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[Federal Register Volume 79, Number 166 (Wednesday, August 27, 2014)]
[Rules and Regulations]
[Pages 51069-51071]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-20409]

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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 946

[Doc. No. AMS-FV-14-0026; FV14-946-1 FIR]

Irish Potatoes Grown in Washington; Modification of the Handling 
Regulations for Yellow Fleshed and White Types of Potatoes

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Affirmation of interim rule as final rule.

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SUMMARY: The Department of Agriculture is adopting, as a final rule, 
without change, an interim rule that extended the temporary exemption 
of yellow fleshed and white skin (white types) potatoes from minimum 
quality, maturity, pack, marking, and inspection requirements under the 
Washington potato marketing order through the 2014-2015 and subsequent 
fiscal periods. This rule is expected to reduce overall industry 
expenses and increase

[[Page 51070]]

net returns to producers and handlers while continuing to give the 
industry the opportunity to explore alternative marketing strategies.

DATES: Effective August 28, 2014.

FOR FURTHER INFORMATION CONTACT: Teresa Hutchinson, 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: Teresa.Hutchinson@ams.usda.gov or GaryD.Olson@ams.usda.gov.
    Small businesses may obtain information on complying with this and 
other marketing order regulations by viewing a guide at the following 
Web site: http://www.ams.usda.gov/MarketingOrdersSmallBusinessGuide; or 
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 rule is issued under Marketing Order 
No. 946, as amended (7 CFR part 946), regulating the handling of Irish 
potatoes grown in 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 of Agriculture (USDA) is issuing this rule in 
conformance with Executive Orders 12866, 13563, and 13175.
    The handling of Irish potatoes grown in Washington is regulated by 
7 CFR part 946. This rule continues in effect the interim rule that 
extended the temporary exemption of yellow fleshed and white types of 
potatoes from the order's handling regulations through the 2014-2015 
and subsequent fiscal periods. This rule allows the Washington potato 
industry to continue to market yellow fleshed and white types of 
potatoes without regard to the minimum quality, maturity, pack, 
marking, and inspection requirements prescribed under the order.
    In an interim rule published in the Federal Register on May 7, 
2014, and effective on July 1, 2014 (79 FR 26109, Doc. No. AMS-FV-14-
0026, FV14-946-1 IR), Sec.  946.336 was amended to exempt yellow 
fleshed and white types of potatoes from minimum quality, maturity, 
pack, marking, and inspection requirements under the Washington potato 
marketing order through the 2014-2015 and subsequent fiscal periods.

Final Regulatory Flexibility Analysis

    Pursuant to requirements set forth in the Regulatory Flexibility 
Act (RFA) (5 U.S.C. 601-612), the Agricultural Marketing Service (AMS) 
has considered the economic impact of this action on small entities. 
Accordingly, AMS has prepared this final regulatory flexibility 
analysis.
    The purpose of the RFA is to fit regulatory actions to the scale of 
businesses subject to such actions in order that small businesses will 
not be unduly or disproportionately burdened. Marketing orders issued 
pursuant to the Act, and 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 43 handlers of Washington potatoes subject to regulation 
under the order and approximately 267 producers in the regulated 
production area. Small agricultural service firms are defined by the 
Small Business Administration as those having annual receipts of less 
than $7,000,000, and small agricultural producers are defined as those 
having annual receipts of less than $750,000 (13 CFR 121.201).
    For the 2011-2012 marketing year, the Committee reports that 
11,018,670 hundredweight of Washington potatoes were shipped into the 
fresh market. Based on average f.o.b. prices estimated by the USDA's 
Economic Research Service and Committee data on individual handler 
shipments, the Committee estimates that 42, or approximately 98 percent 
of the handlers, had annual receipts of less than $7,000,000.
    In addition, based on information provided by the National 
Agricultural Statistics Service, the average producer price for 
Washington potatoes for 2011-2012 was $7.90 per hundredweight. The 
average gross annual revenue for the 267 Washington potato producers is 
therefore calculated to be approximately $326,021. In view of the 
foregoing, the majority of Washington potato handlers and producers may 
be classified as small entities.
    This rule continues in effect the action that extended the 
temporary exemption of yellow fleshed and white types of potatoes from 
the handling regulations through the 2014-2015 and subsequent fiscal 
periods. This rule amends the provisions in Sec.  946.336. Authority 
for the change in the order's rules and regulations is provided in 
Sec.  946.52.
    The Committee does not anticipate that this rule will negatively 
impact small businesses. This rule will exempt yellow fleshed and white 
types of potatoes from minimum quality, maturity, pack, marking, and 
inspection requirements. Though inspections are not mandatory for such 
potatoes during the exemption period, handlers may voluntarily choose 
to have their potatoes inspected. Handlers are thus able to control 
costs based on the demands of their customers.
    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, Generic 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.
    During the exemption period, handlers will continue to be required 
to report fresh shipments of yellow fleshed and white types of potatoes 
monthly. While this rule requires a reporting requirement for shipments 
of yellow fleshed and white types of potatoes, their exemption from 
handling regulations also eliminates the more frequent reporting 
requirements imposed under the order's special purpose shipment 
exemptions (Sec.  946.336(d) and (e)). Under these paragraphs, handlers 
are required to provide detailed reports whenever they divert regulated 
potatoes for livestock feed, charity, seed, prepeeling, processing, 
grading and storing in specified counties in Oregon, and 
experimentation.
    Therefore, any additional reporting or recordkeeping requirements 
on either small or large handlers of yellow fleshed and white types of 
potatoes are expected to be offset by the elimination of the other 
reporting requirements currently in effect. In addition, the exemption 
from handling regulations and inspection requirements for yellow 
fleshed and white types of potatoes is expected to reduce industry 
expenses.
    As with all Federal marketing order programs, reports and forms are 
periodically reviewed to reduce information requirements and 
duplication by industry and public sector agencies. In addition, USDA 
has not identified any relevant Federal rules that duplicate, overlap 
or conflict with this rule.
    Further, the Committee's meeting was widely publicized throughout 
the Washington potato industry and all

[[Page 51071]]

interested persons were invited to participate in Committee 
deliberations. Like all Committee meetings, the December 10, 2013, 
meeting was a public meeting and all entities, both large and small, 
were able to express views on this issue.
    Comments on the interim rule were required to be received on or 
before July 7, 2014. No comments were received. Therefore, for the 
reasons given in the interim rule, we are adopting the interim rule as 
a final rule, without change.
    To view the interim rule, go to:  http://www.regulations.gov/#!documentDetail;D=AMS-FV-14-0026-0001.
    This action also affirms information contained in the interim rule 
concerning Executive Orders 12866, 12988, 13175, and 13563; the 
Paperwork Reduction Act (44 U.S.C. Chapter 35); and the E-Gov Act (44 
U.S.C. 101).
    After consideration of all relevant material presented, it is found 
that finalizing the interim rule, without change as published in the 
Federal Register (79 FR 26109, May 7, 2014) will tend to effectuate the 
declared policy of the Act.

List of Subjects in 7 CFR Part 946

    Marketing agreements, Potatoes, Reporting and recordkeeping 
requirements.

PART 946--IRISH POTATOES GROWN IN WASHINGTON

0
Accordingly, the interim rule that amended 7 CFR part 946 and that was 
published at 79 FR 26109 on May 7, 2014, is adopted as a final rule, 
without change.

    Dated: August 22, 2014.
Rex A. Barnes,
Associate Administrator, Agricultural Marketing Service.
[FR Doc. 2014-20409 Filed 8-26-14; 8:45 am]
BILLING CODE 3410-02-P
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