[Federal Register Volume 60, Number 31 (Wednesday, February 15, 1995)]
[Rules and Regulations]
[Pages 8524-8526]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-3785]



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DEPARTMENT OF AGRICULTURE
7 CFR Part 985

[FV94-985-5FR]


Spearmint Oil Produced in the Far West; Salable Quantities and 
Allotment Percentages for the 1995-96 Marketing Year

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Final rule.

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SUMMARY: This final rule establishes the quantity of spearmint oil 
produced in the Far West, by class, that handlers may purchase from, or 
handle for, producers during the 1995-96 marketing year. The Spearmint 
Oil Administrative Committee (Committee), the agency responsible for 
local administration of the marketing order for spearmint oil produced 
in the Far [[Page 8525]] West, recommended this rule for the purpose of 
avoiding extreme fluctuations in supplies and prices, and thus help to 
maintain stability in the spearmint oil market.

EFFECTIVE DATE: March 17, 1995.

FOR FURTHER INFORMATION CONTACT: Robert J. Curry, Northwest Marketing 
Field Office, Marketing Order Administration Branch, Fruit and 
Vegetable Division, AMS, USDA, 1220 S.W. Third Avenue, Room 369, 
Portland, Oregon 97204; telephone: (503) 326-2724; or Caroline C. 
Thorpe, Marketing Order Administration Branch, Fruit and Vegetable 
Division, AMS, USDA, Room 2525, South Building, P.O. Box 96456, 
Washington, D.C. 20090-6456; telephone: (202) 720-5127.

SUPPLEMENTARY INFORMATION: This final rule is issued under Marketing 
Order No. 985 [7 CFR Part 985], regulating the handling of spearmint 
oil produced in the Far West (Washington, Idaho, Oregon, and designated 
parts of California, Nevada, Montana, and Utah). This marketing order 
is effective under the Agricultural Marketing Agreement Act of 1937, as 
amended [7 U.S.C. 601-674], hereinafter referred to as the Act.
    The Department of Agriculture (Department) is issuing this rule in 
conformance with Executive Order 12866.
    This final rule has been reviewed under Executive Order 12778, 
Civil Justice Reform. Under the provisions of the marketing order now 
in effect, salable quantities and allotment percentages may be 
established for classes of spearmint oil produced in the Far West. This 
final rule establishes the quantity of spearmint oil produced in the 
Far West, by class, that may be purchased from or handled for producers 
by handlers during the 1995-96 marketing year, which begins on June 1, 
1995. This final rule will not preempt any state or local laws, 
regulations, or policies, unless they present an irreconcilable 
conflict with this rule.
    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 the Secretary a 
petition stating that the order, any provision of the order, or any 
obligation imposed in connection with the order is not in accordance 
with law and request a modification of the order or to be exempted 
therefrom. A handler is afforded the opportunity for a hearing on the 
petition. After the hearing the Secretary 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 in equity to review the 
Secretary's ruling on the petition, provided a bill in equity is filed 
not later than 20 days after date of the entry of the ruling.
    Pursuant to requirements set forth in the Regulatory Flexibility 
Act (RFA), the Administrator of the Agricultural Marketing Service 
(AMS) has considered the economic impact of this action on small 
entities.
    The purpose of the RFA is to fit regulatory actions to the scale of 
business subject to such actions in order that small businesses will 
not be unduly or disproportionately burdened. Marketing orders issued 
pursuant to the Act, and rules issued thereunder, are unique in that 
they are brought about through group action of essentially small 
entities acting on their own behalf. Thus, both statutes have small 
entity orientation and compatibility.
    There are 8 spearmint oil handlers subject to regulation under the 
marketing order and approximately 260 producers of spearmint oil in the 
regulated production area. Of the 260 producers, approximately 160 
producers hold Class 1 (Scotch) oil allotment base, and approximately 
145 producers hold Class 3 (Native) oil allotment base. Small 
agricultural service firms are defined by the Small Business 
Administration [13 CFR 121.601] as those having annual receipts of less 
than $5,000,000, and small agricultural producers have been defined as 
those whose annual receipts are less than $500,000. A minority of 
producers and handlers of Far West spearmint oil may be classified as 
small entities.
    The Far West spearmint oil industry is characterized by producers 
whose farming operations generally involve more than one commodity and 
whose income from farming operations is not exclusively dependent on 
the production of spearmint oil. The U.S. production of spearmint oil 
is concentrated in the Far West, primarily Washington, Idaho, and 
Oregon (part of the area covered by the marketing order). Spearmint oil 
is also produced in the Midwest. The production area covered by the 
marketing order accounts for approximately 75 percent of the annual 
U.S. production of spearmint oil.
    Pursuant to authority contained in Secs. 985.50, 985.51, and 985.52 
of the marketing order, the Committee recommended the salable 
quantities and allotment percentages for the 1995-96 marketing year at 
its October 5, 1994, meeting. The Committee recommended the 
establishment of a salable quantity and allotment percentage for Scotch 
spearmint oil by a unanimous vote, and a seven to one vote, 
respectively. The member voting in opposition favored the establishment 
of a higher salable quantity that would have resulted in a higher 
allotment percentage. The Committee also recommended the establishment 
of a salable quantity and allotment percentage for Native spearmint oil 
by a unanimous vote.
    This final rule establishes a salable quantity of 908,531 pounds 
and an allotment percentage of 51 percent for Scotch spearmint oil, and 
a salable quantity of 906,449 pounds and an allotment percentage of 46 
percent for Native spearmint oil. This rule limits the amount of 
spearmint oil that handlers may purchase from, or handle for, producers 
during the 1995-96 marketing year, which begins on June 1, 1995. 
Salable quantities and allotment percentages have been placed into 
effect each season since the marketing order's inception in 1980.
    The salable quantity and allotment percentage for each class of 
spearmint oil for the 1995-96 marketing year is based upon the 
Committee's recommendations and the following data and estimates:
(1) Class 1 (Scotch) Spearmint Oil
    (A) Estimated carry-in on June 1, 1995--57,325 pounds. This number 
is derived by subtracting the estimated 1994-95 marketing year trade 
demand of 900,000 pounds from the revised 1994-95 marketing year total 
available supply of 957,325 pounds.
    (B) Estimated trade demand (domestic and export) for the 1995-96 
marketing year--950,000 pounds. This number is an estimate that takes 
into account the average of total annual sales made between 1980 and 
1993, handler estimates, and information provided by producers and 
buyers.
    (C) Salable quantity required from 1995-96 regulated production--
892,675 pounds. This number is the difference between the estimated 
1995-96 marketing year trade demand and the estimated carry-in on June 
1, 1995.
    (D) Total allotment base for the 1995-96 marketing year--1,781,433 
pounds.
    (E) Computed allotment percentage--50.1 percent. This percentage is 
computed by dividing the required salable quantity by the total 
allotment base.
    (F) Recommended allotment percentage--51 percent.
    (G) The Committee's recommended salable quantity--908,531 pounds.
(2) Class 3 (Native) Spearmint Oil
    (A) Estimated carry-in on June 1, 1995--156,733 pounds. This number 
is [[Page 8526]] derived by subtracting the estimated 1994-95 marketing 
year trade demand of 1,150,000 pounds from the revised 1994-95 
marketing year total available supply of 1,306,733 pounds.
    (B) Estimated trade demand (domestic and export) for the 1995-96 
marketing year--1,050,000 pounds. This number is an estimate based on 
the average of total annual sales made between 1980 and 1993, handler 
estimates, and information provided by producers and buyers.
    (C) Salable quantity required from 1995-96 regulated production--
893,267 pounds. This number is the difference between the estimated 
1995-96 marketing year trade demand and the estimated carry-in on June 
1, 1995.
    (D) Total allotment base for the 1995-96 marketing year--1,970,542 
pounds.
    (E) Computed allotment percentage--45.3 percent. This percentage is 
computed by dividing the required salable quantity by the total 
allotment base.
    (F) Recommended allotment percentage--46 percent.
    (G) The Committee's recommended salable quantity--906,449 pounds.
    The salable quantity is the total quantity of each class of oil 
which handlers may purchase from or handle on behalf of producers 
during a marketing year. Each producer is allotted a share of the 
salable quantity by applying the allotment percentage to the producer's 
allotment base for the applicable class of spearmint oil.
    The Committee's recommended salable quantities of 908,531 pounds 
and 906,449 pounds, and allotment percentages of 51 percent and 46 
percent for Scotch and Native spearmint oils, respectively, are based 
on anticipated 1995-96 marketing year supply and trade demand.
    The recommended salable quantity and allotment percentage for 
Native spearmint oil reflects the Committee's expectation that demand 
during the 1995-96 marketing year will approximate the demand initially 
anticipated for the 1994-95 marketing year. On the other hand, the 
relatively higher recommended salable quantity and allotment percentage 
for Scotch spearmint oil for the 1995-96 marketing year demonstrates 
that the Committee is concerned with the increasing Scotch spearmint 
oil production both inside and outside the marketing order production 
area, and the industry's desire to maintain a significant share of the 
North American market.
    These salable quantities are not expected to cause a shortage of 
spearmint oil supplies. Any unanticipated or additional market demand 
for spearmint oil which may develop during the marketing year can be 
satisfied by an increase in the salable quantity. Both Scotch and 
Native spearmint oil producers who produce more than their annual 
allotments during the 1994-95 season may transfer such excess spearmint 
oil to a producer with spearmint oil production less than his or her 
annual allotment or put it into the reserve pool.
    This regulation, as adopted, will be similar to those which have 
been issued in prior seasons. Costs to producers and handlers resulting 
from this final action are expected to be offset by the benefits 
derived from improved returns.
    The establishment of these salable quantities and allotment 
percentages allows for anticipated market needs based on historical 
sales, changes and trends in production and demand, and information 
available to the Committee. Adoption of this final rule also provides 
spearmint oil producers with information on the amount of oil which 
should be produced for next season.
    The proposed rule concerning this action was published in the 
December 15, 1994, Federal Register [59 FR 64624], with a 30-day 
comment period ending January 17, 1995. No comments were received.
    Based on available information, the Administrator of the AMS has 
determined that the issuance of this final rule will not have a 
significant economic impact on a substantial number of small entities.
    After consideration of all relevant matter presented, including the 
information and recommendations submitted by the committee and other 
available information, it is hereby found that this rule, as 
hereinafter set forth, 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, Spearmint oil.

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

PART 985--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. A new section 985.214 is added to read as follows:

    Note: This section will not appear in the annual Code of Federal 
Regulations.


Sec. 985.214  Salable quantities and allotment percentages--1995-96 
marketing year.

    The salable quantity and allotment percentage for each class of 
spearmint oil during the marketing year beginning on June 1, 1995, 
shall be as follows:
    (a) Class 1 (Scotch) oil--a salable quantity of 908,531 pounds and 
an allotment percentage of 51 percent.
    (b) Class 3 (Native) oil--a salable quantity of 906,449 pounds and 
an allotment percentage of 46 percent.

    Dated: February 8, 1995.
Sharon Bomer Lauritsen,
Deputy Director, Fruit and Vegetable Division.
[FR Doc. 95-3785 Filed 2-14-95; 8:45 am]
BILLING CODE 3410-02-P