40970 Federal Register / Vol. 65, No. 128 / Monday, July 3, 2000 / Rules and Regulations

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/

fv/moab.html. Any questions about the

compliance guide should be sent to Jay

Guerber at the previously mentioned

address in the FOR FURTHER INFORMATION

CONTACT section.

After consideration of all relevant

material presented, including the

information and recommendation

submitted by the Committee and other

available information, it is hereby found

that this rule, as hereinafter set forth,

will tend to effectuate the declared

policy of the Act.

Pursuant to 5 U.S.C. 553, it is also

found and determined that good cause

exists for not postponing the effective

date of this rule until 30 days after

publication in the Federal Register

because: (1) The Committee needs to

have sufficient funds to pay its expenses

which are incurred on a continuous

basis; (2) the 2000–2001 fiscal period

begins on July 1, 2000, and the order

requires that the rate of assessment for

each fiscal period apply to all assessable

onions handled during such fiscal

period; (3) handlers are aware of this

action which was unanimously

recommended by the Committee at a

public meeting; and (4) a 30-day

comment period was provided for in the

proposed rule, and no comments were

received.

List of Subjects in 7 CFR Part 958

Onions, Marketing agreements,

Reporting and recordkeeping

requirements.

For the reasons set forth in the

preamble, 7 CFR part 958 is amended as

follows:

PART 958—ONIONS GROWN IN

CERTAIN DESIGNATED COUNTIES IN

IDAHO, AND MALHEUR COUNTY,

OREGON

1. The authority citation for 7 CFR

part 958 continues to read as follows:

Authority: 7 U.S.C. 601–674.

2. Section 958.240 is revised to read

as follows:

§ 958.240 Assessment rate.

On and after July 1, 2000, an

assessment rate of $0.08 per

hundredweight is established for IdahoEastern Oregon onions.

Dated: June 27, 2000.

Robert C. Keeney

Deputy Administrator, Fruit and Vegetable

Programs

[FR Doc. 00–16741 Filed 6–30–00; 8:45 am]

BILLING CODE 3410–02–P

DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 982

[Docket No. FV00–982–1 FIR]

Hazelnuts Grown in Oregon and

Washington; Establishment of Interim

and Final Free and Restricted

Percentages for the 1999–2000

Marketing Year

AGENCY: Agricultural Marketing Service,

USDA.

ACTION: Final rule.

SUMMARY: The Department of

Agriculture (Department) is adopting, as

a final rule, without change, the

provisions of an interim final rule

which established interim and final free

and restricted percentages for domestic

inshell hazelnuts for the 1999–2000

marketing year under the Federal

marketing order for hazelnuts grown in

Oregon and Washington. The

percentages allocate the quantity of

domestically produced hazelnuts which

may be marketed in the domestic inshell

market. The percentages are intended to

stabilize the supply of domestic inshell

hazelnuts to meet the limited domestic

demand for such hazelnuts and provide

reasonable returns to producers. This

rule was recommended unanimously by

the Hazelnut Marketing Board (Board),

which is the agency responsible for

local administration of the marketing

order.

EFFECTIVE DATE: July 5, 2000.

FOR FURTHER INFORMATION CONTACT:

Teresa L. Hutchinson, Northwest

Marketing Field Office, Marketing Order

Administration Branch, Fruit and

Vegetable Programs, AMS, USDA, 1220

SW Third Avenue, room 385, Portland,

OR 97204; telephone: (503) 326–2724,

Fax: (503) 326–7440; or George J.

Kelhart, Technical Advisor, Marketing

Order Administration Branch, Fruit and

Vegetable Programs, AMS, USDA, room

2525–S, P.O. Box 96456, Washington,

DC 20090–6456; telephone: (202) 720–

2491, Fax: (202) 720–5698.

Small businesses may request

information on complying with this

regulation by contacting Jay Guerber,

Marketing Order Administration

Branch, Fruit and Vegetable Programs,

AMS, USDA, P.O. Box 96456, room

2525–S, Washington, DC 20090–6456;

telephone: (202) 720–2491, Fax: (202)

720–5698, or E-mail:

Jay.Guerber@usda.gov.

SUPPLEMENTARY INFORMATION: This rule

is issued under Marketing Agreement

No. 115 and Marketing Order No. 982,

both as amended (7 CFR Part 982),

regulating the handling of hazelnuts

grown in Oregon and Washington,

hereinafter referred to as the ‘‘order.’’

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 Department is issuing this rule in

conformance with Executive Order

12866.

This rule has been reviewed under

Executive Order 12988, Civil Justice

Reform. It is intended that this action

apply to all merchantable hazelnuts

handled during the 1999–2000

marketing year (July 1, 1999, through

June 30, 2000). This rule will not

preempt any State or local laws,

regulations, or policies, unless they

present an irreconcilable conflict with

this rule.

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 Secretary 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, the Secretary 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 the Secretary’s ruling on the

petition, provided an action is filed not

later than 20 days after the date of the

entry of the ruling.

This rule continues in effect

percentages which allocate the quantity

of inshell hazelnuts that may be

marketed in domestic markets. The

Board is required to meet prior to

September 20 of each marketing year to

compute its marketing policy for that

year, and compute and announce an

inshell trade demand if it determines

that volume regulations would tend to

effectuate the declared policy of the Act.

The Board also computes and

announces preliminary free and

restricted percentages for that year.

The inshell trade demand is the

amount of inshell hazelnuts that

handlers may ship to the domestic

market throughout the marketing

season. The order specifies that the

inshell trade demand be computed by

averaging the preceding three ‘‘normal’’

years trade acquisitions of inshell

hazelnuts, rounded to the nearest whole

number. The Board may increase the

Federal Register / Vol. 65, No. 128 / Monday, July 3, 2000 / Rules and Regulations 40971

three-year average by up to 25 percent,

if market conditions warrant an

increase. The Board’s authority to

recommend volume regulations and the

computations used to determine the

percentages are specified in § 982.40 of

the order.

The National Agricultural Statistics

Service (NASS) estimated hazelnut

production at 38,000 tons for the Oregon

and Washington area. The majority of

domestic inshell hazelnuts are marketed

in October, November, and December.

By November, the marketing season is

well under way.

The quantity marketed is broken

down into free and restricted

percentages to make available hazelnuts

which may be marketed in domestic

inshell markets (free) and hazelnuts

which must be exported, shelled or

otherwise disposed of by handlers

(restricted). The preliminary free

percentage releases 80 percent of the

adjusted inshell trade demand. The

adjusted inshell trade demand used by

the Board was the average of the past

three years’ sales (4,136 tons), plus an

additional 10 percent for market

development (414 tons), minus the

declared carryin from last year’s crop

(110 tons).

The purpose of releasing only 80

percent of the inshell trade demand

under the preliminary percentage is to

guard against an underestimate of crop

size. The preliminary free percentage is

expressed as a percentage of the total

supply subject to regulation (supply)

and is based on the preliminary crop

estimate.

Based on the NASS crop estimate of

38,000 tons, the Board computed and

announced preliminary free and

restricted percentages of 10 percent and

90 percent, respectively, at its August

31, 1999, meeting. This action initially

released 3,552 tons of hazelnuts from

the 1999 supply for domestic inshell use

as the preliminary free percentage. The

preliminary restricted percentage of the

1999 supply for export and kernel

markets thus initially totaled 31,143

tons.

A special meeting of the Board was

held on October 26, 1999, to increase

the percentage of free product released

for market development from 10 percent

(414 tons) to 20 percent (827 tons)

which is 120 percent of the three-year

average trade acquisitions of inshell

hazelnuts. The Board took this action

because it determined that the demand

for domestic inshell hazelnuts was

greater than previously thought. Based

upon the new adjusted trade demand of

4,854 tons, the Board computed revised

preliminary free and restricted

percentages of 11 percent and 89

percent, respectively. This revised

preliminary free percentage (11 percent)

released 3,883 tons of hazelnuts from

the 1999 supply for domestic inshell use

rather than the initially computed 3,552

tons. The revised preliminary restricted

percentage (89 percent) of the 1999

supply for export and kernel markets

thus totaled 30,720 tons, rather than

31,143 tons.

Under the order, the Board must meet

on or before November 15 to

recommend interim final and final

percentages. The Board uses current

crop estimates to calculate interim final

and final percentages. The interim final

percentages are calculated in the same

way as the preliminary percentages and

release the remaining 20 percent (to

total 100 percent of the inshell trade

demand) previously computed by the

Board. Final free and restricted

percentages may release up to an

additional 15 percent of the average of

the preceding three years’ trade

acquisitions to provide an adequate

carryover into the following season (i.e.,

desirable carryout). The order requires

that the final free and restricted

percentages shall be effective 30 days

prior to the end of the marketing year,

or earlier, if recommended by the Board

and approved by the Secretary.

Revisions in the marketing policy can be

made until February 15 of each

marketing year, but the inshell trade

demand can only be revised upward,

consistent with § 982.40(e).

The Board met on November 15, 1999,

and reviewed and approved an

amended marketing policy and

recommended the establishment of

interim final and final free and

restricted percentages. The interim final

free and restricted percentages were

recommended at 15 percent free and 85

percent restricted. Final percentages,

which included an additional 15

percent of the average of the preceding

three-years’ trade acquisitions for

desirable carryout, were recommended

at 16 percent free and 84 percent

restricted effective March 1, 2000. The

final percentages release 5,474 tons of

inshell hazelnuts from the 1999 supply

for domestic use.

The final marketing percentages are

based on the Board’s final production

estimate (36,548 tons) and the following

supply and demand information for the

1999–2000 marketing year:

Tons

Inshell Supply:

(1) Total production (Board’s estimate) ............................................................................................................................................ 36,548

(2) Less substandard, farm use (disappearance) ............................................................................................................................ 3,271

(3) Merchantable production (Board’s adjusted crop estimate; Item 1 minus Item 2) .................................................................... 33,277

(4) Plus undeclared carryin as of July 1, 1999, subject to regulation ............................................................................................. 4

(5) Supply subject to regulation (Item 3 plus Item 4) ...................................................................................................................... 33,281

Inshell Trade Demand:

(6) Average trade acquisitions of inshell hazelnuts for three prior years ........................................................................................ 4,136

(7) Increase to encourage increased sales (20 percent of Item 6) ................................................................................................. 827

(8) Less declared carryin as of July 1, 1999, not subject to regulation .......................................................................................... 109

(9) Adjusted Inshell Trade Demand ................................................................................................................................................. 4,854

(10) Desirable carryout on August 31, 2000 (15 percent of Item 6) ............................................................................................... 620

(11) Adjusted Inshell Trade Demand plus desirable carryout (Item 9 plus Item 10) ...................................................................... 5,474

Free Restricted

Percentages:

(12) Interim final percentages (Item 9 divided by Item 5) ........................................................................................ 15 85

(13) Final percentages (Item 11 divided by Item 5) × 100 ...................................................................................... 16 84

In addition to complying with the

provisions of the order, the Board also

considered the Department’s 1982

‘‘Guidelines for Fruit, Vegetable, and

Specialty Crop Marketing Orders’’

(Guidelines) when making its

40972 Federal Register / Vol. 65, No. 128 / Monday, July 3, 2000 / Rules and Regulations

computations in the marketing policy.

This volume control regulation provides

a method to collectively limit the

supply of inshell hazelnuts available for

sale in domestic markets. The

Guidelines provide that the domestic

inshell market has available a quantity

equal to 110 percent of prior years’

shipments before secondary market

allocations are approved. This provides

for plentiful supplies for consumers and

for market expansion, while retaining

the mechanism for dealing with

oversupply situations. At its October 26

and November 15, 1999, meetings the

Board recommended that an increase of

20 percent (827 tons) for market

expansion be included in the inshell

trade demand which was used to

compute the interim percentages. The

established final percentages are based

on the final inshell trade demand, and

made available an additional 620 tons

for desirable carryout effective March 1,

2000. The total free supply for the 1999–

2000 marketing year is 4,756 tons of

hazelnuts, which is the final trade

demand of 4,136 tons plus the 620 tons

for desirable carryout. This amount is

135 percent of prior years’ sales and

exceeds the goal of the Guidelines.

Pursuant to requirements set forth in

the Regulatory Flexibility Act (RFA), the

Agricultural Marketing Service (AMS)

has considered the economic impact of

this rule on small entities. Accordingly,

the AMS has prepared this final

regulatory flexibility analysis.

The purpose of the RFA is to fit

regulatory actions to the scale of

business 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. Thus, both statutes have small

entity orientation and compatibility.

There are approximately 800

producers of hazelnuts in the

production area and approximately 22

handlers subject to regulation under the

order. Small agricultural producers are

defined by the Small Business

Administration (13 CFR 121.201) as

those having annual receipts of less than

$500,000, and small agricultural service

firms are defined as those having annual

receipts of less than $5,000,000. Using

these criteria, virtually all of the

producers are small agricultural

producers and an estimated 19 of the 22

handlers are small agricultural service

firms. In view of the foregoing, it can be

concluded that the majority of hazelnut

producers and handlers may be

classified as small entities, excluding

receipts from other sources.

Board meetings are widely publicized

in advance of the meetings and are held

in a location central to the production

area. The meetings are open to all

industry members and other interested

persons who are encouraged to

participate in the deliberations and

voice their opinions on topics under

discussion. Thus, Board

recommendations can be considered to

represent the interests of small business

entities in the industry.

Many years of marketing experience

led to the development of the current

volume control procedures. These

procedures have helped the industry

solve its marketing problems by keeping

inshell supplies in balance with

domestic needs. The current volume

control procedures fully supply the

domestic inshell market while

preventing oversupplies in that market.

Inshell hazelnuts sold to the domestic

market provide higher returns to the

industry than are obtained from

shelling. The inshell market is inelastic

and is characterized as having limited

demand and being prone to oversupply.

Industry statistics show that total

hazelnut production has varied widely

over the last 10 years, from a low of

13,000 tons in 1989 to a high of 47,000

tons in 1997. Average production has

been around 27,000 tons. While crop

size has fluctuated, the volume

regulations contribute toward orderly

marketing and market stability, and help

moderate the variation in returns for all

producers and handlers, both large and

small. For instance, production in the

shortest crop year (1989) was 48 percent

of the 10-year average (1989–1998).

Production in the biggest crop year

(1997) was 173 percent of the 10-year

average. The percentage releases

provide all handlers with the

opportunity to benefit from the most

profitable domestic inshell market. That

market is available to all handlers,

regardless of handler size.

NASS statistics show that the

producer price per pound has increased

over the last 5 years, from $.32 in 1993

to $.49 in 1998.

The Board discussed not regulating.

However, without any regulations in

effect, the Board believes that the

industry would oversupply the inshell

domestic market.

While the level of benefits of this

rulemaking is difficult to quantify, the

stabilizing effects of the volume

regulations impact both small and large

handlers positively by helping them

maintain and expand markets even

though hazelnut supplies fluctuate

widely from season to season.

Hazelnuts produced under the order

comprise virtually all of the hazelnuts

produced in the United States. This

production represents, on average, less

than 5 percent of total U.S. tree nut

production, and less than 5 percent of

the world’s hazelnut production.

This volume control regulation

provides a method for the U.S. hazelnut

industry to limit the supply of domestic

inshell hazelnuts available for sale in

the United States. Section 982.40 of the

order establishes a procedure and

computations for the Board to follow in

recommending to the Secretary release

of preliminary, interim final, and final

quantities of hazelnuts to be released to

the free and restricted markets each

marketing year. The program results in

plentiful supplies for consumers and for

market expansion while retaining the

mechanism for dealing with oversupply

situations.

Currently, U.S. hazelnut production

can be successfully allocated between

the inshell domestic and secondary

markets. One of the best secondary

markets for hazelnuts is the export

market. Inshell hazelnuts produced

under the marketing order compete well

in export markets because of quality.

Europe, and Germany in particular, is

historically the primary world market

for U.S. produced inshell hazelnuts. A

third market is for shelled hazelnuts

(kernels) sold domestically.

Domestically produced kernels

generally command a higher price in the

domestic market than imported kernels.

The industry is continuing its efforts to

develop and expand secondary markets,

especially the domestic kernel market.

Small business entities, both producers

and handlers, benefit from the

expansion efforts resulting from this

program.

There are some reporting,

recordkeeping, and other compliance

requirements under the order. The

reporting and recordkeeping burdens

are necessary for compliance purposes

and for developing statistical data for

maintenance of the program. The

information collection requirements

have been previously approved by the

Office of Management and Budget under

OMB No. 0581–0178. The forms require

information which is readily available

from handler records and which can be

provided without data processing

equipment or trained statistical staff. As

with all Federal marketing order

programs, reports and forms are

periodically reviewed to reduce or

eliminate duplicate information

collection burdens by industry and

public sector agencies. This final rule

does not change those requirements. In

addition, as noted in the initial

Federal Register / Vol. 65, No. 128 / Monday, July 3, 2000 / Rules and Regulations 40973

regulatory flexibility analysis, the

Department has not identified any

relevant Federal rules that duplicate,

overlap or conflict with this regulation.

Further, the Board’s meetings were

widely publicized throughout the

hazelnut industry and all interested

persons were invited to attend the

meetings and encouraged to participate

in Board deliberations. Like all Board

meetings, those held on August 31,

October 26, and November 15, 1999,

were open to the public and all entities,

both large and small, were able to

express their views on this issue. The

Board itself is composed of 10 members,

of which 4 are handlers, 5 are

producers, and one is a public member.

Finally, interested persons were invited

to submit information on the regulatory

and informational impacts of this action

on small businesses.

An interim final rule concerning this

action was published in the Federal

Register on January 19, 2000. Copies of

the rule were mailed by the Board’s staff

to all Board members and hazelnut

handlers. In addition, the rule was made

available through the Internet by the

Office of the Federal Register. That rule

provided for a 60-day comment period

which ended March 20, 2000. No

comments were received.

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/

fv/moab.html. Any questions about the

compliance guide should be sent to Jay

Guerber at the previously mentioned

address in the FOR FURTHER INFORMATION

CONTACT section.

After consideration of all relevant

material presented, including the

Board’s recommendation, and other

information, it is found that finalizing

the interim final rule, without change,

as published in the Federal Register (65

FR 2841, January 19, 2000), will tend to

effectuate the declared policy of the Act.

Pursuant to 5 U.S.C. 553, it is also

found that good cause exists for not

postponing the effective date of this

action until 30 days after publication in

the Federal Register because: (1) The

percentages continued herein apply to

all merchantable hazelnuts handled

during the 1999–2000 marketing year;

(2) the 1999–2000 marketing year ends

June 30, 2000; and (3) handlers are

aware of this action and are prepared to

comply with the marketing percentages.

List of Subjects in 7 CFR Part 982

Filberts, Hazelnuts, Marketing

agreements, Nuts, Reporting and

recordkeeping requirements.

PART 982—HAZELNUTS GROWN IN

OREGON AND WASHINGTON

Accordingly, the interim final rule

amending 7 CFR part 982 which was

published at 65 FR 2841 on January 19,

2000, is adopted as a final rule without

change.

Dated: June 27, 2000.

Robert C. Keeney,

Deputy Administrator, Fruit and Vegetable

Programs.

[FR Doc. 00–16740 Filed 6–30–00; 8:45 am]

BILLING CODE 3410–02–P

DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 985

[Docket No. FV00–985–4 FIR]

Marketing Order Regulating the

Handling of Spearmint Oil Produced in

the Far West; Decreased Assessment

Rate

AGENCY: Agricultural Marketing Service,

USDA.

ACTION: Final rule.

SUMMARY: The Department of

Agriculture (Department) is adopting, as

a final rule, without change, the

provisions of an interim final rule

which decreased the assessment rate

established for the Spearmint Oil

Administrative Committee (Committee)

for the 2000–2001 and subsequent

marketing years from $0.10 per pound

to $0.09 per pound of spearmint oil

handled. The Committee is responsible

for local administration of the marketing

order which regulates the handling of

spearmint oil produced in the Far West.

Authorization to assess spearmint oil

handlers enables the Committee to incur

expenses that are reasonable and

necessary to administer the program.

The marketing year begins June 1 and

ends May 31. The assessment rate will

remain in effect indefinitely unless

modified, suspended, or terminated.

EFFECTIVE DATE: August 2, 2000.

FOR FURTHER INFORMATION CONTACT:

Robert J. Curry, Northwest Marketing

Field Office, Marketing Order

Administration Branch, Fruit and

Vegetable Programs, AMS, USDA, 1220

SW Third Avenue, suite 385, Portland,

Oregon 97204; telephone: (503) 326–

2724, Fax: (503) 326–7440; or George

Kelhart, Technical Advisor, Marketing

Order Administration Branch, Fruit and

Vegetable Programs, AMS, USDA, room

2525–S, P.O. Box 96456, Washington,

DC 20090–6456; telephone: (202) 720–

2491, Fax: (202) 720–5698.

Small businesses may request

information on complying with this

regulation by contacting Jay Guerber,

Marketing Order Administration

Branch, Fruit and Vegetable Programs,

AMS, USDA, P.O. Box 96456, room

2525–S, Washington, DC 20090–6456;

telephone: (202) 720–2491, Fax: (202)

720–5698, or E-mail:

Jay.Guerber@usda.gov.

SUPPLEMENTARY INFORMATION: This rule

is issued under Marketing Order No.

985, as amended (7 CFR part 985),

regulating the handling of spearmint oil

produced in the Far West (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 of 1937, as amended (7

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

as the ‘‘Act.’’

The Department is issuing this rule in

conformance with Executive Order

12866.

This rule has been reviewed under

Executive Order 12988, Civil Justice

Reform. Under the marketing order now

in effect, Far West spearmint oil

handlers are subject to assessments.

Funds to administer the order are

derived from such assessments. It is

intended that the assessment rate as

issued herein will be applicable to all

assessable spearmint oil beginning June

1, 2000, and continue until amended,

suspended, or terminated. This rule will

not preempt any State or local laws,

regulations, or policies, unless they

present an irreconcilable conflict with

this rule.

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 Secretary 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 the Secretary 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 the Secretary’s ruling on the

petition, provided an action is filed not

later than 20 days after the date of the

entry of the ruling.

This rule continues to decrease the

assessment rate established for the

Committee for the 2000–2001 and

subsequent marketing years from $0.10