27850 Federal Register / Vol. 76, No. 93 / Friday, May 13, 2011 / Rules and Regulations 

DEPARTMENT OF AGRICULTURE 

Agricultural Marketing Service 

7 CFR Part 946 

[Doc. No. AMS–FV–11–0024; FV11–946–3IR] 

Irish Potatoes Grown in Washington; 

Modification of the Rules and 

Regulations 

AGENCY: Agricultural Marketing Service, 

USDA. 

ACTION: Interim rule with request for 

comments. 

SUMMARY: This rule extends the one-year 

suspension of the minimum quality, 

maturity, pack, marking, and inspection 

requirements prescribed for russet 

potato varieties under the Washington 

potato marketing order for the 2011– 

2012 and subsequent fiscal periods. The 

current one-year suspension of the 

russet potato handling regulation ends 

June 30, 2011. The marketing order 

regulates the handling of Irish potatoes 

grown in Washington, and is 

administered locally by the State of 

Washington Potato Committee 

(Committee). This rule also extends the 

reporting requirement for russet potato 

handlers for the purpose of obtaining 

information necessary for administering 

the marketing order. This rule is 

expected to reduce overall industry 

expenses and increase net returns to 

producers and handlers while allowing 

the industry the opportunity to continue 

exploring alternative marketing 

strategies. 

DATES: Effective July 1, 2011; comments 

received by July 12, 2011 will be 

considered prior to formal 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: 

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 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 Order No. 

946, as amended (7 CFR part 946), 

regulating the handling of Irish potatoes 

grown in Washington, 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 there from. 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 extends the one-year 

suspension of the order’s handling 

regulation for russet potato varieties for 

the 2011–2012 and subsequent fiscal 

periods. The current one-year 

suspension of the russet potato handling 

regulation ends June 30, 2011. This 

action also extends the reporting 

requirement for russet potato handlers 

to obtain information necessary for the 

collection of assessments and statistical 

data. This rule allows the Washington 

potato industry to continue marketing 

russet potatoes without regard to the 

minimum quality, maturity, pack, 

marking, and inspection requirements 

prescribed under the Washington potato 

marketing order. 

Section 946.52 of the order authorizes 

the establishment of grade, size, quality, 

or maturity regulations for any variety 

or varieties of potatoes grown in the 

production area. Section 946.52 also 

authorizes regulation of the size, 

capacity, weight, dimensions, pack, and 

marking or labeling of the container, or 

containers, which may be used in the 

packing or handling of potatoes, or both. 

Section 946.51 further authorizes the 

modification, suspension, or 

termination of regulations issued under 

§ 946.52. Section 946.60 provides that 

whenever potatoes are regulated 

pursuant to § 946.52 such potatoes must 

be inspected by the Federal State 

Inspection Program (FSIP), and certified 

as meeting the applicable requirements 

of such regulations. 

Section 946.70 authorizes the 

Committee, with the approval of USDA, 

to require information from handlers 

that will enable the Committee to 

exercise its duties under the order. 

Section 946.336 of the order’s 

administrative rules and regulations 

prescribes the grade, size, quality, 

cleanness, maturity, pack, marking, and 

inspection requirements for fresh 

market Washington potatoes. 

The Committee meets regularly to 

consider recommendations for 

modification, suspension, or 

termination of the regulatory 

requirements for Washington potatoes 

which have been issued on a continuing 

basis. Committee meetings are open to 

the public and interested persons may 

express their views at these meetings. 

The USDA reviews Committee 

recommendations, information 

submitted by the Committee, and other 

available information, and determines 

whether modification, suspension, or 

termination of the regulatory 

requirements would tend to effectuate 

the declared policy of the Act. 

The Committee met on June 1, 2010, 

and recommended suspending the 

minimum quality, maturity, pack, 

marking, and inspection requirements 

(handling regulation) for a one-year 

period. In addition, the Committee 

recommended that a new reporting 

provision be implemented to require 

handlers to report their russet potato 

shipments during this period to enable 

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Federal Register / Vol. 76, No. 93 / Friday, May 13, 2011 / Rules and Regulations 27851 

the Committee to collect assessments 

and compile statistics. This information 

replaced similar information obtained 

from FSIP reports, which would not be 

available as a result of the suspension of 

the handling regulations. These 

recommendations were implemented by 

the USDA with an interim rule 

published in the Federal Register on 

July 23, 2010 (75 FR 43042), and 

finalized on December 14, 2010 (75 FR 

77749). 

The handling regulation was 

suspended temporarily so the 

Committee could evaluate the effects of 

operating without regulation, such as 

potential cost savings to handlers 

through elimination of mandatory 

inspection of product, and the potential 

market impact of operating with no 

mandatory quality and inspection 

requirements. 

During the period when the 

temporary suspension of the handling 

regulation was in effect, most handlers 

reportedly continued to have their 

product inspected prior to shipment to 

satisfy their customer’s needs and 

market requirements. However, since 

full-time inspection was not mandatory, 

handlers were able to coordinate the 

timing and utilization of inspection 

services to meet the needs of their 

individual operations, resulting in 

improved efficiencies and reduced 

costs. No negative market impacts were 

experienced as a result of the temporary 

suspension. Handlers have continued to 

meet their customer’s specifications and 

needs, either with voluntary inspection 

or no inspection. The Committee 

believes that the suspension of the 

russet potato handling regulation, 

effective from July 24, 2010, through 

June 30, 2011, has been successful. 

Therefore, at its January 26, 2011, 

meeting, the Committee recommended 

extending the suspension of the 

handling regulation for russet potatoes 

for the 2011–2012 and subsequent fiscal 

periods. The Committee also 

recommended extending the reporting 

requirement for russet potato handlers 

to obtain information necessary for the 

collection of assessments and statistical 

data. 

This rule permits handlers to 

continue shipping russet potatoes 

without regard to minimum quality, 

maturity, pack, marking, and inspection 

requirements for the 2011–2012 and 

subsequent fiscal periods. This rule also 

continues the reporting requirement for 

russet potato handlers to collect 

assessments and compile statistical 

data. Authorization to assess handlers 

enables the Committee to incur 

expenses that are reasonable and 

necessary to administer the program. 

Although this rule continues to 

provide russet potato handlers the 

opportunity to decrease their total costs 

by elimination of the expenses 

associated with mandatory inspection, it 

does not restrict handlers from seeking 

inspection on a voluntary basis. The 

Committee will continue to evaluate the 

effects of the suspension on marketing 

and on producer returns at future 

Committee meetings. 

Although continuing to require 

handler reports, this rule, through the 

suspension of the handling regulation 

and thereby mandatory inspection, is 

expected to reduce overall industry 

expenses. 

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 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 43 handlers of Washington 

potatoes subject to regulation under the 

order (inclusive of the 33 russet potato 

handlers) and approximately 267 

producers in the regulated production 

area. Small agricultural service firms are 

defined by the Small Business 

Administration (13 CFR 121.201) 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. 

During the 2009–2010 fiscal period, 

the Committee reports that 9,765,131 

hundredweight of Washington potatoes 

were shipped into the fresh market. 

Based on average f.o.b. prices estimated 

by the USDA’s Economic Research 

Service and Committee data on 

individual handler shipments, the 

Committee estimates that 42, or 

approximately 98 percent of the 

handlers, had annual receipts of less 

than $7,000,000. 

In addition, based on information 

provided by the National Agricultural 

Statistics Service, the average producer 

price for Washington potatoes for 2010 

was $7.55 per hundredweight. The 

average gross annual producer revenue 

for each of the 267 Washington potato 

producers is therefore calculated to be 

approximately $276,130. In view of the 

foregoing, the majority of Washington 

potato producers and handlers may be 

classified as small entities. 

This rule extends the one-year 

suspension of the handling regulation 

for russet potato varieties for the 2011– 

2012 and subsequent fiscal periods. 

This rule also extends the reporting 

requirement for russet potato handlers 

to obtain information necessary to 

administer the order. This rule is 

expected to reduce overall industry 

expenses while providing the industry 

with the opportunity to continue 

exploring alternative marketing 

strategies. 

The authority for regulation is 

provided in § 946.52 of the order, while 

authority for reports and records is 

provided in § 946.70. In addition, the 

handling regulation and reporting 

requirement are specified under 

§§ 946.336 and 946.143, respectively, of 

the order’s administrative rules and 

regulations. 

The Committee anticipates that this 

rule will not negatively impact small 

businesses. This rule will extend the 

one-year suspension of minimum 

quality, maturity, pack, marking, and 

inspection requirements indefinitely. 

Though inspections will not be 

mandated for russet potatoes handled 

under the order, handlers may at their 

discretion choose to have their potatoes 

inspected. Handlers are thus able to 

control costs—which are generally 

passed on to producers—based on the 

demands of their customers. The 

Committee reports that during the 2009– 

2010 fiscal period, the total cost of 

inspection—at $0.07 per hundredweight 

for the approximately 7,421,500 

hundredweight of Washington russet 

potatoes shipped—was about $519,505. 

This is approximately $15,743 per 

handler. 

The Committee discussed alternatives 

to this recommendation. The Committee 

considered suspending the handling 

regulation for russet potatoes for another 

one-year period. However, the 

Committee believes that the current oneyear suspension has been successful and 

recommended extending the suspension 

of the handling regulation for russet 

potatoes indefinitely. 

This rule continues the monthly 

reporting requirement for russet potato 

handlers. The reports provide the 

Committee with information necessary 

to track shipments and collect 

assessments. The information collection 

burden generated from the temporary 

suspension of the handling regulation 

(75 FR 77749) was merged into the 

generic vegetable package under OMB 

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27852 Federal Register / Vol. 76, No. 93 / Friday, May 13, 2011 / Rules and Regulations 

Number 0581–0178 and continues in 

effect until March 31, 2014. 

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. 

USDA has not identified any relevant 

Federal rules that duplicate, overlap or 

conflict with this rule. 

The Committee’s meeting was widely 

publicized throughout the Washington 

potato industry and all interested 

persons were invited to participate in 

Committee deliberations. Like all 

committee meetings, the January 26, 

2011, meeting was a public meeting, 

and all entities, both large and small, 

were able to express views on this issue. 

Further, interested persons are invited 

to submit comments on this interim 

rule, including 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 Antoinette 

Carter at the previously mentioned 

address in the FOR FURTHER INFORMATION

CONTACT section. 

This rule invites comments on 

modifications to the handling regulation 

and reporting requirement for russet 

potatoes under the Washington potato 

marketing order. The modifications 

revise the introductory text of both 

regulations by removing a sentence in 

§ 946.143 and by removing and 

replacing text in § 946.336. 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) Any changes resulting from 

this rule should be effective July 1, 

2011, because the one-year suspension 

of the russet potato-handling regulation 

ends June 30, 2011; (2) the Committee 

discussed and unanimously 

recommended these changes at a public 

meeting and all interested parties had 

an opportunity to provide input; and (3) 

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 946 

Marketing agreements, Potatoes, 

Reporting and recordkeeping 

requirements. 

For the reasons set forth in the 

preamble, 7 CFR part 946 is amended as 

follows: 

PART 946—IRISH POTATOES GROWN 

IN WASHINGTON 

■ 1. The authority citation for 7 CFR 

part 946 continues to read as follows: 

Authority: 7 U.S.C. 601–674. 

§ 946.143 [Amended] 

■ 2. Amend the introductory text of 

§ 946.143 by removing the words 

‘‘Provided, That the first report shall 

include all required information from 

July 24, 2010 through the end of the 

month in which the assessment report 

and its collection of information is 

approved by the Office of Management 

and Budget.′′ 

§ 946.336 [Amended] 

■ 3. Amend the introductory text of 

§ 946.336 by removing the words ‘‘from 

July 24, 2010, through June 30, 2011′′ 

and adding in their place the words 

‘‘beginning July 1, 2011′′. 

Dated: May 9, 2011. 

Ellen King, 

Acting Administrator, Agricultural Marketing 

Service. 

[FR Doc. 2011–11713 Filed 5–12–11; 8:45 am] 

BILLING CODE 3410–02–P 

DEPARTMENT OF AGRICULTURE 

Agricultural Marketing Service 

7 CFR Part 985 

[Doc. No. AMS–FV–10–0094; FV11–985–1 

FR] 

Marketing Order Regulating the 

Handling of Spearmint Oil Produced in 

the Far West; Salable Quantities and 

Allotment Percentages for the 2011– 

2012 Marketing Year 

AGENCY: Agricultural Marketing Service, 

USDA. 

ACTION: Final rule. 

SUMMARY: This rule establishes the 

quantity of spearmint oil produced in 

the Far West, by class, that handlers 

may purchase from, or handle on behalf 

of, producers during the 2011–2012 

marketing year, which begins on June 1, 

2011. This rule establishes salable 

quantities and allotment percentages for 

Class 1 (Scotch) spearmint oil of 

694,774 pounds and 34 percent, 

respectively, and for Class 3 (Native) 

spearmint oil of 1,012,983 pounds and 

44 percent, respectively. The Spearmint 

Oil Administrative Committee 

(Committee), the agency responsible for 

local administration of the marketing 

order for spearmint oil produced in the 

Far West, recommended these 

limitations for the purpose of avoiding 

extreme fluctuations in supplies and 

prices to help maintain stability in the 

spearmint oil market. 

DATES: Effective Date: This final rule 

becomes effective June 1, 2011, through 

May 31, 2012. 

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 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 final 

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, 

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