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Rules and Regulations Federal Register

22357 

Vol. 79, No. 77 

Tuesday, April 22, 2014 

DEPARTMENT OF AGRICULTURE 

Agricultural Marketing Service 

7 CFR Part 945 

[Doc. No. AMS–FV–13–0093; FV14–945–1 

FR] 

Irish Potatoes Grown in Certain 

Designated Counties in Idaho, and 

Malheur County, Oregon; Decreased 

Assessment Rate 

AGENCY: Agricultural Marketing Service, 

USDA. 

ACTION: Final rule. 

SUMMARY: This rule decreases the 

assessment rate established for the 

Idaho-Eastern Oregon Potato Committee 

(Committee) for the 2014–2015 and 

subsequent fiscal periods from $0.0045 

to $0.0025 per hundredweight of 

potatoes handled. The Committee 

locally administers the marketing order 

which regulates the handling of potatoes 

grown in certain designated counties in 

Idaho, and Malheur County, Oregon. 

Assessments upon potato handlers are 

used by the Committee to fund 

reasonable and necessary expenses of 

the program. The fiscal period begins 

August 1 and ends July 31. The 

assessment rate will remain in effect 

indefinitely unless modified, 

suspended, or terminated. 

DATES: Effective August 1, 2014. 

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 rule 

is issued under Marketing Agreement 

No. 98 and Order No. 945, both as 

amended (7 CFR part 945), regulating 

the handling of Irish potatoes grown in 

certain designated counties in Idaho, 

and Malheur County, Oregon, 

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. 

This rule has been reviewed under 

Executive Order 12988, Civil Justice 

Reform. Under the marketing order now 

in effect, Idaho-Eastern Oregon potato 

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 potatoes beginning August 1, 

2014, and continue until amended, 

suspended, or terminated. 

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. Such 

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. 

This rule decreases the assessment 

rate established for the Committee for 

the 2014–2015 and subsequent fiscal 

periods from $0.0045 to $0.0025 per 

hundredweight of potatoes handled. 

The Idaho-Eastern Oregon potato 

marketing order provides authority for 

the Committee, with the approval of 

USDA, to formulate an annual budget of 

expenses and collect assessments from 

handlers to administer the program. The 

members of the Committee are 

producers and handlers of Idaho-Eastern 

Oregon potatoes. They are familiar with 

the Committee’s needs and with the 

costs for goods and services in their 

local area and are thus in a position to 

formulate an appropriate budget and 

assessment rate. The assessment rate is 

formulated and discussed in a public 

meeting. Thus, all directly affected 

persons have an opportunity to 

participate and provide input. 

For the 2013–2014 and subsequent 

fiscal periods, the Committee 

recommended, and USDA approved, an 

assessment rate that would continue in 

effect from fiscal period to fiscal period 

unless modified, suspended, or 

terminated by USDA upon 

recommendation and information 

submitted by the Committee or other 

information available to USDA. 

The Committee met on November 21, 

2013, to consider the Committee’s 

projected 2014–2015 budget, the size of 

the Committee’s operating reserve, and 

the order’s continuing assessment rate. 

The Committee unanimously 

recommended an assessment rate of 

$0.0025 per hundredweight of potatoes 

for the 2014–2015 fiscal period. The 

assessment rate of $0.0025 is $0.002 

lower than the rate currently in effect. 

The assessment rate decrease is 

necessary to reduce the funds held in 

reserve to less than approximately one 

fiscal period’s budgeted expenses, the 

maximum level allowed by the order. 

The Committee expects to recommend 

budgeted expenditures of $112,883 for 

the 2014–2015 fiscal period at its next 

scheduled meeting in June of 2014. In 

comparison, 2013–2014 budgeted 

expenditures were $101,662. The major 

expenditures projected by the 

Committee for the 2014–2015 fiscal 

period include $62,743 for 

administrative expenses, $35,140 for 

travel/office expenses, and $15,000 for a 

marketing order contingency fund. 

Budgeted expenses for these items in 

2013–2014 were $62,022, $35,640, and 

$4,000, respectively. 

The assessment rate recommended by 

the Committee was derived by dividing 

anticipated expenses by expected 


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22358 Federal Register / Vol. 79, No. 77 / Tuesday, April 22, 2014 / Rules and Regulations 

shipments of Idaho-Eastern Oregon 

potatoes. Potato shipments for 2014– 

2015 are estimated at 32 million 

hundredweight, which should provide 

$80,000 in assessment income. Income 

derived from handler assessments, along 

with reimbursed expenses, interest 

earned, and funds from the Committee’s 

authorized reserve, would be adequate 

to cover budgeted expenses. Funds in 

the reserve (projected to be $168,084 on 

July 31, 2014) will be reduced to comply 

with the maximum permitted by the 

order of approximately one fiscal 

period’s expenses. 

The assessment rate established in 

this rule will continue in effect 

indefinitely unless modified, 

suspended, or terminated by USDA 

upon recommendation and information 

submitted by the Committee or other 

available information. 

Although this assessment rate will be 

in effect for an indefinite period, the 

Committee will continue to meet prior 

to or during each fiscal period to 

recommend a budget of expenses and 

consider recommendations for 

modification of the assessment rate. The 

dates and times of Committee meetings 

are available from the Committee or 

USDA. Committee meetings are open to 

the public and interested persons may 

express their views at these meetings. 

USDA will evaluate Committee 

recommendations and other available 

information to determine whether 

modification of the assessment rate is 

needed. Further rulemaking will be 

undertaken as necessary. The 

Committee’s 2014–2015 budget and 

those for subsequent fiscal periods 

would be reviewed and, as appropriate, 

approved by USDA. 

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 

rule 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 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 approximately 450 

producers of potatoes in the production 

area and approximately 32 handlers 

subject to regulation under the 

marketing order. Small agricultural 

producers are defined by the Small 

Business Administration (13 CFR 

121.201) as those having annual receipts 

less than $750,000, and small 

agricultural service firms are defined as 

those whose annual receipts are less 

than $7,000,000. 

During the 2012–2013 fiscal period, 

the most recent for which statistics are 

available, 35,148,900 hundredweight of 

Idaho-Eastern Oregon potatoes were 

inspected under the order and sold into 

the fresh market. Based on information 

provided by the National Agricultural 

Statistics Service, the average producer 

price for the 2012 Idaho potato crop was 

$6.55 per hundredweight. Multiplying 

$6.55 by the shipment quantity of 

35,148,900 hundredweight yields an 

annual crop revenue estimate of 

$230,225,295. The average annual fresh 

potato revenue for each of the 450 

producers is therefore calculated to be 

$511,612 ($230,225,295 divided by 450), 

which is less than the Small Business 

Administration threshold of $750,000. 

Consequently, on average, most all of 

the Idaho-Eastern Oregon potato 

producers may be classified as small 

entities. 

In addition, based on information 

reported by USDA’s Market News 

Service, the average f.o.b. shipping 

point price for the 2012 Idaho potato 

crop was $5.87 per hundredweight. 

Multiplying $5.87 by the shipment 

quantity of 35,148,900 hundredweight 

yields an annual crop revenue estimate 

of $206,324,043. The average annual 

fresh potato revenue for each of the 32 

handlers is therefore calculated to be 

$6,447,626 ($206,324,043 divided by 

32), which is less than the Small 

Business Administration threshold of 

$7,000,000. Consequently, on average, 

most all of the Idaho-Eastern Oregon 

potato handlers may be classified as 

small entities. 

This rule decreases the assessment 

rate established for the Committee and 

collected from handlers for the 2014– 

2015 and subsequent fiscal periods from 

$0.0045 to $0.0025 per hundredweight 

of potatoes handled. The Committee 

unanimously recommended an 

assessment rate of $0.0025 per 

hundredweight of potatoes for the 2014– 

2015 fiscal period. The assessment rate 

of $0.0025 is $0.002 lower than the 

2013–2014 rate. The quantity of 

assessable potatoes for the 2014–2015 

fiscal period is estimated at 32 million 

hundredweight. Thus, the $0.0025 rate 

should provide $80,000 in assessment 

income. Income derived from handler 

assessments, along with reimbursed 

expenses, interest earned, and funds 

from the Committee’s authorized 

reserve, would be adequate to cover 

budgeted expenses. 

The Committee expects to recommend 

$112,883 in budgeted expenditures for 

the 2014–2015 fiscal period at its next 

scheduled meeting in June of 2014. In 

comparison, 2013–2014 budgeted 

expenditures were $101,662. The major 

expenditures projected by the 

Committee for the 2014–2015 year 

include $62,743 for administrative 

expenses, $35,140 for travel/office 

expenses, and $15,000 for the marketing 

order contingency fund. Budgeted 

expenses for these items in 2013–2014 

were $62,022, $35,640, and $4,000, 

respectively. 

The lower assessment rate is 

necessary to reduce the reserve balance 

to less than approximately one fiscal 

period’s budgeted expenses. The reserve 

balance on July 31, 2014, is projected to 

be $168,084. Assessment income for the 

2014–2015 fiscal period is estimated at 

$80,000, while expenses are estimated 

at $112,883. The Committee anticipates 

compensating for the reduced 

assessment revenue with $4,300 from 

reimbursed expenses, $100 from interest 

income, and $28,483 from its reserve 

fund. The reserve fund is projected to 

exceed the maximum authorized level 

by $26,718 at the end of the 2014–2015 

fiscal period. However, it was noted that 

it is possible that the Committee may 

receive less assessments than estimated, 

as well as incur unanticipated expenses. 

In addition, the Committee expects to 

draw funds from the reserve in 

subsequent fiscal periods that would 

further reduce the balance. 

The Committee discussed alternatives 

to this action, including other 

assessment rate levels and leaving the 

current rate in place. Prior to arriving at 

this assessment rate recommendation, 

the Committee considered information 

from the Board’s Executive Committee 

on the cost savings that have resulted 

from recent administrative changes in 

the Committee office and the level of 

anticipated Committee expenses moving 

forward. The Committee debated 

between an assessment rate of $0.003 

and $0.0025 per hundredweight of 

potatoes. Based on the market and 

shipping quantities, the Committee 

recommended the rate of $0.0025 per 

hundredweight. The Committee believes 

assessment income combined with 

funds from reimbursed expenses, 

interest income, and funds from the 

Committee’s financial reserve would 

provide sufficient funds to meet its 

expenses. 

A review of historical information and 

preliminary information pertaining to 

the upcoming fiscal period indicates 

that the producer price for the 2014– 


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Federal Register / Vol. 79, No. 77 / Tuesday, April 22, 2014 / Rules and Regulations 22359 

2015 crop could range between $6.55 

and $8.10 per hundredweight of 

potatoes. Therefore, the estimated 

assessment revenue for the 2014–2015 

fiscal period as a percentage of total 

producer revenue could range between 

0.03 and 0.04 percent. 

This action decreases the assessment 

obligation imposed on handlers. 

Assessments are applied uniformly on 

all handlers, and some of the costs may 

be passed on to producers. As such, the 

decreased assessment rate will reduce 

the burden on handlers and may reduce 

the burden on producers. In addition, 

the Committee’s meeting was widely 

publicized throughout the Idaho-Eastern 

Oregon 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 

November 21, 2013, meeting was a 

public meeting and all entities, both 

large and small, were able to express 

views on this issue. 

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 rule imposes no additional 

reporting or recordkeeping requirements 

on either small or large Idaho-Eastern 

Oregon 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. 

A proposed rule concerning this 

action was published in the Federal 

Register on February 25, 2014 (79 FR 

10423). Copies of the proposed rule 

were distributed to all Idaho-Eastern 

Oregon potato handlers, Committee 

members, and media. Finally, the 

proposal was made available through 

the internet by USDA and the Office of 

the Federal Register. A 30-day comment 

period ending March 27, 2014, was 

provided for 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. 

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. 

List of Subjects in 7 CFR Part 945 

Marketing agreements, Potatoes, 

Reporting and recordkeeping 

requirements. 

For the reasons set forth in the 

preamble, 7 CFR part 945 is amended as 

follows: 

PART 945—IRISH POTATOES GROWN 

IN CERTAIN DESIGNATED COUNTIES 

IN IDAHO, AND MALHEUR COUNTY, 

OREGON 

■ 1. The authority citation for 7 CFR 

part 945 continues to read as follows: 

Authority: 7 U.S.C. 601–674. 

■ 2. Section 945.249 is revised to read 

as follows: 

§ 945.249 Assessment rate. 

On and after August 1, 2014, an 

assessment rate of $0.0025 per 

hundredweight is established for IdahoEastern Oregon potatoes. 

Dated: April 16, 2014. 

Rex A. Barnes, 

Associate Administrator, Agricultural 

Marketing Service. 

[FR Doc. 2014–09093 Filed 4–21–14; 8:45 am] 

BILLING CODE P 

DEPARTMENT OF AGRICULTURE 

Agricultural Marketing Service 

7 CFR Part 985 

[Doc. No. AMS–FV–14–0027; FV14–985–3 

IR] 

Spearmint Oil Produced in the Far 

West; Decreased Assessment Rate 

AGENCY: Agricultural Marketing Service, 

USDA. 

ACTION: Interim rule with request for 

comments. 

SUMMARY: This rule decreases the 

assessment rate established for the 

Spearmint Oil Administrative 

Committee (Committee), for the 2014–15 

and subsequent marketing years from 

$0.10 to $0.09 per pound of spearmint 

oil handled. The Committee locally 

administers the marketing order which 

regulates the handling of spearmint oil 

produced in the Far West. Assessments 

upon spearmint oil handlers are used by 

the Committee to fund reasonable and 

necessary expenses of 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 April 23, 2014. Comments 

received by June 23, 2014, 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 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. Comments should 

reference the document number and the 

date and page number of this issue of 

the Federal Register and will be 

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 

rule 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 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: 

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. 


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