[Federal Register Volume 59, Number 240 (Thursday, December 15, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-30787]
[[Page Unknown]]
[Federal Register: December 15, 1994]
VOL. 59, NO. 240
Thursday, December 15, 1994
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 985
[FV94-985-5PR]
Spearmint Oil Produced in the Far West; Salable Quantities and
Allotment Percentages for the 1995-96 Marketing Year
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Proposed rule.
-----------------------------------------------------------------------
SUMMARY: This proposed rule would establish 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 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.
DATES: Comments must be received by January 17, 1995.
ADDRESSES: Interested persons are invited to submit written comments
concerning this proposed rule. Comments must be sent in triplicate to
the Docket Clerk, Fruit and Vegetable Division, AMS, USDA, Room 2525,
South Building, P.O. Box 96456, Washington, DC 20090-6456. Comments
should reference the docket number and the date and page number of this
issue of the Federal Register and will be made available for public
inspection in the Office of the Docket Clerk during regular business
hours.
FOR FURTHER INFORMATION CONTACT: 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; or Caroline C.
Thorpe, 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.
SUPPLEMENTARY INFORMATION: This proposed 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 proposed 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
proposed rule would establish 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 proposed 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.
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 proposed rule would establish 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 would
limit 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 proposed salable quantity and allotment percentage for each
class of spearmint oil for the 1995-96 marketing year is 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, 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 based on the
average of total annual sales made between 1980 and 1993, handler
estimates, Far West percentage of the North American market share, and
information provided by producers and buyers.
(C) Salable quantity required from 1995-96 regulated producttion--
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 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.
The proposed 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 proposed regulation, if adopted, would be similar to those
which have been issued in prior seasons. Costs to producers and
handlers resulting from this proposed action are expected to be offset
by the benefits derived from improved returns.
The establishment of these salable quantities and allotment
percentages would allow for anticipated market needs based on
historical sales, changes and trends in production and demand, and
information available to the Committee. Adoption of this proposed rule
would also provide spearmint oil producers with information on the
amount of oil which should be produced for next season.
Based on available information, the Administrator of the AMS has
determined that the issuance of this proposed rule would not have a
significant economic impact on a substantial number of small entities.
A 30-day comment period is provided to allow interested persons to
respond to this proposal. All written comments received within the
comment period 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, and Spearmint oil.
For the reasons set forth in the preamble, 7 CFR Part 985 is
proposed to be 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 Sec. 985.214 is added to read as follows:
[Note: This action, if adopted, will not appear in the 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: December 9, 1994.
Eric M. Forman,
Deputy Director, Fruit and Vegetable Division.
[FR Doc. 94-30787 Filed 12-14-94; 8:45 am]
BILLING CODE 3410-02-P