Federal Register / Vol. 80, No. 77 / Wednesday, April 22, 2015 / Rules and Regulations 22359 

DEPARTMENT OF AGRICULTURE 

Agricultural Marketing Service 

7 CFR Parts 948 and 980 

[Doc. No. AMS–FV–13–0073; FV13–948–3 

FR] 

Irish Potatoes Grown in Colorado and 

Imported Irish Potatoes; Relaxation of 

the Handling Regulation for Area No. 2 

and Import Regulations 

AGENCY: Agricultural Marketing Service, 

USDA. 

ACTION: Final rule. 

SUMMARY: This rule revises the 

minimum quantity exception for 

potatoes handled under the Colorado 

potato marketing order, Area No. 2 

(order). The order regulates the handling 

of Irish potatoes grown in Colorado and 

is administered locally by the Colorado 

Potato Administrative Committee, Area 

No. 2 (Committee). This action increases 

the quantity of potatoes that may be 

handled under the order without regard 

to the order’s handling regulation 

requirements from 1,000 to 2,000 

pounds. The change in the import 

regulation is required under section 8e 

of the Agricultural Marketing 

Agreement Act of 1937. This action 

allows for the importation which, in the 

aggregate, does not exceed 2,000 pounds 

for all other round type potatoes, except 

red skinned, round type or long type 

potatoes that continue to remain at a 

500 pound limit, to be imported without 

regard to the import regulations. This 

action is expected to benefit producers, 

handlers, and importers. 

DATES: Effective date: April 27, 2015. 

FOR FURTHER INFORMATION CONTACT: Sue 

Coleman, Marketing Specialist, or Gary 

D. 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: Sue.Coleman@

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 final 

rule is issued under Marketing 

Agreement No. 97 and Order No. 948, 

both as amended (7 CFR part 948), 

regulating the handling of Irish potatoes 

grown in Colorado, 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.’’ 

This final rule is also issued under 

section 8e of the Act, which provides 

that whenever certain specified 

commodities, including Irish potatoes, 

are regulated under a Federal marketing 

order, imports of these commodities 

into the United States are prohibited 

unless they meet the same or 

comparable grade, size, quality, or 

maturity requirements as those in effect 

for the domestically produced 

commodities. 

The Department of Agriculture 

(USDA) is issuing this rule in 

conformance with Executive Orders 

12866, 13563, and 13175. 

This final rule has been reviewed 

under Executive Order 12988, Civil 

Justice Reform. This rule is not intended 

to have retroactive effect. 

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. 

There are no administrative 

procedures which must be exhausted 

prior to any judicial challenge to the 

provisions of import regulations issued 

under section 8e of the Act. 

This final rule revises the minimum 

quantity exception currently prescribed 

in the handling regulation for potatoes 

handled under Marketing Order No. 

948. This rule increases the quantity of 

potatoes that may be handled without 

regard to the order’s handling regulation 

from 1,000 to 2,000 pounds. Relaxing 

the minimum quantity exception is 

expected to benefit producers, handlers, 

and importers. The rule was 

unanimously recommended by the 

Committee at a meeting on July 18, 

2013. 

Section 948.4 of the order divides the 

State of Colorado into three areas of 

regulation for marketing order purposes. 

These areas include: Area No. 1, 

commonly known as the Western Slope; 

Area No. 2, commonly known as San 

Luis Valley; and, Area No. 3, which 

consists of the remaining producing 

areas within the State of Colorado not 

included in the definition of Area No. 

1 or Area No. 2. Currently, the order 

only regulates the handling of potatoes 

produced in Area No. 2 and Area No. 3. 

Regulation for Area No. 1 has been 

suspended. 

Section 948.50 of the order establishes 

committees as administrative agencies 

for each of the areas set forth under 

§ 948.4. Section 948.22(a) of the order 

authorizes the issuance of grade, size, 

quality, maturity, pack, and container 

regulations for potatoes grown in the 

order’s production area. Further, 

§ 948.22(b)(2) of the order provides 

authority for each area committee to 

recommend modification of regulations 

to provide for minimum quantities that 

should be relieved of regulatory or 

administrative obligations. 

Section 948.386 of the order’s 

administrative rules prescribes grade, 

size, maturity, and inspection 

requirements for Colorado Area No. 2 

potatoes. Paragraph (f) of that section 

prescribes the minimum quantity of 

potatoes that are exempt from 

regulation. Currently, each person may 

handle up to 1,000 pounds of potatoes 

without regard to the order’s grade, size, 

maturity, and inspection requirements. 

At its meeting on July 18, 2013, the 

Committee unanimously recommended 

increasing the order’s minimum 

quantity exception from 1,000 to 2,000 

pounds. The recommendation was made 

at the request of producers and handlers 

who wanted greater flexibility in 

distributing smaller quantities of 

potatoes. In its deliberations, the 

Committee commented that 2,000 

pounds is consistent with the current 

weight of a pallet of potatoes. One pallet 

is typically the smallest lot of potatoes 

distributed, since most delivery vehicles 

are now capable of transporting at least 

2,000 pounds. 

Handlers also feel that the value of 

one pallet of potatoes does not warrant 

the cost of complying with the order’s 

regulations. Based on an estimated 

average f.o.b. price of $12.60, the value 

of one pallet of potatoes is 

approximately $252.00. Increasing the 

minimum quantity exception from 1,000 

to 2,000 pounds of potatoes allows a 

handler to ship one pallet of potatoes 

without regard to the order’s grade, size, 

maturity, and inspection requirements. 

Relaxing the minimum quantity is 

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22360 Federal Register / Vol. 80, No. 77 / Wednesday, April 22, 2015 / Rules and Regulations 

expected to benefit producers, handlers, 

and importers. 

Section 8e of the Act provides that 

when certain domestically produced 

commodities, including Irish potatoes, 

are regulated under a Federal marketing 

order, imports of that commodity must 

meet the same or comparable grade, 

size, quality, and maturity requirements. 

Whenever two or more marketing orders 

regulating the same commodity 

produced in different areas of the 

United States are concurrently in effect, 

the importation into the United States of 

any such commodity shall be prohibited 

unless it complies with the grade, size, 

quality and maturity provisions of the 

order which, as determined by the 

Secretary of Agriculture, regulates the 

commodity produced in the area with 

which the imported commodity is in 

most direct competition (7 U.S.C. 608e– 

1(a)). Section 980.1(a)(2)(ii) of the 

Vegetable Import Regulations specifies 

that imported round-type potatoes, 

except red-skinned, round type 

potatoes, are in most direct competition 

with potatoes of the same type produced 

in the area covered by Marketing Order 

948. Since this action increases the 

minimum quantity exemption under the 

domestic handling regulations, a 

corresponding change to the import 

regulations must also be considered. 

Minimum grade, size, quality, and 

maturity requirements for Irish potatoes 

imported into the United States are 

currently in effect under § 980.1 (7 CFR 

980.1). The minimum quantity 

exemption is specified in § 980.1(c). The 

exemption for red skinned, round type 

or long type potatoes will remain at a 

500 pound limit as provided in 

Marketing Orders 946 and 945, 

respectively. This rule increases the 

quantity for all other round type 

potatoes that may be imported without 

regard to the import regulation 

requirements from 1,000 to 2,000 

pounds. The metric equivalent for 1,000 

pounds is 453.592 kilograms and 2,000 

pounds is 907.185 kilograms. The 

increase in the minimum quantity 

exemption for imports of potatoes will 

have a beneficial impact on importers. 

This rule will provide flexibility in the 

importation and distribution of smaller 

quantities of potatoes. 

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. Import regulations issued under 

the Act are based on those established 

under Federal marketing orders. 

There are approximately 80 handlers 

of Colorado Area No. 2 potatoes subject 

to regulation under the order and 

approximately 180 producers in the 

regulated production area. There are 

approximately 240 importers of 

potatoes. Small agricultural service 

firms (handlers and importers) are 

defined by the Small Business 

Administration (SBA) 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). 

During the 2011–2012 fiscal period, 

the most recent for which statistics are 

available, 15,072,963 hundredweight of 

Colorado Area No. 2 potatoes were 

inspected under the order and sold into 

the fresh market. Based on an estimated 

average f.o.b. price of $12.60 per 

hundredweight, the Committee 

estimates that 66 Area No. 2 handlers, 

or about 83 percent, had annual receipts 

of less than $7,000,000. In view of the 

foregoing, the majority of Colorado Area 

No. 2 potato handlers may be classified 

as small entities. 

In addition, based on information 

provided by the National Agricultural 

Statistics Service, the average producer 

price for the 2011 Colorado fall potato 

crop was $10.70 per hundredweight. 

Multiplying $10.70 by the shipment 

quantity of 15,072,963 hundredweight 

yields an annual crop revenue estimate 

of $161,280,704. The average annual 

fresh potato revenue for each of the 180 

Colorado Area No. 2 potato producers is 

therefore calculated to be approximately 

$896,000 ($161,280,704 divided by 180), 

which is greater than the SBA threshold 

of $750,000. Consequently, on average, 

many of the Colorado Area No. 2 potato 

producers may not be classified as small 

entities. 

Information from the Foreign 

Agricultural Service, USDA, indicates 

that the dollar value of imports of the 

type of potatoes affected by this rule 

ranged from approximately $55.8 

million in 2009 to $ 56.5 million in 

2013. Using these values, the majority of 

importers of the type of potatoes 

affected by this rule would have annual 

receipts of less than $7,000,000 and may 

be classified as small entities. 

Canada is the major potato-producing 

country exporting potatoes to the United 

States. In 2013, affected shipments of 

potatoes imported into the United States 

totaled around 3,479,468 

hundredweight. Of that amount, 

3,479,383 hundredweight were 

imported from Canada, 59 

hundredweight were imported from 

Ecuador, and 26 hundredweight were 

imported from Peru. 

This final rule revises the quantity of 

potatoes that may be handled without 

regard to the requirements of 

§ 948.386(a), (b), and (c) of the order 

from 1,000 to 2,000 pounds and makes 

a corresponding change to the potato 

import regulation. At the July 18, 2013 

meeting, the Committee unanimously 

recommended increasing the minimum 

quantity exception to be consistent with 

the approximate weight of one pallet of 

potatoes. Authority for the 

establishment and modification of a 

minimum quantity exception is 

provided in § 948.22(b)(2) of the order. 

This final rule amends the provisions in 

§§ 948.386(f) and 980.1(c). The change 

in the import regulation is required 

under section 8e of the Act. 

This action is not expected to increase 

the costs associated with the order’s 

requirements or the potato import 

regulation. Rather, it is anticipated that 

this change will have a beneficial 

impact. The Committee believes it will 

provide greater flexibility in the 

distribution of small quantities of 

potatoes. Currently, the distribution of 

potatoes between 1,000 and 2,000 

pounds requires an inspection and 

certification that the product conforms 

to the grade, size, and maturity 

requirements of the order. This 

translates into a cost for handlers and 

importers of both time and inspection 

fees, which is high in relation to the 

small value (approximately $252.00 per 

pallet) of these transactions. This action 

will allow shipments up to 2,000 

pounds of potatoes without regard to the 

order’s grade, size, maturity, and 

inspection requirements and the related 

costs. The benefits for this final rule are 

expected to be equally available to all 

fresh potato producers, handlers, and 

importers, regardless of their size. 

As an alternative to the proposal, the 

Committee discussed leaving the 

handling regulation unchanged. The 

Committee rejected this idea because a 

pallet of potatoes weighs approximately 

2,000 pounds and the 1,000 pound 

minimum quantity exception did not 

accommodate this size shipment. No 

other alternatives were discussed. 

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Federal Register / Vol. 80, No. 77 / Wednesday, April 22, 2015 / Rules and Regulations 22361 

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. 

This final rule relaxes the minimum 

quantity exception under the order from 

1,000 to 2,000 pounds. Accordingly, this 

action will not impose any additional 

reporting or recordkeeping requirements 

on either small or large Colorado Area 

No. 2 potato handlers. As with all 

Federal marketing order programs, 

reports and forms are periodically 

reviewed to reduce information 

requirements and duplication by 

industry and public sector agencies. 

As noted in the initial regulatory 

flexibility analysis, USDA has not 

identified any relevant Federal rules 

that duplicate, overlap or conflict with 

this final rule. 

AMS is committed to complying with 

the E-Government Act, to promote the 

use of the internet and other 

information technologies to provide 

increased opportunities for citizen 

access to Government information and 

services, and for other purposes. 

In addition, the Committee’s meeting 

was widely publicized throughout the 

Colorado Area No. 2 potato industry and 

all interested persons were invited to 

attend the meeting and participate in 

Committee deliberations on all issues. 

Like all Committee meetings, the July 

18, 2013, meeting was a public meeting 

and all entities, both large and small, 

were able to express views on this issue. 

A proposed rule concerning this 

action was published in the Federal 

Register on October 6, 2014 (79 FR 

60117). Copies of the rule were made 

available to all interested Colorado 

potato producers and handlers. Finally, 

the rule was made available through the 

Internet by USDA and the Office of the 

Federal Register. A 60-day comment 

period ending December 5, 2014, was 

provided to allow interested persons to 

respond to the proposal. 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/ 

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. 

In accordance with section 8e of the 

Act, the United States Trade 

Representative has concurred with the 

issuance of this final rule. 

After consideration of all relevant 

matter 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. 

It is further found that good cause 

exists for not postponing the effective 

date of this rule until 30 days after 

publication in the Federal Register (5 

U.S.C. 553) because handlers are already 

shipping potatoes from the 2014–2015 

crop and handlers want to take 

advantage of the relaxation as soon as 

possible. Further, handlers are aware of 

this rule, which was recommended at a 

public meeting. Also, a 60-day comment 

period was provided for in the proposed 

rule and no comments were received. 

List of Subjects 

7 CFR Part 948 

Marketing agreements, Potatoes, 

Reporting and recordkeeping 

requirements. 

7 CFR Part 980 

Food grades and standards, Imports, 

Marketing agreements, Onions, Potatoes, 

Tomatoes. 

For the reasons set forth above, 7 CFR 

parts 948 and 980 are amended as 

follows: 

PART 948—IRISH POTATOES GROWN 

IN COLORADO 

■ 1. The authority citation for 7 CFR 

part 948 continues to read as follows: 

Authority: 7 U.S.C. 601–674. 

■ 2. Amend § 948.386(f) to read as 

follows: 

§ 948.386 Handling regulation. 

* * * * * 

(f) Minimum quantity. For purposes of 

regulation under this part, each person 

may handle up to but not to exceed 

2,000 pounds of potatoes without regard 

to the requirements of paragraphs (a), 

(b), and (c) of this section, but this 

exception shall not apply to any 

shipment which exceeds 2,000 pounds 

of potatoes. 

* * * * * 

PART 980—VEGETABLES; IMPORT 

REGULATIONS 

■ 3. The authority citation for 7 CFR 

part 980 continues to read as follows: 

Authority: 7 U.S.C. 601–674. 

■ 4. In § 980.1, paragraph (c) is revised 

to read as follows: 

§ 980.1 Import regulations; Irish potatoes. 

* * * * * 

(c) Minimum quantities. Any 

importation which, in the aggregate, 

does not exceed 500 pounds of red 

skinned, round type or long type 

potatoes, or 2,000 pounds for all other 

round type potatoes, may be imported 

without regard to the provisions of this 

section. 

* * * * * 

Dated: April 16, 2015. 

Rex A. Barnes, 

Associate Administrator, Agricultural 

Marketing Service. 

[FR Doc. 2015–09289 Filed 4–21–15; 8:45 am] 

BILLING CODE 3410–02–P 

DEPARTMENT OF AGRICULTURE 

Agricultural Marketing Service 

7 CFR Part 1212 

[Document Number AMS–FV–14–0045] 

Honey Packers and Importers 

Research, Promotion, Consumer 

Education and Information Order; 

Assessment Rate Increase 

AGENCY: Agricultural Marketing Service, 

USDA. 

ACTION: Final rule. 

SUMMARY: This rule amends the Honey 

Packers and Importers Research, 

Promotion, Consumer Education and 

Information Order (Order) to increase 

the assessment rate from $0.01 per 

pound to $0.015 per pound on honey 

and honey products, over a two-year 

period. The Order limits an increase in 

the assessment rate to no more than onequarter cent per pound per year. Thus, 

the rate will increase to $0.0125 per 

pound for the period January 1 through 

December 31, 2015, and to $0.015 per 

pound on and after January 1, 2016. 

This increase was unanimously 

recommended by the Honey Packers 

and Importers Board (Board) which 

administers the Order with oversight by 

the U.S. Department of Agriculture 

(USDA). Under the program, 

assessments are collected from first 

handlers (packers) and importers and 

used for research and promotion 

projects designed to maintain and 

expand the market for honey and honey 

products in the United States and 

abroad. Additional funds will allow the 

Board to expand its production research 

activities and promotional efforts. The 

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