[Federal Register Volume 80, Number 14 (Thursday, January 22, 2015)]
[Rules and Regulations]
[Pages 3142-3147]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-01002]


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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 985

[Doc. No. AMS-FV-13-0087; FV14-985-1B IR]


Marketing Order Regulating the Handling of Spearmint Oil Produced 
in the Far West; Revision of the Salable Quantity and Allotment 
Percentage for Class 3 (Native) Spearmint Oil for the 2014-2015 
Marketing Year

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Interim rule with request for comments.

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SUMMARY: This interim rule revises the quantity of Class 3 (Native) 
spearmint oil that handlers may purchase from, or handle on behalf of, 
producers during the 2014-2015 marketing year under the Far West 
spearmint oil marketing order. This rule increases the Native spearmint 
oil salable quantity from 1,090,821 pounds to 1,280,561 pounds and the 
allotment percentage from 46 percent to 54 percent. The marketing order 
regulates the handling of spearmint oil produced in the Far West and is 
administered locally by the Spearmint Oil Administrative Committee 
(Committee). The Committee recommended this rule for the purpose of 
maintaining orderly marketing conditions in the Far West spearmint oil 
market.

DATES: Effective January 22, 2015 and applicable to the 2014-2015 
marketing year; comments received by March 23, 2015 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. All comments should reference the document 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, or can be viewed

[[Page 3143]]

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: Barry Broadbent, Senior Marketing 
Specialist, or Gary 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: <a href="/cdn-cgi/l/email-protection#8cceedfefef5a2cefee3ede8eee9e2f8ccede1ffa2f9ffe8eda2ebe3fa"><span class="__cf_email__" data-cfemail="3173504343481f73435e505553545f4571505c421f444255501f565e47">[email protected]</span></a> or <a href="/cdn-cgi/l/email-protection#531432212a177d1c3f203c3d13323e207d262037327d343c25"><span class="__cf_email__" data-cfemail="155274676c513b5a79667a7b557478663b606671743b727a63">[email protected]</span></a>.
    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: <a href="/cdn-cgi/l/email-protection#e9a38c8f8f9b8c90c7ba849c9d8790a988849ac79c9a8d88c78e869f"><span class="__cf_email__" data-cfemail="460c23202034233f68152b3332283f06272b35683335222768212930">[email protected]</span></a>.

SUPPLEMENTARY INFORMATION: This interim rule is issued under Marketing 
Order No. 985 (7 CFR part 985), as amended, regulating the handling of 
spearmint oil produced in the Far West (Washington, Idaho, Oregon, and 
designated parts of Nevada and Utah), 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 provisions of the marketing order now in 
effect, salable quantities and allotment percentages may be established 
for classes of spearmint oil produced in the Far West. This rule 
increases the quantity of Native spearmint oil produced in the Far West 
that handlers may purchase from, or handle on behalf of, producers 
during the 2014-2015 marketing year, which began on June 1, 2014, and 
ends on May 31, 2015.
    The Act provides that administrative proceedings must be exhausted 
before parties may file suit in court. Under section 608c(15)(A) of the 
Act, any handler subject to an order may file with USDA a petition 
stating that the order, any provision of the order, or any obligation 
imposed in connection with the order is not in accordance with law and 
request a modification of the order or to be exempted therefrom. A 
handler is afforded the opportunity for a hearing on the petition. 
After the hearing USDA would rule on the petition. The Act provides 
that the district court of the United States in any district in which 
the handler is an inhabitant, or has his or her principal place of 
business, has jurisdiction to review USDA's ruling on the petition, 
provided an action is filed not later than 20 days after the date of 
the entry of the ruling.
    This rule revises the quantity of Native spearmint oil that 
handlers may purchase from, or handle on behalf of, producers during 
the 2014-2015 marketing year under the Far West spearmint oil marketing 
order. This rule increases the Native spearmint oil salable quantity 
from 1,090,821 pounds to 1,280,561 pounds and the allotment percentage 
from 46 percent to 54 percent.
    Under the volume regulation provisions of the order, the Committee 
meets each year to adopt a marketing policy for the ensuing year. When 
the Committee's marketing policy considerations indicate a need for 
limiting the quantity of spearmint oil available to the market to 
establish or maintain orderly marketing conditions, the Committee 
submits a recommendation to the Secretary for volume regulation.
    Volume regulation under the order is effectuated through the 
establishment of a salable quantity and allotment percentage applicable 
to each class of spearmint oil handled in the production area during a 
marketing year. The salable quantity is the total quantity of each 
class of oil that handlers may purchase from, or handle on behalf of, 
producers during a given marketing year. The allotment percentage for 
each class of oil is derived by dividing the salable quantity by the 
total industry allotment base for that same class of oil. The total 
industry allotment base is the aggregate of all allotment base held 
individually by producers. Producer allotment base is the quantity of 
each class of spearmint oil that the Committee has determined is 
representative of a producer's spearmint oil production. Each producer 
is allotted a pro rata share of the total salable quantity of each 
class of spearmint oil each marketing year. Each producer's annual 
allotment is determined by applying the allotment percentage to the 
producer's individual allotment base for each applicable class of 
spearmint oil.
    The full Committee met on November 6, 2013, to consider its 
marketing policy for the ensuing year. At that meeting, the Committee 
determined that marketing conditions indicated a need for volume 
regulation of both classes of spearmint oil for the 2014-2015 marketing 
year. The Committee recommended salable quantities of 1,149,030 pounds 
and 1,090,821 pounds, and allotment percentages of 55 percent and 46 
percent, respectively, for Scotch and Native spearmint oil. A proposed 
rule to that effect was published in the Federal Register on March 14, 
2014 (79 FR 14441). Comments on the proposed rule were solicited from 
interested persons until March 31, 2014. No comments were received. 
Subsequently, a final rule establishing the salable quantities and 
allotment percentages for Scotch and Native spearmint oil for the 2014-
2015 marketing year was published in the Federal Register on May 8, 
2014 (79 FR 26359).
    Pursuant to authority contained in Sec. Sec.  985.50, 985.51, and 
985.52 of the order, the full eight member Committee met again on 
September 11, 2014, to consider pertinent market information on the 
current supply, demand, and price of spearmint oil. After some 
deliberation, the Committee recommended increasing the 2014-2015 
marketing year Scotch spearmint oil salable quantity from 1,149,030 
pounds to 1,984,423 pounds and the allotment percentage from 55 percent 
to 95 percent. An interim rule to that effect was published in the 
Federal Register on October 31, 2014 (79 FR 64657). Comments regarding 
the interim rule received by December 30, 2014, will be considered 
prior to issuance of a final rule.
    The full Committee met again on November 5, 2014, for a regularly 
scheduled annual meeting to evaluate the current year's volume control 
regulation and to adopt a marketing policy for the 2015-2016 marketing 
year. At the meeting, the Committee assessed the current market 
conditions for spearmint oil in relation to the salable quantities and 
allotment percentages established for the 2014-2015 marketing year. The 
Committee considered a number of factors, including the current and 
projected supply, estimated future demand, production costs, and 
producer prices for all classes of spearmint oil. The Committee 
determined that the salable quantity and allotment percentage 
previously established for Native spearmint oil for the 2014-2015 
marketing year should be increased to take into account the recent 
unanticipated rise in market demand for that class of spearmint oil.
    Therefore, the Committee recommended increasing the Native 
spearmint oil salable quantity from

[[Page 3144]]

1,090,821 pounds to 1,280,561 pounds and the allotment percentage from 
46 percent to 54 percent. The recommendation to increase the salable 
quantity and allotment percentage passed with seven members voting in 
favor of the motion. The public member, while present, abstained from 
the vote.
    Thus, taking into consideration the following discussion, this rule 
makes additional amounts of Native spearmint oil available to the 
market by increasing the salable quantity and allotment percentage 
previously established under the order for the 2014-2015 marketing 
year. This rule increases the Native spearmint oil salable quantity 
189,740 pounds to 1,280,561 pounds, and raises the allotment percentage 
8 percent, to 54 percent. Such additional oil will become available to 
the market by releasing Native spearmint oil held by producers in the 
reserve pool. As of May 31, 2014, the Committee records show that the 
reserve pool for Native spearmint oil contained 446,086 pounds of oil.
    The increase in the salable quantity as a result of this rule 
represents an additional 189,740 pounds of Native spearmint oil being 
made available to the market. However, as some individual producers do 
not hold Native spearmint oil from previous year's production in the 
reserve pool, the Committee expects that only 148,715 pounds of 
additional Native spearmint oil will actually be made available to the 
spearmint oil market. The relatively high salable quantity resulting 
from this action, as compared to the actual quantity of spearmint oil 
that will be made available to the market, is necessary to ensure that 
a sufficient quantity of Native spearmint oil is available to fully 
supply the market. Producers that do not have additional Native 
spearmint oil in inventory (oil held in the reserve pool) will not be 
able to utilize the additional annual allotment issued to them as a 
result of this action and such additional annual allotment will go 
unused.
    The 2014-2015 marketing year began on June 1, 2014, with a Native 
spearmint oil carry-in of 218,754 pounds (carry-in is salable Native 
spearmint oil from prior years that was not marketed during the 2013-
2014 marketing year). This amount is significantly lower than the 
Committee's projected carry-in of 307,297 pounds. As such, when the 
carry-in is added to the initially established 2014-2015 Native 
spearmint oil salable quantity of 1,090,821 pounds, the result is a 
total available supply for the 2014-2015 marketing year of 1,309,575 
pounds. This amount is 88,543 pounds less than the 1,398,118 pounds 
that the Committee believed would be available to the market when it 
initially recommended volume regulation for the 2014-2015 marketing 
year in November 2013.
    In addition, the Committee staff reported that demand for Native 
spearmint oil is greater than originally anticipated. Committee records 
indicate that 2014-2015 marketing year sales through the end of October 
2014, the most recent full month recorded, are 84,667 pounds higher 
than for the same period in the 2013-2014 marketing year. The Committee 
now estimates trade demand for Native spearmint oil for the 2014-2015 
marketing year to be approximately 1,341,000 pounds, up from the 
1,300,000 pounds initially estimated in the fall of 2013. If realized, 
trade demand of 1,341,000 pounds would be 31,425 pounds more than the 
quantity available under the initially established volume control 
levels (1,309,525 pounds available minus 1,341,000 pounds demanded = 
31,425 pound supply deficit). The increased quantity of Native 
spearmint oil made available to the market as a result of this action 
would ensure that market demand is satisfied in the current year and 
that there would be salable inventory available to the market for the 
start of the 2015-2016 marketing year on June 1, 2015.
    In making the recommendation to increase the salable quantity and 
allotment percentage of Native spearmint oil, the Committee considered 
all currently available information on the price, supply, and demand of 
spearmint oil. The Committee also considered reports and other 
information from handlers and producers in attendance at the meeting. 
Lastly, the Committee manager presented information and reports that 
were provided to the Committee staff by handlers and producers who were 
not in attendance at the November 5, 2014, meeting.
    This action increases the 2014-2015 marketing year Native spearmint 
oil salable quantity by 189,740 pounds, to a total of 1,280,561 pounds. 
However, as mentioned previously, the net effect of the increase will 
be much less than the calculated increase due to the amount of actual 
oil individual producers have available to market from the current 
year's excess production and from reserve pool inventory. The Committee 
estimates that this action will actually make an additional 148,715 
pounds of Native spearmint oil available to the market. That amount, 
combined with the 151,962 pounds of salable Native spearmint oil that 
the Committee estimates is currently available to the market, will make 
a total of 300,677 pounds that will be available to be marketed through 
the remainder of the marketing year. The total supply of Native 
spearmint oil that the Committee anticipates actually being available 
to the market over the course of the 2014-2015 marketing year will be 
increased to 1,458,318 pounds. Actual sales of Native spearmint oil for 
the 2013-2014 marketing year totaled 1,341,555 pounds.
    The Committee estimates that this action will result in 117,318 
pounds of salable Native spearmint oil being carried into the 2015-2016 
marketing year. In addition, the Committee expects that 297,371 pounds 
of Native spearmint oil will be held in reserve pool stocks by 
producers after this increase. These inventory levels are low in 
comparison to historical levels, but are well within the range that the 
Committee believes to be appropriate moving forward. In addition, the 
Committee believes that the current Native spearmint oil market 
situation will stimulate production of Native spearmint oil in the 
coming years, further ensuring that the market will be adequately 
supplied in the future.
    As mentioned previously, when the original 2014-2015 marketing 
policy statement was drafted, handlers estimated the demand for Native 
spearmint oil for the 2014-2015 marketing year to be 1,300,000 pounds. 
The Committee's initial recommendation for the establishment of the 
Native spearmint oil salable quantity and allotment percentage for the 
2014-2015 marketing year was based on that estimate. The Committee did 
not anticipate the increase in demand for Native spearmint oil that the 
market is currently experiencing and did not make allowances for it 
when the marketing policy was initially adopted. Handlers now estimate 
that Native spearmint oil demand for the 2014-2015 marketing year to be 
as much as 1,375,000 pounds. However, at the meeting, the Committee 
conservatively revised its estimate to 1,341,000 pounds. The Committee 
now believes that the supply of Native spearmint oil available to the 
market under the initially established salable quantity and allotment 
percentage would be insufficient to satisfy the current level of demand 
for oil at reasonable price levels. The Committee further believes that 
the increase in the salable quantity and allotment percentage 
effectuated by this action is vital to ensuring an adequate supply of 
Native spearmint oil is available to the market moving forward.

[[Page 3145]]

    As previously stated, it is anticipated that this action will make 
148,715 pounds of the Native spearmint oil held in the reserve pool 
available to the market. However, to achieve that desired net effect 
under the current supply conditions in the industry, it is necessary 
for the salable quantity and allotment percentage established under the 
volume regulation provisions of the order to be set at artificially 
high levels. The Committee records show that some producers do not hold 
Native spearmint oil in reserve. Given the process by which volume 
regulation is effectuated under the order, only those producers with 
Native spearmint oil in the reserve pool will be able to utilize the 
additional annual allotment that is issued as a result of this rule. 
Likewise, producers that do not have Native spearmint oil reserve oil 
from prior years' production will not have any Native spearmint oil 
inventory to offer to the market, regardless of how much additional 
annual allotment is issued to those producers. As such, the Committee 
expects that approximately 22 percent of the increased salable quantity 
and allotment percentage for Native spearmint oil will go unused.
    As an example, assume Producer A has 2,000 pounds of Native 
spearmint oil allotment base. In addition, assume that during the 2014-
2015 marketing year Producer A produced 920 pounds of Native spearmint 
oil and currently holds 160 pounds of excess Native spearmint oil in 
reserve from production in prior years. Given that the initial 2014-
2015 marketing year allotment percentage was established at 46 percent, 
Producer A could market all 920 pounds of the current year production 
(46 percent allotment percentage x 2,000 pounds of allotment base), 
leaving him/her with 160 pounds in the reserve pool that was initially 
not available to market. Without an increase in the allotment 
percentage, the producer would not have been able to market any of the 
160 pounds of reserve oil and the oil would have continued to have been 
held in the reserve pool for marketing in subsequent years. For 
Producer A to market all 1,080 pounds of his/her current year Native 
spearmint oil production and reserve inventory, the allotment 
percentage needs to be increased by 8 percent to a total of 54 percent 
(54 percent x 2,000 pounds = 1,080 pounds). An increase in the 
allotment percentage of anything less than 8 percent would fail to 
release all of the Native spearmint oil that the producer holds in the 
reserve pool.
    In contrast, assume that another producer, Producer B, likewise has 
2,000 pounds of Native spearmint oil allotment base and produced 920 
pounds of Native spearmint oil during the 2014-2015 marketing year. 
However, Producer B has no Native spearmint oil held in reserve. As in 
the first case, Producer B could market all of his/her current year 
production under the initial allotment percentage of 46 percent. 
However, a subsequent increase in the allotment percentage of 8 percent 
would have no impact on Producer B, as the producer has no reserve pool 
oil available to deliver to the market. As a result, the 160 pounds of 
additional annual allotment allocated to Producer B after an 8 percent 
increase in the allotment percentage would go unfilled.
    The Committee acknowledges that the relatively high salable 
quantity, and the corresponding high allotment percentage, will create 
a quantity of Native spearmint oil annual allotment for which no Native 
spearmint oil will actually be available to market. The Committee 
estimates that an 8 percent increase in the salable quantity is 
required to make the desired 148,715 pounds of Native spearmint reserve 
pool oil available to the market. Accordingly, the Committee expects 
that 41,025 pounds of the recommended 189,740 pound increase in salable 
quantity will go unfilled. This quantity of underutilized salable 
quantity has been factored into the Committee's recommendation.
    The Committee's stated intent in the use of marketing order volume 
control regulation is to keep adequate supplies available to meet 
market needs and to maintain orderly marketing conditions. With that in 
mind, the Committee developed its recommendation for increasing the 
Native spearmint oil salable quantity and allotment percentage for the 
2014-2015 marketing year based on the information discussed above, as 
well as the summary data outlined below.
    (A) Estimated 2014-2015 Native Allotment Base--2,371,350 pounds. 
This is the estimate on which the original 2014-2015 salable quantity 
and allotment percentage was based.
    (B) Revised 2014-2015 Native Allotment Base--2,371,410 pounds. This 
is 60 pounds more than the estimated allotment base of 2,371,350 
pounds. The difference is the result of annual adjustments made to the 
allotment base according to the provisions of the order.
    (C) Original 2014-2015 Native Allotment Percentage--46 percent. 
This was unanimously recommended by the Committee on November 6, 2013.
    (D) Original 2014-2015 Native Salable Quantity--1,090,821 pounds. 
This figure is 46 percent of the original estimated 2014-2015 allotment 
base of 2,371,350 pounds.
    (E) Adjusted 2014-2015 Native Salable Quantity--1,090,849 pounds. 
This figure reflects the salable quantity actually available at the 
beginning of the 2014-2015 marketing year. This quantity is derived by 
applying the 46 percent allotment percentage to the revised allotment 
base of 2,371,410.
    (F) Current Revision to the 2014-2015 Native Salable Quantity and 
Allotment Percentage:
    (1) Increase in Native Allotment Percentage--8 percent. The 
Committee recommended an 8 percent increase at its November 5, 2014, 
meeting.
    (2) 2014-2015 Native Allotment Percentage--54 percent. This figure 
is derived by adding the increase of 8 percent to the original 2014-
2015 allotment percentage of 46 percent.
    (3) Calculated Revised 2014-2015 Native Salable Quantity--1,280,561 
pounds. This figure is 54 percent of the revised 2014-2015 allotment 
base of 2,371,410 pounds.
    (4) Computed Increase in the 2014-2015 Native Salable Quantity--
189,740 pounds. This figure is 8 percent of the revised 2014-2015 
allotment base of 2,371,410 pounds.
    (5) Expected Actual Increase in the 2014-2015 Native Spearmint Oil 
Available to the Market--148,715 pounds. This figure is based on the 
Committee's estimation of oil actually held in the reserve pool by 
producers that may enter the market as a result of this rule.
    Scotch spearmint oil is also regulated by the order. As mentioned 
previously, a salable quantity and allotment percentage for Scotch 
spearmint oil was established in a final rule published in the Federal 
Register on May 8, 2014 (79 FR 26359) and subsequently increased in an 
interim rule published in the Federal Register on October 31, 2014 (79 
FR 64657). At the November 5, 2014, meeting, the Committee considered 
the current production, inventory, and marketing conditions for Scotch 
spearmint oil. After receiving reports from the Committee staff and 
comments from the industry, the consensus of the Committee was that the 
previously increased salable quantity and allotment percentage for 
Scotch spearmint oil was appropriate for the current market conditions. 
As such, the Committee took no further action with regards to Scotch 
spearmint oil for the 2014-2015 marketing year.
    This rule relaxes the regulation of Native spearmint oil and will 
allow producers to meet market demand while improving producer returns. 
In conjunction with the issuance of this

[[Page 3146]]

rule, the Committee's revised marketing policy statement for the 2014-
2015 marketing year has been reviewed by USDA. The Committee's 
marketing policy statement, a requirement whenever the Committee 
recommends implementing volume regulations or recommends revisions to 
existing volume regulations, meets the intent of Sec.  985.50 of the 
order. During its discussion of revising the 2014-2015 salable 
quantities and allotment percentages, the Committee considered: (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. Conformity with USDA's ``Guidelines for Fruit, Vegetable, and 
Specialty Crop Marketing Orders'' has also been reviewed and confirmed.
    The increase in the Native spearmint oil salable quantity and 
allotment percentage allows for anticipated market needs for that class 
of oil. In determining anticipated market needs, the Committee 
considered changes and trends in historical sales, production, and 
demand.

Initial 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 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 8 spearmint oil handlers subject to regulation under the 
order, and approximately 39 producers of Scotch spearmint oil and 
approximately 91 producers of Native spearmint oil in the regulated 
production area. Small agricultural service firms are defined by the 
Small Business Administration (SBA) as those having annual receipts of 
less than $7,000,000, and small agricultural producers are defined as 
those having annual receipts of less than $750,000 (13 CFR 121.201).
    Based on the SBA's definition of small entities, the Committee 
estimates that only two of the eight handlers regulated by the order 
could be considered small entities. Most of the handlers are large 
corporations involved in the international trading of essential oils 
and the products of essential oils. In addition, the Committee 
estimates that 22 of the 39 Scotch spearmint oil producers and 29 of 
the 91 Native spearmint oil producers could be classified as small 
entities under the SBA definition. Thus, the majority of handlers and 
producers of Far West spearmint oil may not be classified as small 
entities.
    The use of volume control regulation allows the spearmint oil 
industry to fully supply spearmint oil markets while avoiding the 
negative consequences of over-supplying these markets. Without volume 
control regulation, the supply and price of spearmint oil would likely 
fluctuate widely. Periods of oversupply could result in low producer 
prices and a large volume of oil stored and carried over to future crop 
years. Periods of undersupply could lead to excessive price spikes and 
could drive end users to source flavoring needs from other markets, 
potentially causing long-term economic damage to the domestic spearmint 
oil industry. The marketing order's volume control provisions have been 
successfully implemented in the domestic spearmint oil industry since 
1980 and provide benefits for producers, handlers, manufacturers, and 
consumers.
    This rule increases the quantity of Native spearmint oil that 
handlers may purchase from, or handle on behalf of, producers during 
the 2014-2015 marketing year, which ends on May 31, 2015. The 2014-2015 
Native spearmint oil salable quantity was initially established at 
1,090,821 pounds and the allotment percentage initially set at 46 
percent. This rule increases the Native spearmint oil salable quantity 
to 1,280,561 pounds and the allotment percentage from 46 percent to 54 
percent.
    Based on the information and projections available at the November 
5, 2014, meeting, the Committee considered a number of alternatives to 
this increase. The Committee not only considered leaving the salable 
quantity and allotment percentage unchanged, but also considered other 
potential levels of increase. The Committee reached its recommendation 
to increase the salable quantity and allotment percentage for Native 
spearmint oil after careful consideration of all available information 
and input from all interested industry participants, and believes that 
the levels recommended will achieve the objectives sought. Without the 
increase, the Committee believes the industry would not be able to 
satisfactorily meet market demand.
    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, Vegetable and Specialty Crop Marketing 
Orders. 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 will not impose any additional reporting or recordkeeping 
requirements on either small or large 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.
    In addition, USDA 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 spearmint oil industry, and all interested persons were invited to 
attend the meeting and participate in Committee deliberations. Like all 
Committee meetings, the November 5, 2014, meeting was a public meeting, 
and all entities, both large and small, were able to express their 
views on this issue. Finally, interested persons are invited to submit 
information on the regulatory and informational impacts of this action 
on small businesses.
    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.

[[Page 3147]]

    This rule invites comments on a change to the salable quantity and 
allotment percentage for Native spearmint oil for the 2014-2015 
marketing year. Any comments received will be considered prior to 
finalization of this rule.
    After consideration of all relevant material presented, including 
the Committee's recommendation, and other information, it is found that 
this interim rule, as hereinafter set forth, will tend to effectuate 
the declared policy of the Act.
    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 increases the quantity of Native spearmint oil 
that may be marketed during the marketing year, which ends on May 31, 
2015; (2) the current quantity of Native spearmint oil may be 
inadequate to meet demand for the 2014-2015 marketing year, thus making 
the additional oil available as soon as is practicable will be 
beneficial to both handlers and producers; (3) the Committee 
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 985

    Marketing agreements, Oils and fats, Reporting and recordkeeping 
requirements, Spearmint oil.

    For the reasons set forth in the preamble, 7 CFR part 985 is 
amended as follows:

PART 985--MARKETING ORDER REGULATING THE HANDLING OF SPEARMINT OIL 
PRODUCED IN THE FAR WEST

0
1. The authority citation for 7 CFR part 985 continues to read as 
follows:

     Authority:  7 U.S.C. 601-674.

0
2. In Sec.  985.233, revise paragraph (b) to read as follows:


Sec.  985.233  Salable quantities and allotment percentages--2014-2015 
marketing year.

* * * * *
    (b) Class 3 (Native) oil--a salable quantity of 1,280,561 pounds 
and an allotment percentage of 54 percent.

    Dated: January 15, 2015.
Rex A. Barnes,
Associate Administrator, Agricultural Marketing Service.
[FR Doc. 2015-01002 Filed 1-21-15; 8:45 am]
BILLING CODE P


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