[Federal Register Volume 59, Number 51 (Wednesday, March 16, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-6138]


[[Page Unknown]]

[Federal Register: March 16, 1994]


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DEPARTMENT OF AGRICULTURE
7 CFR Part 985

[FV93-985-2FR]

 

Spearmint Oil Produced in the Far West; Salable Quantities and 
Allotment Percentages for the 1994-95 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 1994-95 marketing year. These 
quantities are established in order to avoid extreme fluctuations in 
supplies and prices and thus help to maintain stability in the 
spearmint oil market. This rule was recommended by the Spearmint Oil 
Administrative Committee (Committee), the agency responsible for local 
administration of the marketing order for spearmint oil produced in the 
Far West.

EFFECTIVE DATE: June 1, 1994, through May 31, 1995.

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

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), hereinafter referred 
to as the ``order.'' This 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 is issuing this rule in conformance with Executive 
Order 12866.
    This 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 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 1994-95 marketing year, which begins on June 1, 1994. This 
action 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 approximately eight spearmint oil handlers subject to 
regulation under the order and approximately 259 producers of spearmint 
oil in the regulated production area. Of the 259 producers, 157 
producers hold ``Class 1'' (Scotch) oil allotment base, and 144 
producers hold ``Class 3'' (Native) oil allotment base. Small 
agricultural service firms have been defined by the Small Business 
Administration [13 CFR 121.601] as those having annual receipts of less 
than $3,500,000, and small agricultural producers are defined as those 
whose annual receipts are less than $500,000. A minority of handlers 
and producers 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 order). Spearmint oil is also 
produced in the Midwest. The production area covered by the order 
normally accounts for 75 percent of the annual U.S. production of 
spearmint oil.
    Pursuant to authority contained in sections 985.50, 985.51, and 
985.52 of the order, the Committee recommended the salable quantities 
and allotment percentages for the 1994-95 marketing year at its October 
6, 1993, meeting. The Committee recommended the establishment of a 
salable quantity and allotment percentage for Class 1 spearmint oil in 
a vote of 6 in favor and 2 opposed. The members voting in opposition 
favored the establishment of a lower salable quantity and allotment 
percentage. The Committee recommended the establishment of a salable 
quantity and allotment percentage for Class 3 spearmint oil in an 
unanimous vote.
    This final rule establishes a salable quantity of 723,326 pounds 
and an allotment percentage of 41 percent for Scotch oil, and a salable 
quantity of 897,388 pounds and an allotment percentage of 46 percent 
for Native oil. This action limits the amount of spearmint oil that 
handlers may purchase from, or handle for, producers during the 1994-95 
marketing year, which begins on June 1, 1994. Salable quantities and 
allotment percentages have been placed into effect each season since 
the order's inception in 1980.
    The salable quantity and allotment percentage for each class of 
spearmint oil for the 1994-95 marketing year are based upon the 
Committee's recommendation and the following data and estimates:
(1) ``Class 1'' (Scotch) Spearmint Oil
    (A) Estimated carry-in on June 1, 1994--122,187 pounds. This number 
is derived by subtracting the estimated 1993-94 marketing year trade 
demand of 814,589 pounds from the 1993-94 marketing year total 
available supply of 936,776 pounds.
    (B) Estimated trade demand (domestic and export) for the 1994-95 
marketing year--830,000 pounds. This number is an estimate based on the 
average of total annual sales made between 1980 and 1992, handler 
estimates, and information provided by producers and buyers.
    (C) Salable quantity required from 1994 regulated production--
707,813 pounds. This number is the difference between the estimated 
1994-95 marketing year trade demand and the estimated carry-in on June 
1, 1994.
    (D) Total allotment base for Scotch oil for the 1994-95 marketing 
year--1,764,209 pounds.
    (E) Computed allotment percentage--40.12 percent. This percentage 
is computed by dividing the required salable quantity by the total 
allotment base.
    (F) Recommended allotment percentage--41 percent.
    (G) The Committee's recommended salable quantity--723,326 pounds.
(2) ``Class 3'' (Native) Spearmint Oil
    (A) Estimated carry-in on June 1, 1994--0 pounds. This number is 
derived by subtracting the estimated 1993-94 marketing year trade 
demand of 914,715 pounds from the 1993-94 marketing year total 
available supply of 914,715 pounds.
    (B) Estimated trade demand (domestic and export) for the 1994-95 
marketing year--944,513 pounds. This number is an estimate based on the 
average of total annual sales made between 1980 and 1992, handler 
estimates, and information provided by producers and buyers.
    (C) Salable quantity required from 1994 production--944,513 pounds. 
This number is the difference between the estimated 1994-95 marketing 
year trade demand and the estimated carry-in on June 1, 1994.
    (D) Total allotment base for Native oil--1,950,843 pounds.
    (E) Computed allotment percentage--48.42 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--897,388 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 quantity of 723,326 pounds and 
allotment percentage of 41 percent for Class 1 spearmint oil is based 
on anticipated 1994-95 marketing year supply and trade demand.
    The Committee's recommended salable quantity of 897,388 pounds and 
allotment percentage of 46 percent for Class 3 spearmint oil is less 
than the Committee's estimated 1994-95 marketing year trade demand of 
944,513 pounds and computed allotment percentage of 48.42 percent. The 
1994-95 marketing year estimated trade demand represents an average of 
the trade demand over the last 13 years. During the past several years, 
sales of Native spearmint oil have fluctuated. The Committee reduced 
the salable quantity and allotment percentage to allow for the 
possibility of below average sales during the 1994-95 marketing year. 
This action was taken to prevent wide fluctuations in salable 
quantities and allotment percentages established in subsequent years. 
Wide fluctuations in yearly established salable quantities and 
allotment percentages could make it difficult for producers to plan 
farming operations.
    The 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. Alternatively, the 
Committee may offer to sell spearmint oil from the Class 1 and Class 3 
reserve pools to meet any increased market demand. The estimated 
reserve pools for Class 1 and Class 3 spearmint oil currently stand at 
950,000 pounds and 1,400,000 pounds, respectively. Both Scotch and 
Native spearmint oil producers who produce more than their annual 
allotments during the 1993-94 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 is similar to those which have been issued in prior 
seasons. Costs to producers and handlers resulting from this action are 
expected to be offset by the benefits derived from improved returns.
    The establishment of these salable quantities and allotment 
percentages allow for anticipated market needs based on historical 
sales, changes and trends in production and demand, and information 
available to the Committee. This final rule will provide spearmint oil 
producers with information on the amount of oil which should be 
produced for next season.
    A proposed rule on this issue was published in the Federal Register 
on December 21, 1993 [58 FR 67378]. That proposed rule provided a 30-
day comment period which ended January 20, 1994. No comments were 
received. The salable quantities and allotment percentages established 
by this final rule are identical to those contained in the proposed 
rule.
    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 the Committee's recommendations and other 
relevant information presented, it is found that this final 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, and 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 985.213 is added to read as follows: Section 
985.213 Salable quantities and allotment percentages--1994-95 marketing 
year.
    The salable quantity and allotment percentage for each class of 
spearmint oil during the marketing year beginning on June 1, 1994, 
shall be as follows:
    (a) ``Class 1'' (Scotch) oil--a salable quantity of 723,326 pounds 
and an allotment percentage of 41 percent.
    (b) ``Class 3'' (Native) oil--a salable quantity of 897,388 pounds 
and an allotment percentage of 46 percent.

    Dated: March 8, 1994.
Martha B. Ransom,
Acting Deputy Director, Fruit and Vegetable Division.
[FR Doc. 94-6138 Filed 3-15-94; 8:45 am]
BILLING CODE 3410-02-P