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

8211 

Vol. 87, No. 30 

Monday, February 14, 2022 

DEPARTMENT OF AGRICULTURE 

Agricultural Marketing Service 

7 CFR Part 985 

[Doc. No. AMS–SC–21–0086; SC22–985–1 

PR] 

Marketing Order Regulating the 

Handling of Spearmint Oil Produced in 

the Far West; Salable Quantities and 

Allotment Percentages for the 2022– 

2023 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, Oregon, and 

designated parts of Nevada and Utah 

(the Far West) for the 2022–2023 

marketing year. 

DATES: Comments must be received by 

April 15, 2022. 

ADDRESSES: Interested persons are 

invited to submit written comments 

concerning this proposal. Comments 

must be submitted via the internet at: 

http://www.regulations.gov. All 

comments should reference the 

document number and the date and 

page number of this issue of the Federal 

Register. All comments submitted in 

response to this proposed rule will be 

included in the record and 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: 

Joshua R. Wilde, Marketing Specialist, 

or Gary Olson, Regional Director, 

Northwest Marketing Field Office, 

Market Development Division, Specialty 

Crops Program, AMS, USDA; 

Telephone: (503) 326–2724, or Email: 

Joshua.R.Wilde@usda.gov or 

GaryD.Olson@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) 720–2491, or Email: 

Richard.Lower@usda.gov. 

SUPPLEMENTARY INFORMATION: This 

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

553, proposes an amendment to 

regulations issued to carry out a 

marketing order as defined in 7 CFR 

900.2(j). This proposed rule amends 

Marketing Order No. 985 (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 is 

comprised of spearmint oil producers 

operating within the area of production, 

and a public member. 

The Department of Agriculture 

(USDA) is issuing this proposed rule in 

conformance with Executive Orders 

12866 and 13563. Executive Orders 

12866 and 13563 direct agencies to 

assess the costs and benefits of 

regulatory alternatives and, if regulation 

is necessary, to select a regulatory 

approach likely to maximize net 

benefits (including potential economic, 

environmental, public health and safety, 

and other advantages; distributive 

impacts; and equity). 

Executive Order 13563 is 

supplemental to and reaffirms the 

principles, structures, and definitions of 

Executive Order 12866. It emphasizes 

the importance of seeking the views of 

those who are likely to be affected by 

proposed regulation, providing an 

opportunity for public comment, and 

basing regulatory actions on a 

consideration of objective scientific, 

technical, and economic data. 

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 

in accordance with Executive Order 

13175, Consultation and Coordination 

with Indian Tribal Governments, which 

requires agencies to consider whether 

their rulemaking actions would have 

tribal implications. Agricultural 

Marketing Service (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 

quantities and allotment percentages for 

Scotch and Native spearmint oil for the 

2022–2023 marketing year, which 

begins on June 1, 2022. 

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. 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 

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. 


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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 USDA 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 Wear spearmint oil 

are satisfied and orderly marketing 

conditions are maintained. 

Section 985.12 defines salable 

quantity as 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. A producer’s allotment 

base is their calculated share of the 

spearmint oil market based on a 

statistical representation of past 

spearmint oil production, with 

accommodation for reasonable, normal 

adjustments to such base as prescribed 

by the Committee and approved by 

USDA. Each producer’s annual 

allotment of salable spearmint oil 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 allotment percentage is the 

percentage used to calculate each 

producer’s prorated share of the salable 

quantity and is derived by dividing the 

salable quantity for each class of 

spearmint oil by the total of all 

producers’ allotment base for the same 

class of oil. The total allotment base is 

revised each year on June 1 to account 

for producer 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 fulfill market requirements 

and to maintain orderly marketing 

conditions. 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 13, 

2021, to consider its marketing policy 

for the 2022–2023 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 a salable quantity and 

allotment percentage for Scotch 

spearmint oil of 832,546 pounds and 37 

percent and a salable quantity and 

allotment percentage for Native 

spearmint oil of 1,101,269 pounds and 

43 percent. 

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 2022–2023 

marketing year, which begins on June 1, 

2022. Salable quantities and allotment 

percentages have been placed into effect 

each season since the Order’s inception 

in 1980. 

Scotch Spearmint Oil 

The Committee recommended a 

Scotch spearmint oil salable quantity of 

832,546 pounds and an allotment 

percentage of 37 percent for the 2022– 

2023 marketing year. The proposed 

2022–2023 marketing year salable 

quantity of 832,546 pounds is 14,138 

pounds less than the 2021–2022 

marketing year salable quantity of 

846,684 pounds. The allotment 

percentage, recommended at 37 percent 

for the 2022–2023 marketing year, is one 

percent less than the percentage in 

effect the previous year. The total 

allotment base for the coming marketing 

year is estimated to be 2,250,124 

pounds. This figure represents a onepercent increase over the revised 2021– 

2022 marketing year total allotment base 

of 2,227,846 pounds. The salable 

quantity (832,546 pounds) is the 

product of total allotment base 

(2,250,124 pounds) times the allotment 

percentage (37 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 increased 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 556,559 pounds of 

Scotch spearmint production in 2021. 

Industry reports indicate that trade 

demand for Far West Scotch spearmint 

oil has diminished over the past five 

years as international markets for 

spearmint-flavored products have 

slowed. Sales of Far West Scotch 

spearmint oil have declined from 

1,060,232 pounds during the 2014–2015 

marketing year to 717,952 pounds in 

2018–2019, and further to 488,484 

pounds in 2020–2021, the last full year 

of available data. In addition to 

declining spearmint oil demand, 

increasing production of Scotch 

spearmint oil in competing markets, 

most notably by Canadian producers, 

has put additional downward pressure 

on the Far West Scotch spearmint oil 

market. 

Given the anticipated market 

conditions for the coming year, the 

Committee estimates that Scotch 

spearmint oil trade demand for the 

2022–2023 marketing year trade will be 

650,000 pounds, which is 25,000 

pounds higher than the prior year 

estimate and right in line with the 5- 

year moving sales average of 650,033 

pounds. Should the proposed volume 

regulation levels prove insufficient to 

adequately supply the market, the 

Committee has the authority to 

recommend intra-seasonal increases, as 

it has in previous marketing years. 

The Committee calculated the 

minimum salable quantity of Scotch 

spearmint oil that would be required 

during the 2022–2023 marketing year 

(311,105 pounds) by subtracting the 

estimated salable carry-in on June 1, 

2022, (338,895 pounds) from the 

estimated trade demand (650,000 

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 2022–2023 marketing 

year salable quantity of 832,546 pounds. 

The recommended salable quantity, 

combined with an estimated 338,895 

pounds of salable carry-in from the 

previous year, would yield a total 

available supply of 1,171,441 pounds of 

Scotch spearmint oil for the 2022–2023 

marketing year. With the recommended 

salable quantity and current market 

environment, the Committee estimates 

that as much as 521,441 pounds of 

salable Scotch spearmint oil could be 

carried into the 2022–2023 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. 


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The Committee estimates that there 

will be 338,895 pounds of salable carryin of Scotch spearmint oil on June 1, 

2022. If current market conditions are 

maintained and the Committee’s 

projections are correct, salable carry-in 

would increase to 521,441 pounds at the 

beginning of the 2022–2023 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 enough oil in the 

2022–2023 marketing year to fill all of 

their annual allotment. The Committee 

estimates that as much as 280,671 

pounds of 2021–2022 marketing year 

annual allotment may not be filled by 

producers. While the Committee has not 

projected unused base allotment for the 

upcoming 2022–2023 marketing year, it 

anticipates that the actual quantity of 

Scotch spearmint oil carried into the 

following marketing year will be less 

than the quantity calculated above 

(521,441 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. 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. However, reserve oil may be 

released for limited market development 

projects with approval of the Secretary. 

Oil held in the reserve pool is another 

indicator of excess supply. Scotch 

spearmint oil held in the reserve pool 

was 72,361 pounds as of May 31, 2021, 

up from 67,645 pounds as of May 31, 

2020. 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 37 percent for 

the 2022–2023 marketing year for 

Scotch spearmint oil. During its October 

13, 2021, meeting, the Committee 

calculated an initial allotment 

percentage by dividing the minimum 

required salable quantity (311,105 

pounds) by the total estimated allotment 

base (2,250,124 pounds), resulting in 

13.8 percent. However, producers and 

handlers at the meeting indicated that 

the computed percentage (13.8 percent) 

might not adequately supply potential 

2022–2023 Scotch spearmint oil market 

demand and may also result in a less 

than desirable carry-in for the 

subsequent marketing year. After 

deliberation, the Committee 

recommended an allotment percentage 

of 37 percent. The total estimated 

allotment base (2,250,124 pounds) for 

the 2022–2023 marketing year, 

multiplied by the recommended salable 

allotment percentage (37 percent), 

yields 832,546 pounds, which is the 

recommended salable quantity for the 

2022–2023 marketing year. 

The 2022–2023 marketing year 

computational data for the Committee’s 

recommendations is detailed below. 

(A) Estimated carry-in of Scotch 

spearmint oil on June 1, 2022: 338,895 

pounds. This figure is the difference 

between the 2021–2022 marketing year 

total available supply of 963,895 pounds 

and the revised 2021–2022 marketing 

year estimated trade demand of 625,000 

pounds. 

(B) Estimated trade demand of Scotch 

spearmint oil for the 2022–2023 

marketing year: 650,000 pounds. This 

figure was established at the Committee 

meeting held on October 13, 2021. 

(C) Salable quantity of Scotch 

spearmint oil required from the 2022– 

2023 marketing year production: 

311,105 pounds. This figure is the 

difference between the estimated 2022– 

2023 marketing year trade demand 

(650,000 pounds) and the estimated 

carry-in on June 1, 2021 (338,895 

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 2022–2023 

marketing year: 2,250,124 pounds. This 

figure represents a one-percent increase 

over the 2021–2022 total actual 

allotment base of 2,227,846 pounds, as 

prescribed by § 985.53(d). The onepercent increase equals 22,278 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 2022–2023 

marketing year: 13.8 percent. This 

percentage is computed by dividing the 

minimum required salable quantity 

(311,105 pounds) by the total estimated 

allotment base (2,250,124 pounds). 

(F) Recommended Scotch spearmint 

oil allotment percentage for the 2022– 

2023 marketing year: 37 percent. This is 

the Committee’s recommendation and is 

based on the computed allotment 

percentage (13.8 percent) and input 

from producers and handlers at the 

October 13, 2021, meeting. The 

recommended 37 percent allotment 

percentage reflects the Committee’s 

belief that the computed percentage 

(13.8 percent) may not adequately 

supply the anticipated 2022–2023 

marketing year Scotch spearmint oil 

market demand. 

(G) Recommended Scotch spearmint 

oil salable quantity for the 2022–2023 

marketing year: 832,546 pounds. This 

figure is the product of the 

recommended salable allotment 

percentage (37 percent) and the total 

estimated allotment base (2,250,124 

pounds) for the 2022–2023 marketing 

year. 

(H) Estimated total available supply 

of Scotch spearmint oil for the 2022– 

2023 marketing year: 1,171,441 pounds. 

This figure is the sum of the 2022–2023 

marketing year recommended salable 

quantity (832,546 pounds) and the 

estimated carry-in on June 1, 2021 

(338,895 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 

1,101,269 pounds and an allotment 

percentage of 43 percent for the 2022– 

2023 marketing year. These figures are, 

respectively, 162,872 pounds and 6 

percentage points higher than the levels 

established for the 2021–2022 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 2021 

Native spearmint oil production will 

total 985,797 pounds, down 

substantially from the previous year’s 

production of 1,181,230 pounds. 

Committee records indicate that 

spearmint producing acres in the Far 

West have declined from a recent high 

of 9,013 acres in 2019 to an estimated 

6,275 acres of Native spearmint 

production 2021. 

However, sales of Native spearmint 

oil recovered from a 10-year low of 

1,076,906 pounds in the 2019–2020 

marketing year to 1,332,260 pounds in 

2020–2021, the last full year of reported 

sales. The Committee estimates that 

trade demand for Native spearmint oil 

will be 1,200,000 pounds for the 2022– 

2023 marketing year, which is 


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somewhat less than the 5-year sales 

average of 1,301,490 pounds. 

The Committee expects that 284,357 

pounds of salable Native spearmint oil 

from prior years will be carried into the 

2022–2023 marketing year. This amount 

is down from the 412,095 pounds of 

salable oil carried into the 2021–2022 

marketing year, but still above the level 

that the Committee generally considers 

favorable. 

Further, the Committee estimates that 

there will be 1,272,854 pounds of Native 

spearmint oil in the reserve pool at the 

beginning of the 2022–2023 marketing 

year. This figure is 73,062 pounds 

higher than the quantity of reserve pool 

oil held by producers on June 1, 2021, 

and well above the level that the 

Committee believes is optimal. 

Generally, reserve pool oil has been 

steadily increasing over the past several 

marketing years, climbing from 996,050 

pounds of reserve oil since the start of 

the 2016–2017 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. Overseas production of Native 

spearmint has declined in recent years. 

As a result, U.S. exports of Native 

spearmint oil have been steadily 

increasing since 2018. However, 

increased domestic production of Native 

spearmint from regions outside of the 

Far West production area has created 

additional domestic competition for 

market share. For instance, there were 

fewer than 2,000 acres of Native 

spearmint production in the U.S. 

Midwest region in 2016, which 

compares to over 10,000 acres of Native 

spearmint oil production in the Far 

West. However, 2021 estimates show 

that Far West acreage has declined to 

approximately 6,275 acres, compared to 

acreage increasing to around 5,000 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. 

The Committee chose to be cautiously 

optimistic in the establishment of its 

trade demand estimate for the 2022– 

2023 marketing year to ensure that the 

market would be adequately supplied. 

At the October 13, 2021, meeting, the 

Committee estimated the 2022–2023 

marketing year Native spearmint oil 

trade demand to be 1,200,000 pounds. 

This figure is based on input provided 

by producers at nine production area 

meetings held in early October 2021, as 

well as estimates provided by handlers 

and other meeting participants. This 

figure represents an increase of 134,000 

pounds from the previous year’s revised 

trade demand estimate. The average 

estimated trade demand for Native 

spearmint oil derived from the area 

producer meetings was 1,173,333 

pounds, whereas the handlers’ estimates 

ranged from 950,000 to 1,300,000 

pounds. The average of Native 

spearmint oil sales over the last three 

years was 1,301,490 pounds. The 

quantity marketed over the most recent 

full marketing year, 2020–2021, was 

1,332,260 pounds. 

The estimated June 1, 2022, carry-in 

of 284,357 pounds of Native spearmint 

oil, plus the recommended 2022–2023 

marketing year salable quantity of 

1,101,269 pounds, would result in an 

estimated total available supply of 

1,385,626 pounds of Native spearmint 

oil during the 2022–2023 marketing 

year. With the corresponding estimated 

trade demand of 1,200,000 pounds, the 

Committee projects that 185,626 pounds 

of oil will be carried into the 2023–2024 

marketing year. This would result in a 

year-over-year decrease of 98,731 

pounds. The Committee estimates that 

there will be 1,272,854 pounds of Native 

spearmint oil held in the reserve pool at 

the beginning of the 2022–2023 

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 intra-seasonal 

increase to satisfy that demand. 

The Committee recommended an 

allotment percentage of 43 percent for 

the 2022–2023 marketing year. During 

its October 13, 2021, meeting, the 

Committee calculated an initial 

allotment percentage of 35.8 percent by 

dividing the minimum required salable 

quantity to satisfy estimated trade 

demand (915,643 pounds) by the total 

allotment base (2,561,090 pounds). 

However, producers and handlers at the 

meeting expressed that the computed 

percentage of 35.8 percent may not 

adequately supply the potential 2022– 

2023 marketing year Native spearmint 

oil market demand or result in adequate 

carry-in for the subsequent marketing 

year. After deliberation, the Committee 

increased the recommended allotment 

percentage to 43 percent. The total 

estimated allotment base (2,561,090 

pounds) for the 2022–2023 marketing 

year multiplied by the recommended 

salable allotment percentage (43 

percent) yields 1,101,269 pounds, the 

recommended salable quantity for the 

year. 

The 2022–2023 marketing year 

computational data for the Committee’s 

recommendations is further outlined 

below. 

(A) Estimated carry-in of Native 

spearmint oil on June 1, 2022: 284,357 

pounds. This figure is the difference 

between the 2021–2022 marketing year 

total available supply of 1,350,357 

pounds and the revised 2021–2022 

marketing year estimated trade demand 

of 1,066,000 pounds. 

(B) Estimated trade demand of Native 

spearmint oil for the 2022–2023 

marketing year: 1,200,000 pounds. This 

estimate was established by the 

Committee at the October 13, 2021 

meeting. 

(C) Salable quantity of Native 

spearmint oil required from the 2022– 

2023 marketing year production: 

915,643 pounds. This figure is the 

difference between the 2022–2023 

marketing year estimated trade demand 

(1,200,000 pounds) and the estimated 

carry-in on June 1, 2022 (284,357 

pounds). This is the minimum amount 

of Native spearmint oil that the 

Committee believes would be required 

to meet the anticipated 2022–2023 

marketing year trade demand. 

(D) Total estimated allotment base of 

Native spearmint oil for the 2022–2023 

marketing year: 2,561,090 pounds. This 

figure represents a one-percent increase 

over the 2021–2022 total actual 

allotment base of 2,535,733 pounds as 

prescribed in § 985.53(d). The onepercent increase equals 25,357 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 2022–2023 

marketing year: 35.8 percent. This 

percentage is calculated by dividing the 

required salable quantity (915,643 

pounds) by the total estimated allotment 

base (2,561,090 pounds) for the 2022– 

2023 marketing year. 

(F) Recommended Native spearmint 

oil allotment percentage for the 2022– 

2023 marketing year: 43 percent. This is 

the Committee’s recommendation based 

on the computed allotment percentage 

(35.8 percent) and input from producers 

and handlers at the October 13, 2021 

meeting. The recommended 43 percent 

allotment percentage is also based on 

the Committee’s belief that the 

computed percentage (35.8 percent) may 

not adequately supply the potential 

market for Native spearmint oil in the 

2022–2023 marketing year or allow for 

salable Native spearmint oil to be 

carried into the beginning of the 2023– 

2024 marketing year. 

(G) Recommended Native spearmint 

oil 2022–2023 marketing year salable 

quantity: 1,101,269 pounds. This figure 

is the product of the recommended 

allotment percentage (43 percent) and 

the total estimated allotment base 

(2,561,090 pounds). 


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(H) Estimated available supply of 

Native spearmint oil for the 2022–2023 

marketing year: 1,385,626 pounds. This 

figure is the sum of the 2022–2023 

recommended salable quantity 

(1,101,269 pounds) and the estimated 

carry-in on June 1, 2022 (284,357 

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 

832,546 pounds and 37 percent, and 

1,101,269 pounds and 43 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, in accordance 

with market needs and under the 

Committee’s direction. 

In conjunction with the issuance of 

this proposed rule, USDA has reviewed 

the Committee’s marketing policy 

statement for the 2022–2023 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 2022–2023 season to meet 

anticipated market demand. 

Initial Regulatory Flexibility Act 

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 

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 93 

producers of Native spearmint oil 

operating within the regulated 

production area. In addition, there are 

approximately 9 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 less than $30,000,000, 

and small agricultural producers are 

defined as those having annual receipts 

of less than $1,000,000 (13 CFR 

121.201). 

The Committee reported that recent 

producer prices for spearmint oil have 

ranged from $14.00 to $17.00 per 

pound. The National Agricultural 

Statistics Service (NASS) reported that 

the 2020 U.S. season average spearmint 

oil producer price per pound was 

$16.90. Spearmint oil utilization for the 

2020–2021 marketing year, as reported 

by the Committee, was 488,484 pounds 

and 1,332,260 pounds for Scotch and 

Native spearmint oil, respectively, for a 

total of 1,820,744 pounds. Multiplying 

$16.90 per pound by 2020–2021 

marketing year spearmint oil utilization 

of 1,820,744 pounds yields a crop value 

estimate of about $30.77 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 $16.90 

average spearmint oil price, and 

Committee production data for each 

producer, the Committee estimates that 

37 of the 39 Scotch spearmint oil 

producers and 92 of the 93 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 2020 producer price ($16.90) is 

$3.38 which results in a handler f.o.b. 

price per pound estimate of $20.28 

($16.90 + $3.38). 

Multiplying this estimated handler 

f.o.b. price by the 2020–2021 marketing 

year total spearmint oil utilization of 

1,820,744 pounds results in an 

estimated handler-level spearmint oil 

value of $36.92 million. Dividing this 

figure by the number of handlers (9) 

yields estimated average annual handler 

receipts of about $4.1 million, which is 

well below the SBA threshold for small 

agricultural service firms. 

Furthermore, using confidential data 

on pounds handled by each handler, 

and the abovementioned estimated 

handler price per pound, the Committee 

reported that it is not likely that any of 

the nine handlers had 2020–2021 

marketing year spearmint oil sales that 

exceeded the $30 million SBA 

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 

handlers may purchase from, or handle 

on behalf of, producers during the 

2022–2023 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 or 

handled 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 2022–2023 

marketing year for both classes of oil at 

1,850,000 pounds. In addition, the 

Committee expects that the combined 

salable carry-in for both classes of 

spearmint oil will be 623,252 pounds. 

As such, the combined required salable 

quantity for the 2022–2023 marketing 

year is estimated to be 1,226,748 pounds 


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(1,850,000 pounds trade demand less 

623,252 pounds carry-in). Under 

volume regulation, total sales of 

spearmint oil by producers for the 

2022–2023 marketing year would be 

held to 2,557,067 pounds (the 

recommended salable quantity for both 

classes of spearmint oil of 1,933,815 

pounds plus 623,252 of carry-in). 

This total available supply of 

2,557,067 pounds should be more than 

adequate to supply the 1,850,000 

pounds of anticipated total trade 

demand for spearmint oil. In addition, 

as of May 31, 2021, the total reserve 

pool for both classes of spearmint oil 

stood at 1,272,153 pounds. That 

quantity is expected to remain relatively 

unchanged over the course of the 2021– 

2022 marketing year, with current 

Committee reserve pool estimates 

totaling 1,336,471 pounds. Should trade 

demand increase unexpectedly during 

the 2022–2023 marketing year, reserve 

pool spearmint oil could be released 

into the market to supply that increase 

in demand. 

The recommended allotment 

percentages, upon which 2022–2023 

marketing year annual allotments are 

based, are 37 percent for Scotch 

spearmint oil and 43 percent for Native 

spearmint oil. Without volume 

regulation, producers would not be held 

to these allotment levels, and could sell 

unrestricted quantities of spearmint oil. 

The USDA econometric model used to 

evaluate the Far West spearmint oil 

market estimated that the season 

average producer price per pound (from 

both classes of spearmint oil) would 

decline about $2.70 per pound without 

volume regulation. The surplus 

situation for the spearmint oil market 

that would exist without volume 

regulation in the 2022–2023 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– 

2020 (the years in which the Order has 

been in effect), 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 would 

likely 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 slightly reduce the allotment 

percentage and salable quantity for 

Scotch spearmint oil and to increase the 

salable quantity and allotment 

percentage for Native spearmint oil from 

the levels established for the 2021–2022 

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 2022–2023 and future marketing 

years. 

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 

rule are expected to be equally available 

to all producers and handlers regardless 

of their size. 

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 are necessary in those 

requirements as a result of this proposed 

action. Should any changes become 

necessary, they would be submitted to 

OMB for approval. 

This proposed rule would establish 

the salable quantities and allotment 

percentages for Scotch spearmint oil 

and Native spearmint oil produced in 

the Far West during the 2022–2023 

marketing year. Accordingly, this 

proposal would not impose any 

additional reporting or recordkeeping 

requirements on either small or large 

spearmint oil producers or 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 proposed 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. 

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 13, 2021, meeting 

was a public meeting and all entities, 

both large and small, were able to 

express views on this issue. Interested 

persons are invited to submit comments 

on this proposed rule, including the 

regulatory and informational impacts of 

this proposed 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/ 

rules-regulations/moa/small-businesses. 

Any questions about the compliance 


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Federal Register / Vol. 87, No. 30 / Monday, February 14, 2022 / Proposed Rules 8217 

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 Council and other 

available information, USDA has 

determined that this proposed rule is 

consistent with and will effectuate the 

purposes of the Act. 

A 60-day comment period is provided 

to allow interested persons to respond 

to this proposal. All written comments 

timely received will be considered 

before a final determination is made on 

this matter. 

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 

Services 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. Add § 985.237 to read as follows: 

§ 985.237 Salable quantities and allotment 

percentages—2022–2023 marketing year. 

The salable quantity and allotment 

percentage for each class of spearmint 

oil during the marketing year beginning 

on June 1, 2022, shall be as follows: 

(a) Class 1 (Scotch) oil—a salable 

quantity of 832,546 pounds and an 

allotment percentage of 37 percent. 

(b) Class 3 (Native) oil—a salable 

quantity of 1,101,269 pounds and an 

allotment percentage of 43 percent. 

Erin Morris, 

Associate Administrator, Agricultural 

Marketing Service. 

[FR Doc. 2022–03092 Filed 2–11–22; 8:45 am] 

BILLING CODE P 

DEPARTMENT OF AGRICULTURE 

Rural Business-Cooperative Service 

7 CFR Part 4284 

[Docket No. RBS–21–BUSINESS–0039] 

Rural Innovation Stronger Economy 

(RISE) Grant Program for FY 2022; 

Correction 

AGENCY: Rural Business-Cooperative 

Service, Department of Agriculture 

(USDA). 

ACTION: Notice of Solicitation of 

Applications; correction. 

SUMMARY: The Rural BusinessCooperative Service (Agency), a Rural 

Development agency of the United 

States Department of Agriculture 

(USDA), published a Notice of 

Solicitation of Applications (NOSA) in 

the Federal Register on December 20, 

2021 for the Rural Innovation Stronger 

Economy (RISE) grant program. 

Following publication of the NOSA, the 

Agency found that corrections due to 

error, omissions or need for clarity were 

necessary. This notice corrects those 

errors to clarify the time applications 

are due and to provide the correct 

regulation references. 

DATES: Effective February 14, 2022. 

FOR FURTHER INFORMATION CONTACT: For 

questions on this document contact Will 

Dodson, Program Management Division, 

Rural Business-Cooperative Service, 

United States Department of 

Agriculture, 1400 Independence Avenue 

SW, Mail Stop 3326, Room 5160-South, 

Washington, DC 20250–3226, (202) 720– 

1400 or email: SM.USDA-RD.RISE@

usda.gov. 

SUPPLEMENTARY INFORMATION: 

Corrections 

In the Federal Register of December 

20, 2021, in FR Doc. 2021–27447 (86 FR 

71868), make the following corrections: 

(1) In the first column of page 71869, 

under Overview, amend the language in 

DATES to read: 

DATES: Electronic applications must 

be received and accepted by https://

www.grants.gov no later than 11:59 p.m. 

Eastern Standard Time, April 19, 2022, 

or they will not be considered for 

funding. 

(2) In the first column of page 71869, 

under Overview, amend the language in 

the first sentence of the first full 

paragraph to read: 

Potential applicants may submit a 

concept proposal for review by the 

Agency to SM.USDA-RD.RISE@usda.gov 

no later than 11:59 p.m. Eastern 

Standard Time, February 18, 2022, in 

compliance with 7 CFR 4284.1115(a). 

(3) In the third column of page 71869, 

under Eligible Applicants, amend the 

language in the first paragraph to read: 

Applicants must meet all the 

following eligibility requirements. 

Applications that fail to meet any of 

these requirements by the application 

deadline will be deemed ineligible and 

will not be evaluated further. To be 

considered an eligible applicant, you 

must be a rural jobs accelerator 

partnership formed after December 20, 

2018, and meet the eligibility criteria 

found in 7 CFR 4284.1112 to apply for 

this program. Individuals and 

individual entities are not an eligible 

applicant for the RISE program. 

(4) In the first column of page 71871, 

under (d) Multiple Application 

Eligibility amend the first sentence to 

read: 

Only one application can be 

submitted per applicant, who is defined 

as a lead applicant as found in 7 CFR 

4284.1112(b). 

(5) In the first column of page 71872, 

under 4. Submission Date and Time 

amend the first paragraph, first sentence 

to read: 

Explanation of Deadline: Completed 

applications must be submitted 

electronically through Grants.gov no 

later than 11:59 p.m. Eastern Standard 

Time, April 19, 2022, to be eligible for 

grant funding. 

(6) In the first column of page 71872, 

under 4. Submission Date and Time 

amend the second paragraph, first 

sentence to read: 

Potential applicants may 

electronically submit a concept proposal 

for review by the Agency to: SM.RISERD.RISE@usda.gov no later than 11:59 

p.m. Eastern Standard Time, February 

18, 2022, in compliance with 7 CFR 

4284.1115(a) and as stated in Section D, 

2(b) of this Notice. 

Karama Neal, 

Administrator, Rural Business-Cooperative 

Service. 

[FR Doc. 2022–03034 Filed 2–11–22; 8:45 am] 

BILLING CODE 3410–XY–P 


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