[Federal Register Volume 62, Number 244 (Friday, December 19, 1997)]
[Rules and Regulations]
[Pages 66497-66498]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-33167]


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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 948

[Docket No. FV97-948-1 FIR]


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

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Final rule.

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SUMMARY: The Department of Agriculture (Department) is adopting as a 
final rule, without change, the provisions of an interim final rule 
which changed 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 size 
requirement for Centennial Russets had been larger than the requirement 
for similar long varieties. The change recognized the similarity among 
all long varieties and provided potato handlers with more marketing 
flexibility, growers with increased returns, and consumers with a 
greater supply of potatoes.

EFFECTIVE DATE: January 20, 1998.

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, or Anne M. Dec, Marketing Order 
Administration Branch, F&V, AMS, USDA, room 2525-S, P.O. Box 96456, 
Washington, DC 20090-6456; telephone: (202) 720-2491, Fax: (202) 205-
6632. Small businesses may request information on compliance with this 
regulation by contacting Jay Guerber, Marketing Order Administration 
Branch, Fruit and Vegetable Programs, AMS, USDA, room 2525-S, P.O. Box 
96456, Washington, DC 20090-6456; telephone: (202) 720-2491, Fax: (202) 
205-6632.

SUPPLEMENTARY INFORMATION: This 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 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.
    The interim rule relaxed 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 enabled handlers to market a 
larger portion of the crop in fresh market outlets and improved the 
marketing of Colorado potatoes. Further, all Russet varieties are now 
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 had to be 
2 inches minimum diameter or 4 ounces minimum weight. Other long 
varieties, which include other Russet varieties, had to be 1\7/8\ inch 
minimum diameter with no minimum weight option. The interim final rule 
amended 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 are now 
required to meet the same minimum diameter. The Committee unanimously 
recommended this change at its August 21, 1997, meeting.
    When the previous 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

[[Page 66498]]

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 have the same bulky features as the Centennial.
    The new varieties, however, were required only to meet the 1\7/8\ 
inch minimum diameter, not the 2 inch minimum diameter or 4 ounce 
minimum weight requirements that Centennial Russets were required to 
meet. The industry was concerned that Centennial Russets could be 
misrepresented as one of the new Russet varieties, so as to comply only 
with the smaller size requirement. The interim final rule, by 
establishing the same size requirements for all Russet varieties, 
eliminated that possibility.
    Reducing the size requirement allowed handlers to market a larger 
portion of the Centennial Russet crop in fresh outlets. That change 
improved the marketing of Colorado potatoes and increased 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 final regulatory flexibility analysis.
    There are approximately 118 handlers of Colorado Area 2 potatoes 
who are subject to regulation under the marketing order and 
approximately 280 producers of Colorado potatoes in the regulated area. 
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. The interim final rule 
relaxed the size requirement for Centennial Russet variety potatoes 
grown in Area No. 2 from a 2 inch minimum diameter or 4-ounce minimum 
weight to a 1\7/8\ minimum diameter with no weight option. This change 
enabled handlers to market a larger portion of the crop in fresh market 
outlets and improved the marketing of Colorado potatoes. There is no 
available information detailing how many potatoes this relaxation 
allowed to be marketed which could not have been marketed prior to this 
action.
    The rule also eliminated a potential compliance problem, as all 
Russet varieties are now required to meet the same size specifications. 
Other Russet varieties were required only to meet the smaller size 
regulation of 1\7/8\ inch diameter. Because some of the new Russet 
varieties with characteristics very similar to Centennials faced the 
smaller size requirement and have surpassed Centennials in popularity, 
there was a possibility that Centennials could have been misrepresented 
as one of the new Russet varieties.
    The only viable alternative to reducing the size requirement for 
Centennials was to increase the size requirement for all other long 
potatoes, including all other Russets. The Committee surveyed 270 
growers from Area No. 2 concerning the 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 the interim final 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.
    An interim final rule concerning this action was published in the 
Federal Register on September 26, 1997 (62 FR 50479). Copies of the 
rule were mailed or sent via facsimile to all Committee members and 
Area 2 potato producers and handlers. Finally, the rule was made 
available through the Internet by the Office of the Federal Register. A 
60-day comment period was provided. No comments were received.
    After consideration of all relevant material presented, including 
the Committee's recommendation, and other information, it is 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 948

    Marketing agreements, Potatoes, Reporting and recordkeeping 
requirements.

PART 948--IRISH POTATOES GROWN IN COLORADO

    Accordingly, the interim final rule amending 7 CFR part 948 which 
was published at 62 FR 50479 on September 26, 1997, is adopted as a 
final rule without change.

    Dated: December 15, 1997.
Robert C. Keeney,
Deputy Administrator, Fruit and Vegetable Programs.
[FR Doc. 97-33167 Filed 12-18-97; 8:45 am]
BILLING CODE 3410-02-P