This section of the FEDERAL REGISTER

contains notices to the public of the proposed

issuance of rules and regulations. The

purpose of these notices is to give interested

persons an opportunity to participate in the

rule making prior to the adoption of the final

rules.

Proposed Rules Federal Register

4835 

Vol. 89, No. 17 

Thursday, January 25, 2024 

DEPARTMENT OF AGRICULTURE 

Agricultural Marketing Service 

7 CFR Part 985 

[Doc. No. AMS–SC–23–0068] 

Marketing Order Regulating the 

Handling of Spearmint Oil Produced in 

the Far West; Salable Quantities and 

Allotment Percentages for the 2024– 

2025 Marketing Year 

AGENCY: Agricultural Marketing Service, 

USDA. 

ACTION: Proposed rule. 

SUMMARY: This proposed rule would 

implement a recommendation from the 

Far West Spearmint Oil Administrative 

Committee (Committee) to establish 

salable quantities and allotment 

percentages for Class 1 (Scotch) and 

Class 3 (Native) spearmint oil produced 

in Washington, Idaho, and Oregon and 

parts of Nevada and Utah (Far West) for 

the 2024–2025 marketing year. This 

proposed rule would also remove 

references to past volume regulation no 

longer in effect. 

DATES: Comments must be received by 

February 26, 2024. 

ADDRESSES: Interested persons are 

invited to submit written comments 

concerning this proposed rule. 

Comments can be sent to the Docket 

Clerk, Market Development Division, 

Specialty Crops Program, AMS, USDA, 

1400 Independence Avenue SW, STOP 

0237, Washington, DC 20250–0237. 

Comments can also be submitted to the 

Docket Clerk electronically by Email: 

MarketingOrderComment@usda.gov or 

via the internet at: https://

www.regulations.gov. Comments should 

reference the document number and the 

date and page number of this issue of 

the Federal Register. Comments 

submitted in response to this proposed 

rule will be included in the record and 

will be made available to the public and 

can be viewed at: https://

www.regulations.gov. 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: Josh 

Wilde, Marketing Specialist, or Barry 

Broadbent, Acting Chief, West Region 

Branch, Market Development Division, 

Specialty Crops Program, AMS, USDA; 

Telephone: (503) 326–2282, or Email: 

Joshua.R.Wilde@usda.gov or 

Barry.Broadbent@usda.gov. 

Small businesses may request 

information on complying with this 

regulation by contacting Richard Lower, 

Market Development Division, Specialty 

Crops Program, AMS, USDA, 1400 

Independence Avenue SW, STOP 0237, 

Washington, DC 20250–0237; 

Telephone: (202) 720–8085, or Email: 

Richard.Lower@usda.gov. 

SUPPLEMENTARY INFORMATION: This 

action, pursuant to 5 U.S.C. 553, 

proposes to amend regulations issued to 

carry out a marketing order as defined 

in 7 CFR 900.2(j). This proposed 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. Part 985 (referred to as 

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 

Committee locally administers the 

Order and comprises spearmint oil 

producers operating within the area of 

production, and a public member. 

The Agricultural Marketing Service 

(AMS) is issuing this proposed rule in 

conformance with Executive Orders 

12866, 13563, and 14094. Executive 

Orders 12866 and 13563 direct agencies 

to assess all costs and benefits of 

available regulatory alternatives and, if 

regulation is necessary, to select 

regulatory approaches that maximize 

net benefits (including potential 

economic, environmental, public health 

and safety effects, distributive impacts, 

and equity). Executive Order 13563 

emphasizes the importance of 

quantifying both costs and benefits, 

reducing costs, harmonizing rules, and 

promoting flexibility. Executive Order 

14094 reaffirms, supplements, and 

updates Executive Order 12866 and 

further directs agencies to solicit and 

consider input from a wide range of 

affected and interested parties through a 

variety of means. This proposed action 

falls within a category of regulatory 

actions that the Office of Management 

and Budget (OMB) exempted from 

Executive Order 12866 review. 

This proposed rule has been reviewed 

under Executive Order 13175— 

Consultation and Coordination with 

Indian Tribal Governments, which 

requires Federal agencies to consider 

whether their rulemaking actions would 

have Tribal implications. AMS has 

determined that this proposed rule is 

unlikely to have substantial direct 

effects on one or more Indian Tribes, on 

the relationship between the Federal 

Government and Indian Tribes, or on 

the distribution of power and 

responsibilities between the Federal 

Government and Indian Tribes. 

This proposed rule has been reviewed 

under Executive Order 12988—Civil 

Justice Reform. This proposed rule is 

not intended to have retroactive effect. 

Under the Order now in effect, salable 

quantities and allotment percentages 

may be established for classes of 

spearmint oil produced in the Far West. 

This proposed rule would establish 

salable quantities and allotment 

percentages for Scotch and Native 

spearmint oil for the 2024–2025 

marketing year, which begins on June 1, 

2024. 

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 U.S. Department of Agriculture 

(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. 

Pursuant to the requirements in 

§ 985.50 of the Order, the Committee

meets each year to consider supply and

demand of spearmint oil and to adopt a

marketing policy for the ensuing

marketing year. In determining such

marketing policy, the Committee


khammond on DSKJM1Z7X2PROD with PROPOSALS
4836 Federal Register / Vol. 89, No. 17 / Thursday, January 25, 2024 / Proposed Rules 

considers several factors, including, but 

not limited to, the current and projected 

supply of oil, estimated future demand, 

production costs, and producer prices 

for both classes of spearmint oil. Input 

from spearmint oil handlers and 

producers are considered as well. 

Pursuant to the provisions in § 985.51, 

when the Committee’s marketing policy 

considerations indicate a need to 

establish or to maintain stable market 

conditions through volume regulation, 

the Committee subsequently 

recommends to AMS the establishment 

of a salable quantity and allotment 

percentage for such class or classes of 

oil for the upcoming marketing year. 

Recommendations for volume control 

are intended to ensure market 

requirements for Far West spearmint oil 

are satisfied and orderly marketing 

conditions are maintained. 

Salable quantity represents the total 

quantity of each class of oil (Scotch or 

Native) which handlers may purchase 

from, or handle on behalf of, producers 

during a given marketing year. The 

allotment percentage for each class of 

spearmint oil is the salable quantity for 

that class of oil divided by the total of 

all producers’ allotment base for the 

same class of oil. A producer’s allotment 

base is their calculated share of the 

spearmint oil market based on a 

statistical representation of past 

spearmint production and sales. In 

order to account for changes in 

production and demand over time, the 

Committee periodically reviews and 

adjusts each producer’s allotment base 

in accordance with a formula prescribed 

by the Committee and approved by 

AMS. Each producer’s annual allotment 

of the salable quantity is calculated by 

multiplying their respective allotment 

base for each class of spearmint oil by 

the allotment percentage for that class of 

spearmint oil. The total allotment base 

is revised each year on June 1 to account 

for producer allotment base being lost as 

a result of the ‘‘bona fide effort’’ 

production provision of § 985.53(e) and 

additional base made available pursuant 

to the provisions of § 985.153. 

Salable quantities and allotment 

percentages are established at levels 

intended to maintain orderly marketing 

conditions while also ensuring that 

markets are adequately supplied. 

Further, Committee recommendations 

for volume control are made in advance 

of the upcoming marketing year in 

which the regulations are to be effective, 

thereby allowing producers ample time 

to adjust their production decisions 

accordingly. 

The Committee met on October 11, 

2023, to consider its marketing policy 

for the 2024–2025 marketing year. At 

that meeting, the Committee determined 

that, based on the current market and 

supply conditions, volume regulation 

for both classes of oil would be 

necessary. The Committee unanimously 

recommended, with a vote of seven in 

favor and none opposed, a salable 

quantity and allotment percentage for 

Scotch spearmint oil of 663,648 pounds 

and 29 percent, respectively. In 

addition, the Committee unanimously 

recommended a salable quantity and 

allotment percentage for Native 

spearmint oil of 678,980 pounds and 26 

percent, respectively. 

This proposed action would establish 

the amount of Scotch and Native 

spearmint oil that handlers may 

purchase from, or handle on behalf of, 

producers during the 2024–2025 

marketing year, which begins on June 1, 

2024. Salable quantities and allotment 

percentages have been in effect each 

season since the Order’s inception in 

1980. 

Scotch Spearmint Oil 

The Committee recommended a 

Scotch spearmint oil salable quantity of 

663,648 pounds and an allotment 

percentage of 29 percent for the 2024– 

2025 marketing year. The proposed 

salable quantity of 663,648 pounds is 

109,056 pounds less than the salable 

quantity of 772,704 pounds established 

for the 2023–2024 marketing year. The 

recommended 29 percent allotment 

percentage for the 2024–2025 marketing 

year is 5 percent less than the 34 

percent in effect the previous marketing 

year. 

The total allotment base for the 

coming marketing year is estimated to 

be 2,288,442 pounds. This figure 

represents a one-percent increase over 

the revised 2023–2024 marketing year 

total allotment base of 2,265,784 

pounds. The proposed salable quantity 

(663,648 pounds) is the product of total 

allotment base (2,288,442 pounds) times 

the proposed allotment percentage 

(approximately 28.999 percent, rounded 

to 29 percent). 

The Committee considered several 

factors in making its recommendation, 

including the current and projected 

future supply, estimated future demand, 

production costs, and producer prices. 

The Committee’s recommendation also 

accounts for the established acreage of 

Scotch spearmint, consumer demand, 

existing carry-in, reserve pool volume, 

and production in competing markets. 

According to the Committee, as costs 

of production have increased and 

spearmint oil prices have decreased, 

many producers have forgone new 

plantings of Scotch spearmint. This has 

resulted in a significant decline in 

production of Scotch spearmint oil in 

recent years. Production has decreased 

from 1,113,346 pounds produced in 

2016 to an estimated 483,617 pounds of 

Scotch spearmint production in 2023. 

Industry reports indicate that trade 

demand for Far West Scotch spearmint 

oil, which had been declining in recent 

years, has begun to stabilize. Sales of 

Far West Scotch spearmint oil declined 

from a high of 1,060,232 pounds during 

the 2014–2015 marketing year to a low 

of 488,484 pounds in the 2020–2021 

marketing year. Sales of Far West Scotch 

spearmint oil totaled 597,852 pounds 

during the 2022–2023 marketing year, 

the last full year of available data. The 

Committee indicates that production of 

Scotch spearmint oil in competing 

markets, most notably by Canadian 

producers, continues to exert downward 

pressure on trade demand for Scotch 

spearmint oil from the Far West. 

Given the anticipated market 

conditions for the coming year, the 

Committee estimates that Scotch 

spearmint oil trade demand for the 

2024–2025 marketing year will be 

600,000 pounds, which is 35,000 

pounds lower than the prior year 

estimate and just below the 5-year 

moving sales average of 614,157 

pounds. Should the proposed volume 

regulation levels prove insufficient to 

adequately supply the market, the 

Committee has the authority to 

recommend intra-seasonal increases of 

the salable quantity and allotment 

percentage, as it has in previous 

marketing years. 

The Committee calculated the 

minimum salable quantity of Scotch 

spearmint oil that would be required 

during the 2024–2025 marketing year 

(266,880 pounds) by subtracting the 

estimated salable carry-in on June 1, 

2024, (333,120 pounds) from the 

estimated trade demand (600,000 

pounds). This minimum salable 

quantity represents the estimated 

minimum amount of Scotch spearmint 

oil that would be needed to satisfy 

estimated trade demand for the coming 

year. To ensure that the market would 

be fully supplied, the Committee 

recommended a 2024–2025 marketing 

year salable quantity of 663,648 pounds. 

The recommended salable quantity, 

combined with an estimated 333,120 

pounds of salable carry-in from the 

previous year, would yield a total 

available supply of 996,768 pounds of 

Scotch spearmint oil for the 2024–2025 

marketing year. With the recommended 

salable quantity and current market 

environment, the Committee estimates 

that as much as 396,768 pounds of 

salable Scotch spearmint oil could be 


khammond on DSKJM1Z7X2PROD with PROPOSALS
Federal Register / Vol. 89, No. 17 / Thursday, January 25, 2024 / Proposed Rules 4837 

carried into the 2025–2026 marketing 

year. 

Salable carry-in is the primary 

measure of excess spearmint oil supply 

under the Order, as it represents 

overproduction in prior years that is 

currently available to the market 

without restriction. Under volume 

regulation, spearmint oil that is 

designated as salable continues to be 

available to the market until it is sold 

and may be marketed at any time at the 

discretion of the owner. 

The Committee estimates that there 

will be 333,120 pounds of salable carryin of Scotch spearmint oil on June 1, 

2024. If current market conditions are 

maintained and the Committee’s 

projections are correct, salable carry-in 

would increase to 396,768 pounds at the 

beginning of the 2025–2026 marketing 

year. This level would be above the 

quantity that the Committee generally 

considers favorable (150,000 pounds). 

However, the Committee believes that, 

given the current economic conditions 

in the Scotch spearmint oil industry, 

some Scotch spearmint oil producers 

may not produce their annual allotment 

for the 2024–2025 marketing year. 

Further, the Committee estimates that as 

much as 296,118 pounds of the 2023– 

2024 marketing year annual allotment 

may not be filled by producers. While 

the Committee has not projected unused 

base allotment for the upcoming 2024– 

2025 marketing year, it anticipates that 

the actual quantity of Scotch spearmint 

oil carried into the 2024–2025 

marketing year will be much less than 

the quantity calculated above (333,120 

pounds). 

Spearmint oil held in reserve is oil 

that has been produced in excess of a 

producer’s annual allotment, either in 

the current marketing year or in prior 

years, and is restricted from freely 

entering the market. After December 1 of 

each marketing year, reserve pool oil is 

not available to the market in the 

current marketing year without an 

increase in the salable quantity and 

allotment percentage. The Order does 

include provision for reserve oil to be 

released for limited market development 

projects, with approval of the Secretary, 

but this provision is rarely utilized. 

Oil held in the reserve pool is another 

indicator of excess supply. Scotch 

spearmint oil held in reserve was 26,062 

pounds as of May 31, 2023, up from 

23,667 pounds as of May 31, 2022. This 

quantity of reserve pool oil should be an 

adequate buffer to supply the market, if 

necessary, should the industry 

experience an unexpected increase in 

demand. 

The Committee recommended an 

allotment percentage of 29 percent for 

the 2024–2025 marketing year for 

Scotch spearmint oil. During its October 

11, 2023, meeting, the Committee 

calculated an initial allotment 

percentage by dividing the minimum 

required salable quantity (266,880 

pounds) by the total estimated allotment 

base (2,288,442 pounds), resulting in 

11.7 percent. However, producers and 

handlers at the meeting indicated that 

the computed percentage (11.7 percent) 

might not adequately satisfy potential 

2024–2025 marketing year Scotch 

spearmint oil market demand and may 

also result in a less than desirable carryin for the subsequent marketing year. 

After deliberation, the Committee 

recommended an allotment percentage 

of 29 percent. The total estimated 

allotment base (2,288,442 pounds) for 

the 2024–2025 marketing year, 

multiplied by the recommended 

allotment percentage (29 percent), 

yields 663,648 pounds, which is the 

recommended salable quantity for the 

2024–2025 marketing year. 

The 2024–2025 marketing year 

computational data for the Committee’s 

recommendations is detailed below. 

(A) Estimated carry-in of Scotch 

spearmint oil on June 1, 2024: 333,120 

pounds. This figure is the difference 

between the 2023–2024 marketing year 

total available supply of 933,120 pounds 

and the revised 2023–2024 marketing 

year estimated trade demand of 600,000 

pounds. 

(B) Estimated trade demand of Scotch 

spearmint oil for the 2024–2025 

marketing year: 600,000 pounds. This 

figure was established at the Committee 

meeting held on October 11, 2023. 

(C) Minimum salable quantity of 

Scotch spearmint oil required from the 

2024–2025 marketing year production: 

266,880 pounds. This figure is the 

difference between the estimated 2024– 

2025 marketing year trade demand 

(600,000 pounds) and the estimated 

carry-in on June 1, 2024 (333,120 

pounds). This salable quantity 

represents the minimum amount of 

Scotch spearmint oil that would be 

needed to satisfy estimated demand for 

the coming year. 

(D) Total estimated Scotch spearmint 

oil allotment base of for the 2024–2025 

marketing year: 2,288,442 pounds. This 

figure represents a one-percent increase 

over the 2023–2024 marketing year total 

actual allotment base of 2,265,784 

pounds, as prescribed by § 985.53(d). 

The one-percent increase equals 22,658 

pounds. This total estimated allotment 

base is revised each year on June 1 in 

accordance with § 985.53(e). 

(E) Computed Scotch spearmint oil 

allotment percentage for the 2024–2025 

marketing year: 11.7 percent. This 

percentage is computed by dividing the 

minimum required salable quantity 

(266,880) by the total estimated 

allotment base (2,288,442 pounds). 

(F) Recommended Scotch spearmint 

oil allotment percentage for the 2024– 

2025 marketing year: 29 percent. This is 

the Committee’s recommendation and is 

based on the computed allotment 

percentage (11.7 percent) and input 

from producers and handlers at the 

October 11, 2023, meeting. The 

recommended 29 percent allotment 

percentage reflects the Committee’s 

belief that the computed percentage 

(11.7 percent) may not adequately 

supply the anticipated 2024–2025 

marketing year Scotch spearmint oil 

market demand. 

(G) Recommended Scotch spearmint 

oil salable quantity for the 2024–2025 

marketing year: 663,648 pounds. This 

figure is the product of the 

recommended salable allotment 

percentage (29 percent) and the total 

estimated allotment base (2,288,442 

pounds) for the 2024–2025 marketing 

year. 

(H) Estimated total available supply 

of Scotch spearmint oil for the 2024– 

2025 marketing year: 996,768 pounds. 

This figure is the sum of the 2024–2025 

marketing year recommended salable 

quantity (663,648 pounds) and the 

estimated carry-in on June 1, 2024 

(333,120 pounds). 

For the reasons stated above, the 

Committee believes that the 

recommended salable quantity and 

allotment percentage would adequately 

satisfy trade demand, would result in a 

reasonable carry-in for the following 

year, and would contribute to the 

orderly marketing of Scotch spearmint 

oil. 

Native Spearmint Oil 

The Committee recommended a 

Native spearmint oil salable quantity of 

678,980 pounds and an allotment 

percentage of 26 percent for the 2024– 

2025 marketing year. These figures are, 

respectively, 355,512 pounds and 14 

percentage points lower than the levels 

established for the 2023–2024 marketing 

year. The Committee utilized handlers’ 

estimated trade demand of Native 

spearmint oil for the coming year, 

historical and current Native spearmint 

oil production, inventory statistics, and 

international market data obtained from 

consultants for the spearmint oil 

industry to arrive at these 

recommendations. 

The Committee anticipates that 2023 

Native spearmint oil production will 

total 1,015,570 pounds, up from the 

previous year’s production of 941,026 

pounds. Committee records indicate 


khammond on DSKJM1Z7X2PROD with PROPOSALS
4838 Federal Register / Vol. 89, No. 17 / Thursday, January 25, 2024 / Proposed Rules 

that spearmint-producing acres in the 

Far West declined from a recent high of 

9,013 acres in 2019 to 6,078 acres of 

Native spearmint production in 2022, 

before rebounding to an estimated 6,761 

acres in 2023 on the strength of new 

plantings. 

Sales of Native spearmint oil have 

been trending downward since the 

2017–2018 marketing year, falling from 

a recent high of 1,332,260 pounds 

during the 2020–2021 marketing year to 

988,536 pounds for the 2021–2022 

marketing year, representing a 10-year 

low. However, sales of Native spearmint 

oil improved slightly to 1,044,835 

pounds for the 2022–2023 marketing 

year, the last full year for which data is 

available. The Committee expects 

demand to remain fairly stable, 

estimating trade demand for Native 

spearmint oil at 1,000,000 pounds for 

the 2024–2025 marketing year. 

The Committee anticipates that 

447,520 pounds of salable Native 

spearmint oil from prior years will be 

carried into the 2024–2025 marketing 

year. This amount is up from the 

308,440 pounds of salable oil carried 

into the 2023–2024 marketing year and 

well above the level that the Committee 

generally considers favorable (150,000 

pounds). 

The Committee estimates that there 

will be 1,048,733 pounds of Native 

spearmint oil in the reserve pool at the 

beginning of the 2024–2025 marketing 

year. Native reserve pool oil has been 

fairly stable over the past several 

marketing years. The reserve pool 

increased from 996,050 pounds at the 

start of the 2016–2017 marketing year to 

1,219,122 pounds to start the 2021–2022 

marketing year. However, the pool was 

reduced to 1,055,135 pounds by the 

start of the 2022–2023 marketing year, 

in line with the 1,048,733 pounds of 

Native spearmint oil that the Committee 

projects will be held in the reserve pool 

to begin the 2024–2025 marketing year. 

The Committee expects end users of 

Native spearmint oil to continue to rely 

on Far West production as their primary 

source of high-quality Native spearmint 

oil. However, increases in domestic 

production of Native spearmint from 

regions outside of the Far West 

production area has created additional 

competition for market share. For 

example, there were fewer than 2,000 

acres of Native spearmint production in 

the U.S. Midwest region in 2016, 

compared with over 10,000 acres of 

Native spearmint oil production in the 

Far West. However, the Committee’s 

2023 estimates indicate that Far West 

acreage has declined to approximately 

6,761 acres, compared to Native 

spearmint producing acreage of around 

3,000 acres in the Midwest. This 

situation has contributed to declining 

trade demand for Far West Native 

spearmint oil and led to downward 

pressure on producer prices. 

Given the anticipated market 

conditions for the coming year, the 

Committee estimated the 2024–2025 

marketing year Native spearmint oil 

trade demand to be 1,000,000 pounds. 

This figure is based on input provided 

by producers at six production area 

meetings held in September and 

October 2023, as well as estimates 

provided by handlers and other meeting 

participants at the October 11, 2023, 

Committee meeting. This figure 

represents a decrease of 150,000 pounds 

from the previous year’s estimated trade 

demand for the 2023–2024 marketing 

year. The average estimated trade 

demand for Native spearmint oil 

derived from the production area 

meetings was 1,020,833 pounds, 

whereas the handlers’ estimates ranged 

from 950,000 to 1,200,000 pounds. The 

quantity marketed over the most recent 

full marketing year, 2022–2023, was 

1,044,835 pounds. 

The estimated June 1, 2024, carry-in 

of 447,520 pounds of Native spearmint 

oil, plus the recommended 2024–2025 

marketing year salable quantity of 

678,980 pounds, would result in an 

estimated total available supply of 

1,126,500 pounds of Native spearmint 

oil during the 2024–2025 marketing 

year. With the corresponding estimated 

trade demand of 1,000,000 pounds, the 

Committee projects that 126,500 pounds 

of salable oil will be carried into the 

2025–2026 marketing year. The 

Committee estimates that there will be 

1,048,733 pounds of Native spearmint 

oil held in the reserve pool at the 

beginning of the 2024–2025 marketing 

year. Should the industry experience an 

unexpected increase in trade demand, 

oil in the Native spearmint oil reserve 

pool could be released through an intraseasonal increase in the salable quantity 

and allotment percentage to satisfy that 

demand. 

The Committee recommended a 

Native spearmint oil allotment 

percentage of 26 percent for the 2024– 

2025 marketing year. During its October 

11, 2023, meeting, the Committee 

calculated an initial allotment 

percentage of 21.2 percent by dividing 

the minimum required salable quantity 

to satisfy estimated trade demand 

(552,480 pounds) by the total allotment 

base (2,611,463 pounds). However, 

producers and handlers at the meeting 

expressed concern that the computed 

percentage of 21.2 percent may not 

adequately supply the potential 2024– 

2025 marketing year Native spearmint 

oil market demand. Further, it could 

result in a less than adequate carry-in 

for the subsequent marketing year. After 

deliberation, the Committee increased 

its allotment percentage 

recommendation to 26 percent. The 

total estimated Native spearmint oil 

allotment base (2,611,463 pounds) 

multiplied by the recommended salable 

allotment percentage (26 percent) yields 

678,980 pounds, the recommended 

Native spearmint oil salable quantity for 

the 2024–2025 marketing year. 

The 2024–2025 marketing year 

computational data for the Committee’s 

recommendation is further outlined 

below. 

(A) Estimated carry-in of Native 

spearmint oil on June 1, 2024: 447,520 

pounds. This figure is the difference 

between the estimated 2023–2024 

marketing year total available supply of 

1,447,520 pounds and the revised 2023– 

2024 marketing year estimated trade 

demand of 1,000,000 pounds. 

(B) Estimated trade demand of Native 

spearmint oil for the 2024–2025 

marketing year: 1,000,000 pounds. This 

estimate was established by the 

Committee at its October 11, 2023, 

meeting. 

(C) Minimum salable quantity of 

Native spearmint oil required from the 

2024–2025 marketing year production: 

552,480 pounds. This figure is the 

difference between the 2024–2025 

marketing year estimated trade demand 

(1,000,000 pounds) and the estimated 

carry-in on June 1, 2024 (447,520 

pounds). This is the minimum amount 

of Native spearmint oil that the 

Committee believes would be required 

to meet the anticipated 2024–2025 

marketing year trade demand. 

(D) Total estimated allotment base of 

Native spearmint oil for the 2024–2025 

marketing year: 2,611,463 pounds. This 

figure represents a one-percent increase 

over the 2023–2024 marketing year 

actual total allotment base of 2,585,607 

pounds as prescribed in § 985.53(d). The 

one-percent increase equals 25,856 

pounds of oil. This estimate is revised 

each year on June 1, to adjust for the 

bona fide effort production provisions of 

§ 985.53(e). 

(E) Computed Native spearmint oil 

allotment percentage for the 2024–2025 

marketing year: 21.2 percent. This 

percentage is calculated by dividing the 

required minimum salable quantity 

(552,480 pounds) by the total estimated 

allotment base (2,611,463 pounds) for 

the 2024–2025 marketing year. 

(F) Recommended Native spearmint 

oil allotment percentage for the 2024– 

2025 marketing year: 26 percent. This is 

the Committee’s recommendation based 

on the computed allotment percentage 


khammond on DSKJM1Z7X2PROD with PROPOSALS
Federal Register / Vol. 89, No. 17 / Thursday, January 25, 2024 / Proposed Rules 4839 

(21.2 percent) and input from producers 

and handlers at the October 11, 2023, 

meeting. The recommended 26 percent 

allotment percentage is also based on 

the Committee’s belief that the 

computed percentage (21.2 percent) may 

not adequately supply the potential 

market for Native spearmint oil in the 

2024–2025 marketing year or allow for 

sufficient salable Native spearmint oil to 

be carried into the beginning of the 

2024–2025 marketing year. 

(G) Recommended Native spearmint 

oil 2024–2025 marketing year salable 

quantity: 678,980 pounds. This figure is 

the product of the recommended 

allotment percentage (26 percent) and 

the total estimated allotment base 

(2,611,463 pounds). 

(H) Estimated available supply of 

Native spearmint oil for the 2024–2025 

marketing year: 1,126,500 pounds. This 

figure is the sum of the 2024–2025 

marketing year recommended salable 

quantity (678,980 pounds) and the 

estimated carry-in on June 1, 2024 

(447,520 pounds). This amount could be 

increased, as needed, through an intraseasonal increase in the salable quantity 

and allotment percentage. 

The Committee’s recommended 

Scotch and Native spearmint oil salable 

quantities and allotment percentages of 

663,648 pounds and 29 percent, and 

678,980 pounds and 26 percent, 

respectively, would match the available 

supply of each class of spearmint oil to 

the estimated demand of each, thus 

avoiding extreme fluctuations in 

inventories and prices. This proposed 

rule is similar to regulations issued in 

prior seasons. 

The salable quantities in this 

proposed rule are not expected to cause 

a shortage of either class of spearmint 

oil. Any unanticipated or additional 

market demand for either class of 

spearmint oil which may develop 

during the marketing year could be 

satisfied by an intra-seasonal increase in 

the salable quantity and corresponding 

allotment percentage. The Order 

contains a provision in § 985.51 for 

intra-seasonal increases to allow the 

Committee the flexibility to respond 

quickly to changing market conditions. 

Under volume regulation, producers 

who produce more than their annual 

allotments during the marketing year 

may transfer such excess spearmint oil 

to producers who have produced less 

than their annual allotment. In addition, 

on December 1 of each year, producers 

who have not transferred their excess 

spearmint oil to other producers must 

place their excess spearmint oil 

production into the reserve pool to be 

released in the future. Each producer 

controls the disposition of their 

respective reserve pool spearmint oil, in 

accordance with market needs and the 

Order’s volume regulation provisions, 

and under the Committee’s oversight. 

In conjunction with the issuance of 

this proposed rule, AMS has reviewed 

the Committee’s marketing policy 

statement for the 2024–2025 marketing 

year. The Committee’s marketing policy 

statement, a requirement whenever the 

Committee recommends volume 

regulation, meets the requirements of 

§§ 985.50 and 985.51. 

The establishment of the proposed 

salable quantities and allotment 

percentages would allow for anticipated 

market needs. In determining 

anticipated market needs, the 

Committee considered historical sales, 

as well as changes and trends in 

production and demand. This proposal 

would also provide producers with 

information regarding the amount of 

spearmint oil that should be produced 

for the 2024–2025 and subsequent 

marketing years to meet anticipated 

market demand. 

Initial Regulatory Flexibility Analysis 

Pursuant to requirements set forth in 

the Regulatory Flexibility Act (RFA) (5 

U.S.C. 601–612), the AMS has 

considered the economic impact of this 

proposed rule on small entities. 

Accordingly, AMS has prepared this 

initial 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 39 producers 

of Scotch spearmint oil and 92 

producers of Native spearmint oil 

operating within the regulated 

production area. In addition, there are 

approximately 7 spearmint oil handlers 

(both Scotch and Native spearmint) 

subject to regulation under the Order. 

Small agricultural service firms are 

defined by the Small Business 

Administration (SBA) as those having 

annual receipts of equal to or less than 

$34.0 million (Postharvest Crop 

Activities, NAICS code 11514). Small 

agricultural producers of spearmint oil 

are defined as those having annual 

receipts of equal to or less than $2.5 

million (All Other Miscellaneous Crop 

Farming, NAICS code 111998) (13 CFR 

121.201). 

The Committee reported that recent 

producer prices for spearmint oil have 

ranged from $18.00 to $22.00 per 

pound. The National Agricultural 

Statistics Service (NASS) reported that 

the 2022 U.S. season average spearmint 

oil producer price per pound was 

$20.40. Spearmint oil utilization for the 

2022–2023 marketing year, as reported 

by the Committee, was 597,852 pounds 

and 1,044,835 pounds for Scotch and 

Native spearmint oil, respectively, for a 

total of 1,642,687 pounds. Multiplying 

$20.40 per pound by 2022–2023 

marketing year spearmint oil utilization 

of 1,642,687 pounds yields a crop value 

estimate of about $33.5 million. 

Given the accounting requirements for 

the volume regulation provisions of the 

Order, the Committee maintains 

accurate records of each producer’s 

production and sales. Using the $20.40 

average spearmint oil price and 

Committee production data for each 

producer, the Committee estimates that 

38 of the 39 Scotch spearmint oil 

producers and all of the 92 Native 

spearmint oil producers could be 

classified as small entities under the 

SBA definition. 

There is no third-party or 

governmental entity that collects and 

reports spearmint oil prices received by 

spearmint oil handlers. However, the 

Committee estimates an average 

spearmint oil handling markup at 

approximately 20 percent of the price 

received by producers. Twenty percent 

of the 2022 producer price ($20.40) is 

$4.08, which results in a handler Free 

on Board (f.o.b.) price per pound 

estimate of $24.48 ($20.40 + $4.08). 

Multiplying this estimated handler 

f.o.b. price by the 2022–2023 marketing 

year total spearmint oil utilization of 

1,642,687 pounds results in an 

estimated handler-level spearmint oil 

value of $40.2 million. Dividing this 

figure by the number of handlers (7) 

yields estimated average annual handler 

receipts of about $5.7 million, which is 

well below the $34.0 million SBA 

threshold for small agricultural service 

firms. 

Furthermore, using confidential data 

compiled by the Committee on the 

pounds of spearmint oil handled by 

each handler and the abovementioned 

estimated handler price per pound, the 

Committee reported that it is not likely 

that any of the seven handlers had 

2022–2023 marketing year spearmint oil 

sales that exceeded SBA’s threshold. 

Therefore, in view of the foregoing, 

the majority of producers of spearmint 

oil may be classified as small entities, 

and all of the handlers of spearmint oil 

may be classified as small entities. 

This proposed rule would establish 

the quantity of spearmint oil produced 

in the Far West, by class, which 


khammond on DSKJM1Z7X2PROD with PROPOSALS
4840 Federal Register / Vol. 89, No. 17 / Thursday, January 25, 2024 / Proposed Rules 

handlers may purchase from, or handle 

on behalf of, producers during the 

2024–2025 marketing year. The 

Committee recommended this proposed 

action to help maintain stability in the 

spearmint oil market by matching 

supply to estimated demand, thereby 

avoiding extreme fluctuations in 

supplies and prices. Establishing 

quantities that may be purchased from 

or handled on behalf of producers 

during the marketing year through 

volume regulation allows producers to 

coordinate their spearmint oil 

production with the expected market 

demand. Authority for this proposal is 

provided in §§ 985.50, 985.51, and 

985.52 of the Order. 

The Committee estimates the total 

trade demand for the 2024–2025 

marketing year for both classes of oil at 

1,600,000 pounds. In addition, the 

Committee expects that the combined 

salable carry-in for both classes of 

spearmint oil will be 780,640 pounds. 

As such, the combined required salable 

quantity for the 2024–2025 marketing 

year is estimated to be 819,360 pounds 

(1,600,000 pounds trade demand less 

780,640 pounds carry-in). Under 

volume regulation, total sales of 

spearmint oil by producers for the 

2024–2025 marketing year would be 

held to 2,123,268 pounds (the 

recommended salable quantity for both 

classes of spearmint oil of 1,342,628 

pounds plus 780,640 of carry-in). 

This total available supply of 

2,123,268 pounds should be more than 

adequate to supply the 1,600,000 

pounds of anticipated total trade 

demand for spearmint oil. In addition, 

as of May 31, 2023, the total reserve 

pool for both classes of spearmint oil 

stood at 1,081,197 pounds. That 

quantity is expected to remain relatively 

unchanged over the course of the 2023– 

2024 marketing year, with current 

Committee reserve pool estimates 

totaling 1,082,744 pounds on May 31, 

2024. Should trade demand increase 

unexpectedly during the 2024–2025 

marketing year, reserve pool spearmint 

oil could be released into the market to 

supply that increase in demand. 

The recommended allotment 

percentages, upon which 2024–2025 

marketing year annual producer 

allotments are based, are 29 percent for 

Scotch spearmint oil and 26 percent for 

Native spearmint oil. Without volume 

regulation, producers would not be held 

to these allotment levels and would be 

able to sell unrestricted quantities of 

spearmint oil. 

The AMS econometric model used to 

evaluate the Far West spearmint oil 

market estimated that the season 

average producer price per pound (for 

both classes of spearmint oil) would 

decline about $1.55 per pound without 

volume regulation. The surplus 

situation for the spearmint oil market 

that would exist without volume 

regulation in the 2024–2025 marketing 

year also would likely dampen 

prospects for improved producer prices 

in future years because of the excessive 

buildup in stocks. 

In addition, spearmint oil prices 

would likely fluctuate with greater 

amplitude in the absence of volume 

regulation. The coefficient of variation, 

or CV (a standard measure of 

variability), of Far West spearmint oil 

producer prices for the period 1980– 

2022 (the years in which the Order has 

been in effect, and for which NASS data 

is available), is 24 percent, compared to 

49 percent for the 20-year period (1960– 

1979) immediately prior to the 

establishment of the Order. Since higher 

CV values correspond to greater 

variability, this is an indicator of the 

price-stabilizing impact of the Order. 

The use of volume regulation allows 

the industry to fully supply spearmint 

oil markets while avoiding the negative 

consequences of over-supplying these 

markets. The use of volume regulation 

is believed to have little or no effect on 

consumer prices of products containing 

spearmint oil and would not result in 

fewer retail sales of such products. 

The Committee discussed alternatives 

to the recommendations contained in 

this rule for both classes of spearmint 

oil. The Committee rejected the idea of 

not regulating volume for either class of 

spearmint oil because of the severe, 

price-depressing effects that are more 

likely to occur without volume 

regulation. The Committee also 

discussed and considered salable 

quantities and allotment percentages 

that were above and below the levels 

that were eventually recommended for 

both classes of spearmint oil. 

Ultimately, the action recommended by 

the Committee was to reduce the 

allotment percentage and salable 

quantity for both Scotch spearmint oil 

and Native spearmint oil from the levels 

established for the 2023–2024 marketing 

year. 

As noted earlier, the Committee’s 

recommendation to establish salable 

quantities and allotment percentages for 

both classes of spearmint oil was made 

after careful consideration of all 

available information including: (1) The 

estimated quantity of salable oil of each 

class held by producers and handlers; 

(2) the estimated demand for each class 

of oil; (3) the prospective production of 

each class of oil; (4) the total of 

allotment bases of each class of oil for 

the current marketing year and the 

estimated total of allotment bases of 

each class for the ensuing marketing 

year; (5) the quantity of reserve oil, by 

class, in storage; (6) producer prices of 

oil, including prices for each class of oil; 

and (7) general market conditions for 

each class of oil, including whether the 

estimated season average price to 

producers is likely to exceed parity. 

Based on its review, the Committee 

believes that the salable quantities and 

allotment percentages recommended 

would achieve the objectives sought. 

The Committee also believes that, 

should there be no volume regulation in 

effect for the upcoming marketing year, 

the Far West spearmint oil industry 

would return to the pronounced cyclical 

price patterns that occurred prior to the 

promulgation of the Order. As 

previously stated, annual salable 

quantities and allotment percentages 

have been issued for both classes of 

spearmint oil since the Order’s 

inception. The salable quantities and 

allotment percentages proposed herein 

are expected to facilitate the goal of 

maintaining orderly marketing 

conditions for Far West spearmint oil 

for the 2024–2025 and future marketing 

years. 

This proposed rule would establish 

the salable quantities and allotment 

percentages for Scotch and Native 

spearmint oil produced in the Far West 

during the 2024–2025 marketing year. 

Costs to producers and handlers, large 

and small, resulting from this proposal 

are expected to be offset by the benefits 

derived from a more stable market and 

increased returns. The benefits of this 

proposed rule are expected to be equally 

available to all producers and handlers 

regardless of their size. 

The Committee’s meeting was widely 

publicized throughout the spearmint oil 

industry and all interested persons were 

invited to attend the meeting and 

participate in Committee deliberations 

on all issues. Like all Committee 

meetings, the October 11, 2023, meeting 

was a public meeting and all entities, 

both large and small, were able to 

express views on this issue. Finally, 

interested persons are invited to submit 

comments on this proposed rule, 

including the regulatory and 

informational impacts of this action on 

small businesses. 

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 OMB and 

assigned OMB No. 0581–0178, 

Vegetable and Specialty Crops. No 

changes in those requirements would be 

necessary as a result of this proposed 

rule. Should any changes become 


khammond on DSKJM1Z7X2PROD with PROPOSALS
Federal Register / Vol. 89, No. 17 / Thursday, January 25, 2024 / Proposed Rules 4841 

necessary, they would be submitted to 

OMB for approval. 

This proposed rule would not impose 

any additional reporting or 

recordkeeping requirements on either 

small or large Far West spearmint oil 

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. 

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. 

AMS has not identified any relevant 

Federal rules that duplicate, overlap, or 

conflict with this proposed rule. 

A small business guide on complying 

with fruit, vegetable, and specialty crop 

marketing agreements and orders may 

be viewed at: https://www.ams.usda.

gov/rules-regulations/moa/smallbusinesses. Any questions about the 

compliance guide should be sent to 

Richard Lower at the previously 

mentioned address in the FOR FURTHER

INFORMATION CONTACT section. 

After consideration of all relevant 

material presented, including the 

information and recommendations 

submitted by the Committee and other 

available information, USDA has 

determined that this proposed rule is 

consistent with and would effectuate 

the purposes of the Act. 

A 30-day comment period is provided 

to allow interested persons to respond 

to this proposed rule. All written 

comments timely received will be 

considered before a final determination 

is made on this rule. 

List of Subjects in 7 CFR Part 985 

Marketing agreements, Oils and fats, 

Reporting and recordkeeping 

requirements. 

For the reasons set forth in the 

preamble, the Agriculture Marketing 

Service proposes to amend 7 CFR part 

985 as follows: 

PART 985—MARKETING ORDER 

REGULATING THE HANDLING OF 

SPEARMINT OIL PRODUCED IN THE 

FAR WEST 

■ 1. The authority citation for 7 CFR 

part 985 continues to read as follows: 

Authority: 7 U.S.C. 601–674. 

■ 2. Revise § 985.233 to read as follows: 

§ 985.233 Salable quantities and allotment 

percentages—2023–2024 marketing year. 

The salable quantity and allotment 

percentage for each class of spearmint 

oil during the marketing year beginning 

on June 1, 2023, shall be as follows: 

(a) Class 1 (Scotch) oil—a salable 

quantity of 772,704 pounds and an 

allotment percentage of 34 percent. 

(b) Class 3 (Native) oil—a salable 

quantity of 1,034,492 pounds and an 

allotment percentage of 40 percent. 

■ 3. Revise § 985.234 to read as follows: 

§ 985.234 Salable quantities and allotment 

percentages—2024–2025 marketing year. 

The salable quantity and allotment 

percentage for each class of spearmint 

oil during the marketing year beginning 

on June 1, 2024, shall be as follows: 

(a) Class 1 (Scotch) oil—a salable 

quantity of 663,648 pounds and an 

allotment percentage of 29 percent. 

(b) Class 3 (Native) oil—a salable 

quantity of 678,980 pounds and an 

allotment percentage of 26 percent. 

§§ 985.235 through 985.238 [Removed] 

■ 4. Remove §§ 985.235 through 

985.238. 

Erin Morris, 

Associate Administrator, Agricultural 

Marketing Service. 

[FR Doc. 2024–01247 Filed 1–24–24; 8:45 am] 

BILLING CODE P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Part 21 

[Docket No.: FAA–2024–0159; Notice No. 

24–10] 

RIN 2120–AL87 

Disclosure of Safety Critical 

Information 

AGENCY: Federal Aviation 

Administration (FAA), Department of 

Transportation (DOT). 

ACTION: Notice of proposed rulemaking 

(NPRM). 

SUMMARY: This proposed rule would 

implement certain mandates in the 

Aircraft Certification, Safety, and 

Accountability Act of 2020 by requiring 

applicants for, and holders of, new and 

amended transport category airplane 

type certificates to submit, and 

subsequently continue to disclose, 

certain safety critical information to the 

FAA. The proposed rule would also 

require all applicants for type 

certificates, including new, amended, 

and supplemental type certificates, to 

submit a proposed certification plan to 

the FAA. 

DATES: Send comments on or before 

March 25, 2024. 

ADDRESSES: Send comments identified 

by docket number FAA–2024–0159 

using any of the following methods: 

• Federal eRulemaking Portal: 

• Go to www.regulations.gov and 

follow the online instructions for 

sending your comments electronically. 

• Mail: Send comments to Docket 

Operations, M–30; U.S. Department of 

Transportation (DOT), 1200 New Jersey 

Avenue SE, Room W12–140, West 

Building Ground Floor, Washington, DC 

20590–0001. 

• Hand Delivery or Courier: Take 

comments to Docket Operations in 

Room W12–140 of the West Building 

Ground Floor at 1200 New Jersey 

Avenue SE, Washington, DC, between 9 

a.m. and 5 p.m., Monday through 

Friday, except Federal holidays. 

• Fax: Fax comments to Docket 

Operations at (202) 493–2251. 

Docket: Background documents or 

comments received may be read at 

www.regulations.gov/ at any time. 

Follow the online instructions for 

accessing the docket or go to the Docket 

Operations in Room W12–140 of the 

West Building Ground Floor at 1200 

New Jersey Avenue SE, Washington, 

DC, between 9 a.m. and 5 p.m., Monday 

through Friday, except Federal holidays. 

FOR FURTHER INFORMATION CONTACT: 

Susan McCormick, Systems Standards, 

Product Policy Management, Policy and 

Standards Division, Aircraft 

Certification Service, Federal Aviation 

Administration, 26805 East 68th Ave., 

Denver, CO 80249–6339; telephone 

(206) 231–3242; email 

susan.mccormick@faa.gov. 

SUPPLEMENTARY INFORMATION: 

Table of Contents 

I. Executive Summary 

II. Background 

A. Congressional Mandate 

B. Regulatory Background (FAA 

Certification and Oversight Processes) 

C. Factual Background (Boeing 737 MAX 

Accidents and Ensuing Investigations) 

D. Legislation Resulting From Reviews of 

the 737 MAX 

III. Authority for This Rulemaking 

IV. Discussion of the Proposal 

A. Submittal of Proposed Certification 

Plans by Applicants 

B. Milestone Component of Applicant’s 

Proposed Certification Plan 

C. Updating Transport Category Airplane 

Certification Plans With Safety Critical 

Information 

D. Continuing Disclosure Requirement for 

New and Amended Transport Category 

Airplane TC Applications 


khammond on DSKJM1Z7X2PROD with PROPOSALS