[Federal Register Volume 62, Number 187 (Friday, September 26, 1997)]
[Rules and Regulations]
[Pages 50479-50480]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-25619]



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 Rules and Regulations
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  Federal Register / Vol. 62, No. 187 / Friday, September 26, 1997 / 
Rules and Regulations  

[[Page 50479]]


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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 948

[Docket No. FV97-948-1 IFR]


Irish Potatoes Grown in Colorado; Change in Handling Regulation 
for Area No. 2

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Interim final rule with request for comments.

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SUMMARY: This interim final rule changes the size requirement from a 2 
inch minimum diameter or 4 ounce minimum weight to a 1\7/8\ inch 
minimum diameter for Centennial Russet variety potatoes grown in Area 
No. 2 of Colorado. The current size requirement for Centennial Russets 
is larger than the requirement for similar long varieties. This change 
recognizes the similarity and should provide potato handlers with more 
marketing flexibility, growers with increased returns, and consumers 
with a greater supply of potatoes.

DATES: Effective September 30, 1997; comments received by November 25, 
1997, will be considered prior to issuance of a final rule.

ADDRESSES: Interested persons are invited to submit written comments 
concerning this rule. Comments must be sent in triplicate to the Docket 
Clerk, Fruit and Vegetable Division, AMS, USDA, room 2525-S, P.O. Box 
96456, Washington, DC 20090-6456; Fax: (202) 720-5698. All 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: Dennis L. West, Northwest Marketing 
Field Office, Marketing Order Administration Branch, F&V, AMS, USDA, 
1220 SW Third Avenue, room 369, Portland, Oregon 97204; telephone: 
(503) 326-2724, Fax: (503) 326-7440. Small businesses may request 
information on compliance with this regulation by contacting Jay 
Guerber, Marketing Order Administration Branch, Fruit and Vegetable 
Division, AMS, USDA, room 2525-S, PO Box 96456, Washington, DC 20090-
6456; telephone: (202) 720-2491, Fax: (202) 720-5698.

SUPPLEMENTARY INFORMATION: This final rule is issued under Marketing 
Agreement No. 97 and Marketing Order No. 948 (7 CFR part 948), both as 
amended, regulating the handling of Irish potatoes grown in Colorado. 
The marketing agreement and order are authorized by 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 rule has been reviewed under Executive Order 12988, Civil 
Justice Reform. This rule is not intended to have retroactive effect. 
This 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 to review the Secretary's 
ruling on the petition, provided an action is filed not later than 20 
days after date of the entry of the ruling.
    This rule relaxes the size requirement for Centennial Russet 
variety potatoes grown in Area No. 2 from the current 2 inch minimum 
diameter or 4-ounce minimum weight to a 1\7/8\ inch minimum diameter 
with no minimum weight option. This change will enable handlers to 
market a larger portion of the crop in fresh market outlets and is 
expected to improve the marketing of Colorado potatoes. Further, all 
Russet varieties will now be required to meet the same size 
specifications.
    Section 948.22 (7 CFR 948.22) authorizes the issuance of 
regulations for grade, size, quality, maturity, and pack for any 
variety or varieties of potatoes grown in different portions of the 
production area during any period.
    Section 948.4 of the order defines the counties included in Area 
No. 2, which is commonly known as the San Luis Valley. The Colorado 
Potato Administrative Committee, San Luis Valley Office (Area No. 2) 
(Committee), is the agency responsible for local administration of the 
Federal marketing order in Area No. 2.
    Size regulations for potatoes grown in Area No. 2 are currently in 
effect under Sec. 948.386. Centennial Russet variety potatoes must be 2 
inches minimum diameter or 4 ounces minimum weight. Other long 
varieties, which includes other Russet varieties, must be 1\7/8\ inch 
minimum diameter, with no minimum weight option. This rule amends that 
section by removing the weight requirement option for Centennial 
Russets and reducing the minimum diameter requirement for Centennial 
Russets to 1\7/8\ inches. Thus, all Russet varieties will be required 
to meet the same minimum diameter. The Committee unanimously 
recommended this change at its August 21, 1997, meeting.
    When the current size regulations were established, the Centennial 
Russet was the dominant variety in the San Luis Valley (Area No. 2), 
accounting for approximately 65-75 percent of the crop. The other major 
Russet variety grown in the San Luis Valley was the Russet Burbank, a 
slimmer potato which was required to meet the 1\7/8\ inch minimum 
diameter. Today, the Russet Burbank has been phased out completely and 
the Centennial Russet accounts for less than 10 percent of the crop. 
The Burbank and the Centennial have been replaced by other varieties, 
including new Russet varieties which

[[Page 50480]]

have the same bulky features as the Centennial.
    The new varieties, however, are required only to meet the 1\7/8\ 
inch minimum diameter, not the 2 inch minimum diameter or 4 ounce 
minimum weight requirement that Centennial Russets must meet. The 
industry is concerned that Centennial Russets could be misrepresented 
as one of the new Russet varieties, so as to comply only with the 
smaller size requirement. This rule, by establishing the same size 
requirements for all Russet varieties, eliminates this possibility.
    Reducing the size requirement will allow handlers to market a 
larger portion of the Centennial Russet crop in fresh outlets. This 
change is expected to improve the marketing of Colorado potatoes and 
increase returns to producers.
    Pursuant to requirements set forth in the Regulatory Flexibility 
Act (RFA), the Agricultural Marketing Service (AMS) has considered the 
economic impact of this action on small entities. Accordingly, AMS has 
prepared this initial regulatory flexibility analysis.
    There are approximately 120 handlers of Colorado potatoes who are 
subject to regulation under the marketing order and approximately 400 
producers of Colorado potatoes in the regulatory areas. Small 
agricultural service firms have been 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 are defined as those 
whose annual receipts are less than $500,000. The majority of potato 
producers and handlers regulated under the marketing agreement and 
order may be classified as small entities.
    Section 948.22 of the order authorizes the issuance of handling 
regulations for potatoes grown in Colorado. This rule relaxes the size 
requirement for Centennial Russet variety potatoes grown in Area No. 2 
from the current 2 inch minimum diameter or 4-ounce minimum weight to a 
1\7/8\ inch minimum diameter with no weight option. This change will 
enable handlers to market a larger portion of the crop in fresh market 
outlets and is expected to improve the marketing of Colorado potatoes. 
There is no available information detailing how many potatoes this 
relaxation will allow to be marketed which could not have been marketed 
prior to this action.
    This rule also eliminates a potential compliance problem, as all 
Russet varieties will now be required to meet the same size 
specifications. Other Russet varieties are currently required only to 
meet the smaller size regulation of 1 \7/8\ inch diameter. Because some 
the new Russet varieties with characteristics very similar to 
Centennials face the smaller size requirement and have surpassed 
Centennials in popularity, there is a possibility that Centennials 
could be misrepresented as one of the new Russet varieties.
    The only viable alternative to reducing the size requirement for 
Centennials is to increase the size requirement for all other long 
potatoes, including all other Russets. The Committee surveyed 270 
growers from Area No. 2 concerning grade and size regulation. Both 
options for equalizing the size regulations for all long potatoes were 
included in the survey. The participating growers rejected increasing 
the size requirements for all other long potatoes, which would have 
reduced the number of Colorado potatoes on the market, in favor of the 
size requirement reduction established by this rule.
    This rule will not impose any additional reporting or recordkeeping 
requirements on either small or large potato handlers. As with all 
Federal marketing order programs, reports and forms are periodically 
reviewed to reduce information requirements and duplication by industry 
and public sectors. In addition, the Department has not identified any 
relevant Federal rules that duplicate, overlap or conflict with this 
rule.
    Further, the Committee's meeting was widely publicized throughout 
the Colorado potato industry and all interested persons were invited to 
attend the meeting and participate in Committee deliberations. Like all 
Committee meetings, the August 21, 1997, meeting was a public meeting 
and all entities, both large and small, were able to express their 
views on this issue. The Committee itself is composed of 12 members, of 
which 5 are handlers and 7 are producers, the majority of whom are 
small entities.
    Also, the Committee surveyed 270 producers in Area No. 2, the 
majority of whom are small entities, concerning regulation during the 
1997-98 potato shipping season. This rule reflects the outcome of that 
survey of predominantly small growers. Finally, interested persons are 
invited to submit information on the regulatory and informational 
impacts of this action on small businesses.
    After consideration of all relevant material presented, including 
the Committee's recommendation, and other information, it is found that 
this interim final rule, as hereinafter set forth, will tend to 
effectuate the declared policy of the Act.
    This rule invites comments on a change to the handling regulations 
currently prescribed for Area No. 2 under the Colorado potato marketing 
order. Any comments received will be considered prior to finalization 
of this rule.
    Pursuant to 5 U.S.C. 553, it is also found and determined upon good 
cause that it is impracticable, unnecessary, and contrary to the public 
interest to give preliminary notice prior to putting this rule into 
effect and that good cause exists for not postponing the effective date 
of this rule until 30 days after publication in the Federal Register 
because: (1) This rule relaxes requirements in the handling 
regulations; (2) this action must be taken promptly to be in place 
before handlers begin shipping heavily in early October; (3) the 
Committee unanimously recommended these changes at a public meeting and 
interested parties had an opportunity to provide input; and (4) this 
rule provides a 60-day comment period and any comments received will be 
considered prior to finalization of this rule.

List of Subjects in 7 CFR Part 948

    Marketing agreements, Potatoes, Reporting and recordkeeping 
requirements.

    For the reasons set forth in the preamble, 7 CFR part 948 is 
amended as follows:

PART 948--IRISH POTATOES GROWN IN COLORADO

    1. The authority citation for 7 CFR part 948 continues to read as 
follows:

    Authority: 7 U.S.C. 601-674.

    2. Section 948.386 is amended by removing paragraph (a)(2), 
redesignating paragraphs (a)(3) through (a)(6) as paragraphs (a)(2) 
through (a)(5), and revising newly redesignated paragraphs (a)(2) and 
(a)(5) to read as follows:


Sec. 948.386  Handling regulation.

* * * * *
    (a) * * *
    (2) Long varieties. U.S. No. 2, or better grade, 1\7/8\ inches 
minimum diameter.
* * * * *
    (5) None of the above categories of potatoes identified in 
paragraphs (a)(1) through (a)(5) of this section may be commingled in 
the same bag or other container.
* * * * *
    Dated: September 22, 1997.
Robert C. Keeney,
Director, Fruit and Vegetable Division.
[FR Doc. 97-25619 Filed 9-25-97; 8:45 am]
BILLING CODE 3410-02-P