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Rules and Regulations Federal Register

33967 

Vol. 76, No. 112 

Friday, June 10, 2011 

DEPARTMENT OF AGRICULTURE 

Agricultural Marketing Service 

7 CFR Part 953 

[Doc. No. AMS–FV–11–0027; FV11–953–1 

IR] 

Irish Potatoes Grown in Southeastern 

States; Suspension of Marketing Order 

Provisions 

AGENCY: Agricultural Marketing Service, 

USDA. 

ACTION: Interim rule with request for 

comments. 

SUMMARY: This rule suspends the 

marketing order for Irish potatoes grown 

in Southeastern states (order), and the 

rules and regulations implemented 

thereunder, through March 1, 2014. The 

order regulates the handling of Irish 

potatoes grown in Southeastern states 

and is administered locally by the 

Southeastern Potato Committee 

(Committee). The Committee believes 

advances in farming technology and 

production quality have reduced the 

need for the order. When considering 

the costs associated with continuing the 

order, the Committee unanimously 

recommended that the order be 

suspended. 

DATES: Effective June 13, 2011 through 

March 1, 2014; comments received by 

August 9, 2011 will be considered prior 

to adoption as 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 Administration Branch, Fruit and 

Vegetable Programs, 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 

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: 

Dawana J. Clark, Marketing Specialist, 

or Kenneth G. Johnson, Regional 

Manager, DC Marketing Field Office, 

Marketing Order Administration 

Branch, Fruit and Vegetable Programs, 

AMS, USDA; Telephone: (301) 734– 

5243, Fax: (301) 734–5275, or E-mail: 

Dawana.Clark@ams.usda.gov or 

Kenneth.Johnson@ams.usda.gov. 

Small businesses may request 

information on complying with this 

regulation by contacting Laurel May, 

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: 

Laurel.May@ams.usda.gov. 

SUPPLEMENTARY INFORMATION: This rule 

is issued under Marketing Agreement 

No. 104 and Marketing Order No. 953, 

both as amended (7 CFR part 953), 

regulating the handling of Irish potatoes 

grown in Southeastern states, 

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. 

This rule has been reviewed under 

Executive Order 12988, Civil Justice 

Reform. This rule is not intended to 

have retroactive effect. 

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 suspends the order and all 

provisions prescribed thereunder 

through March 1, 2014. The suspension 

includes, but is not limited to, grade, 

size, quality, assessment, reporting, and 

inspection requirements. The 

Committee believes advances in farming 

technology and production quality have 

reduced the need for the order. When 

considering the costs associated with 

continuing the order, the Committee 

agreed that the order should be 

suspended. The Committee met on 

February 17, 2011, and unanimously 

recommended suspending the order for 

three years, through to March 1, 2014. 

The order was promulgated in 1948, 

and regulates the handling of Irish 

potatoes grown in designated counties 

of Virginia and North Carolina. The 

order has been used to provide the 

industry with grade, size, quality, and 

inspection requirements. The order also 

authorizes reporting and recordkeeping 

functions required for the operation of 

the order. The program is funded by 

assessments imposed on handlers. 

Over the past several years, the 

Southeastern potato industry has been 

in decline, with acreage and production 

trending downward. Production has 

fallen from an estimated 1,600,000 

hundredweight for the 1996–97 season, 

to a current estimate of 600,000 

hundredweight for the 2010–11 season. 

In 1996, there were approximately 150 

growers and 60 handlers in the 

production area. Currently, there are 

approximately 20 growers and 10 

handlers covered in the production area. 

The Committee met February 17, 

2011, to discuss the continued need for 

the order. During the discussion, several 

members mentioned that the order was 

promulgated at a time when the 

industry was having an issue with the 

quality of potatoes being produced. The 

purpose of the order was to establish 

standards to improve the quality of 

marketed product. 

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33968 Federal Register / Vol. 76, No. 112 / Friday, June 10, 2011 / Rules and Regulations 

Since the implementation of the 

order, the quality of Southeastern 

potatoes has greatly improved. 

Advances in farm machinery and 

improvements in the grading process 

have helped to ensure that only quality 

product is being shipped to buyers. 

Concerns the industry previously had 

prior to implementation of the order are 

no longer an issue, and for the past 

several years, some industry members 

have started questioning the continued 

need for the order and its associated 

costs. 

At the meeting, members were 

informed that to maintain the order, the 

Committee would have to incur some 

additional administrative expenses. To 

cover these costs, the Committee would 

need to increase the assessment rate. 

Committee members agreed that the 

industry would not support an 

assessment increase. 

In addition to the assessment costs, 

comments were also made regarding the 

cost of inspection required under the 

order. It was stated that some industry 

members see the cost of mandatory 

inspection as an unnecessary burden. 

Other Committee members expressed 

concern over whether inspection would 

still be available if the order was 

suspended. This issue was resolved 

when members were assured that 

inspection would still be available for 

those who request it, regardless of the 

status of the order. 

Based on discussion at the meeting, 

and on letters from growers who were 

not able to attend, changes in the 

industry and industry practices have 

diminished the need for the order. 

Further, there are concerns regarding 

the costs associated with maintaining 

the order, and no industry support for 

raising assessments to cover increasing 

administrative costs. Therefore, the 

Committee unanimously recommended 

suspending the order for three years, 

through to March 1, 2014. 

The Committee recommended 

suspension of the order, not 

termination, to allow the industry an 

opportunity to review the effectiveness 

of operating without order 

requirements. If problems develop, 

Committee members wanted the 

industry to have the alternative of 

reactivating the order. During the 

suspension period, the industry will be 

able to monitor the Southeastern potato 

industry to determine if quality issues 

reoccur. A meeting will be held prior to 

March 1, 2014, to review the state of the 

industry and determine whether to 

continue the suspension, or to reactivate 

or terminate the order. 

It is hereby determined that Federal 

Marketing Order No. 953, and the rules 

and regulations issued thereunder, do 

not tend to effectuate the declared 

policy of the Act. This action suspends, 

through March 1, 2014, the provisions 

of Federal Marketing Order No. 953, and 

the rules and regulations issued 

thereunder, including but not limited to: 

Provisions of the order dealing with the 

establishment and the responsibilities of 

the Committee; provisions of the order 

dealing with expenses and the 

collection of assessments; all rules and 

regulations; and, all information 

collection and reporting requirements. 

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 

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 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 10 handlers 

of Irish potatoes grown in Southeastern 

states who are subject to regulation 

under the order and approximately 20 

potato producers in the regulated 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). 

Using AMS Market News Service 

reported prices, the average f.o.b. price 

for Southeastern potatoes for the 2010 

marketing season was around $20 per 

hundredweight. The Committee 

estimated production for the 2010–11 

season at approximately 600,000 

hundredweight of potatoes. Based on 

this information, average annual 

receipts for handlers would be less than 

$7,000,000. Information provided by the 

National Agricultural Statistics Service 

indicates that the average producer 

price for Irish potatoes grown in North 

Carolina and Virginia in 2010 was 

approximately $11.63 per 

hundredweight. Considering estimated 

production, average producer revenue 

would be about $350,000 for the 2010– 

11 season. Therefore, the majority of 

Southeastern potato handlers and 

producers may be classified as small 

entities. 

This rule suspends the order and the 

rules and regulations implemented 

thereunder through March 1, 2014. The 

Committee believes advances in farming 

technology and production quality have 

reduced the need for the order. When 

considering the costs associated with 

continuing the order, the Committee 

unanimously recommended that the 

order be suspended. The Committee 

made this recommendation on February 

17, 2011. Authority for this action is 

provided in section 8c(16)(A) of the Act. 

Suspension of the order and its 

corresponding regulations relieves 

handlers of quality, inspection, and 

assessment burdens during the 

suspension period. Also, handler 

reports will not be required. 

Additionally, growers may be relieved 

of some costs, such as assessment 

expenses, which are often passed onto 

them by handlers. Suspension of the 

order is therefore expected to reduce the 

regulatory burden on handlers and 

growers of all sizes. 

The Committee considered 

alternatives to this rule, including 

maintaining the order or terminating it 

rather than suspending. Support was 

not shown for either of these options. 

Therefore these alternatives were 

rejected. 

This rule will not impose any 

additional reporting or recordkeeping 

requirements on either small or large 

Southeastern 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. 

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. 

Further, the Committee’s meeting was 

widely publicized throughout the 

Southeastern potato industry and all 

interested persons were invited to 

attend the meeting and participate in 

Committee deliberations. Like all 

Committee meetings, the February 17, 

2011 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 comments on this interim rule, 

including the regulatory and 

informational impacts of this action on 

small businesses. 

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Federal Register / Vol. 76, No. 112 / Friday, June 10, 2011 / Rules and Regulations 33969 

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 Laurel May at 

the previously mentioned address in the 

FOR FURTHER INFORMATION CONTACT

section. 

This rule invites comments on the 

suspension of all provisions prescribed 

under the marketing order for Irish 

potatoes grown in Southeastern states. 

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 the 

order suspended by this interim rule, as 

hereinafter set forth, does not 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 action suspends the 

order and the rules and regulations 

thereunder; (2) this change will help the 

Committee and industry avoid any 

additional costs associated with the 

order; (3) handlers are aware of this 

action, which was unanimously 

recommended 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 953 

Marketing agreements, Potatoes, 

Reporting and recordkeeping 

requirements. 

PART 953—[SUSPENDED] 

■ For the reasons set forth in the 

preamble, under the authority of 7 

U.S.C. 601–674, 7 CFR part 953 is 

suspended effective June 13, 2011 

through March 1, 2014. 

Dated: June 6, 2011. 

Ellen King, 

Acting Administrator, Agricultural Marketing 

Service. 

[FR Doc. 2011–14431 Filed 6–9–11; 8:45 am] 

BILLING CODE 3410–02–P 

DEPARTMENT OF AGRICULTURE 

Agricultural Marketing Service 

7 CFR Part 985 

[Docket Nos. AMS–FV–09–0082; FV10–985– 

1A FIR] 

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 

2010–2011 Marketing Year 

AGENCY: Agricultural Marketing Service, 

USDA. 

ACTION: Affirmation of interim rule as 

final rule. 

SUMMARY: The Department of 

Agriculture (USDA) is adopting, as a 

final rule, without change, an interim 

rule that revised the quantity of Class 3 

(Native) spearmint oil that handlers may 

purchase from, or handle on behalf of, 

producers during the 2010–2011 

marketing year. The interim rule 

increased the Native spearmint oil 

salable quantity from 980,220 pounds to 

1,118,639 pounds, and the allotment 

percentage from 43 percent to 50 

percent. This change is expected to 

balance the supply of Native spearmint 

oil produced in the Far West with 

market needs and to promote market 

stability. 

DATES: Effective June 13, 2011. 

FOR FURTHER INFORMATION CONTACT: 

Barry Broadbent, Marketing Specialist 

or Gary Olson, Regional Manager, 

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: 

Barry.Broadbent@ams.usda.gov or 

GaryD.Olson@ams.usda.gov. 

Small businesses may obtain 

information on complying with this and 

other marketing order regulations by 

viewing a guide at the following Web 

site: http://www.ams.usda.gov/ 

MarketingOrdersSmallBusinessGuide; 

or by contacting Laurel May, 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: 

Laurel.May@ams.usda.gov. 

SUPPLEMENTARY INFORMATION: This 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.’’ 

USDA is issuing this rule in 

conformance with Executive Order 

12866. 

Salable quantities and allotment 

percentages for Scotch and Native 

spearmint oil for the 2010–2011 

marketing year were established in a 

final rule published in the Federal 

Register on May 18, 2010 (75 FR 27631). 

The rule set salable quantities of 

566,962 pounds and 980,265 pounds, 

and allotment percentages of 28 percent 

and 43 percent, respectively, for Scotch 

and Native spearmint oil. The salable 

quantities and allotment percentages 

were established prior to the start of the 

marketing year and were based on the 

Committee’s projection of the supply 

and demand for spearmint oil for the 

forthcoming year. 

Early in the 2010–2011 marketing 

year, however, the spearmint industry 

reported to the Committee that the real 

demand for Native spearmint oil was 

greater than the level that was initially 

projected. The Committee subsequently 

recommended revising the salable 

quantity and allotment percentage for 

Native spearmint to allow the market to 

satisfy the increased demand. 

In an interim rule published in the 

Federal Register on January 25, 2011, 

and effective June 1, 2010, through May 

31, 2011, (76 FR 4204, Doc. No. AMS– 

FV–09–0082, FV10–985–1A IR), the 

salable quantity and allotment 

percentage for Class 3 (Native) 

spearmint oil for the 2010–2011 

marketing year was increased 138,419 

pounds and 7 percent, respectively. The 

aforementioned rule contains an 

extensive discussion of the volume 

regulation process. 

This final rule continues in effect the 

action that revised the quantity of 

Native spearmint oil that handlers may 

purchase from, or handle on behalf of, 

producers during the 2010–2011 

marketing year, which ends on May 31, 

2011. Therefore, the Native spearmint 

oil salable quantity of 1,118,639 pounds 

and the allotment percentage of 50 

percent remains in effect through the 

end of the 2010–2011 marketing year. 

Final Regulatory Flexibility Analysis 

Pursuant to requirements set forth in 

the Regulatory Flexibility Act (RFA), the 

Agricultural Marketing Service (AMS) 

has considered the economic impact of 

this action on small entities. 

Accordingly, AMS has prepared this 

final regulatory flexibility analysis. 

WReier-Aviles on DSKGBLS3C1PROD with RULES