Marketing Order Regulating the Handling of Spearmint Oil Produced in the Far West; Revision of the Salable Quantity and Allotment Percentage for Class 3 (Native) Spearmint Oil for the 2024-2025 Marketing Year, 96126-96130 [2024-28214]
Download as PDF
<![CDATA[
96126
Proposed Rules
Federal Register
Vol. 89, No. 233
Wednesday, December 4, 2024
This section of the FEDERAL REGISTER
contains notices to the public of the proposed
issuance of rules and regulations. The
purpose of these notices is to give interested
persons an opportunity to participate in the
rule making prior to the adoption of the final
rules.
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 985
[Doc. No. AMS–SC–24–0067]
Marketing Order Regulating the
Handling of Spearmint Oil Produced in
the Far West; Revision of the Salable
Quantity and Allotment Percentage for
Class 3 (Native) Spearmint Oil for the
2024–2025 Marketing Year
Agricultural Marketing Service,
USDA.
ACTION: Proposed rule.
AGENCY:
This proposed rule would
implement a recommendation from the
Far West Spearmint Oil Administrative
Committee (Committee) to revise the
quantity of Class 3 (Native) spearmint
oil that handlers may purchase from, or
handle on behalf of, producers in
Washington, Idaho, and Oregon and
parts of Nevada and Utah (Far West) for
the 2024–2025 marketing year, which
began on June 1, 2024. This action
would increase the 2024–2025
marketing year Native spearmint oil
salable quantity from 678,980 pounds to
731,220 pounds, and the allotment
percentage from 26 percent to 28
percent.
DATES: Comments must be received by
December 19, 2024.
ADDRESSES: Interested persons are
invited to submit written comments
concerning this proposed rule.
Comments may be sent to the Docket
Clerk, Market Development Division,
Specialty Crops Program, AMS, USDA,
1400 Independence Avenue SW, STOP
0237, Washington, DC 20250–0237.
Comments may also be submitted to the
Docket Clerk electronically by email:
MarketingOrderComment@usda.gov or
via the internet at: https://
www.regulations.gov. Comments should
reference the document number and the
date and page number of this issue of
the Federal Register. Comments
submitted in response to this proposed
ddrumheller on DSK120RN23PROD with PROPOSALS1
SUMMARY:
VerDate Sep<11>2014
16:34 Dec 03, 2024
Jkt 265001
rule will be included in the record and
will be made available to the public and
can be viewed at: https://
www.regulations.gov. 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 Barry Broadbent, Chief, Northwest
Region Branch, Market Development
Division, Specialty Crops Program,
AMS, USDA; Telephone: (503) 326–
2282, or Email: Joshua.R.Wilde@
usda.gov or Barry.Broadbent@usda.gov.
Small businesses may request
information on complying with this
regulation by contacting Richard Lower,
Market Development Division, Specialty
Crops Program, AMS, USDA, 1400
Independence Avenue SW, STOP 0237,
Washington, DC 20250–0237;
Telephone: (202) 720–8085, or Email:
Richard.Lower@usda.gov.
SUPPLEMENTARY INFORMATION: This
action, pursuant to 5 U.S.C. 553,
proposes to amend 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 comprises spearmint oil
producers operating within the area of
production, and a public member.
The Agricultural Marketing Service
(AMS) is issuing this proposed rule in
conformance with Executive Orders
12866, 13563, and 14094. Executive
Orders 12866 and 13563 direct agencies
to assess all costs and benefits of
available regulatory alternatives and, if
regulation is necessary, to select
regulatory approaches that maximize
net benefits (including potential
economic, environmental, public health
and safety effects, distributive impacts,
and equity). Executive Order 13563
emphasizes the importance of
quantifying both costs and benefits,
reducing costs, harmonizing rules, and
promoting flexibility. Executive Order
14094 reaffirms, supplements, and
updates Executive Order 12866 and
further directs agencies to solicit and
PO 00000
Frm 00001
Fmt 4702
Sfmt 4702
consider input from a wide range of
affected and interested parties through a
variety of means. This proposed 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 13175—
Consultation and Coordination with
Indian Tribal Governments, which
requires Federal agencies to consider
whether their rulemaking actions would
have Tribal implications. AMS has
determined that this proposed rule is
unlikely to have substantial direct
effects on one or more Indian Tribes, on
the relationship between the Federal
Government and Indian Tribes, or on
the distribution of power and
responsibilities between the Federal
Government and Indian Tribes.
This proposed rule has been reviewed
under Executive Order 12988—Civil
Justice Reform. This proposed rule is
not intended to have retroactive effect.
Under the Order now in effect, salable
quantities and allotment percentages
have been established for classes of
spearmint oil produced in the Far West.
This proposed rule would increase the
quantity of Native Spearmint oil
produced in the Far West that handlers
may purchase from, or handle on behalf
of, producers during the 2024–2025
marketing year, which began on June 1,
2024.
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 the U.S. Department of Agriculture
(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
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.
E:\FR\FM\04DEP1.SGM
04DEP1
ddrumheller on DSK120RN23PROD with PROPOSALS1
Federal Register / Vol. 89, No. 233 / Wednesday, December 4, 2024 / Proposed Rules
This proposal invites comments on
revisions to the quantity of Native
spearmint oil that handlers may
purchase from, or handle on behalf of,
producers during the 2024–2025
marketing year. Prior to this proposed
rule, the salable quantity and allotment
percentage for Native spearmint oil was
initially established at 678,980 pounds
and 26 percent, respectively, in a final
rule published May 23, 2024 (89 FR
45557). This proposed rule would
increase the Native spearmint oil salable
quantity from 678,980 pounds to
731,220 pounds and the allotment
percentage from 26 percent to 28
percent.
Pursuant to the requirements in
§ 985.50 of the Order, the Committee
meets each year to consider supply and
demand of spearmint oil and to adopt a
marketing policy for the ensuing
marketing year. In determining such
marketing policy, the Committee
considers several factors, including, but
not limited to, the current and projected
supply of oil, estimated future demand,
production costs, and producer prices
for both Class 1 (Scotch) and Class 3
(Native) spearmint oil. Input from
spearmint oil handlers and producers
are considered as well.
Pursuant to the provisions in § 985.51,
when the Committee’s marketing policy
considerations indicate a need to
establish or to maintain stable market
conditions through volume regulation,
the Committee subsequently
recommends to AMS the establishment
of a salable quantity and allotment
percentage for such class or classes of
oil for the upcoming marketing year.
Recommendations for volume control
are intended to ensure market
requirements for Far West spearmint oil
are satisfied and orderly marketing
conditions are maintained.
Salable quantity represents the total
quantity of each class of oil (Scotch or
Native) which handlers may purchase
from, or handle on behalf of, producers
during a given marketing year. The
allotment percentage for each class of
spearmint oil is the salable quantity for
that class of oil divided by the total of
all producers’ allotment base for the
same class of oil. A producer’s allotment
base is their calculated share of the
spearmint oil market based on a
statistical representation of past
spearmint production and sales. In
order to account for changes in
production and demand over time, the
Committee periodically reviews and
adjusts each producer’s allotment base
in accordance with a formula prescribed
by the Committee and approved by
AMS. Each producer’s annual allotment
of the salable quantity is calculated by
VerDate Sep<11>2014
16:34 Dec 03, 2024
Jkt 265001
multiplying their respective allotment
base for each class of spearmint oil by
the allotment percentage for that class of
spearmint oil. The total allotment base
is revised each year on June 1 to account
for producer allotment base being lost
because of the ‘‘bona fide effort’’
production provision of § 985.53(e) and
additional base made available pursuant
to the provisions of § 985.153.
The Committee met on October 11,
2023, to consider its marketing policy
for the 2024–2025 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. The Committee unanimously
recommended salable quantities and
allotment percentages for Native
spearmint oil of 678,980 pounds and 26
percent, respectively. In addition, the
Committee unanimously recommended
a salable quantity and allotment
percentage for Scotch spearmint oil of
663,648 pounds and 29 percent,
respectively. A proposed rule to that
effect was published in the Federal
Register on January 25, 2024 (89 FR
4835). Comments on the proposed rule
were solicited from interested persons
until February 26, 2024. No comments
were received. Subsequently, a final
rule establishing the salable quantities
and allotment percentages for Scotch
and Native spearmint oil for the 2024–
2025 marketing year was published in
the Federal Register on May 23, 2024
(89 FR 45557).
Pursuant to authority contained in
§§ 985.50, 985.51, and 985.52, the
Committee met again on October 9,
2024, to evaluate the current year’s
volume control regulation. At the
meeting, the Committee assessed the
current market conditions for spearmint
oil in relation to the salable quantities
and allotment percentages established
for the 2024–2025 marketing year. The
Committee considered several factors,
including the current and projected
supply and the estimated future demand
for all classes of spearmint oil. The
Committee determined that the
established salable quantity and
allotment percentage in effect for Native
spearmint oil for the 2024–2025
marketing year should be increased to
provide an adequate buffer to ensure
available supply would continue to
meet demand.
At the October 9, 2024, meeting, the
Committee recommended increasing the
2024–2025 marketing year Native
spearmint oil salable quantity from
678,980 pounds to 731,220 pounds and
the allotment percentage from 26
percent to 28 percent. The
recommendation to increase the salable
PO 00000
Frm 00002
Fmt 4702
Sfmt 4702
96127
quantity and allotment percentage
passed with a vote of 6 in favor with 2
opposed. The members voting against
the recommendation supported volume
control, but did not believe that
additional supply would be necessary to
meet 2024–2025 marketing year
demand.
Accordingly, this proposed rule
would make additional amounts of
Native spearmint oil available to the
market by increasing the salable
quantity and allotment percentage
previously established under the Order
for the 2024–2025 marketing year. This
proposed rule would increase the Native
spearmint oil salable quantity by 52,240
pounds, to 731,220 pounds, and would
raise the allotment percentage 2
percentage points, to 28 percent. Such
additional oil could come from 2024–
2025 marketing year production or from
releasing Native spearmint oil held by
producers in the reserve pool. As of May
31, 2024, the Committee records show
that the reserve pool for Native
spearmint oil contained 1,026,336
pounds of oil.
At the October 9, 2024, meeting, the
Committee staff reported, as of the
meeting date, there was an estimated
356,302 pounds of salable quantity of
Native spearmint available for purchase
in the 2024–2025 marketing year,
ending May 31, 2025. The Committee
considered this amount to be low for
this early in the marketing year. Based
on the Committee’s estimated sales
demand for Native spearmint oil for the
remainder of the 2024–2025 marketing
year, the Committee projected that
approximately 125,000 pounds of
Native spearmint oil may be carried into
the 2025–2026 marketing year.
However, the Committee was concerned
that, without increasing the salable
quantity and allotment percentage, the
market for Native spearmint oil may be
shorted if demand were to increase
unexpectedly. The increased quantity of
Native spearmint oil (52,240 pounds)
that would be made available to the
market because of this rulemaking
would ensure that market demand is
fully satisfied in the current year.
Should the available supply of Native
spearmint oil exceed 2024–2025
marketing year demand, any unsold
quantity would remain available to the
market in future marketing years as
salable carry-in.
In making the recommendation to
increase the salable quantity and
allotment percentage of Native
spearmint oil, the Committee
considered all currently available
information on the price, supply, and
demand of Native spearmint oil. The
Committee also considered reports and
E:\FR\FM\04DEP1.SGM
04DEP1
ddrumheller on DSK120RN23PROD with PROPOSALS1
96128
Federal Register / Vol. 89, No. 233 / Wednesday, December 4, 2024 / Proposed Rules
other information from handlers and
producers in attendance at the meeting.
Lastly, the Committee manager
presented information and reports that
were provided to the Committee staff by
handlers and producers.
This proposal would increase the
2024–2025 marketing year Native
spearmint oil salable quantity by 52,240
pounds to a total of 731,220 pounds.
This amount, along with 446,420
pounds of salable carry-in, would result
in available supply of 1,177,640 pounds.
The Committee estimates 2024–2025
marketing year trade demand for Native
spearmint oil to be 1,000,000 pounds.
Actual sales of Native spearmint oil for
the 2023–2024 marketing year totaled
987,041 pounds. The 5-year average of
Native spearmint oil sales is 1,085,916
pounds.
The Committee estimates that this
action would result in approximately
175,000 pounds of salable Native
spearmint oil could be carried into the
2025–2026 marketing year which begins
June 1, 2025. The Committee believes
that this amount to be a sufficient buffer
if demand exceeds the Committee’s
expectations for the remainder of the
2024–2025 marketing year. In addition,
reserve pool oil could be released into
the market under a future relaxation of
the volume regulation should it be
necessary to adequately supply the
market prior to the beginning of the
2025–2026 marketing year. The
Committee estimates that a total of
1,335,150 pounds of Native spearmint
oil (1,026,336 currently in reserve and
an estimated 308,814 pounds of excess
oil produced during the 2024–2025
marketing year) would be available from
the reserve pool, if needed.
The Committee’s stated intent in the
use of the Order’s volume control
regulation is to keep adequate supply
available to meet market needs and to
maintain orderly marketing conditions.
With that consideration, the Committee
developed its recommendation for
increasing the Native spearmint oil
salable quantity and allotment
percentage for the 2024–2025 marketing
year based on the information discussed
above, as well as the summary data
detailed below.
(A) Initial Estimated 2024–2025
Native Allotment Base—2,611,463
pounds. This figure is the allotment
base estimate on which the original
2024–2025 salable quantity and
allotment percentage was based.
(B) Revised 2024–2025 Native
Allotment Base—2,611,500 pounds.
This figure is 37 pounds more than the
initial estimated allotment base of
2,611,463 pounds. The difference is the
result of annual adjustments made to
VerDate Sep<11>2014
16:34 Dec 03, 2024
Jkt 265001
the allotment base at the beginning of
the marketing year in accordance with
the provisions of the Order.
(C) Initial 2024–2025 Native
Allotment Percentage—26 percent. This
percentage was unanimously
recommended by the Committee on
October 11, 2023.
(D) Initial 2024–2025 Native Salable
Quantity—678,980 pounds. This figure
is 26 percent of the original estimated
2024–2025 allotment base of 2,611,463
pounds.
(E) Adjusted Initial 2024–2025 Native
Salable Quantity—678,990 pounds.
This figure reflects the salable quantity
available at the beginning of the 2024–
2025 marketing year. This quantity is
derived by applying the initial 26
percent allotment percentage to the
revised allotment base of 2,611,500.
(F) Proposed Revision to the 2024–
2025 Native Salable Quantity and
Allotment Percentage:
(1) Proposed Increase in the Native
Allotment Percentage—2 percent. The
Committee recommended an increase of
2 percentage points over the initial
Native allotment percentage.
(2) Proposed Revised 2024–2025
Native Allotment Percentage—28
percent. This percentage was derived by
adding the increase of 2 percentage
points to the initially established 2024–
2025 Native allotment percentage of 26
percent.
(3) Proposed Revised 2024–2025
Native Salable Quantity—731,220
pounds. This figure is 28 percent of the
revised 2024–2025 Native allotment
base of 2,611,500 pounds.
(4) Computed Increase in the 2024–
2025 Native Salable Quantity as a
Result of the Proposed Revision—52,240
pounds. This figure represents the
difference between the initial 2024–
2025 Native salable quantity of 678,980
pounds and the proposed Native salable
quantity of 731,220 pounds.
Scotch spearmint oil is also regulated
by the Order. As mentioned previously,
a salable quantity and allotment
percentage for Scotch spearmint oil was
established in a final rule published in
the Federal Register on May 23, 2024
(89 FR 45557). At the October 9, 2024,
meeting, the Committee considered the
projected production, inventory, and
marketing conditions for Scotch
spearmint oil for the 2024–2025
marketing year. After receiving reports
from the Committee staff and comments
from the industry, the consensus of the
Committee was that the previously
established salable quantity and
allotment percentage for Scotch
spearmint oil was appropriate for the
current market conditions. As such, the
Committee took no further action with
PO 00000
Frm 00003
Fmt 4702
Sfmt 4702
regards to Scotch spearmint oil for the
2024–2025 marketing year.
This proposed rule would relax the
volume regulation requirements of
Native spearmint oil and would allow
producers to meet market demand while
improving producer returns. The
proposed increase in the Native
spearmint oil salable quantity and
allotment percentage would account for
the anticipated market needs for that
class of oil. In determining anticipated
market needs, the Committee
considered changes and trends in
historical sales, production, and
demand. In conjunction with the
issuance of this proposed rule, AMS has
reviewed the Committee’s marketing
policy statement for the 2024–2025
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.
Initial Regulatory Flexibility Analysis
Pursuant to requirements set forth in
the Regulatory Flexibility Act (RFA) (5
U.S.C. 601–612), 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 89 producers
of Native spearmint oil operating within
the regulated production area. In
addition, there are approximately 6
Native 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
equal to or less than $34.0 million
(Postharvest Crop Activities, NAICS
code 11514). Small agricultural
producers of spearmint oil are defined
as those having annual receipts of equal
to or less than $2.5 million (All Other
Miscellaneous Crop Farming, NAICS
code 111998) (13 CFR 121.201).
The National Agricultural Statistics
Service (NASS) reported that the 2023
U.S. season average spearmint oil
producer price per pound was $18.40
(both Scotch and Native). Native
spearmint oil utilization for the 2023–
2024 marketing year, as reported by the
E:\FR\FM\04DEP1.SGM
04DEP1
ddrumheller on DSK120RN23PROD with PROPOSALS1
Federal Register / Vol. 89, No. 233 / Wednesday, December 4, 2024 / Proposed Rules
Committee, was 987,041 pounds for
Native spearmint oil. Multiplying
$18.40 per pound by 2023–2024
marketing year spearmint oil utilization
of 987,041 pounds yields a crop value
estimate of about $18.2 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 $18.40
average spearmint oil price and
Committee production data for each
producer, the Committee estimates that
all of the 89 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. Twenty percent
of the 2023 producer price ($18.40) is
$3.68, which results in a handler Free
on Board (f.o.b.) price per pound
estimate of $22.08 ($18.40 + $3.68).
Multiplying this estimated handler
f.o.b. price by the 2023–2024 marketing
year total spearmint oil utilization of
1,536,364 pounds (987,041 pounds of
Native + 549,323 pounds of Scotch)
results in an estimated handler-level
spearmint oil value of $33.9 million.
Dividing this figure by the number of
handlers (6) yields estimated average
annual handler receipts of about $5.7
million, which is well below the $34.0
million SBA threshold for small
agricultural service firms.
Furthermore, using confidential data
compiled by the Committee on the
pounds of spearmint oil handled by
each handler and the abovementioned
estimated handler price per pound, the
Committee reported that it is not likely
that any of the six handlers had 2023–
2024 marketing year spearmint oil sales
that exceeded SBA’s 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 increase
the quantity of Native spearmint oil
produced in the Far West, which
handlers may purchase from, or handle
on behalf of, producers during the
2024–2025 marketing year, which ends
May 31, 2025. The 2024–2025 marketing
year Native spearmint oil salable
quantity was initially established at
678,980 pounds and the allotment
percentage initially set at 26 percent.
This proposed rule would increase the
Native spearmint oil salable quantity to
VerDate Sep<11>2014
16:34 Dec 03, 2024
Jkt 265001
731,220 pounds and the allotment
percentage to 28 percent. The
Committee recommended this proposed
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 from
or handled on behalf of producers
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 of the Order.
Based on the information and
projections available at the October 9,
2024, meeting, the Committee
considered several alternatives to this
increase. The Committee considered
leaving the salable quantity and
allotment percentage unchanged, and
also considered other potential levels of
increase. The Committee reached its
recommendation to increase the salable
quantity and allotment percentage for
Native spearmint oil after careful
consideration of all available
information and input from all
interested industry participants and
believes that the levels recommended
would achieve the desired objectives.
The recommendation to increase the
salable quantity and allotment
percentage passed with a vote of 6 in
favor with 2 opposed. The members
voting against the recommendation
supported volume control, but did not
believe that additional supply would be
necessary to meet 2024–2025 marketing
year demand. Without the increase, the
Committee believes the industry may
not be able to satisfactorily meet market
demand.
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 9, 2024, meeting
was a public meeting and all entities,
both large and small, were able to
express views on this issue. Finally,
interested persons are invited to submit
comments on this proposed rule,
including the regulatory and
informational impacts of this action on
small businesses.
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 in those requirements would be
PO 00000
Frm 00004
Fmt 4702
Sfmt 4702
96129
necessary because of this proposed rule.
Should any changes become necessary,
they would be submitted to OMB for
approval.
This proposed rule would relax the
volume regulation requirements
established under the Order.
Accordingly, this action would not
impose any additional reporting or
recordkeeping requirements on either
small or large Far West spearmint oil
handlers. As with all Federal marketing
order programs, reports and forms are
periodically reviewed to reduce
information requirements and
duplication by industry and public
sector agencies.
AMS is committed to complying with
the E-Government Act, to promote the
use of the internet and other
information technologies to provide
increased opportunities for citizen
access to Government information and
services, and for other purposes.
AMS has not identified any relevant
Federal rules that duplicate, overlap, or
conflict with this proposed rule.
A small business guide on complying
with fruit, vegetable, and specialty crop
marketing agreements and orders may
be viewed at: https://
www.ams.usda.gov/rules-regulations/
moa/small-businesses. Any questions
about the compliance guide should be
sent to Richard Lower at the previously
mentioned address in the FOR FURTHER
INFORMATION CONTACT section.
After consideration of all relevant
material presented, including the
information and recommendations
submitted by the Committee and other
available information, AMS has
determined that this proposed rule is
consistent with and would effectuate
the purposes of the Act.
A 15-day comment period is provided
to allow interested persons to respond
to this proposal. Fifteen days is deemed
appropriate because handlers are aware
of this proposed regulatory relaxation,
which was recommended by the
Committee at a public meeting, and the
subject matter of this proposal is not
complex. The 2024–2025 marketing year
ends on May 31, 2025. For the
additional salable quantity proposed in
this rule to be available to the market,
timely consideration of the proposal is
essential to ensure orderly market
conditions. AMS will consider all
timely comments received before
making a final determination on this
matter.
List of Subjects in 7 CFR Part 985
Marketing agreements, Oils and fats,
Reporting and recordkeeping
requirements.
E:\FR\FM\04DEP1.SGM
04DEP1
96130
Federal Register / Vol. 89, No. 233 / Wednesday, December 4, 2024 / Proposed Rules
For the reasons set forth in the
preamble, the Agricultural Marketing
Service 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. Amend § 985.234 by revising
paragraph (b) to read as follows:
■
§ 985.234 Salable quantities and allotment
percentages—2024–2025 marketing year.
*
*
*
*
*
(b) Class 3 (Native) oil—a salable
quantity of 731,220 pounds and an
allotment percentage of 28 percent.
Erin Morris,
Associate Administrator, Agricultural
Marketing Service.
[FR Doc. 2024–28214 Filed 12–3–24; 8:45 am]
BILLING CODE P
DEPARTMENT OF AGRICULTURE
Rural Housing Service
7 CFR Part 1944
[Docket No. RHS–24–SFH–0037]
RIN 0575–AD37
Self-Help Technical Assistance Grants:
Technical Corrections and Program
Updates
Rural Housing Service, USDA.
Proposed rule.
AGENCY:
ACTION:
The Rural Housing Service
(RHS or the Agency), a Rural
Development (RD) agency of the United
States Department of Agriculture
(USDA), proposes to update and
streamline the Single-Family Housing
(SFH) Self-Help Technical Assistance
Grant Program. The Self-Help Program
has evolved, and the current regulations
as codified restrict the Agency’s ability
to be flexible with market changes. The
intent of this proposed rule is to reduce
the regulatory burdens in the current
regulation, to assist the Agency to better
achieve the program objectives,
streamline administrative regulatory
requirements and make the program
more effective in serving rural
Americans by increasing decent, safe,
and sanitary housing stock across the
Nation.
DATES: Comments on the proposed rule
must be received on or before February
3, 2025.
ddrumheller on DSK120RN23PROD with PROPOSALS1
SUMMARY:
VerDate Sep<11>2014
16:34 Dec 03, 2024
Jkt 265001
The comment period for the
information collection under the
Paperwork Act of 1995 must be received
on or before February 3, 2025.
ADDRESSES: Comments may be
submitted electronically by the Federal
eRulemaking Portal: Go to https://
www.regulations.gov and, in the
‘‘Search Field’’ box, labeled ‘‘Search for
dockets and documents on agency
actions,’’ enter the following docket
number: (RHS–24–SFH–0037) or
Regulation Identifier Number (RIN):
(0575–AD37). To submit or view public
comments, click the ‘‘Search’’ button,
select the ‘‘Documents’’ tab, then select
the following document title: ‘‘Self-Help
Technical Assistance Grants: Technical
Corrections and Program Updates’’ from
the ‘‘Search Results,’’ and select the
‘‘Comment’’ button. Before inputting
your comments, you may also review
the ‘‘Commenter’s Checklist’’ (optional).
Insert your comments under the
‘‘Comment’’ title, click ‘‘Browse’’ to
attach files (if available). Input your
email address and select ‘‘Submit
Comment.’’ Information on using
Regulations.gov, including instructions
for accessing documents, submitting
comments, and viewing the docket after
the close of the comment period, is
available through the site’s ‘‘FAQ’’ link.
All comments will be available for
public inspection online at the Federal
eRulemaking Portal (https://
www.regulations.gov).
Other Information: Additional
information about Rural Development
and its programs is available on the
internet at https://www.rurdev.usda.gov/
index.html.
In accordance with 5 U.S.C. 553(b)(4),
a summary of this proposed rule may be
found by going to https://
www.regulations.gov and in the ‘‘Search
for dockets and documents on agency
actions’’ box, enter the following docket
number RHS–24–SFH–0037.
FOR FURTHER INFORMATION CONTACT:
Sunceri Dade, Finance & Loan Analyst,
SFH Direct Division, Rural Housing
Service, Rural Development, United
States Department of Agriculture, 1400
Independence Avenue SW, Washington,
DC 20250, Phone: 202–720–1485, Email:
Sunceri.Dade@usda.gov.
SUPPLEMENTARY INFORMATION:
Statutory Authority
Section 510(k) of Title V the Housing
Act of 1949 [42 U.S.C. 1480(k)], as
amended, authorizes the Secretary of
the Department of Agriculture to
promulgate rules and regulations as
deemed necessary to carry out the
purpose of that title. The Self-Help
program is authorized under Section
PO 00000
Frm 00005
Fmt 4702
Sfmt 4702
523 of Title V the Housing Act of 1949
(42 U.S.C. 1490(c)), as amended,
authorizes the Secretary of the
Department of Agriculture to
promulgate rules and regulations as
deemed necessary to carry out the
purpose of that title. The program is
implemented under 7 CFR part 1944,
subpart I.
I. Background
The RHS offers a variety of programs
to build or improve housing and
essential community facilities in rural
areas. RHS offers loans, grants, and loan
guarantees for single- and multifamily
housing, childcare centers, fire and
police stations, hospitals, libraries,
nursing homes, schools, first responder
vehicles and equipment, housing for
farm laborers. RHS also provides
technical assistance loans and grants in
partnership with non-profit
organizations, Indian Tribes, state and
federal government agencies, and local
communities.
Well built, affordable housing is
essential to the vitality of communities
in rural America. RD SFH Programs give
families and individuals the
opportunity to buy, build, or repair
affordable homes located in rural
America. Eligibility for these loans, loan
guarantees, and grants is based on
income and varies according to the
average median income for each area.
Section 510(k) of Title V the Housing
Act of 1949 [42 U.S.C. 1480(k)], as
amended, authorizes the Secretary of
the Department of Agriculture to
promulgate rules and regulations as
deemed necessary to carry out the
purpose of that title. The Self-Help
program is authorized under Section
523 of Title V the Housing Act of 1949
(42 U.S.C. 1490(c)), as amended,
authorizes the Secretary of the
Department of Agriculture to
promulgate rules and regulations as
deemed necessary to carry out the
purpose of that title. The RHS
administers the Section 523 Self-Help
Housing Technical Assistance Grant
Program which is implemented under 7
CFR 1944, Subpart I and authorized by
the Housing Act of 1949, as amended
(42 U.S.C. 1490c). The purpose of the
program is to provide grants to qualified
organizations to help them carry out
local self-help housing construction
projects. Grant recipients supervise
groups of very low- and low-income
individuals and families as they
construct or rehabilitate their homes in
rural areas. The group members provide
most of the construction labor on each
other’s homes, and rehabilitation project
participants contribute construction
hours based on the amount of work
E:\FR\FM\04DEP1.SGM
04DEP1
]]>Agencies
[Federal Register Volume 89, Number 233 (Wednesday, December 4, 2024)]
[Proposed Rules]
[Pages 96126-96130]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-28214]
========================================================================
Proposed Rules
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains notices to the public of
the proposed issuance of rules and regulations. The purpose of these
notices is to give interested persons an opportunity to participate in
the rule making prior to the adoption of the final rules.
========================================================================
Federal Register / Vol. 89, No. 233 / Wednesday, December 4, 2024 /
Proposed Rules
[[Page 96126]]
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 985
[Doc. No. AMS-SC-24-0067]
Marketing Order Regulating the Handling of Spearmint Oil Produced
in the Far West; Revision of the Salable Quantity and Allotment
Percentage for Class 3 (Native) Spearmint Oil for the 2024-2025
Marketing Year
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Proposed rule.
-----------------------------------------------------------------------
SUMMARY: This proposed rule would implement a recommendation from the
Far West Spearmint Oil Administrative Committee (Committee) to revise
the quantity of Class 3 (Native) spearmint oil that handlers may
purchase from, or handle on behalf of, producers in Washington, Idaho,
and Oregon and parts of Nevada and Utah (Far West) for the 2024-2025
marketing year, which began on June 1, 2024. This action would increase
the 2024-2025 marketing year Native spearmint oil salable quantity from
678,980 pounds to 731,220 pounds, and the allotment percentage from 26
percent to 28 percent.
DATES: Comments must be received by December 19, 2024.
ADDRESSES: Interested persons are invited to submit written comments
concerning this proposed rule. Comments may be sent to the Docket
Clerk, Market Development Division, Specialty Crops Program, AMS, USDA,
1400 Independence Avenue SW, STOP 0237, Washington, DC 20250-0237.
Comments may also be submitted to the Docket Clerk electronically by
email: [email protected] or via the internet at: https://www.regulations.gov. Comments should reference the document number and
the date and page number of this issue of the Federal Register.
Comments submitted in response to this proposed rule will be included
in the record and will be made available to the public and can be
viewed at: https://www.regulations.gov. 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 Barry Broadbent, Chief, Northwest Region Branch, Market Development
Division, Specialty Crops Program, AMS, USDA; Telephone: (503) 326-
2282, or Email: [email protected] or [email protected].
Small businesses may request information on complying with this
regulation by contacting Richard Lower, Market Development Division,
Specialty Crops Program, AMS, USDA, 1400 Independence Avenue SW, STOP
0237, Washington, DC 20250-0237; Telephone: (202) 720-8085, or Email:
[email protected].
SUPPLEMENTARY INFORMATION: This action, pursuant to 5 U.S.C. 553,
proposes to amend 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 comprises
spearmint oil producers operating within the area of production, and a
public member.
The Agricultural Marketing Service (AMS) is issuing this proposed
rule in conformance with Executive Orders 12866, 13563, and 14094.
Executive Orders 12866 and 13563 direct agencies to assess all costs
and benefits of available regulatory alternatives and, if regulation is
necessary, to select regulatory approaches that maximize net benefits
(including potential economic, environmental, public health and safety
effects, distributive impacts, and equity). Executive Order 13563
emphasizes the importance of quantifying both costs and benefits,
reducing costs, harmonizing rules, and promoting flexibility. Executive
Order 14094 reaffirms, supplements, and updates Executive Order 12866
and further directs agencies to solicit and consider input from a wide
range of affected and interested parties through a variety of means.
This proposed 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 13175--
Consultation and Coordination with Indian Tribal Governments, which
requires Federal agencies to consider whether their rulemaking actions
would have Tribal implications. AMS has determined that this proposed
rule is unlikely to have substantial direct effects on one or more
Indian Tribes, on the relationship between the Federal Government and
Indian Tribes, or on the distribution of power and responsibilities
between the Federal Government and Indian Tribes.
This proposed rule has been reviewed under Executive Order 12988--
Civil Justice Reform. This proposed rule is not intended to have
retroactive effect. Under the Order now in effect, salable quantities
and allotment percentages have been established for classes of
spearmint oil produced in the Far West. This proposed rule would
increase the quantity of Native Spearmint oil produced in the Far West
that handlers may purchase from, or handle on behalf of, producers
during the 2024-2025 marketing year, which began on June 1, 2024.
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 the U.S. Department
of Agriculture (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 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.
[[Page 96127]]
This proposal invites comments on revisions to the quantity of
Native spearmint oil that handlers may purchase from, or handle on
behalf of, producers during the 2024-2025 marketing year. Prior to this
proposed rule, the salable quantity and allotment percentage for Native
spearmint oil was initially established at 678,980 pounds and 26
percent, respectively, in a final rule published May 23, 2024 (89 FR
45557). This proposed rule would increase the Native spearmint oil
salable quantity from 678,980 pounds to 731,220 pounds and the
allotment percentage from 26 percent to 28 percent.
Pursuant to the requirements in Sec. 985.50 of the Order, the
Committee meets each year to consider supply and demand of spearmint
oil and to adopt a marketing policy for the ensuing marketing year. In
determining such marketing policy, the Committee considers several
factors, including, but not limited to, the current and projected
supply of oil, estimated future demand, production costs, and producer
prices for both Class 1 (Scotch) and Class 3 (Native) spearmint oil.
Input from spearmint oil handlers and producers are considered as well.
Pursuant to the provisions in Sec. 985.51, when the Committee's
marketing policy considerations indicate a need to establish or to
maintain stable market conditions through volume regulation, the
Committee subsequently recommends to AMS the establishment of a salable
quantity and allotment percentage for such class or classes of oil for
the upcoming marketing year. Recommendations for volume control are
intended to ensure market requirements for Far West spearmint oil are
satisfied and orderly marketing conditions are maintained.
Salable quantity represents the total quantity of each class of oil
(Scotch or Native) which handlers may purchase from, or handle on
behalf of, producers during a given marketing year. The allotment
percentage for each class of spearmint oil is the salable quantity for
that class of oil divided by the total of all producers' allotment base
for the same class of oil. A producer's allotment base is their
calculated share of the spearmint oil market based on a statistical
representation of past spearmint production and sales. In order to
account for changes in production and demand over time, the Committee
periodically reviews and adjusts each producer's allotment base in
accordance with a formula prescribed by the Committee and approved by
AMS. Each producer's annual allotment of the salable quantity is
calculated by multiplying their respective allotment base for each
class of spearmint oil by the allotment percentage for that class of
spearmint oil. The total allotment base is revised each year on June 1
to account for producer allotment base being lost because 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.
The Committee met on October 11, 2023, to consider its marketing
policy for the 2024-2025 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. The
Committee unanimously recommended salable quantities and allotment
percentages for Native spearmint oil of 678,980 pounds and 26 percent,
respectively. In addition, the Committee unanimously recommended a
salable quantity and allotment percentage for Scotch spearmint oil of
663,648 pounds and 29 percent, respectively. A proposed rule to that
effect was published in the Federal Register on January 25, 2024 (89 FR
4835). Comments on the proposed rule were solicited from interested
persons until February 26, 2024. No comments were received.
Subsequently, a final rule establishing the salable quantities and
allotment percentages for Scotch and Native spearmint oil for the 2024-
2025 marketing year was published in the Federal Register on May 23,
2024 (89 FR 45557).
Pursuant to authority contained in Sec. Sec. 985.50, 985.51, and
985.52, the Committee met again on October 9, 2024, to evaluate the
current year's volume control regulation. At the meeting, the Committee
assessed the current market conditions for spearmint oil in relation to
the salable quantities and allotment percentages established for the
2024-2025 marketing year. The Committee considered several factors,
including the current and projected supply and the estimated future
demand for all classes of spearmint oil. The Committee determined that
the established salable quantity and allotment percentage in effect for
Native spearmint oil for the 2024-2025 marketing year should be
increased to provide an adequate buffer to ensure available supply
would continue to meet demand.
At the October 9, 2024, meeting, the Committee recommended
increasing the 2024-2025 marketing year Native spearmint oil salable
quantity from 678,980 pounds to 731,220 pounds and the allotment
percentage from 26 percent to 28 percent. The recommendation to
increase the salable quantity and allotment percentage passed with a
vote of 6 in favor with 2 opposed. The members voting against the
recommendation supported volume control, but did not believe that
additional supply would be necessary to meet 2024-2025 marketing year
demand.
Accordingly, this proposed rule would make additional amounts of
Native spearmint oil available to the market by increasing the salable
quantity and allotment percentage previously established under the
Order for the 2024-2025 marketing year. This proposed rule would
increase the Native spearmint oil salable quantity by 52,240 pounds, to
731,220 pounds, and would raise the allotment percentage 2 percentage
points, to 28 percent. Such additional oil could come from 2024-2025
marketing year production or from releasing Native spearmint oil held
by producers in the reserve pool. As of May 31, 2024, the Committee
records show that the reserve pool for Native spearmint oil contained
1,026,336 pounds of oil.
At the October 9, 2024, meeting, the Committee staff reported, as
of the meeting date, there was an estimated 356,302 pounds of salable
quantity of Native spearmint available for purchase in the 2024-2025
marketing year, ending May 31, 2025. The Committee considered this
amount to be low for this early in the marketing year. Based on the
Committee's estimated sales demand for Native spearmint oil for the
remainder of the 2024-2025 marketing year, the Committee projected that
approximately 125,000 pounds of Native spearmint oil may be carried
into the 2025-2026 marketing year. However, the Committee was concerned
that, without increasing the salable quantity and allotment percentage,
the market for Native spearmint oil may be shorted if demand were to
increase unexpectedly. The increased quantity of Native spearmint oil
(52,240 pounds) that would be made available to the market because of
this rulemaking would ensure that market demand is fully satisfied in
the current year. Should the available supply of Native spearmint oil
exceed 2024-2025 marketing year demand, any unsold quantity would
remain available to the market in future marketing years as salable
carry-in.
In making the recommendation to increase the salable quantity and
allotment percentage of Native spearmint oil, the Committee considered
all currently available information on the price, supply, and demand of
Native spearmint oil. The Committee also considered reports and
[[Page 96128]]
other information from handlers and producers in attendance at the
meeting. Lastly, the Committee manager presented information and
reports that were provided to the Committee staff by handlers and
producers.
This proposal would increase the 2024-2025 marketing year Native
spearmint oil salable quantity by 52,240 pounds to a total of 731,220
pounds. This amount, along with 446,420 pounds of salable carry-in,
would result in available supply of 1,177,640 pounds. The Committee
estimates 2024-2025 marketing year trade demand for Native spearmint
oil to be 1,000,000 pounds. Actual sales of Native spearmint oil for
the 2023-2024 marketing year totaled 987,041 pounds. The 5-year average
of Native spearmint oil sales is 1,085,916 pounds.
The Committee estimates that this action would result in
approximately 175,000 pounds of salable Native spearmint oil could be
carried into the 2025-2026 marketing year which begins June 1, 2025.
The Committee believes that this amount to be a sufficient buffer if
demand exceeds the Committee's expectations for the remainder of the
2024-2025 marketing year. In addition, reserve pool oil could be
released into the market under a future relaxation of the volume
regulation should it be necessary to adequately supply the market prior
to the beginning of the 2025-2026 marketing year. The Committee
estimates that a total of 1,335,150 pounds of Native spearmint oil
(1,026,336 currently in reserve and an estimated 308,814 pounds of
excess oil produced during the 2024-2025 marketing year) would be
available from the reserve pool, if needed.
The Committee's stated intent in the use of the Order's volume
control regulation is to keep adequate supply available to meet market
needs and to maintain orderly marketing conditions. With that
consideration, the Committee developed its recommendation for
increasing the Native spearmint oil salable quantity and allotment
percentage for the 2024-2025 marketing year based on the information
discussed above, as well as the summary data detailed below.
(A) Initial Estimated 2024-2025 Native Allotment Base--2,611,463
pounds. This figure is the allotment base estimate on which the
original 2024-2025 salable quantity and allotment percentage was based.
(B) Revised 2024-2025 Native Allotment Base--2,611,500 pounds. This
figure is 37 pounds more than the initial estimated allotment base of
2,611,463 pounds. The difference is the result of annual adjustments
made to the allotment base at the beginning of the marketing year in
accordance with the provisions of the Order.
(C) Initial 2024-2025 Native Allotment Percentage--26 percent. This
percentage was unanimously recommended by the Committee on October 11,
2023.
(D) Initial 2024-2025 Native Salable Quantity--678,980 pounds. This
figure is 26 percent of the original estimated 2024-2025 allotment base
of 2,611,463 pounds.
(E) Adjusted Initial 2024-2025 Native Salable Quantity--678,990
pounds. This figure reflects the salable quantity available at the
beginning of the 2024-2025 marketing year. This quantity is derived by
applying the initial 26 percent allotment percentage to the revised
allotment base of 2,611,500.
(F) Proposed Revision to the 2024-2025 Native Salable Quantity and
Allotment Percentage:
(1) Proposed Increase in the Native Allotment Percentage--2
percent. The Committee recommended an increase of 2 percentage points
over the initial Native allotment percentage.
(2) Proposed Revised 2024-2025 Native Allotment Percentage--28
percent. This percentage was derived by adding the increase of 2
percentage points to the initially established 2024-2025 Native
allotment percentage of 26 percent.
(3) Proposed Revised 2024-2025 Native Salable Quantity--731,220
pounds. This figure is 28 percent of the revised 2024-2025 Native
allotment base of 2,611,500 pounds.
(4) Computed Increase in the 2024-2025 Native Salable Quantity as a
Result of the Proposed Revision--52,240 pounds. This figure represents
the difference between the initial 2024-2025 Native salable quantity of
678,980 pounds and the proposed Native salable quantity of 731,220
pounds.
Scotch spearmint oil is also regulated by the Order. As mentioned
previously, a salable quantity and allotment percentage for Scotch
spearmint oil was established in a final rule published in the Federal
Register on May 23, 2024 (89 FR 45557). At the October 9, 2024,
meeting, the Committee considered the projected production, inventory,
and marketing conditions for Scotch spearmint oil for the 2024-2025
marketing year. After receiving reports from the Committee staff and
comments from the industry, the consensus of the Committee was that the
previously established salable quantity and allotment percentage for
Scotch spearmint oil was appropriate for the current market conditions.
As such, the Committee took no further action with regards to Scotch
spearmint oil for the 2024-2025 marketing year.
This proposed rule would relax the volume regulation requirements
of Native spearmint oil and would allow producers to meet market demand
while improving producer returns. The proposed increase in the Native
spearmint oil salable quantity and allotment percentage would account
for the anticipated market needs for that class of oil. In determining
anticipated market needs, the Committee considered changes and trends
in historical sales, production, and demand. In conjunction with the
issuance of this proposed rule, AMS has reviewed the Committee's
marketing policy statement for the 2024-2025 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.
Initial Regulatory Flexibility Analysis
Pursuant to requirements set forth in the Regulatory Flexibility
Act (RFA) (5 U.S.C. 601-612), 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 89 producers of Native spearmint oil
operating within the regulated production area. In addition, there are
approximately 6 Native 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
equal to or less than $34.0 million (Postharvest Crop Activities, NAICS
code 11514). Small agricultural producers of spearmint oil are defined
as those having annual receipts of equal to or less than $2.5 million
(All Other Miscellaneous Crop Farming, NAICS code 111998) (13 CFR
121.201).
The National Agricultural Statistics Service (NASS) reported that
the 2023 U.S. season average spearmint oil producer price per pound was
$18.40 (both Scotch and Native). Native spearmint oil utilization for
the 2023-2024 marketing year, as reported by the
[[Page 96129]]
Committee, was 987,041 pounds for Native spearmint oil. Multiplying
$18.40 per pound by 2023-2024 marketing year spearmint oil utilization
of 987,041 pounds yields a crop value estimate of about $18.2 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 $18.40 average
spearmint oil price and Committee production data for each producer,
the Committee estimates that all of the 89 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.
Twenty percent of the 2023 producer price ($18.40) is $3.68, which
results in a handler Free on Board (f.o.b.) price per pound estimate of
$22.08 ($18.40 + $3.68).
Multiplying this estimated handler f.o.b. price by the 2023-2024
marketing year total spearmint oil utilization of 1,536,364 pounds
(987,041 pounds of Native + 549,323 pounds of Scotch) results in an
estimated handler-level spearmint oil value of $33.9 million. Dividing
this figure by the number of handlers (6) yields estimated average
annual handler receipts of about $5.7 million, which is well below the
$34.0 million SBA threshold for small agricultural service firms.
Furthermore, using confidential data compiled by the Committee on
the pounds of spearmint oil handled by each handler and the
abovementioned estimated handler price per pound, the Committee
reported that it is not likely that any of the six handlers had 2023-
2024 marketing year spearmint oil sales that exceeded SBA's 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 increase the quantity of Native spearmint
oil produced in the Far West, which handlers may purchase from, or
handle on behalf of, producers during the 2024-2025 marketing year,
which ends May 31, 2025. The 2024-2025 marketing year Native spearmint
oil salable quantity was initially established at 678,980 pounds and
the allotment percentage initially set at 26 percent. This proposed
rule would increase the Native spearmint oil salable quantity to
731,220 pounds and the allotment percentage to 28 percent. The
Committee recommended this proposed 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 from or handled on behalf
of producers 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 of the Order.
Based on the information and projections available at the October
9, 2024, meeting, the Committee considered several alternatives to this
increase. The Committee considered leaving the salable quantity and
allotment percentage unchanged, and also considered other potential
levels of increase. The Committee reached its recommendation to
increase the salable quantity and allotment percentage for Native
spearmint oil after careful consideration of all available information
and input from all interested industry participants and believes that
the levels recommended would achieve the desired objectives. The
recommendation to increase the salable quantity and allotment
percentage passed with a vote of 6 in favor with 2 opposed. The members
voting against the recommendation supported volume control, but did not
believe that additional supply would be necessary to meet 2024-2025
marketing year demand. Without the increase, the Committee believes the
industry may not be able to satisfactorily meet market demand.
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 9, 2024, meeting was a
public meeting and all entities, both large and small, were able to
express views on this issue. Finally, interested persons are invited to
submit comments on this proposed rule, including the regulatory and
informational impacts of this action on small businesses.
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 in those requirements would be
necessary because of this proposed rule. Should any changes become
necessary, they would be submitted to OMB for approval.
This proposed rule would relax the volume regulation requirements
established under the Order. Accordingly, this action would not impose
any additional reporting or recordkeeping requirements on either small
or large Far West spearmint oil handlers. As with all Federal marketing
order programs, reports and forms are periodically reviewed to reduce
information requirements and duplication by industry and public sector
agencies.
AMS is committed to complying with the E-Government Act, to promote
the use of the internet and other information technologies to provide
increased opportunities for citizen access to Government information
and services, and for other purposes.
AMS has not identified any relevant Federal rules that duplicate,
overlap, or conflict with this proposed rule.
A small business guide on complying with fruit, vegetable, and
specialty crop marketing agreements and orders may be viewed at:
https://www.ams.usda.gov/rules-regulations/moa/small-businesses. Any
questions about the compliance guide should be sent to Richard Lower at
the previously mentioned address in the FOR FURTHER INFORMATION CONTACT
section.
After consideration of all relevant material presented, including
the information and recommendations submitted by the Committee and
other available information, AMS has determined that this proposed rule
is consistent with and would effectuate the purposes of the Act.
A 15-day comment period is provided to allow interested persons to
respond to this proposal. Fifteen days is deemed appropriate because
handlers are aware of this proposed regulatory relaxation, which was
recommended by the Committee at a public meeting, and the subject
matter of this proposal is not complex. The 2024-2025 marketing year
ends on May 31, 2025. For the additional salable quantity proposed in
this rule to be available to the market, timely consideration of the
proposal is essential to ensure orderly market conditions. AMS will
consider all timely comments received before making a final
determination on this matter.
List of Subjects in 7 CFR Part 985
Marketing agreements, Oils and fats, Reporting and recordkeeping
requirements.
[[Page 96130]]
For the reasons set forth in the preamble, the Agricultural
Marketing Service 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. Amend Sec. 985.234 by revising paragraph (b) to read as follows:
Sec. 985.234 Salable quantities and allotment percentages--2024-2025
marketing year.
* * * * *
(b) Class 3 (Native) oil--a salable quantity of 731,220 pounds and
an allotment percentage of 28 percent.
Erin Morris,
Associate Administrator, Agricultural Marketing Service.
[FR Doc. 2024-28214 Filed 12-3-24; 8:45 am]
BILLING CODE P
