This section of the FEDERAL REGISTER

contains regulatory documents having general

applicability and legal effect, most of which

are keyed to and codified in the Code of

Federal Regulations, which is published under

50 titles pursuant to 44 U.S.C. 1510.

The Code of Federal Regulations is sold by

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Rules and Regulations Federal Register

38633 

Vol. 87, No. 124 

Wednesday, June 29, 2022 

DEPARTMENT OF AGRICULTURE 

Agricultural Marketing Service 

7 CFR Part 985 

[Doc. No. AMS–SC–21–0086; SC22–985–1 

FR] 

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: Final rule. 

SUMMARY: This rule implements a 

recommendation from the Far West 

Spearmint Oil Administrative 

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: Effective July 29, 2022. 

FOR FURTHER INFORMATION CONTACT: 

Joshua R. Wilde, Marketing Specialist, 

or Gary Olson, Regional Director, 

Western Region Branch, 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 

action, pursuant to 5 U.S.C. 553, 

amends regulations issued to carry out 

a marketing order as defined in 7 CFR 

900.2(j). This rule amends Marketing 

Order No. 985, as amended (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 Far West 

Spearmint Oil Administrative 

Committee (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 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 

regulation, providing an opportunity for 

public comment, and basing regulatory 

actions on a consideration of objective 

scientific, technical, and economic data. 

This action falls within a category of 

regulatory actions that the Office of 

Management and Budget (OMB) 

exempted from Executive Order 12866 

review. 

This 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. The Agricultural 

Marketing Service (AMS) has 

determined that this 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 rule has been reviewed under 

Executive Order 12988, Civil Justice 

Reform. This 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 rule 

establishes salable 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 no 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. 

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 AMS the establishment 

of a salable quantity and allotment 

percentage for such class or classes of 

oil in the forthcoming marketing year. 

Recommendations for volume control 

are intended to ensure that market 

requirements for Far West 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 


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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 

AMS. 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 well 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 is 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 action establishes 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 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 one-percent 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 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 established 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 will 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 will be needed to satisfy 

estimated trade demand for the coming 

year. To ensure that the market will 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, will 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. The Committee 

estimates that there will be 338,895 

pounds of salable carry-in of Scotch 

spearmint oil on June 1, 2022. If current 

market conditions are maintained and 

the Committee’s projections are correct, 

salable carry-in will increase to 521,441 

pounds at the beginning of the 2022– 

2023 marketing year. This level will 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 


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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 the 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 may 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 will adequately 

satisfy trade demand, will result in a 

reasonable carry-in for the following 

year, and will 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 

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. 


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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 will 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, will 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 will 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 will 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). 

(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, is expected to 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 rule is similar to regulations issued 

in prior seasons. 

The salable quantities in this final 

rule are not expected to cause a shortage 


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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. 

AMS 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 salable 

quantities and allotment percentages in 

this rule are expected to 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 rule also 

provides producers with information 

regarding the amount of spearmint oil 

that should be produced for the 2022– 

2023 season to meet anticipated market 

demand. 

Final 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 

rule on small entities. Accordingly, 

AMS has prepared this final regulatory 

flexibility analysis. 

The purpose of the RFA is to fit 

regulatory actions to the scale of 

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 $2,250,000 (NAICS code 

111998, All Other Miscellaneous Crop 

Farming) (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 all 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 of ($16.90) is 

$3.38 which results in a handler free on 

board (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 final rule establishes 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 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 action 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 

(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 will 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 


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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 AMS 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 will 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 established in 

this rule will 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 established 

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 action 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 rule. 

Should any changes become necessary, 

they would be submitted to OMB for 

approval. 

This rule establishes 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 rule does 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, AMS has 

not identified any relevant Federal rules 

that duplicate, overlap, or conflict with 

this final 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. 

A proposed rule concerning this 

action was published in the Federal 

Register on February 14, 2022 (87 FR 

8211). Copies of the proposed rule were 

also mailed or sent via email to all Far 

West spearmint oil handlers. The 

proposal was made available through 

the internet by AMS and the Office of 

the Federal Register. A 60-day comment 

period ending April 15, 2022, was 

provided for interested persons to 

respond to the proposal. No comments 

were received during the comment 

period. Accordingly, no changes will be 

made to the rule as proposed. 

A small business guide on complying 

with fruit, vegetable, and specialty crop 

marketing agreements and orders may 

be viewed at: https://

www.ams.usda.gov/rules-regulations/ 

moa/small-businesses. Any questions 

about the compliance 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 recommendation 

submitted by the Committee and other 

available information, it is hereby found 

that this rule will tend to effectuate the 

declared policy of the Act. 

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 Agricultural Marketing 

Service is amending 7 CFR part 985 as 

follows: 


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Federal Register / Vol. 87, No. 124 / Wednesday, June 29, 2022 / Rules and Regulations 38639 

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. 2022–13446 Filed 6–28–22; 8:45 am] 

BILLING CODE P 

DEPARTMENT OF AGRICULTURE 

Rural Housing Service 

Rural Business-Cooperative Service 

Rural Utilities Service 

7 CFR Parts 1710, 1735, 1737, 1738, 

1739, 1740, 1774, 1775, 1776, 1777, 

1778, 1780, 1783, 1942, 1980, 3570, 

4274, 4279, 4280, 4284, 4288, 4290, and 

5001 

[Docket No. RHS–22–Agency–0013] 

Rural Development Policy on 

Exclusion of Populations 

AGENCY: Rural Housing Service, Rural 

Business-Cooperative Service, and Rural 

Utilities Service, USDA. 

ACTION: Final rule. 

SUMMARY: The Rural Housing Service, 

Rural Business-Cooperative Service, and 

Rural Utilities Service, agencies in the 

United States Department of Agriculture 

(USDA) Rural Development Mission 

area, are issuing a final rule to 

implement the exclusion of certain 

populations from the definition of 

‘‘Rural area.’’ The rule updates the 

definition of ‘‘Rural area’’ for every 

Rural Development program using the 

Consolidated Farm and Rural 

Development Act (CONAct) definition 

to conform to the revision to the 

statutory definition in the 2018 Farm 

Bill. 

DATES: This rule is effective June 29, 

2022. 

FOR FURTHER INFORMATION CONTACT: John 

Delaney, Senior Advisor, Rural 

Development Innovation Center, USDA, 

202–720–9705 or John.Delaney@

usda.gov. 

SUPPLEMENTARY INFORMATION: 

I. Background 

The Consolidated Farm and Rural 

Development Act (CON Act) and the 

Rural Electrification Act (RE Act) 

authorize USDA assistance programs for 

agriculture and rural development in 

America’s rural areas. Section 6301 of 

the Agriculture Improvement Act of 

2018 (2018 Farm Bill) allows for the 

exclusion of certain prison and military 

populations from the definition of rural 

area contained in the CON Act and used 

in the RE Act. 

This rule updates the definition of 

‘‘Rural area’’ to adopt the statutory 

definition provided in the 2018 Farm 

Bill for affected programs that have not 

already been updated. Section 6301 of 

the Farm Bill amends the rural 

definition in Section 343(a)(13) of the 

Con Act and excludes the following 

from rural area population counts: (1) 

individuals incarcerated on a long-term 

or regional basis, and (2) the first 1,500 

individuals who reside in housing 

located on a military base 

Rural Development has updated its 

eligibility mapping tools to include 

areas that are now eligible under the 

revised statutory definition. 

Notwithstanding those updates, any 

community or member of the 

community who believes that their 

community should be included may 

contact the individual identified in the 

FOR FUTHER INFORMATION CONTACT

section of this rule. 

The Administrative Procedures Act 

exempts from prior notice any actions 

‘‘relating to agency management or 

personnel or to public property, loans, 

grants, benefits, or contracts’’ (5 U.S.C. 

553(b)(A)): therefore, Rural 

Development is issuing this action as a 

final rule. 

Authority 

The authority for this final rule comes 

from the Agricultural Improvement Act 

of 2018, Public Law 115–334, sec. 6301 

(2018) (2018 Farm Bill) and applies to 

all programs under the Con Act and RE 

Act. 

Executive Order 12372— 

Intergovernmental Consultation 

This final rule is not subject to the 

requirements of Executive Order 12372, 

‘‘Intergovernmental Review,’’ as 

implemented under USDA’s regulations 

at 2 CFR part 415, subpart C, because 

this final rule provides general guidance 

on population exclusions as a whole. 

Applications for Agency programs will 

be reviewed individually under 

Executive Order 12372 as required by 

program procedures. 

Executive Order 12866—Classification 

This final rule is not subject to the 

provisions of Executive Order 12866 

because it adopts statutory language that 

instructs the agency on how to qualify 

eligible projects, therefore, it has not 

been reviewed by the Office of 

Management and Budget (OMB) under 

Executive Order 12866. 

Executive Order 12988—Civil Justice 

Reform 

This final rule has been reviewed 

under Executive Order 12988. In 

accordance with this final rule: (1) 

unless otherwise specifically provided, 

all State and local laws that conflict 

with this rule will be preempted; (2) no 

retroactive effect will be given to this 

rule except as specifically prescribed in 

the rule; and (3) administrative 

proceedings of the National Appeals 

Division of the Department of 

Agriculture (7 CFR part 11) must be 

exhausted before bringing suit in court 

that challenges action taken under this 

rule. 

Executive Order 13132—Federalism 

The policies contained in this final 

rule do not have any substantial direct 

effect on States, on the relationship 

between the National Government and 

the States, or on the distribution of 

power and responsibilities among the 

various levels of government. This final 

rule does not impose substantial direct 

compliance costs on State and local 

governments; therefore, consultation 

with States is not required. 

Congressional Review Act 

Pursuant to the Congressional Review 

Act (5 U.S.C. 801 et seq.), the Office of 

Information and Regulatory Affairs 

designated this final rule as not a major 

rule, as defined by 5 U.S.C. 804(2). 

National Environmental Policy Act 

This rule has been reviewed in 

accordance with 7 CFR part 1970, 

Subpart A, ‘‘Environmental Policies.’’ 

Rural Development has determined that 

this action does not constitute a major 

Federal action significantly affecting the 

quality of the environment. In 

accordance with the National 

Environmental Policy Act of 1969, 

Public Law 91–190, an Environmental 

Impact Statement is not required. 


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