This section of the FEDERAL REGISTER

contains regulatory documents having general

applicability and legal effect, most of which

are keyed to and codified in the Code of

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Rules and Regulations Federal Register

50479

Vol. 62, No. 187

Friday, September 26, 1997

DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 948

[Docket No. FV97–948–1 IFR]

Irish Potatoes Grown in Colorado;

Change in Handling Regulation for

Area No. 2

AGENCY: Agricultural Marketing Service,

USDA.

ACTION: Interim final rule with request

for comments.

SUMMARY: This interim final rule

changes the size requirement from a 2

inch minimum diameter or 4 ounce

minimum weight to a 17⁄8 inch

minimum diameter for Centennial

Russet variety potatoes grown in Area

No. 2 of Colorado. The current size

requirement for Centennial Russets is

larger than the requirement for similar

long varieties. This change recognizes

the similarity and should provide potato

handlers with more marketing

flexibility, growers with increased

returns, and consumers with a greater

supply of potatoes.

DATES: Effective September 30, 1997;

comments received by November 25,

1997, will be considered prior to

issuance of a final rule.

ADDRESSES: Interested persons are

invited to submit written comments

concerning this rule. Comments must be

sent in triplicate to the Docket Clerk,

Fruit and Vegetable Division, AMS,

USDA, room 2525–S, P.O. Box 96456,

Washington, DC 20090–6456; Fax: (202)

720–5698. All comments should

reference the docket 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.

FOR FURTHER INFORMATION CONTACT:

Dennis L. West, Northwest Marketing

Field Office, Marketing Order

Administration Branch, F&V, AMS,

USDA, 1220 SW Third Avenue, room

369, Portland, Oregon 97204; telephone:

(503) 326–2724, Fax: (503) 326–7440.

Small businesses may request

information on compliance with this

regulation by contacting Jay Guerber,

Marketing Order Administration

Branch, Fruit and Vegetable Division,

AMS, USDA, room 2525–S, PO Box

96456, Washington, DC 20090–6456;

telephone: (202) 720–2491, Fax: (202)

720–5698.

SUPPLEMENTARY INFORMATION: This final

rule is issued under Marketing

Agreement No. 97 and Marketing Order

No. 948 (7 CFR part 948), both as

amended, regulating the handling of

Irish potatoes grown in Colorado. The

marketing agreement and order are

authorized by 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

(Department) is issuing this rule in

conformance with Executive Order

12866.

This rule has been reviewed under

Executive Order 12988, Civil Justice

Reform. This rule is not intended to

have retroactive effect. 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 date of the entry

of the ruling.

This rule relaxes the size requirement

for Centennial Russet variety potatoes

grown in Area No. 2 from the current 2

inch minimum diameter or 4-ounce

minimum weight to a 17⁄8 inch

minimum diameter with no minimum

weight option. This change will enable

handlers to market a larger portion of

the crop in fresh market outlets and is

expected to improve the marketing of

Colorado potatoes. Further, all Russet

varieties will now be required to meet

the same size specifications.

Section 948.22 (7 CFR 948.22)

authorizes the issuance of regulations

for grade, size, quality, maturity, and

pack for any variety or varieties of

potatoes grown in different portions of

the production area during any period.

Section 948.4 of the order defines the

counties included in Area No. 2, which

is commonly known as the San Luis

Valley. The Colorado Potato

Administrative Committee, San Luis

Valley Office (Area No. 2) (Committee),

is the agency responsible for local

administration of the Federal marketing

order in Area No. 2.

Size regulations for potatoes grown in

Area No. 2 are currently in effect under

§ 948.386. Centennial Russet variety

potatoes must be 2 inches minimum

diameter or 4 ounces minimum weight.

Other long varieties, which includes

other Russet varieties, must be 17⁄8 inch

minimum diameter, with no minimum

weight option. This rule amends that

section by removing the weight

requirement option for Centennial

Russets and reducing the minimum

diameter requirement for Centennial

Russets to 17⁄8 inches. Thus, all Russet

varieties will be required to meet the

same minimum diameter. The

Committee unanimously recommended

this change at its August 21, 1997,

meeting.

When the current size regulations

were established, the Centennial Russet

was the dominant variety in the San

Luis Valley (Area No. 2), accounting for

approximately 65–75 percent of the

crop. The other major Russet variety

grown in the San Luis Valley was the

Russet Burbank, a slimmer potato which

was required to meet the 17⁄8 inch

minimum diameter. Today, the Russet

Burbank has been phased out

completely and the Centennial Russet

accounts for less than 10 percent of the

crop. The Burbank and the Centennial

have been replaced by other varieties,

including new Russet varieties which
50480 Federal Register / Vol. 62, No. 187 / Friday, September 26, 1997 / Rules and Regulations

have the same bulky features as the

Centennial.

The new varieties, however, are

required only to meet the 17⁄8 inch

minimum diameter, not the 2 inch

minimum diameter or 4 ounce

minimum weight requirement that

Centennial Russets must meet. The

industry is concerned that Centennial

Russets could be misrepresented as one

of the new Russet varieties, so as to

comply only with the smaller size

requirement. This rule, by establishing

the same size requirements for all

Russet varieties, eliminates this

possibility.

Reducing the size requirement will

allow handlers to market a larger

portion of the Centennial Russet crop in

fresh outlets. This change is expected to

improve the marketing of Colorado

potatoes and increase returns to

producers.

Pursuant to requirements set forth in

the Regulatory Flexibility Act (RFA), 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.

There are approximately 120 handlers

of Colorado potatoes who are subject to

regulation under the marketing order

and approximately 400 producers of

Colorado potatoes in the regulatory

areas. Small agricultural service firms

have been defined by the Small

Business Administration (13 CFR

121.601) as those having annual receipts

of less than $5,000,000, and small

agricultural producers are defined as

those whose annual receipts are less

than $500,000. The majority of potato

producers and handlers regulated under

the marketing agreement and order may

be classified as small entities.

Section 948.22 of the order authorizes

the issuance of handling regulations for

potatoes grown in Colorado. This rule

relaxes the size requirement for

Centennial Russet variety potatoes

grown in Area No. 2 from the current 2

inch minimum diameter or 4-ounce

minimum weight to a 17⁄8 inch

minimum diameter with no weight

option. This change will enable

handlers to market a larger portion of

the crop in fresh market outlets and is

expected to improve the marketing of

Colorado potatoes. There is no available

information detailing how many

potatoes this relaxation will allow to be

marketed which could not have been

marketed prior to this action.

This rule also eliminates a potential

compliance problem, as all Russet

varieties will now be required to meet

the same size specifications. Other

Russet varieties are currently required

only to meet the smaller size regulation

of 1 7⁄8 inch diameter. Because some the

new Russet varieties with characteristics

very similar to Centennials face the

smaller size requirement and have

surpassed Centennials in popularity,

there is a possibility that Centennials

could be misrepresented as one of the

new Russet varieties.

The only viable alternative to

reducing the size requirement for

Centennials is to increase the size

requirement for all other long potatoes,

including all other Russets. The

Committee surveyed 270 growers from

Area No. 2 concerning grade and size

regulation. Both options for equalizing

the size regulations for all long potatoes

were included in the survey. The

participating growers rejected increasing

the size requirements for all other long

potatoes, which would have reduced the

number of Colorado potatoes on the

market, in favor of the size requirement

reduction established by this rule.

This rule will not impose any

additional reporting or recordkeeping

requirements on either small or large

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

sectors. In addition, the Department 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

Colorado potato industry and all

interested persons were invited to

attend the meeting and participate in

Committee deliberations. Like all

Committee meetings, the August 21,

1997, meeting was a public meeting and

all entities, both large and small, were

able to express their views on this issue.

The Committee itself is composed of 12

members, of which 5 are handlers and

7 are producers, the majority of whom

are small entities.

Also, the Committee surveyed 270

producers in Area No. 2, the majority of

whom are small entities, concerning

regulation during the 1997–98 potato

shipping season. This rule reflects the

outcome of that survey of

predominantly small growers. Finally,

interested persons are invited to submit

information on the regulatory and

informational impacts of this action on

small businesses.

After consideration of all relevant

material presented, including the

Committee’s recommendation, and

other information, it is found that this

interim final rule, as hereinafter set

forth, will tend to effectuate the

declared policy of the Act.

This rule invites comments on a

change to the handling regulations

currently prescribed for Area No. 2

under the Colorado potato marketing

order. Any comments received will be

considered prior to finalization of this

rule.

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

found and determined upon good cause

that it is impracticable, unnecessary,

and contrary to the public interest to

give preliminary notice prior to putting

this rule into effect and that good cause

exists for not postponing the effective

date of this rule until 30 days after

publication in the Federal Register

because: (1) This rule relaxes

requirements in the handling

regulations; (2) this action must be taken

promptly to be in place before handlers

begin shipping heavily in early October;

(3) the Committee unanimously

recommended these changes at a public

meeting and interested parties had an

opportunity to provide input; and (4)

this rule provides a 60-day comment

period and any comments received will

be considered prior to finalization of

this rule.

List of Subjects in 7 CFR Part 948

Marketing agreements, Potatoes,

Reporting and recordkeeping

requirements.

For the reasons set forth in the

preamble, 7 CFR part 948 is 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. Section 948.386 is amended by

removing paragraph (a)(2), redesignating

paragraphs (a)(3) through (a)(6) as

paragraphs (a)(2) through (a)(5), and

revising newly redesignated paragraphs

(a)(2) and (a)(5) to read as follows:

§ 948.386 Handling regulation.

* * * * *

(a) * * *

(2) Long varieties. U.S. No. 2, or better

grade, 17⁄8 inches minimum diameter.

* * * * *

(5) None of the above categories of

potatoes identified in paragraphs (a)(1)

through (a)(5) of this section may be

commingled in the same bag or other

container.

* * * * *

Dated: September 22, 1997.

Robert C. Keeney,

Director, Fruit and Vegetable Division.

[FR Doc. 97–25619 Filed 9–25–97; 8:45 am]

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