeting expressed
that the computed percentage of 17
percent may not adequately supply the
potential 2021–2022 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 37 percent. The total
estimated allotment base (2,536,208
pounds) for the 2021–2022 marketing
year multiplied by the recommended
salable allotment percentage (37
percent) yields 938,397 pounds, the
recommended salable quantity for the
year.
The 2021–2022 marketing year
computational data for the Committee’s
recommendations is further outlined
below.
(A) Estimated carry-in of Native
spearmint oil on June 1, 2021: 694,137
pounds. This figure is the difference
between the revised 2020–2021
marketing year total available supply of
1,753,304 pounds and the revised 2020–
2021 marketing year estimated trade
demand of 1,059,167 pounds.
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(B) Estimated trade demand of Native
spearmint oil for the 2021–2022
marketing year: 1,125,000 pounds. This
estimate was established by the
Committee at the October 14, 2020,
meeting.
(C) Salable quantity of Native
spearmint oil required from the 2021–
2022 marketing year production:
430,863 pounds. This figure is the
difference between the estimated 2021–
2022 marketing year estimated trade
demand (1,125,000 pounds) and the
estimated carry-in on June 1, 2021
(694,137 pounds). This is the minimum
amount of Native spearmint oil that the
Committee believes would be required
to meet the anticipated 2021–2022
marketing year trade demand.
(D) Total estimated allotment base of
Native spearmint oil for the 2021–2022
marketing year: 2,536,208 pounds. This
figure represents a one-percent increase
over the 2020–2021 total actual
allotment base of 2,511,097 pounds as
prescribed in § 985.53. The one-percent
increase equals 25,111 pounds of oil.
This estimate is revised 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 2021–2022
marketing year: 17.0 percent. This
percentage is calculated by dividing the
required salable quantity (430,863
pounds) by the total estimated allotment
base (2,536,208 pounds) for the 2021–
2022 marketing year.
(F) Recommended Native spearmint
oil allotment percentage for the 2021–
2022 marketing year: 37 percent. This is
the Committee’s recommendation based
on the computed allotment percentage
(17.0 percent) and input from producers
and handlers at the October 14, 2020,
meeting. The recommended 37 percent
allotment percentage is based on the
Committee’s belief that the computed
percentage (17.0 percent) may not
adequately supply the potential market
for Native spearmint oil in the 2021–
2022 marketing year or allow for salable
Native spearmint oil to be carried into
the beginning of the 2022–2023
marketing year.
(G) Recommended Native spearmint
oil 2021–2022 marketing year salable
quantity: 938,397 pounds. This figure is
the product of the recommended
allotment percentage (37 percent) and
the total estimated allotment base
(2,536,208 pounds).
(H) Estimated available supply of
Native spearmint oil for the 2021–2022
marketing year: 1,632,534 pounds. This
figure is the sum of the 2021–2022
recommended salable quantity (938,397
pounds) and the estimated carry-in on
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June 1, 2021 (694,137 pounds). This
amount could be increased, as needed,
through an intra-seasonal increase in the
salable quantity and allotment
percentage.
The Committee’s recommended
Scotch and Native spearmint oil salable
quantities and allotment percentages of
846,684 pounds and 38 percent, and
938,397 pounds and 37 percent,
respectively, would 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 proposed
rule is similar to regulations issued in
prior seasons.
The salable quantities in this
proposed 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
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.
In conjunction with the issuance of
this proposed rule, USDA has reviewed
the Committee’s marketing policy
statement for the 2021–2022 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 the proposed
salable quantities and allotment
percentages would allow for anticipated
market needs. In determining
anticipated market needs, the
Committee considered historical sales,
as well as changes and trends in
production and demand. This proposal
would also provide producers with
information regarding the amount of
spearmint oil that should be produced
for the 2021–2022 season to meet
anticipated market demand.
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Initial Regulatory Flexibility Act
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
proposed rule on small entities.
Accordingly, AMS has prepared this
initial regulatory flexibility analysis.
The purpose of the RFA is to fit
regulatory actions to the scale of
businesses subject to such actions in
order that small businesses will not be
unduly or disproportionately burdened.
Marketing orders issued pursuant to the
Act, and 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 40 producers
and 94 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 $30,000,000,
and small agricultural producers are
defined as those having annual receipts
of less than $1,000,000 (13 CFR
121.201).
The Committee reported that recent
producer prices for spearmint oil have
ranged from $12.00 to $17.00 per
pound. The National Agricultural
Statistics Service (NASS) reported that
the 2019 U.S. season average spearmint
oil producer price per pound was
$16.90. Spearmint oil utilization for the
2019–2020 marketing year, as reported
by the Committee, was 598,706 pounds
and 1,076,906 pounds for Scotch and
Native spearmint oil, respectively, for a
total of 1,675,612 pounds. Multiplying
$16.90 per pound by 2019–2020
marketing year spearmint oil utilization
of 1,675,612 pounds yields a crop value
estimate of about $28.3 million.
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 $16.90
average spearmint oil price, and
Committee production data for each
producer, the Committee estimates that
37 of the 40 Scotch spearmint oil
producers and 90 of the 94 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
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Committee estimates an average
spearmint oil handling markup at
approximately 20 percent of the price
received by producers. Multiplying 1.20
by the 2018 producer price of $16.90
yields a handler free on board (f.o.b.)
price per pound estimate of $20.28.
Multiplying this estimated handler
f.o.b. price by the 2019–2020 marketing
year total spearmint oil utilization of
1,675,612 pounds results in an
estimated handler-level spearmint oil
value of $33.98 million. Dividing this
figure by the number of handlers (8)
yields estimated average annual handler
receipts of about $4.25 million, which is
well below the SBA threshold for small
agricultural service firms.
Furthermore, using confidential data
on pounds handled by each handler,
and the above mentioned estimated
handler price per pound, the Committee
reported that it is not likely that any of
the eight handlers had 2019–2020
marketing year spearmint oil sales that
exceeded the $30 million SBA
threshold.
Therefore, in view of the foregoing,
the majority of producers of spearmint
oil may be classified as small entities,
and all of the handlers of spearmint oil
may be classified as small entities.
This proposed rule would establish
the quantity of spearmint oil produced
in the Far West, by class, which
handlers may purchase from, or handle
on behalf of, producers during the
2021–2022 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
regulation allows producers to
coordinate their spearmint oil
production with the expected market
demand. Authority for this proposal is
provided in §§ 985.50, 985.51, and
985.52.
The Committee estimated the total
trade demand for the 2021–2022
marketing year for both classes of oil at
1,748,000 pounds. In addition, the
Committee expects that the combined
salable carry-in for both classes of
spearmint oil will be 957,713 pounds.
As such, the combined required salable
quantity for the 2021–2022 marketing
year is estimated to be 790,287 pounds
(1,748,000 pounds trade demand less
957,713 pounds carry-in). Under
volume regulation, total sales of
spearmint oil by producers for the
2021–2022 marketing year would be
held to 2,742,794 pounds (the
recommended salable quantity for both
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classes of spearmint oil of 1,785,081
pounds plus 957,713 pounds of carryin).
This total available supply of
2,742,794 pounds should be more than
adequate to supply the 1,748,000
pounds of anticipated total trade
demand for spearmint oil. In addition,
as of May 31, 2020, the total reserve
pool for both classes of spearmint oil
stood at 1,247,165 pounds. That
quantity is expected to remain relatively
unchanged over the course of the 2021–
2022 marketing year, with current
Committee reserve pool estimates
totaling 1,366,673 pounds. Should trade
demand increase unexpectedly during
the 2021–2022 marketing year, reserve
pool spearmint oil could be released
into the market to supply that increase
in demand.
The recommended allotment
percentages, upon which 2021–2022
marketing year annual allotments are
based, are 38 percent for Scotch
spearmint oil and 37 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 used to
evaluate the Far West spearmint oil
market estimated that the season
average producer price per pound (from
both classes of spearmint oil) would
decline about $1.70 per pound without
volume regulation. The surplus
situation for the spearmint oil market
that would exist without volume
regulation in the 2021–2022 marketing
year also would likely dampen
prospects for improved producer prices
in future years because of the excessive
buildup in stocks.
In addition, the econometric model
estimated that spearmint oil prices
would fluctuate with greater amplitude
in the absence of volume regulation.
The coefficient of variation, or CV (a
standard measure of variability), of Far
West spearmint oil producer prices for
the period 1980–2019 (the years in
which the Order has been in effect), is
25 percent, compared to 49 percent for
the 20-year period (1960–1979)
immediately prior to the establishment
of the Order. Since higher CV values
correspond to greater variability, this is
an indicator of the price stabilizing
impact of the Order.
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 would not result in
fewer retail sales of such products.
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The Committee discussed alternatives
to the recommendations contained in
this rule for both classes of spearmint
oil. The Committee rejected the idea of
not regulating 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 recommended by the Committee
was to maintain the allotment
percentage for Scotch spearmint oil
(which would slightly increase the
salable quantity) and to decrease both
the salable quantity and allotment
percentage for Native spearmint oil from
the levels established for the 2020–2021
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 recommended
would 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 proposed herein
are expected to facilitate the goal of
maintaining orderly marketing
conditions for Far West spearmint oil
for the 2021–2022 and future marketing
years.
Costs to producers and handlers, large
and small, resulting from this proposal
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20043
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,
Vegetable and Specialty Crops. No
changes are necessary in those
requirements as a result of this proposed
action. Should any changes become
necessary, they would be submitted to
OMB for approval.
This proposed rule would establish
the salable quantities and allotment
percentages for Scotch spearmint oil
and Native spearmint oil produced in
the Far West during the 2021–2022
marketing year. Accordingly, this
proposal would not impose any
additional reporting or recordkeeping
requirements on either small or large
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. In addition, USDA has
not identified any relevant Federal rules
that duplicate, overlap, or conflict with
this proposed 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.
The Committee’s meeting was widely
publicized throughout the spearmint oil
industry, and all interested persons
were invited to attend the meeting and
participate in Committee deliberations
on all issues. Like all Committee
meetings, the October 14, 2020, meeting
was a public meeting and all entities,
both large and small, were able to
express views on this issue. Interested
persons are invited to submit comments
on this proposed rule, including the
regulatory and informational impacts of
this action on small businesses.
A small business guide on complying
with fruit, vegetable, and specialty crop
marketing agreements and orders may
be viewed at: https://
www.ams.usda.gov/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.
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A 60-day comment period is provided
to allow interested persons to respond
to this proposal. All written comments
timely received will be considered
before a final determination is made on
this matter.
List of Subjects in 7 CFR Part 985
Marketing agreements, Oils and fats,
Reporting and recordkeeping
requirements, Spearmint oil.
For the reasons set forth in the
preamble, the Agriculture Marketing
Services proposes to amend 7 CFR part
985 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 985.236 is added to read as
follows:
■
§ 985.236 Salable quantities and allotment
percentages—2021–2022 marketing year.
The salable quantity and allotment
percentage for each class of spearmint
oil during the marketing year beginning
on June 1, 2021, shall be as follows:
(a) Class 1 (Scotch) oil—a salable
quantity of 846,684 pounds and an
allotment percentage of 38 percent.
(b) Class 3 (Native) oil—a salable
quantity of 938,397 pounds and an
allotment percentage of 37 percent.
Bruce Summers,
Administrator, Agricultural Marketing
Service.
[FR Doc. 2021–07829 Filed 4–15–21; 8:45 am]
BILLING CODE P
DEPARTMENT OF ENERGY
10 CFR Part 430
[EERE–2020–BT–TP–0029]
RIN 1904–AF03
Energy Conservation Program: Test
Procedure for Portable Air
Conditioners
Office of Energy Efficiency and
Renewable Energy, Department of
Energy.
ACTION: Request for information.
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AGENCY:
The U.S. Department of
Energy (‘‘DOE’’) is undertaking the
preliminary stages of a rulemaking to
consider amendments to the test
procedure for portable air conditioners
(‘‘ACs’’). Through this request for
SUMMARY:
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16:09 Apr 15, 2021
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information (‘‘RFI’’), DOE seeks data
and information regarding issues
pertinent to whether amended test
procedures would more accurately or
fully comply with the requirement that
the test procedure produces results that
measure energy use during a
representative average use cycle or
period of use for the product without
being unduly burdensome to conduct,
or reduce testing burden. DOE
welcomes written comments from the
public on any subject within the scope
of this document (including topics not
raised in this RFI), as well as the
submission of data and other relevant
information.
DATES: Written comments and
information are requested and will be
accepted on or before May 17, 2021.
ADDRESSES: Interested persons are
encouraged to submit comments using
the Federal eRulemaking Portal at
https://www.regulations.gov. Follow the
instructions for submitting comments.
Alternatively, interested persons may
submit comments, identified by docket
number EERE–2020–BT–TP–0029, by
any of the following methods:
1. Federal eRulemaking Portal: https://
www.regulations.gov. Follow the
instructions for submitting comments.
2. Email: to PortableAC2020TP0029@
ee.doe.gov. Include docket number
EERE–2020–BT–TP–0029 in the subject
line of the message.
No telefacsimiles (‘‘faxes’’) will be
accepted. For detailed instructions on
submitting comments and additional
information on this process, see section
III of this document.
Although DOE has routinely accepted
public comment submissions through a
variety of mechanisms, including postal
mail and hand delivery/courier, the
Department has found it necessary to
make temporary modifications to the
comment submission process in light of
the ongoing Covid-19 pandemic. DOE is
currently suspending receipt of public
comments via postal mail and hand
delivery/courier. If a commenter finds
that this change poses an undue
hardship, please contact Appliance
Standards Program staff at (202) 586–
1445 to discuss the need for alternative
arrangements. Once the Covid-19
pandemic health emergency is resolved,
DOE anticipates resuming all of its
regular options for public comment
submission, including postal mail and
hand delivery/courier.
Docket: The docket for this activity,
which includes Federal Register
notices, comments, and other
supporting documents/materials, is
available for review at https://
www.regulations.gov. All documents in
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the docket are listed in the https://
www.regulations.gov index. However,
some documents listed in the index,
such as those containing information
that is exempt from public disclosure,
may not be publicly available.
The docket web page can be found at
https://www.regulations.gov/
docket?D=EERE-2020-BT-TP-0029. The
docket web page contains instructions
on how to access all documents,
including public comments, in the
docket. See section III for information
on how to submit comments through
https://www.regulations.gov.
FOR FURTHER INFORMATION CONTACT: Mr.
Bryan Berringer, U.S. Department of
Energy, Office of Energy Efficiency and
Renewable Energy, Building
Technologies Office, EE–5B, 1000
Independence Avenue SW, Washington,
DC 20585–0121. Telephone: (202) 586–
0371. Email:
ApplianceStandardsQuestions@
ee.doe.gov.
Ms. Sarah Butler, U.S. Department of
Energy, Office of the General Counsel,
GC–33, 1000 Independence Avenue SW,
Washington, DC 20585–0121.
Telephone: (202) 586–1777. Email:
Sarah.Butler@hq.doe.gov.
For further information on how to
submit a comment or review other
public comments and the docket,
contact the Appliance and Equipment
Standards Program staff at (202) 287–
1445 or by email:
ApplianceStandardsQuestions@
ee.doe.gov.
SUPPLEMENTARY INFORMATION:
Table of Contents
I. Introduction
A. Authority and Background
B. Rulemaking History
II. Request for Information
A. Scope and Definitions
B. Test Procedure
1. Updates to Industry Standards
2. Test Harmonization
3. Energy Use Measurements
4. Representative Average Period of Use
5. Test Burden
6. Convection Coefficient
7. Infiltration Air and Duct Heat Transfer
8. Case Heat Transfer
9. Heating Mode
10. Network Connectivity
11. Fan-Only Mode
12. Part-Load Performance and Load-Based
Testing
13. Dehumidification Mode
14. Spot Coolers
C. Test Procedure Waivers
III. Submission of Comments
I. Introduction
DOE’s test procedures for portable
ACs are prescribed in the Code of
Federal Regulations (‘‘CFR’’) at Title 10
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]]>Agencies
[Federal Register Volume 86, Number 72 (Friday, April 16, 2021)]
[Proposed Rules]
[Pages 20038-20044]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-07829]
-----------------------------------------------------------------------
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 985
[Doc. No. AMS-SC-20-0087; SC21-985-1 PR]
Marketing Order Regulating the Handling of Spearmint Oil Produced
in the Far West; Salable Quantities and Allotment Percentages for the
2021-2022 Marketing Year
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Proposed rule.
-----------------------------------------------------------------------
SUMMARY: This proposed rule invites comments on a recommendation from
the Far West Spearmint Oil Administrative Committee (Committee) to
establish salable quantities and allotment percentages for 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 2021-2022 marketing year.
DATES: Comments must be received by June 15, 2021.
ADDRESSES: Interested persons are invited to submit written comments
concerning this proposed rule. Comments must be sent to the Docket
Clerk, Marketing Order and Agreement Division, Specialty Crops Program,
AMS, USDA, 1400 Independence Avenue SW, STOP 0237, Washington, DC
20250-0237; or internet: https://www.regulations.gov. Comments should
reference the document number and the date and page number of this
issue of the Federal Register and will be made available for public
inspection in the Office of the Docket Clerk during regular business
hours or can be viewed at: https://www.regulations.gov. All comments
submitted in response to this proposal will be included in the record
and will be made available to the public. Please be advised that the
identity of the individuals or entities submitting the comments will be
made public on the internet at the address provided above.
FOR FURTHER INFORMATION CONTACT: Joshua R. Wilde, Marketing Specialist,
or Gary Olson, Regional Director, Northwest Marketing Field Office,
Marketing Order and Agreement Division, Specialty Crops Program, AMS,
USDA; Telephone: (503) 326-2724, 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, or
email: [email protected].
SUPPLEMENTARY INFORMATION: This action, pursuant to 5 U.S.C. 553,
proposes an amendment to regulations issued to carry out a marketing
order as defined in 7 CFR 900.2(j). This proposed 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 proposed 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.
This proposed 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 proposed rule would establish quantities and
allotment percentages for Scotch and Native spearmint oil for the 2021-
2022 marketing year, which begins on June 1, 2021.
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 a marketing order may file with USDA a
petition stating that the marketing order, any provision of the
marketing order, or any obligation imposed in connection with the
marketing order is not in accordance with law and request a
modification of the marketing 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 (U.S.) 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
[[Page 20039]]
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 producer
allotments 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 revised each year on
June 1 to account for producer base being lost as a result of the
``bona fide effort'' production provision of Sec. 985.53(e) and
additional base made available pursuant to the provisions of Sec.
985.153.
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 allotment
percentage is derived by dividing the salable quantity of each class of
spearmint oil by the total industry allotment base for that same class
of oil.
The Committee met on October 14, 2020, to consider its marketing
policy for the 2021-2022 marketing year. At that meeting, the Committee
determined that, based on the current market and supply conditions,
volume regulation for both classes of oil would be necessary. With a 6-
1 vote, the Committee recommended a salable quantity and allotment
percentage for Scotch spearmint oil of 846,684 pounds and 38 percent.
The member voting in opposition to the recommendation favored volume
regulation but supported an unspecified lower salable quantity and
allotment percent than what was recommended. The Committee voted six in
favor, with one abstention, to recommend a salable quantity and
allotment percentage for Native spearmint oil of 938,397 pounds and 37
percent. The member abstaining did not give a reason.
This proposed action would establish the amount of Scotch and
Native spearmint oil that handlers may purchase from, or handle on
behalf of, producers during the 2021-2022 marketing year, which begins
on June 1, 2021. Salable quantities and allotment percentages have been
placed into effect each season since the Order's inception in 1980.
Scotch Spearmint Oil
The Committee recommended a Scotch spearmint oil salable quantity
of 846,684 pounds and an allotment percentage of 38 percent for the
2021-2022 marketing year. The proposed 2021-2022 marketing year salable
quantity of 846,684 pounds is 8,355 pounds more than the 2020-2021
marketing year salable quantity of 838,329 pounds. The allotment
percentage, recommended at 38 percent for the 2021-2022 marketing year,
is the same as the percentage in effect the previous year. The total
allotment base for the coming marketing year is estimated to be
2,228,116 pounds. This figure represents a one-percent increase over
the 2020-2021 marketing year total allotment base of 2,206,055 pounds.
The salable quantity (846,684 pounds) is the product of total allotment
base (2,228,116 pounds) times the allotment percentage (38 percent).
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 the established acreage of
Scotch spearmint, consumer demand, existing carry-in, reserve pool
volume, and increased production in competing markets.
According to the Committee, as costs of production have increased
and spearmint oil prices have decreased, many producers have forgone
new plantings of Scotch spearmint. This has resulted in a significant
decline in production of Scotch spearmint oil in recent years.
Production has decreased from 1,113,346 pounds produced in 2016 to an
estimated 498,322 pounds of Scotch spearmint oil produced in 2020.
Industry reports indicate that trade demand for Far West Scotch
spearmint oil has decreased over the past five years as international
markets for spearmint-flavored products have slowed. Sales of Far West
Scotch spearmint oil have averaged 740,216 pounds per year over the
last five years but have averaged only 645,965 pounds over the last
three years. In addition to declining spearmint oil demand, increasing
production of Scotch spearmint oil in competing markets, most notably
by Canadian producers, has put additional downward pressure on the Far
West Scotch spearmint oil market.
Given the general decline in demand and anticipated market
conditions for the coming year, the Committee estimates that Scotch
spearmint oil trade demand for the 2021-2022 marketing year trade will
be 623,000 pounds, which is 19,000 pounds higher than the 2020-2021
estimate, but still down from the three-year average of actual sales.
Should the proposed 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 would be required during the 2021-2022 marketing
year (359,424 pounds) by subtracting the estimated salable carry-in
(263,576 pounds) on June 1, 2021, from the estimated trade demand
(623,000 pounds). This minimum salable quantity represents the
estimated minimum amount of Scotch spearmint oil that would be needed
to satisfy estimated trade demand for the coming year. To ensure that
the market would be fully supplied, the Committee recommended a 2021-
2022 marketing year salable quantity of 846,684 pounds. The recommended
salable quantity, combined with an estimated 263,576 pounds of salable
quantity carried in from the previous year, would yield a total
available supply of 1,110,260 pounds of Scotch spearmint oil for the
2021-2022 marketing year. With the recommended salable quantity and
current market environment, the Committee estimates that as much as
487,260 pounds of salable Scotch spearmint oil could be carried into
the 2022-2023 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 four seasons have
exceeded sales, leading to a gradual build of Scotch spearmint oil
salable carry-in.
The Committee estimates that there will be 263,576 pounds of
salable carry-in of Scotch spearmint oil on June 1, 2021. If current
market conditions are maintained and the Committee's projections are
correct, salable carry-in would increase to 487,260 pounds at the
beginning of the 2022-2023 marketing
[[Page 20040]]
year. This level would be above the quantity that the Committee
generally considers favorable (150,000 pounds). However, the Committee
believes that, given the current economic conditions in the Scotch
spearmint oil industry, some Scotch spearmint oil producers may not
produce enough oil in the 2021-2022 marketing year to fill all of their
annual allotment. The Committee estimates that as much as 245,352
pounds of 2020-2021 marketing year annual allotment may not be filled
by producers. While the Committee has not projected unused base
allotment for the 2021-2022 marketing year and did not incorporate this
factor in its recommendation, it anticipates that the actual quantity
of Scotch spearmint oil carried into the following marketing year will
be significantly less than the quantity calculated above (487,260
pounds).
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 was 67,645 pounds as of May 31, 2020, down from 132,984
pounds as of May 31, 2019. However, the Scotch spearmint oil reserve is
expected to rebound slightly to an estimated 83,608 pounds by the end
of the 2020-2021 marketing year. This quantity of reserve pool oil
should be an adequate buffer to supply the market, if necessary, should
the industry experience an unexpected increase in demand.
The Committee recommended an allotment percentage of 38 percent for
the 2021-2022 marketing year for Scotch spearmint oil. During its
October 14, 2020, meeting, the Committee calculated an initial
allotment percentage by dividing the minimum required salable quantity
(359,424 pounds) by the total estimated allotment base (2,228,116
pounds), resulting in 16.1 percent. However, producers and handlers at
the meeting indicated that the computed percentage (16.1 percent) might
not adequately supply potential 2021-2022 Scotch spearmint oil market
demand and may also result in a less than desirable carry-in for the
subsequent marketing year. After deliberation, the Committee increased
the recommended allotment percentage to 38 percent. The total estimated
allotment base (2,228,116 pounds) for the 2021-2022 marketing year,
multiplied by the recommended salable allotment percentage (38
percent), yields 846,684 pounds, which is the recommended salable
quantity for the 2021-2022 marketing year.
The 2021-2022 marketing year computational data for the Committee's
recommendations is detailed below.
(A) Estimated carry-in of Scotch spearmint oil on June 1, 2021:
263,576 pounds. This figure is the difference between the 2020-2021
marketing year total available supply of 867,576 pounds and the 2020-
2021 marketing year estimated trade demand of 604,000 pounds. The
estimated 2020-2021 marketing year trade demand was revised down from
the original estimate of 750,000 pounds by the Committee at its October
14, 2020, meeting.
(B) Estimated trade demand of Scotch spearmint oil for the 2021-
2022 marketing year: 623,000 pounds. This figure was established at the
Committee meeting held on October 14, 2020.
(C) Salable quantity of Scotch spearmint oil required from the
2021-2022 marketing year production: 359,424 pounds. This figure is the
difference between the estimated 2021-2022 marketing year trade demand
(623,000 pounds) and the estimated carry-in on June 1, 2021 (263,576
pounds). This salable quantity represents the minimum amount of Scotch
spearmint oil that would be needed to satisfy estimated demand for the
coming year.
(D) Total estimated Scotch spearmint oil allotment base of for the
2021-2022 marketing year: 2,228,116 pounds. This figure represents a
one-percent increase over the 2020-2021 total actual allotment base of
2,206,055 pounds, as prescribed by Sec. 985.53. The one-percent
increase equals 22,061 pounds. This total estimated allotment base is
revised each year on June 1 in accordance with Sec. 985.53(e).
(E) Computed Scotch spearmint oil allotment percentage for the
2021-2022 marketing year: 16.1 percent. This percentage is computed by
dividing the minimum required salable quantity (359,424 pounds) by the
total estimated allotment base (2,228,116 pounds).
(F) Recommended Scotch spearmint oil allotment percentage for the
2021-2022 marketing year: 38 percent. This is the Committee's
recommendation and is based on the computed allotment percentage (16.1
percent) and input from producers and handlers at the October 14, 2020,
meeting. The recommended 38 percent allotment percentage reflects the
Committee's belief that the computed percentage (16.1 percent) may not
adequately supply the anticipated 2021-2022 marketing year Scotch
spearmint oil market demand.
(G) Recommended Scotch spearmint oil salable quantity for the 2021-
2022 marketing year: 846,684 pounds. This figure is the product of the
recommended salable allotment percentage (38 percent) and the total
estimated allotment base (2,228,116 pounds) for the 2021-2022 marketing
year.
(H) Estimated total available supply of Scotch spearmint oil for
the 2021-2022 marketing year: 1,110,260 pounds. This figure is the sum
of the 2021-2022 marketing year recommended salable quantity (846,684
pounds) and the estimated carry-in on June 1, 2021 (263,576 pounds).
For the reasons stated above, the Committee believes that the
recommended salable quantity and allotment percentage would adequately
satisfy trade demand, would result in a reasonable carry-in for the
following year, and would contribute to the orderly marketing of Scotch
spearmint oil.
Native Spearmint Oil
The Committee recommended a Native spearmint oil salable quantity
of 938,397 pounds and an allotment percentage of 37 percent for the
2021-2022 marketing year. These figures are, respectively, 292,089
pounds and 12 percentage points lower than the levels established for
the 2020-2021 marketing year.
The Committee utilized handlers' estimated trade demand 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 2021 Native spearmint oil production
will total 1,181,230 pounds, down substantially from the previous
year's production of 1,493,686 pounds. Committee records show an
estimated 7,957 acres of Native spearmint production in the Far West in
2020 compared to an estimated 9,013 acres of Native spearmint
production in 2019.
Sales of Native spearmint oil have also been declining, falling
from a high of 1,565,515 pounds in the 2017-2018 marketing year to
1,076,906 pounds over the 2019-2020 marketing year, the last full year
of reported sales. The Committee estimates that trade demand for Native
spearmint oil will be 1,059,167 pounds for the 2020-2021 marketing
year, well below the 5-year sales average of 1,283,266 pounds.
The Committee expects that 694,137 pounds of salable Native
spearmint oil
[[Page 20041]]
from prior years will be carried into the 2021-2022 marketing year.
This amount is up from the 522,818 pounds of salable oil carried into
the 2020-2021 marketing year and well above the level that the
Committee generally considers favorable.
Further, the Committee estimated that there will be 1,130,264
pounds of Native spearmint oil in the reserve pool at the beginning of
the 2021-2022 marketing year. This figure is 49,256 pounds lower than
the quantity of reserve pool oil held by producers on June 1, 2020, but
is still higher than the level that the Committee believes is optimal.
This modest decline in the reserve oil reverses the recent trend of
gradual increases that the industry has experienced over the past
several marketing years.
The Committee expects end users of Native spearmint oil to continue
to rely on Far West production as their primary source of high-quality
Native spearmint oil. Overseas production of Native spearmint has
declined in recent years. As a result, U.S. exports of Native spearmint
oil have been increasing since 2018. However, the increase in domestic
production from other states outside the Far West region has more than
offset the decline in foreign production of Native spearmint oil. For
instance, production of Native spearmint oil in the U.S. Midwest region
has spiked in recent years, rising from fewer than 2,000 acres in 2016
to approximately 5,500 acres in 2020. Additionally, the sharp increase
in demand for Native spearmint experienced during the 2017-2018
marketing year has tapered off in recent years. These factors have
contributed to declining trade demand for Far West Native spearmint oil
and led to downward pressure on producer prices.
The Committee chose to be cautiously optimistic in the
establishment of its trade demand estimate for the 2021-2022 marketing
year to ensure that the market would be adequately supplied. At the
October 14, 2020, meeting, the Committee estimated the 2021-2022
marketing year Native spearmint oil trade demand to be 1,125,000
pounds. This figure is based on input provided by producers at nine
production area meetings held in early October 2020, as well as
estimates provided by handlers and other meeting participants. This
figure represents an increase of 65,833 pounds from the previous year's
revised trade demand estimate. The average estimated trade demand for
Native spearmint oil derived from the area producer meetings was
1,105,556 pounds, whereas the handlers' estimates ranged from 900,000
to 1,300,000 pounds. The average of Native spearmint oil sales over the
last three years was 1,295,832 pounds. The quantity marketed over the
most recent full marketing year, 2019-2020, was 1,076,906 pounds.
The estimated June 1, 2021, carry-in of 694,137 pounds of Native
spearmint oil, plus the recommended 2021-2022 marketing year salable
quantity of 938,397 pounds, would result in an estimated total
available supply of 1,632,534 pounds of Native spearmint oil during the
2021-2022 marketing year. With the corresponding estimated trade demand
of 1,125,000 pounds, the Committee projects that 507,534 pounds of oil
will be carried into the 2022-2023 marketing year. This would result in
a year-over-year decrease of 186,603 pounds. The Committee estimates
that there will be 1,130,264 pounds of Native spearmint oil held in the
reserve pool at the beginning of the 2021-2022 marketing year. Should
the industry experience an unexpected increase in trade demand, oil in
the Native spearmint oil reserve pool could be released through an
intra-seasonal increase to satisfy that demand.
The Committee recommended a producer allotment percentage of 37
percent for the 2021-2022 marketing year. During its October 14, 2020,
meeting, the Committee calculated an initial producer allotment
percentage of 17 percent by dividing the minimum required salable
quantity to satisfy estimated trade demand (430,863 pounds) by the
total allotment base (2,536,208 pounds). However, producers and
handlers at the meeting expressed that the computed percentage of 17
percent may not adequately supply the potential 2021-2022 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 37 percent. The total estimated
allotment base (2,536,208 pounds) for the 2021-2022 marketing year
multiplied by the recommended salable allotment percentage (37 percent)
yields 938,397 pounds, the recommended salable quantity for the year.
The 2021-2022 marketing year computational data for the Committee's
recommendations is further outlined below.
(A) Estimated carry-in of Native spearmint oil on June 1, 2021:
694,137 pounds. This figure is the difference between the revised 2020-
2021 marketing year total available supply of 1,753,304 pounds and the
revised 2020-2021 marketing year estimated trade demand of 1,059,167
pounds.
(B) Estimated trade demand of Native spearmint oil for the 2021-
2022 marketing year: 1,125,000 pounds. This estimate was established by
the Committee at the October 14, 2020, meeting.
(C) Salable quantity of Native spearmint oil required from the
2021-2022 marketing year production: 430,863 pounds. This figure is the
difference between the estimated 2021-2022 marketing year estimated
trade demand (1,125,000 pounds) and the estimated carry-in on June 1,
2021 (694,137 pounds). This is the minimum amount of Native spearmint
oil that the Committee believes would be required to meet the
anticipated 2021-2022 marketing year trade demand.
(D) Total estimated allotment base of Native spearmint oil for the
2021-2022 marketing year: 2,536,208 pounds. This figure represents a
one-percent increase over the 2020-2021 total actual allotment base of
2,511,097 pounds as prescribed in Sec. 985.53. The one-percent
increase equals 25,111 pounds of oil. This estimate is revised 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
2021-2022 marketing year: 17.0 percent. This percentage is calculated
by dividing the required salable quantity (430,863 pounds) by the total
estimated allotment base (2,536,208 pounds) for the 2021-2022 marketing
year.
(F) Recommended Native spearmint oil allotment percentage for the
2021-2022 marketing year: 37 percent. This is the Committee's
recommendation based on the computed allotment percentage (17.0
percent) and input from producers and handlers at the October 14, 2020,
meeting. The recommended 37 percent allotment percentage is based on
the Committee's belief that the computed percentage (17.0 percent) may
not adequately supply the potential market for Native spearmint oil in
the 2021-2022 marketing year or allow for salable Native spearmint oil
to be carried into the beginning of the 2022-2023 marketing year.
(G) Recommended Native spearmint oil 2021-2022 marketing year
salable quantity: 938,397 pounds. This figure is the product of the
recommended allotment percentage (37 percent) and the total estimated
allotment base (2,536,208 pounds).
(H) Estimated available supply of Native spearmint oil for the
2021-2022 marketing year: 1,632,534 pounds. This figure is the sum of
the 2021-2022 recommended salable quantity (938,397 pounds) and the
estimated carry-in on
[[Page 20042]]
June 1, 2021 (694,137 pounds). This amount could be increased, as
needed, through an intra-seasonal increase in the salable quantity and
allotment percentage.
The Committee's recommended Scotch and Native spearmint oil salable
quantities and allotment percentages of 846,684 pounds and 38 percent,
and 938,397 pounds and 37 percent, respectively, would 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 proposed rule is similar to regulations issued in prior seasons.
The salable quantities in this proposed 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.
In conjunction with the issuance of this proposed rule, USDA has
reviewed the Committee's marketing policy statement for the 2021-2022
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 the proposed salable quantities and allotment
percentages would allow for anticipated market needs. In determining
anticipated market needs, the Committee considered historical sales, as
well as changes and trends in production and demand. This proposal
would also provide producers with information regarding the amount of
spearmint oil that should be produced for the 2021-2022 season to meet
anticipated market demand.
Initial Regulatory Flexibility Act
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 proposed rule on small
entities. Accordingly, AMS has prepared this initial regulatory
flexibility analysis.
The purpose of the RFA is to fit regulatory actions to the scale of
businesses subject to such actions in order that small businesses will
not be unduly or disproportionately burdened. Marketing orders issued
pursuant to the Act, and 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 40 producers and 94 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 $30,000,000, and small agricultural producers are defined as those
having annual receipts of less than $1,000,000 (13 CFR 121.201).
The Committee reported that recent producer prices for spearmint
oil have ranged from $12.00 to $17.00 per pound. The National
Agricultural Statistics Service (NASS) reported that the 2019 U.S.
season average spearmint oil producer price per pound was $16.90.
Spearmint oil utilization for the 2019-2020 marketing year, as reported
by the Committee, was 598,706 pounds and 1,076,906 pounds for Scotch
and Native spearmint oil, respectively, for a total of 1,675,612
pounds. Multiplying $16.90 per pound by 2019-2020 marketing year
spearmint oil utilization of 1,675,612 pounds yields a crop value
estimate of about $28.3 million.
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 $16.90 average
spearmint oil price, and Committee production data for each producer,
the Committee estimates that 37 of the 40 Scotch spearmint oil
producers and 90 of the 94 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 2018 producer price of $16.90 yields a handler
free on board (f.o.b.) price per pound estimate of $20.28.
Multiplying this estimated handler f.o.b. price by the 2019-2020
marketing year total spearmint oil utilization of 1,675,612 pounds
results in an estimated handler-level spearmint oil value of $33.98
million. Dividing this figure by the number of handlers (8) yields
estimated average annual handler receipts of about $4.25 million, which
is well below the SBA threshold for small agricultural service firms.
Furthermore, using confidential data on pounds handled by each
handler, and the above mentioned estimated handler price per pound, the
Committee reported that it is not likely that any of the eight handlers
had 2019-2020 marketing year spearmint oil sales that exceeded the $30
million SBA threshold.
Therefore, in view of the foregoing, the majority of producers of
spearmint oil may be classified as small entities, and all of the
handlers of spearmint oil may be classified as small entities.
This proposed rule would establish the quantity of spearmint oil
produced in the Far West, by class, which handlers may purchase from,
or handle on behalf of, producers during the 2021-2022 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 regulation allows producers to coordinate their
spearmint oil production with the expected market demand. Authority for
this proposal is provided in Sec. Sec. 985.50, 985.51, and 985.52.
The Committee estimated the total trade demand for the 2021-2022
marketing year for both classes of oil at 1,748,000 pounds. In
addition, the Committee expects that the combined salable carry-in for
both classes of spearmint oil will be 957,713 pounds. As such, the
combined required salable quantity for the 2021-2022 marketing year is
estimated to be 790,287 pounds (1,748,000 pounds trade demand less
957,713 pounds carry-in). Under volume regulation, total sales of
spearmint oil by producers for the 2021-2022 marketing year would be
held to 2,742,794 pounds (the recommended salable quantity for both
[[Page 20043]]
classes of spearmint oil of 1,785,081 pounds plus 957,713 pounds of
carry-in).
This total available supply of 2,742,794 pounds should be more than
adequate to supply the 1,748,000 pounds of anticipated total trade
demand for spearmint oil. In addition, as of May 31, 2020, the total
reserve pool for both classes of spearmint oil stood at 1,247,165
pounds. That quantity is expected to remain relatively unchanged over
the course of the 2021-2022 marketing year, with current Committee
reserve pool estimates totaling 1,366,673 pounds. Should trade demand
increase unexpectedly during the 2021-2022 marketing year, reserve pool
spearmint oil could be released into the market to supply that increase
in demand.
The recommended allotment percentages, upon which 2021-2022
marketing year annual allotments are based, are 38 percent for Scotch
spearmint oil and 37 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 used to evaluate the Far West spearmint
oil market estimated that the season average producer price per pound
(from both classes of spearmint oil) would decline about $1.70 per
pound without volume regulation. The surplus situation for the
spearmint oil market that would exist without volume regulation in the
2021-2022 marketing year also would likely dampen prospects for
improved producer prices in future years because of the excessive
buildup in stocks.
In addition, the econometric model estimated that spearmint oil
prices would fluctuate with greater amplitude in the absence of volume
regulation. The coefficient of variation, or CV (a standard measure of
variability), of Far West spearmint oil producer prices for the period
1980-2019 (the years in which the Order has been in effect), is 25
percent, compared to 49 percent for the 20-year period (1960-1979)
immediately prior to the establishment of the Order. Since higher CV
values correspond to greater variability, this is an indicator of the
price stabilizing impact of the Order.
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 would not result in fewer retail sales of such
products.
The Committee discussed alternatives to the recommendations
contained in this rule for both classes of spearmint oil. The Committee
rejected the idea of not regulating 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 recommended
by the Committee was to maintain the allotment percentage for Scotch
spearmint oil (which would slightly increase the salable quantity) and
to decrease both the salable quantity and allotment percentage for
Native spearmint oil from the levels established for the 2020-2021
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 recommended would 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 proposed
herein are expected to facilitate the goal of maintaining orderly
marketing conditions for Far West spearmint oil for the 2021-2022 and
future marketing years.
Costs to producers and handlers, large and small, resulting from
this proposal 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, Vegetable
and Specialty Crops. No changes are necessary in those requirements as
a result of this proposed action. Should any changes become necessary,
they would be submitted to OMB for approval.
This proposed rule would establish the salable quantities and
allotment percentages for Scotch spearmint oil and Native spearmint oil
produced in the Far West during the 2021-2022 marketing year.
Accordingly, this proposal would not impose any additional reporting or
recordkeeping requirements on either small or large 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. In
addition, USDA has not identified any relevant Federal rules that
duplicate, overlap, or conflict with this proposed 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.
The Committee's meeting was widely publicized throughout the
spearmint oil industry, and all interested persons were invited to
attend the meeting and participate in Committee deliberations on all
issues. Like all Committee meetings, the October 14, 2020, meeting was
a public meeting and all entities, both large and small, were able to
express views on this issue. Interested persons are invited to submit
comments on this proposed rule, including the regulatory and
informational impacts of this action on small businesses.
A small business guide on complying with fruit, vegetable, and
specialty crop marketing agreements and orders may be viewed at:
https://www.ams.usda.gov/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.
[[Page 20044]]
A 60-day comment period is provided to allow interested persons to
respond to this proposal. All written comments timely received will be
considered before a final determination is made on this matter.
List of Subjects in 7 CFR Part 985
Marketing agreements, Oils and fats, Reporting and recordkeeping
requirements, Spearmint oil.
For the reasons set forth in the preamble, the Agriculture
Marketing Services proposes to amend 7 CFR part 985 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 985.236 is added to read as follows:
Sec. 985.236 Salable quantities and allotment percentages--2021-2022
marketing year.
The salable quantity and allotment percentage for each class of
spearmint oil during the marketing year beginning on June 1, 2021,
shall be as follows:
(a) Class 1 (Scotch) oil--a salable quantity of 846,684 pounds and
an allotment percentage of 38 percent.
(b) Class 3 (Native) oil--a salable quantity of 938,397 pounds and
an allotment percentage of 37 percent.
Bruce Summers,
Administrator, Agricultural Marketing Service.
[FR Doc. 2021-07829 Filed 4-15-21; 8:45 am]
BILLING CODE P
