Federal Register / Vol. 79, No. 50 / Friday, March 14, 2014 / Proposed Rules 14441 

Office of the Docket Clerk, Marketing 

Order and Agreement Division, Fruit 

and Vegetable Program, AMS, USDA, 

1400 Independence Avenue SW., STOP 

0237, Washington, DC 20250–0237, or 

Internet: http://www.regulations.gov. 

FOR FURTHER INFORMATION CONTACT: 

Andrea Ricci, Marketing Specialist, or 

Martin Engeler, Regional Director, 

California Marketing Field Office, 

Marketing Order and Agreement 

Division, Fruit and Vegetable Program, 

AMS, USDA; Telephone: (559) 487– 

5901, Fax: (559) 487–5906, or Email: 

Andrea.Ricci@ams.usda.gov or 

Martin.Engeler@ams.usda.gov, 

respectively. 

SUPPLEMENTARY INFORMATION: Pursuant 

to Marketing Order No. 984, as amended 

(7 CFR part 984), hereinafter referred to 

as the ‘‘order,’’ and the applicable 

provisions of the Agricultural Marketing 

Agreement Act of 1937, as amended (7 

U.S.C. 601–674), hereinafter referred to 

as the ‘‘Act,’’ it is hereby directed that 

a referendum be conducted to ascertain 

whether continuance of the order is 

favored by growers. The referendum 

shall be conducted from April 1 through 

April 19, 2014, among eligible 

California walnut growers. Only current 

growers that were also engaged in the 

production of walnuts in California 

during the period of September 1, 2012, 

through August 31, 2013, may 

participate in the continuance 

referendum. 

USDA has determined that 

continuance referenda are an effective 

means for determining whether growers 

favor the continuation of marketing 

order programs. USDA would consider 

termination of the order if less than twothirds of the growers voting in the 

referendum and growers of less than 

two-thirds of the volume of California 

walnuts represented in the referendum 

favor continuance of their program. In 

evaluating the merits of continuance 

versus termination, USDA will consider 

the results of the continuance 

referendum and other relevant 

information regarding operation of the 

order. USDA will also consider the 

order’s relative benefits and 

disadvantages to growers, handlers, and 

consumers to determine whether 

continuing the order would tend to 

effectuate the declared policy of the Act. 

In accordance with the Paperwork 

Reduction Act of 1995 (44 U.S.C. 

Chapter 35), the ballot materials used in 

the referendum herein ordered have 

been approved by the Office of 

Management and Budget (OMB), under 

OMB No. 0581–0178, Walnuts Grown in 

California. It has been estimated that it 

will take an average of 20 minutes for 

each of the approximately 4,100 growers 

of California walnuts to cast a ballot. 

Participation is voluntary. Ballots 

postmarked after April 19, 2014, will 

not be included in the vote tabulation. 

Andrea Ricci and Terry Vawter of the 

California Marketing Field Office, Fruit 

and Vegetable Program, AMS, USDA, 

are hereby designated as the referendum 

agents of the Secretary of Agriculture to 

conduct this referendum. The procedure 

applicable to the referendum shall be 

the ‘‘Procedure for the Conduct of 

Referenda in Connection With 

Marketing Orders for Fruits, Vegetables, 

and Nuts Pursuant to the Agricultural 

Marketing Agreement Act of 1937, as 

Amended’’ (7 CFR 900.400–900.407). 

Ballots will be mailed to all growers 

of record and may also be obtained from 

the referendum agents or from their 

appointees. 

List of Subjects in 7 CFR Part 984 

Marketing agreements, Nuts, 

Reporting and recordkeeping 

requirements, Walnuts. 

Authority: 7 U.S.C. 601–674. 

Dated: February 26, 2014. 

Rex A. Barnes, 

Associate Administrator, Agricultural 

Marketing Service. 

[FR Doc. 2014–05585 Filed 3–13–14; 8:45 am] 

BILLING CODE 3410–02–P 

DEPARTMENT OF AGRICULTURE 

Agricultural Marketing Service 

7 CFR Part 985 

[Doc. No. AMS–FV–13–0087; FV14–985–1 

PR] 

Marketing Order Regulating the 

Handling of Spearmint Oil Produced in 

the Far West; Salable Quantities and 

Allotment Percentages for the 2014– 

2015 Marketing Year 

AGENCY: Agricultural Marketing Service, 

USDA. 

ACTION: Proposed rule. 

SUMMARY: This proposed rule invites 

comments on proposed limits to the 

quantity of Far West Scotch and Native 

spearmint oil that handlers may 

purchase from, or handle on behalf of, 

producers during the 2014–2015 

marketing year, which begins on June 1, 

2014. The Far West includes 

Washington, Idaho, Oregon, and 

designated parts of Nevada and Utah. 

The salable quantity and allotment 

percentage for Class 1 (Scotch) 

spearmint oil would be set at 1,149,030 

pounds and 55 percent, respectively. 

For Class 3 (Native) spearmint oil, the 

salable quantity and allotment 

percentage would be set at 1,090,821 

pounds and 46 percent, respectively. 

The Spearmint Oil Administrative 

Committee (Committee), the agency 

responsible for local administration of 

the marketing order for spearmint oil 

produced in the Far West, 

recommended these quantities. 

DATES: Comments must be received by 

March 31, 2014. 

ADDRESSES: Interested persons are 

invited to submit written comments 

concerning this proposal. Comments 

must be sent to the Docket Clerk, 

Marketing Order and Agreement 

Division, Fruit and Vegetable Program, 

AMS, USDA, 1400 Independence 

Avenue SW., STOP 0237, Washington, 

DC 20250–0237; Fax: (202) 720–8938; or 

Internet: http://www.regulations.gov. All 

comments should reference the 

document number and the date and 

page number of this issue of the Federal 

Register and will be made available for 

public inspection in the Office of the 

Docket Clerk during regular business 

hours, or can be viewed at: http:// 

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: 

Manuel Michel, Marketing Specialist, or 

Gary Olson, Regional Director, 

Northwest Marketing Field Office, 

Marketing Order and Agreement 

Division, Fruit and Vegetable Program, 

AMS, USDA; Telephone: (503) 326– 

2724, Fax: (503) 326–7440, or Email: 

Manuel.Michel@ams.usda.gov or 

GaryD.Olson@ams.usda.gov. 

Small businesses may request 

information on complying with this 

regulation by contacting Jeffrey Smutny, 

Marketing Order and Agreement 

Division, Fruit and Vegetable Program, 

AMS, USDA, 1400 Independence 

Avenue SW., STOP 0237, Washington, 

DC 20250–0237; Telephone: (202) 720– 

2491, Fax: (202) 720–8938, or Email: 

Jeffrey.Smutny@ams.usda.gov. 

SUPPLEMENTARY INFORMATION: This 

proposal is issued under Marketing 

Order No. 985 (7 CFR Part 985), as 

amended, regulating the handling of 

spearmint oil produced in the Far West 

(Washington, Idaho, Oregon, and 

designated parts of Nevada and Utah), 

hereinafter referred to as the ‘‘order.’’ 

The order is effective under the 

Agricultural Marketing Agreement Act 

mstockstill on DSK4VPTVN1PROD with PROPOSALS

14442 Federal Register / Vol. 79, No. 50 / Friday, March 14, 2014 / Proposed Rules 

of 1937, as amended (7 U.S.C. 601–674), 

hereinafter referred to as the ‘‘Act.’’ 

The Department of Agriculture 

(USDA) is issuing this proposed rule in 

conformance with Executive Orders 

12866, 13175, and 13563. 

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 

may be established for classes of 

spearmint oil produced in the Far West. 

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 2014–2015 

marketing year, which begins on June 1, 

2014. 

The Act provides that administrative 

proceedings must be exhausted before 

parties may file suit in court. Under 

section 608c(15)(A) of the Act, any 

handler subject to an order may file 

with USDA a petition stating that the 

order, any provision of the order, or any 

obligation imposed in connection with 

the order is not in accordance with law 

and request a modification of the order 

or to be exempted therefrom. A handler 

is afforded the opportunity for a hearing 

on the petition. After the hearing, USDA 

would rule on the petition. The Act 

provides that the district court of the 

United States in any district in which 

the handler is an inhabitant, or has his 

or her principal place of business, has 

jurisdiction to review USDA’s ruling on 

the petition, provided an action is filed 

not later than 20 days after the date of 

the entry of the ruling. 

The Committee meets annually in the 

fall to adopt a marketing policy for the 

ensuing marketing year or years. In 

determining such marketing policy, the 

Committee considers a number of 

factors, including, but not limited to, the 

current and projected supply, estimated 

future demand, production costs, and 

producer prices for all classes of 

spearmint oil. Input from spearmint oil 

handlers and producers regarding 

prospective marketing conditions for the 

upcoming year is considered as well. 

During the meeting, the Committee 

recommends to USDA any volume 

regulations deemed necessary to meet 

market requirements and to establish 

orderly marketing conditions for Far 

West spearmint oil. If the Committee’s 

marketing policy considerations 

indicate a need for limiting the quantity 

of any or all classes of spearmint oil 

marketed, the Committee subsequently 

recommends the establishment of a 

salable quantity and allotment 

percentage for such class or classes of 

oil for the forthcoming marketing year. 

The salable quantity represents the 

total amount of each class of spearmint 

oil that handlers may purchase from, or 

handle on behalf of, producers during 

the marketing year. The allotment 

percentage is the percentage used to 

calculate each producer’s prorated share 

of the salable quantity. The calculation 

applies the allotment percentage to a 

producer’s allotment base for each 

applicable class of spearmint oil. The 

allotment base is each producer’s 

quantified share of the spearmint oil 

market based on a statistical 

representation of past spearmint oil 

production, with accommodation for 

reasonable and normal adjustments to 

such base as prescribed by the 

Committee and approved by USDA. 

Salable quantities are established at 

levels intended to meet market 

requirements and to establish orderly 

marketing conditions. Committee 

recommendations for volume controls 

are made well in advance of the period 

in which the regulations are to be 

effective, thereby allowing producers 

the chance to adjust their production 

decisions accordingly. 

Pursuant to authority in §§ 985.50, 

985.51, and 985.52 of the order, the full 

eight-member Committee met on 

November 6, 2013, and recommended 

salable quantities and allotment 

percentages for both classes of oil for the 

2014–2015 marketing year. The 

Committee unanimously recommended 

the establishment of a salable quantity 

and allotment percentage for Class 1 

(Scotch) spearmint oil of 1,149,030 

pounds and 55 percent, respectively. 

The Committee, also with a unanimous 

vote, recommended the establishment of 

a salable quantity and allotment 

percentage for Class 3 (Native) 

spearmint oil of 1,090,821 pounds and 

46 percent, respectively. 

This action would set the amount of 

Scotch and Native spearmint oil that 

handlers may purchase from, or handle 

on behalf of, producers during the 

2014–2015 marketing year, which 

begins on June 1, 2014. Salable 

quantities and allotment percentages 

have been placed into effect each season 

since the order’s inception in 1980. 

Class 1 (Scotch) Spearmint Oil 

As noted above, the Committee 

unanimously recommended a salable 

quantity of Scotch spearmint oil of 

1,149,030 pounds and an allotment 

percentage of 55 percent for the 

upcoming 2014–2015 marketing year. 

The Committee utilized 2014–2015 sales 

estimates for Scotch spearmint oil, as 

provided by several of the industry’s 

handlers, as well as historical and 

current Scotch spearmint oil production 

and inventory statistics, to arrive at 

these recommendations. 

Trade demand for Far West Scotch 

spearmint oil is expected to rise from 

981,536 pounds in the 2013–2014 

marketing year to 1,000,000 pounds in 

2014–2015, if not more. Industry reports 

indicate an increasing consumer 

demand for mint flavored products has 

resulted in increasing demand for Far 

West Scotch spearmint oil. Information 

gathered from spearmint oil handlers 

also supports this conclusion. 

Production of Far West Scotch 

spearmint oil increased from 636,626 

pounds in 2012 to 1,057,377 pounds in 

2013. Committee members attribute the 

increase in production to both the low 

level of reserves and growing demand. 

Given that these factors are expected to 

continue in the coming 2014–2015 year, 

the Committee expects production to 

increase to as much as 1,300,000 

pounds in that marketing year. 

The Committee also estimates that 

there will be zero carry-in of Scotch 

spearmint oil on June 1, 2014, the 

beginning of the 2014–2015 marketing 

year. This figure, which is the primary 

measure of excess supply, down from an 

estimated 16,022 pounds the previous 

year, is below the minimum carry-in 

quantity that the Committee considers 

favorable. The demand during the 2012– 

2013 marketing year equaled total 

supply resulting in the zero carry-in. 

The 2014–2015 salable quantity of 

1,149,030 pounds recommended by the 

Committee represents an increase of 

75,631 pounds over the total supply 

available during the previous marketing 

year. Total supply for 2013–2014 

amounted to 1,073,399 pounds 

(1,057,377 pounds produced plus 

16,022 pounds held in reserve). 

The Committee estimates 2014–2015 

demand for Scotch spearmint oil at 

1,000,000 pounds. When considered in 

conjunction with the forecast that there 

will be zero available carry-in of Scotch 

spearmint oil on June 1, 2014, the 

recommended salable quantity of 

1,149,030 pounds would satisfy market 

demand and yield a carry-in of 149,030 

pounds for the 2015–2016 marketing 

year. 

The Committee’s stated intent in the 

use of marketing order volume control 

regulations for Scotch spearmint oil is to 

keep adequate supplies available to 

meet market needs and establish orderly 

marketing conditions. While the salable 

quantity recommended for the 

upcoming marketing year is less than 

the salable quantity set for the previous 

year (2013–2014 at 1,344,500 pounds), 

the Committee felt that the 

mstockstill on DSK4VPTVN1PROD with PROPOSALS

Federal Register / Vol. 79, No. 50 / Friday, March 14, 2014 / Proposed Rules 14443 

recommended limit would adequately 

meet demand, as well as result in carryin for the following year. With that in 

mind, the Committee developed its 

recommendation for the proposed 

Scotch spearmint oil salable quantity 

and allotment percentage for the 2014– 

2015 marketing year based on the 

information discussed above, as well as 

the data outlined below. 

(A) Estimated carry-in of Scotch 

spearmint oil on June 1, 2014–0 pounds. 

This figure is the difference between the 

revised 2013–2014 marketing year total 

available supply of 1,073,399 pounds 

and the estimated 2013–2014 marketing 

year trade demand of 1,073,399 pounds. 

(B) Estimated trade demand of Scotch 

spearmint oil for the 2014–2015 

marketing year—1,000,000 pounds. This 

figure is based on input from producers 

at five Scotch spearmint oil production 

area meetings held in late September 

and early October 2013, as well as 

estimates provided by handlers and 

other meeting participants at the 

November 6, 2013, meeting. The average 

estimated trade demand provided at the 

five production area meetings is 

1,033,000 pounds, which is 25,750 

pounds less than the average of trade 

demand estimates submitted by 

handlers. However, Far West Scotch 

spearmint oil sales have averaged 

819,824 pounds per year over the last 

five years. Given this information, the 

Committee decided it was prudent to 

anticipate the trade demand at 

1,000,000 pounds. Should the initially 

established volume control levels prove 

insufficient to adequately supply the 

market, the Committee has the authority 

to recommend intra-seasonal increases 

as needed. 

(C) Salable quantity of Scotch 

spearmint oil required from the 2014– 

2015 marketing year production— 

1,000,000 pounds. This figure is the 

difference between the estimated 2014– 

2015 marketing year trade demand 

(1,000,000 pounds) and the estimated 

carry-in on June 1, 2014 (0 pounds). 

This figure represents the minimum 

salable quantity that may be needed to 

satisfy estimated demand for the coming 

year with no carryover. 

(D) Total estimated allotment base of 

Scotch spearmint oil for the 2014–2015 

marketing year—2,089,146 pounds. This 

figure represents a one-percent increase 

over the revised 2013–2014 total 

allotment base. This figure is generally 

revised each year on June 1 due to 

producer base being lost because of the 

bona fide effort production provisions of 

§ 985.53(e). The revision is usually 

minimal. 

(E) Computed Scotch spearmint oil 

2014–2015 marketing year allotment 

percentage—47.9 percent. This 

percentage is computed by dividing the 

minimum required salable quantity 

(1,000,000 pounds) by the total 

estimated allotment base (2,089,146 

pounds). 

(F) Recommended Scotch spearmint 

oil 2014–2015 marketing year allotment 

percentage—55 percent. This is the 

Committee’s recommendation and is 

based on the computed allotment 

percentage (47.9 percent), the average of 

the computed allotment percentage 

figures from the five production area 

meetings (46.2 percent), and input from 

producers and handlers at the 

November 6, 2013, meeting. The 

recommended 55 percent allotment 

percentage is also based on the 

Committee’s belief that the computed 

percentage (47.9 percent) may not 

adequately supply the potential 2014– 

2015 Scotch spearmint oil market. 

(G) Recommended Scotch spearmint 

oil 2014–2015 marketing year salable 

quantity—1,149,030 pounds. This figure 

is the product of the recommended 

allotment percentage (55 percent) and 

the total estimated allotment base 

(2,089,146 pounds). 

(H) Estimated total available supply 

of Scotch spearmint oil for the 2014– 

2015 marketing year—1,149,030 

pounds. This figure is the sum of the 

2014–2015 recommended salable 

quantity (1,149,030 pounds) and the 

estimated carry-in on June 1, 2014 (0 

pounds). 

Class 3 (Native) Spearmint Oil 

At the November 6, 2013, meeting, the 

Committee also recommended a 2014– 

2015 Native spearmint oil salable 

quantity of 1,090,821 pounds and an 

allotment percentage of 46 percent. The 

Committee utilized Native spearmint oil 

sales estimates for 2014–2015 marketing 

year, as provided by several of the 

industry’s handlers, as well as historical 

and current Native spearmint oil market 

statistics to establish these thresholds. 

The recommended volume control 

levels represent a decrease of 341,380 

pounds and 15 percentage points over 

the previous year’s initially established 

salable quantity and allotment 

percentage. 

The Committee also estimates that 

there will be 461,260 pounds reserve of 

Native spearmint oil on June 1, 2014. 

This figure, which is the oil held in 

reserve by producers, is down from an 

industry peak of 606,942 pounds in 

2011. Reserve levels of Native spearmint 

oil are nearing the level that the 

Committee believes is optimal for the 

industry. 

Committee statistics indicate that 

demand for Far West Native spearmint 

oil has been gradually increasing since 

2009. Spearmint oil handlers, who 

previously projected the 2013–2014 

trade demand for Far West Native 

spearmint oil to be in the range of 

1,100,000 pounds to 1,400,000 pounds 

(with an average of 1,300,000 pounds), 

have projected trade demand for the 

2014–2015 marketing period to be in the 

range of 1,290,000 pounds to 1,400,000 

pounds (with an average of 1,347,500). 

Given the above, the Committee 

estimates that approximately 1,300,000 

pounds of Native spearmint oil may be 

sold during the 2014–2015 marketing 

year. When considered in conjunction 

with the estimated carry-in of 307,297 

pounds of Native spearmint oil on June 

1, 2014, the recommended salable 

quantity of 1,090,821 pounds results in 

an estimated total available supply of 

1,398,118 pounds of Native spearmint 

oil during the 2014–2015 marketing 

year. Estimated carry-in of Native 

spearmint oil at the beginning of the 

2015–2016 marketing year would be 

approximately 98,118 pounds. Carry-in 

spearmint oil is distinct from reserve 

pool spearmint oil and represents the 

amount of salable spearmint oil 

produced, but not marketed, in previous 

years and is available for sale in the 

current year. It is the primary measure 

of excess spearmint oil supply under the 

order. Reserve pool oil represents the 

amount of excess oil held by the 

Committee, on behalf of the producers, 

that is not currently available to the 

market. The Committee’s stated intent 

in the use of marketing order volume 

control regulations for Native spearmint 

oil is to keep adequate supplies 

available to meet market needs and 

establish orderly marketing conditions. 

With that in mind, the Committee 

developed its recommendation for the 

proposed Native spearmint oil salable 

quantity and allotment percentage for 

the 2014–2015 marketing year based on 

the information discussed above, as well 

as the data outlined below. 

(A) Estimated carry-in of Native 

spearmint oil on June 1, 2014—307,297 

pounds. This figure is the difference 

between the revised 2013–2014 

marketing year total available supply of 

1,577,297 pounds and the estimated 

2013–2014 marketing year trade 

demand of 1,270,000 pounds. 

(B) Estimated trade demand of Native 

spearmint oil for the 2014–2015 

marketing year—1,300,000 pounds. This 

estimate is established by the 

Committee and is based on input from 

producers at six Native spearmint oil 

production area meetings held in late 

September and early October 2013, as 

well as estimates provided by handlers 

and other meeting participants at the 

mstockstill on DSK4VPTVN1PROD with PROPOSALS

14444 Federal Register / Vol. 79, No. 50 / Friday, March 14, 2014 / Proposed Rules 

November 6, 2013, meeting. The average 

estimated trade demand provided at the 

six production area meetings was 

1,271,281 pounds, whereas the 

handlers’ estimates ranged from 

1,290,000 pounds to 1,400,000 pounds, 

and averaged 1,347,500 pounds. The 

average of Far West Native spearmint oil 

sales over the last five years is 1,190,928 

pounds. 

(C) Salable quantity of Native 

spearmint oil required from the 2014– 

2015 marketing year production— 

992,703 pounds. This figure is the 

difference between the estimated 2014– 

2015 marketing year trade demand 

(1,300,000 pounds) and the estimated 

carry-in on June 1, 2014 (307,297 

pounds). This is the minimum amount 

that the Committee believes would be 

required to meet the anticipated 2014– 

2015 Native spearmint oil trade 

demand. 

(D) Total estimated allotment base of 

Native spearmint oil for the 2014–2015 

marketing year—2,371,350 pounds. This 

figure represents a one-percent increase 

over the revised 2013–2014 total 

allotment base. This figure is generally 

revised each year on June 1 due to 

producer base being lost due to the bona 

fide effort production provisions of 

§ 985.53(e). The revision is usually 

minimal. 

(E) Computed Native spearmint oil 

2014–2015 marketing year allotment 

percentage—41.9 percent. This 

percentage is computed by dividing the 

required salable quantity (992,703 

pounds) by the total estimated allotment 

base (2,371,350 pounds). 

(F) Recommended Native spearmint 

oil 2014–2015 marketing year allotment 

percentage—46 percent. This is the 

Committee’s recommendation based on 

the computed allotment percentage 

(41.9 percent), the average of the 

computed allotment percentage figures 

from the six production area meetings 

(39.9 percent), and input from 

producers and handlers at the 

November 6, 2013, meeting. The 

recommended 46 percent allotment 

percentage is also based on the 

Committee’s belief that the computed 

percentage (41.9 percent) may not 

adequately supply the potential 2014– 

2015 Native spearmint oil market. 

(G) Recommended Native spearmint 

oil 2014–2015 marketing year salable 

quantity—1,090,821 pounds. This figure 

is the product of the recommended 

allotment percentage (46 percent) and 

the total estimated allotment base 

(2,371,350 pounds). 

(H) Estimated available supply of 

Native spearmint oil for the 2014–2015 

marketing year—1,398,118 pounds. This 

figure is the sum of the 2014–2015 

recommended salable quantity 

(1,090,821 pounds) and the estimated 

carry-in on June 1, 2014 (307,297 

pounds). 

The salable quantity is the total 

quantity of each class of spearmint oil 

that handlers may purchase from, or 

handle on behalf of, producers during a 

marketing year. Each producer is 

allotted a share of the salable quantity 

by applying the allotment percentage to 

the producer’s allotment base for the 

applicable class of spearmint oil. 

The Committee’s recommended 

Scotch and Native spearmint oil salable 

quantities and allotment percentages of 

1,149,030 pounds and 55 percent, and 

1,090,821 pounds and 46 percent, 

respectively, are based on the goal of 

establishing and maintaining market 

stability. The Committee anticipates that 

this goal would be achieved by 

matching the available supply of each 

class of Spearmint oil to the estimated 

demand of such, thus avoiding extreme 

fluctuations in inventories and prices. 

The proposed salable quantities are 

not expected to cause a shortage of 

spearmint oil supplies. Any 

unanticipated or additional market 

demand for spearmint oil which may 

develop during the marketing year 

could be satisfied by an intra-seasonal 

increase in the salable quantity. The 

order contains a provision for intraseasonal 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 2014–2015 

marketing year may transfer such excess 

spearmint oil to producers who have 

produced less than their annual 

allotment. In addition, up until 

November 1, 2014, producers may place 

excess spearmint oil production into the 

reserve pool to be released in the future 

in accordance with market needs. 

This proposed regulation, if adopted, 

would be similar to regulations issued 

in prior seasons. The average initial 

allotment percentage for the five most 

recent marketing years for Scotch 

spearmint oil is 41.4 percent, while the 

average initial allotment percentage for 

the same five-year period for Native 

spearmint oil is 50.2 percent. Costs to 

producers and handlers resulting from 

this rule are expected to be offset by the 

benefits derived from a stable market 

and improved returns. In conjunction 

with the issuance of this proposed rule, 

USDA has reviewed the Committee’s 

marketing policy statement for the 

2014–2015 marketing year. The 

Committee’s marketing policy 

statement, a requirement whenever the 

Committee recommends volume 

regulation, fully meets the intent of 

§ 985.50 of the order. 

During its discussion of potential 

2014–2015 salable quantities and 

allotment percentages, the Committee 

considered: (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. Conformity with USDA’s 

‘‘Guidelines for Fruit, Vegetable, and 

Specialty Crop Marketing Orders’’ has 

also been reviewed and confirmed. 

The establishment of these 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 rule also provides 

producers with information on the 

amount of spearmint oil that should be 

produced for the 2014–2015 season in 

order to meet anticipated market 

demand. 

Initial Regulatory Flexibility Analysis 

Pursuant to requirements set forth in 

the Regulatory Flexibility Act (RFA) (5 

U.S.C. 601–612), the Agricultural 

Marketing Service (AMS) has 

considered the economic impact of this 

action on small entities. Accordingly, 

AMS has prepared this initial regulatory 

flexibility analysis. 

The purpose of the RFA is to fit 

regulatory actions to the scale of 

businesses subject to such actions in 

order that small businesses will not be 

unduly or disproportionately burdened. 

Marketing orders issued pursuant to the 

Act, and the rules issued thereunder, are 

unique in that they are brought about 

through group action of essentially 

small entities acting on their own 

behalf. 

There are eight spearmint oil handlers 

subject to regulation under the order, 

and approximately 39 producers of 

Scotch spearmint oil and approximately 

91 producers of Native spearmint oil in 

the regulated production area. Small 

agricultural service firms are defined by 

the Small Business Administration 

(SBA) as those having annual receipts of 

less than $7,000,000, and small 

mstockstill on DSK4VPTVN1PROD with PROPOSALS

Federal Register / Vol. 79, No. 50 / Friday, March 14, 2014 / Proposed Rules 14445 

agricultural producers are defined as 

those having annual receipts of less than 

$750,000 (13 CFR 121.201). 

Based on the SBA’s definition of 

small entities, the Committee estimates 

that two of the eight handlers regulated 

by the order could be considered small 

entities. Most of the handlers are large 

corporations involved in the 

international trading of essential oils 

and the products of essential oils. In 

addition, the Committee estimates that 

22 of the 39 Scotch spearmint oil 

producers, and 29 of the 91 Native 

spearmint oil producers could be 

classified as small entities under the 

SBA definition. Thus, a majority of 

handlers and producers of Far West 

spearmint oil may not be classified as 

small entities. 

The Far West spearmint oil industry 

is characterized by producers whose 

farming operations generally involve 

more than one commodity, and whose 

income from farming operations is not 

exclusively dependent on the 

production of spearmint oil. A typical 

spearmint oil-producing operation has 

enough acreage for rotation such that 

the total acreage required to produce the 

crop is about one-third spearmint and 

two-thirds rotational crops. Thus, the 

typical spearmint oil producer has to 

have considerably more acreage than is 

planted to spearmint during any given 

season. Crop rotation is an essential 

cultural practice in the production of 

spearmint oil for purposes of weed, 

insect, and disease control. To remain 

economically viable with the added 

costs associated with spearmint oil 

production, a majority of spearmint oilproducing farms fall into the SBA 

category of large businesses. 

Small spearmint oil producers 

generally are not as extensively 

diversified as larger ones and as such 

are more at risk from market 

fluctuations. Such small producers 

generally need to market their entire 

annual allotment and do not have the 

luxury of having other crops to cushion 

seasons with poor spearmint oil returns. 

Conversely, large diversified producers 

have the potential to endure one or 

more seasons of poor spearmint oil 

markets because income from alternate 

crops could support the operation for a 

period of time. Being reasonably assured 

of a stable price and market provides 

small producing entities with the ability 

to maintain proper cash flow and to 

meet annual expenses. Thus, the market 

and price stability provided by the order 

potentially benefit small producers 

more than such provisions benefit large 

producers. Even though a majority of 

handlers and producers of spearmint oil 

may not be classified as small entities, 

the volume control feature of this order 

has small entity orientation. 

This proposed rule would establish 

the quantity of spearmint oil produced 

in the Far West, by class, that handlers 

may purchase from, or handle on behalf 

of, producers during the 2014–2015 

marketing year. The Committee 

recommended this rule to help maintain 

stability in the spearmint oil market by 

matching supply to estimated demand, 

thereby avoiding extreme fluctuations in 

supplies and prices. Establishing 

quantities that may be purchased or 

handled during the marketing year 

through volume regulations allows 

producers to plan their spearmint 

planting and harvesting to meet 

expected market needs. The provisions 

of §§ 985.50, 985.51, and 985.52 of the 

order authorize this rule. 

Instability in the spearmint oil subsector of the mint industry is much 

more likely to originate on the supply 

side than the demand side. Fluctuations 

in yield and acreage planted from 

season-to-season tend to be larger than 

fluctuations in the amount purchased by 

handlers. Notwithstanding the recent 

global recession and the overall negative 

impact on demand for consumer goods 

that utilize spearmint oil, demand for 

spearmint oil tends to change slowly 

from year to year. 

Demand for spearmint oil at the farm 

level is derived from retail demand for 

spearmint-flavored products such as 

chewing gum, toothpaste, and 

mouthwash. The manufacturers of these 

products are by far the largest users of 

spearmint oil. However, spearmint 

flavoring is generally a very minor 

component of the products in which it 

is used, so changes in the raw product 

price have virtually no impact on retail 

prices for those goods. 

Spearmint oil production tends to be 

cyclical. Years of relatively high 

production, with demand remaining 

reasonably stable, have led to periods in 

which large producer stocks of unsold 

spearmint oil have depressed producer 

prices for a number of years. Shortages 

and high prices may follow in 

subsequent years, as producers respond 

to price signals by cutting back 

production. 

The significant variability of the 

spearmint oil market is illustrated by 

the fact that the coefficient of variation 

(a standard measure of variability; 

‘‘CV’’) of Far West spearmint oil grower 

prices for the period 1980–2012 (when 

the marketing order was in effect) is 

0.19, compared to 0.34 for the decade 

prior to the promulgation of the order 

(1970–79) and 0.48 for the prior 20-year 

period (1960–79). This provides an 

indication of the price stabilizing 

impact of the marketing order. 

Production in the shortest marketing 

year was about 47 percent of the 34-year 

average (1.92 million pounds from 1980 

through 2013) and the largest crop was 

approximately 160 percent of the 34- 

year average. A key consequence is that, 

in years of oversupply and low prices, 

the season average producer price of 

spearmint oil is below the average cost 

of production (as measured by the 

Washington State University 

Cooperative Extension Service). 

The wide fluctuations in supply and 

prices that result from this cycle, which 

was even more pronounced before the 

creation of the order, can create 

liquidity problems for some producers. 

The order was designed to reduce the 

price impacts of the cyclical swings in 

production. However, producers have 

been less able to weather these cycles in 

recent years because of the increase in 

production costs. While prices have 

been relatively steady, the cost of 

production has increased to the extent 

that plans to plant spearmint may be 

postponed or changed indefinitely. 

Producers are also enticed by the prices 

of alternative crops and their lower cost 

of production. 

In an effort to stabilize prices, the 

spearmint oil industry uses the volume 

control mechanisms authorized under 

the order. This authority allows the 

Committee to recommend a salable 

quantity and allotment percentage for 

each class of oil for the upcoming 

marketing year. The salable quantity for 

each class of oil is the total volume of 

oil that producers may sell during the 

marketing year. The allotment 

percentage for each class of spearmint 

oil is derived by dividing the salable 

quantity by the total allotment base. 

Each producer is then issued an 

annual allotment certificate, in pounds, 

for the applicable class of oil, which is 

calculated by multiplying the 

producer’s allotment base by the 

applicable allotment percentage. This is 

the amount of oil of each applicable 

class that the producer can sell. 

By November 1 of each year, the 

Committee identifies any oil that 

individual producers have produced 

above the volume specified on their 

annual allotment certificates. This 

excess oil is placed in a reserve pool 

administered by the Committee. 

There is a reserve pool for each class 

of oil that may not be sold during the 

current marketing year unless USDA 

approves a Committee recommendation 

to increase the salable quantity and 

allotment percentage for a class of oil 

and make a portion of the pool 

available. However, limited quantities of 

mstockstill on DSK4VPTVN1PROD with PROPOSALS

14446 Federal Register / Vol. 79, No. 50 / Friday, March 14, 2014 / Proposed Rules 

reserve oil are typically sold by one 

producer to another producer to fill 

deficiencies. A deficiency occurs when 

on-farm production is less than a 

producer’s allotment. In that case, a 

producer’s own reserve oil can be sold 

to fill that deficiency. Excess production 

(higher than the producer’s allotment) 

can be sold to fill other producers’ 

deficiencies. All of these provisions 

need to be exercised prior to November 

1 of each year. 

In any given year, the total available 

supply of spearmint oil is composed of 

current production plus carryover 

stocks from the previous crop. The 

Committee seeks to maintain market 

stability by balancing supply and 

demand, and to close the marketing year 

with an appropriate level of salable 

spearmint oil to carry over into the 

subsequent marketing year. If the 

industry has production in excess of the 

salable quantity, then the reserve pool 

absorbs the surplus quantity of 

spearmint oil, which goes unsold during 

that year, unless the oil is needed for 

unanticipated sales. 

Under its provisions, the order may 

attempt to stabilize prices by (1) limiting 

supply and establishing reserves in high 

production years, thus minimizing the 

price-depressing effect that excess 

producer stocks have on unsold 

spearmint oil, and (2) ensuring that 

stocks are available in short supply 

years when prices would otherwise 

increase dramatically. The reserve pool 

stocks, which are increased in large 

production years, are drawn down in 

years where the crop is short. 

An econometric model was used to 

assess the impact that volume control 

has on the prices producers receive for 

their commodity. Without volume 

control, spearmint oil markets would 

likely be over-supplied. This could 

result in low producer prices and a large 

volume of oil stored and carried over to 

the next crop year. The model estimates 

how much lower producer prices would 

likely be in the absence of volume 

controls. 

The Committee estimated trade 

demand for the 2014–2015 marketing 

year for both classes of oil at 2,300,000 

pounds, and that the expected 

combined salable carry-in will be 

307,297 pounds. This results in a 

combined required salable quantity of 

1,992,703 pounds. With volume control, 

sales by producers for the 2014–2015 

marketing year would be limited to 

2,239,851 pounds (the recommended 

salable quantity for both classes of 

spearmint oil). 

The recommended allotment 

percentages, upon which 2014–2015 

producer allotments are based, are 55 

percent for Scotch and 46 percent for 

Native. Without volume controls, 

producers would not be limited to these 

allotment levels, and could produce and 

sell additional spearmint. The 

econometric model estimated a decline 

of about $1.90 in the season average 

producer price per pound (from both 

classes of spearmint oil) resulting from 

the higher quantities that would be 

produced and marketed without volume 

control. The surplus situation for the 

spearmint oil market that would exist 

without volume controls in 2014–2015 

also would likely dampen prospects for 

improved producer prices in future 

years because of the buildup in stocks. 

The use of volume control allows the 

industry to fully supply spearmint oil 

markets while avoiding the negative 

consequences of over-supplying these 

markets. The use of volume control 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 discussed and 

rejected the idea of recommending that 

there not be any volume regulation for 

both classes of spearmint oil because of 

the severe price-depressing effects that 

would occur without volume control. 

After computing the initial 47.9 

percent Scotch spearmint oil allotment 

percentage, the Committee considered 

various alternative levels of volume 

control for Scotch spearmint oil. Even 

with the moderately optimistic 

marketing conditions, there was 

consensus from the Committee that the 

Scotch spearmint oil allotment 

percentage for 2014–2015 should be less 

than the percentage established for the 

2013–2014 marketing year (65 percent). 

After considerable discussion, the eightmember committee unanimously 

determined that 1,149,030 pounds and 

55 percent would be the most effective 

Scotch spearmint oil salable quantity 

and allotment percentage, respectively, 

for the 2014–2015 marketing year. 

The Committee was also able to reach 

a consensus regarding the level of 

volume control for Native spearmint oil. 

After first determining the computed 

allotment percentage at 41.9 percent, the 

Committee unanimously recommended 

1,090,821 pounds and 46 percent for the 

effective Native spearmint oil salable 

quantity and allotment percentage, 

respectively, for the 2014–2015 

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 quantity and 

allotment percentage levels 

recommended would achieve the 

objectives sought. 

Without any regulations in effect, the 

Committee believes the industry would 

return to the pronounced cyclical price 

patterns that occurred prior to the order, 

and that prices in 2014–2015 could 

decline substantially below current 

levels. 

According to the Committee, the 

recommended salable quantities and 

allotment percentages are expected to 

facilitate the goal of establishing orderly 

marketing conditions for Far West 

spearmint oil. 

As previously stated, annual salable 

quantities and allotment percentages 

have been issued for both classes of 

spearmint oil since the order’s 

inception. 

In accordance with the Paperwork 

Reduction Act of 1995 (44 U.S.C. 

Chapter 35), the order’s information 

collection requirements have been 

previously approved by the Office of 

Management and Budget (OMB) and 

assigned OMB No. 0581–0178, 

Vegetable and Specialty Crops. No 

changes in those requirements as a 

result of this action are necessary. 

Should any changes become necessary, 

they would be submitted to OMB for 

approval. 

This proposed rule would establish 

the salable quantities and allotment 

percentages for Class 1 (Scotch) 

spearmint oil and Class 3 (Native) 

spearmint oil produced in the Far West 

during the 2014–2015 marketing year. 

Accordingly, this action 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 

mstockstill on DSK4VPTVN1PROD with PROPOSALS

Federal Register / Vol. 79, No. 50 / Friday, March 14, 2014 / Proposed Rules 14447 

duplication by industry and public 

sector agencies. 

AMS is committed to complying with 

the E-Government Act to promote the 

use of the internet and other 

information technologies to provide 

increased opportunities for citizen 

access to Government information and 

services, and for other purposes. 

USDA has not identified any relevant 

Federal rules that duplicate, overlap, or 

conflict with this proposed rule. 

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 November 6, 2013, 

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. 

A small business guide on complying 

with fruit, vegetable, and specialty crop 

marketing agreements and orders may 

be viewed at: http://www.ams.usda.gov/ 

MarketingOrdersSmallBusinessGuide. 

Any questions about the compliance 

guide should be sent to Jeffrey Smutny 

at the previously mentioned address in 

the FOR FURTHER INFORMATION CONTACT

section. 

A 15-day comment period is provided 

to allow interested persons to respond 

to this proposed rule. Fifteen days is 

deemed appropriate because: (1) The 

2014–2015 fiscal period begins on June 

1, 2014, and a final determination on 

the salable quantities and allotment 

percentages should be made prior to 

handlers purchasing from, or handling 

on behalf of, producers any oil for the 

ensuing marketing year; and (2) 

handlers are aware of this action, which 

was recommended by the Committee at 

a public meeting and is similar to other 

salable quantities and allotment 

percentages issued in past years. 

List of Subjects in 7 CFR Part 985 

Marketing agreements, Oils and fats, 

Reporting and recordkeeping 

requirements, Spearmint oil. 

For the reasons set forth in the 

preamble, 7 CFR Part 985 is proposed to 

be amended as follows: 

PART 985—MARKETING ORDER 

REGULATING THE HANDLING OF 

SPEARMINT OIL PRODUCED IN THE 

FAR WEST 

■ 1. The authority citation for 7 CFR 

Part 985 continues to read as follows: 

Authority: 7 U.S.C. 601–674. 

■ 2. Section 985.233 is added to read as 

follows: 

Note: This section will not appear in the 

Code of Federal Regulations. 

§ 985.233 Salable quantities and allotment 

percentages—2014–2015 marketing year. 

The salable quantity and allotment 

percentage for each class of spearmint 

oil during the marketing year beginning 

on June 1, 2014, shall be as follows: 

(a) Class 1 (Scotch) oil—a salable 

quantity of 1,149,030 pounds and an 

allotment percentage of 55 percent. 

(b) Class 3 (Native) oil—a salable 

quantity of 1,090,821 pounds and an 

allotment percentage of 46 percent. 

Dated: March 5, 2014. 

Rex A. Barnes, 

Associate Administrator, Agricultural 

Marketing Service. 

[FR Doc. 2014–05587 Filed 3–13–14; 8:45 am] 

BILLING CODE 3410–02–P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Part 39 

[Docket No. FAA–2014–0156; Directorate 

Identifier 2014–CE–001–AD] 

RIN 2120–AA64 

Airworthiness Directives; Costruzioni 

Aeronautiche Tecnam srl Airplanes 

AGENCY: Federal Aviation 

Administration (FAA), Department of 

Transportation (DOT). 

ACTION: Notice of proposed rulemaking 

(NPRM). 

SUMMARY: We propose to adopt a new 

airworthiness directive (AD) for 

Costruzioni Aeronautiche Tecnam srl 

Model P2006T airplanes. This proposed 

AD results from mandatory continuing 

airworthiness information (MCAI) 

originated by an aviation authority of 

another country to identify and correct 

an unsafe condition on an aviation 

product. The MCAI describes the unsafe 

condition as a cracked engine mount. 

We are issuing this proposed AD to 

require actions to address the unsafe 

condition on these products. 

DATES: We must receive comments on 

this proposed AD by April 28, 2014. 

ADDRESSES: You may send comments by 

any of the following methods: 

• Federal eRulemaking Portal: Go to 

http://www.regulations.gov. Follow the 

instructions for submitting comments. 

• Fax: (202) 493–2251. 

• Mail: U.S. Department of 

Transportation, Docket Operations, M– 

30, West Building Ground Floor, Room 

W12–140, 1200 New Jersey Avenue SE., 

Washington, DC 20590. 

• Hand Delivery: U.S. Department of 

Transportation, Docket Operations, M– 

30, West Building Ground Floor, Room 

W12–140, 1200 New Jersey Avenue SE., 

Washington, DC 20590, between 9 a.m. 

and 5 p.m., Monday through Friday, 

except Federal holidays. 

For service information identified in 

this proposed AD, contact Costruzioni 

Aeronautiche Tecnam Airworthiness 

Office, Via Maiorise–81043 Capua (CE) 

Italy; telephone: +39 0823 620134; fax: 

+39 0823 622899; email: 

m.oliva@tecnam.com or 

g.paduano@tecnam.com; Internet: 

www.tecnam.com/it-IT/documenti/ 

service-bulletins.aspx. You may review 

copies of the referenced service 

information at the FAA, Small Airplane 

Directorate, 901 Locust, Kansas City, 

Missouri 64106. For information on the 

availability of this material at the FAA, 

call (816) 329–4148. 

Examining the AD Docket 

You may examine the AD docket on 

the Internet at http:// 

www.regulations.gov by searching for 

and locating Docket No. FAA–2014– 

0156; or in person at the Docket 

Management Facility between 9 a.m. 

and 5 p.m., Monday through Friday, 

except Federal holidays. The AD docket 

contains this proposed AD, the 

regulatory evaluation, any comments 

received, and other information. The 

street address for the Docket Office 

(telephone (800) 647–5527) is in the 

ADDRESSES section. Comments will be 

available in the AD docket shortly after 

receipt. 

FOR FURTHER INFORMATION CONTACT: 

Albert Mercado, Aerospace Engineer, 

FAA, Small Airplane Directorate, 901 

Locust, Room 301, Kansas City, 

Missouri 64106; telephone: (816) 329– 

4119; fax: (816) 329–4090; email: 

albert.mercado@faa.gov. 

SUPPLEMENTARY INFORMATION: 

Comments Invited 

We invite you to send any written 

relevant data, views, or arguments about 

this proposed AD. Send your comments 

to an address listed under the 

ADDRESSES section. Include ‘‘Docket No. 

FAA–2014–0156; Directorate Identifier 

2014–CE–001–AD’’ at the beginning of 

your comments. We specifically invite 

comments on the overall regulatory, 

economic, environmental, and energy 

aspects of this proposed AD. We will 

consider all comments received by the 

closing date and may amend this 

mstockstill on DSK4VPTVN1PROD with PROPOSALS