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[Federal Register: July 6, 2010 (Volume 75, Number 128)]
[Rules and Regulations]               
[Page 38698-38699]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr06jy10-3]                         

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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 948

[Doc. No. AMS-FV-08-0115; FV09-948-2 FIR]

 
Irish Potatoes Grown in Colorado; Relaxation of Handling 
Regulation for Area No. 3

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Affirmation of interim rule as final rule.

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SUMMARY: The Department of Agriculture (USDA) is adopting, as a final 
rule, without change, an interim rule that relaxed the size requirement 
prescribed under the Colorado potato marketing order. The interim rule 
provided for the handling of all varieties of potatoes with a minimum 
diameter of \3/4\ inch, if the potatoes otherwise meet U.S. No. 1 
grade. This change is intended to provide potato handlers with greater 
marketing flexibility, producers with increased returns, and consumers 
with a greater supply of potatoes.

DATES: Effective July 7, 2010.

FOR FURTHER INFORMATION CONTACT: Teresa Hutchinson or Gary Olson, 
Northwest Marketing Field Office, Marketing Order Administration 
Branch, Fruit and Vegetable Programs, AMS, USDA, Telephone: (503) 326-
2724, Fax: (503) 326-7440, or E-mail: Teresa.Hutchinson@ams.usda.gov or 
GaryD.Olson@ams.usda.gov.
    Small businesses may obtain information on complying with this and 
other marketing order and agreement regulations by viewing a guide at 
the following Web site: http://www.ams.usda.gov/AMSv1.0/ams.fetchTemplateData.do?template=TemplateN&page=MarketingOrdersSmallBus
inessGuide; or by contacting Antoinette Carter, Marketing Order 
Administration Branch, Fruit and Vegetable Programs, AMS, USDA, 1400 
Independence Avenue, SW., STOP 0237, Washington, DC 20250-0237; 
Telephone: (202) 720-2491, Fax: (202) 720-8938, or E-mail: 
Antoinette.Carter@ams.usda.gov.

SUPPLEMENTARY INFORMATION: This 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.''
    The Department of Agriculture (USDA) is issuing this rule in 
conformance with Executive Order 12866.
    The handling of Irish potatoes grown in Colorado is regulated by 7 
CFR part 948. Prior to this change, the regulations for Colorado Area 
No. 3 potatoes provided that U.S. No. 2 grade potatoes, 1\7/8\ inches 
minimum diameter or 4 ounces minimum weight, and Size B potatoes (1\1/
2\ to 2\1/4\ inches in diameter), if U.S. No. 1 grade or better, may be 
handled.
    The Committee believes that in recent years consumer demand has 
been increasing for smaller potatoes which often command premium 
prices. The market for these smaller potatoes was primarily supplied by 
potato production areas outside Colorado Area No. 3. Having the ability 
to handle smaller potatoes enables Colorado Area No. 3 potato handlers 
to market a larger portion of their crop while satisfying consumer 
demand for smaller potatoes. Therefore, this rule continues in effect 
the rule that relaxed the size requirement for all varieties of 
Colorado Area No. 3 potatoes by allowing the handling of potatoes with 
a minimum diameter of \3/4\ inch, if the potatoes otherwise meet U.S. 
No. 1 Grade.
    In an interim rule published in the Federal Register on April 5, 
2010, and effective on April 6, 2010, (75 FR 17034, Doc. No. AMS-FV-08-
0115, FV09-948-2 IFR), Sec.  948.387, paragraph (a) was revised.

[[Page 38699]]

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 
business 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.
    Based on Committee data, there are nine producers (eight of whom 
are also handlers) in the regulated area and nine handlers (eight of 
whom are also producers) subject to regulation under the order. Small 
agricultural producers are defined by the Small Business Administration 
(13 CFR 121.201) as those having annual receipts of less than $750,000, 
and small agricultural service firms are defined as those having annual 
receipts of less than $7,000,000.
    Also based on Committee data, 825,617 hundredweight of Colorado 
Area No. 3 potatoes were produced for the fresh market during the 2007 
season. Based on National Agricultural Statistics Service (NASS) data, 
the average producer price for Colorado summer potatoes for 2007 was 
$7.75 per hundredweight. The average annual producer revenue for the 
nine Colorado Area No. 3 potato producers is therefore calculated to be 
approximately $710,948. Using Committee data regarding each individual 
handler's total shipments during the 2007-2008 fiscal period and a 
Committee estimated average f.o.b. price for 2007 of $9.95 per 
hundredweight ($7.75 per hundredweight plus estimated packing and 
handling costs of $2.20 per hundredweight), all of the Colorado Area 
No. 3 potato handlers ship under $7,000,000 worth of potatoes. Thus, 
the majority of handlers and producers of Colorado Area No. 3 potatoes 
may be classified as small entities.
    This rule continues in effect the action that provided for the 
handling of all varieties of potatoes with a minimum diameter of \3/4\ 
inch, if they otherwise meet the requirements of U.S. No. 1 grade. This 
change enables handlers to respond to consumer demand for small 
potatoes. Authority for regulating grade and size is provided in Sec.  
948.22 of the order. Section 948.387(a) of the order's administrative 
rules and regulations prescribes the actual size requirements.
    This action is expected to have a beneficial impact on handlers and 
producers due to the increased volume of potatoes. There should be no 
extra cost to producers or handlers because current harvesting and 
handling methods can accommodate the sorting of these smaller potatoes. 
The size relaxation will result in a greater quantity of potatoes 
meeting the minimum requirements of the handling regulation. This 
should translate into an increased market for small potatoes and 
greater returns for handlers and producers.
    By providing Colorado Area No. 3 handlers the flexibility to pack 
smaller potatoes, the Committee believes the industry will remain 
competitive in the marketplace. The small potato market is a premium 
market and this action is expected to further increase sales of 
Colorado potatoes to benefit the Colorado potato industry. The benefits 
of this rule are not expected to be disproportionately greater or 
lesser for small entities than for large entities.
    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 sector agencies. In addition, USDA has not identified any 
relevant Federal rules that duplicate, overlap or conflict with this 
rule.
    Further, the Committee's meetings were widely publicized throughout 
the Colorado potato industry and all interested persons were invited to 
participate in Committee deliberations. Like all Committee meetings, 
the June 4 and November 17, 2009, meetings were public meetings and all 
entities, both large and small, were able to express views on this 
issue.
    Comments on the interim rule were required to be received on or 
before June 4, 2010. No comments were received. Therefore, for reasons 
given in the interim rule, we are adopting the interim rule as a final 
rule, without change.
    To view the interim rule, go to: http://www.regulations.gov/search/Regs/home.html#documentDetail?R=0900006480acfc3d.
    This action also affirms information contained in the interim rule 
concerning Executive Orders 12866 and 12988, the Paperwork Reduction 
Act (44 U.S.C. Chapter 35), and the E-Gov Act (44 U.S.C. 101).
    After consideration of all relevant material presented, it is found 
that finalizing the interim rule, without change, as published in the 
Federal Register (75 FR 17034, April 5, 2010) will tend to effectuate 
the declared policy of the Act.

List of Subjects in 7 CFR Part 948

    Marketing agreements, Potatoes, Reporting and recordkeeping 
requirements.

PART 948--IRISH POTATOES GROWN IN COLORADO--[AMENDED]

0
Accordingly, the interim rule that amended 7 CFR part 948 and that was 
published at 75 FR 17034 on April 5, 2010, is adopted as a final rule, 
without change.

    Dated: June 29, 2010.
Robert C. Keeney,
Acting Administrator, Agricultural Marketing Service.
[FR Doc. 2010-16337 Filed 7-2-10; 8:45 am]
BILLING CODE P
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