[Federal Register Volume 74, Number 148 (Tuesday, August 4, 2009)]
[Rules and Regulations]
[Pages 38504-38505]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-18539]


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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 948

[Doc. No. AMS-FV-08-0094; FV09-948-1 FIR]


Irish Potatoes Grown in Colorado; Modification of the Handling 
Regulation for Area No. 2

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Affirmation of interim final rule as final rule.

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SUMMARY: The Department of Agriculture (USDA) is adopting, as a final 
rule, without change, an interim final rule that modified the minimum 
size requirement under the Colorado potato marketing order, Area No. 2. 
For most long potato varieties, the interim final rule changed the 
minimum size requirement from 2 inches in diameter to 1\7/8\ inches in 
diameter and removed the minimum weight requirement. The change is 
expected to improve the marketing of Colorado Area No. 2 potatoes while 
increasing returns to producers and potato supplies to consumers.

DATES: Effective Date: Effective August 5, 2009.

FOR FURTHER INFORMATION CONTACT: Teresa Hutchinson or Gary Olson, 
Northwest Marketing Field Office, Marketing Order Administration 
Branch, Fruit and Vegetable Programs, AMS, USDA, Telephone: (503) 326-
2724, Fax: (503) 326-7440, or E-mail: [email protected] or 
[email protected].
    Small businesses may obtain information on complying with this and 
other marketing order regulations by viewing a guide at the following 
Web site: http://www.ams.usda.gov/AMSv1.0/ams.fetchTemplateData.do?template=TemplateN&page=MarketingOrdersSmallBusinessGuide; or by contacting Jay Guerber, Marketing Order 
Administration Branch, Fruit and Vegetable Programs, AMS, USDA, 1400 
Independence Avenue, SW., STOP 0237, Washington, DC 20250-0237; 
Telephone: (202) 720-2491, Fax: (202) 720-8938, or E-mail: 
[email protected].

SUPPLEMENTARY INFORMATION: This rule is issued under Marketing 
Agreement No. 97 and Marketing Order No. 948, both as amended (7 CFR 
part 948), regulating the handling of Irish potatoes grown in Colorado, 
hereinafter referred to as the ``order.'' The 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 (USDA) is issuing this rule in 
conformance with Executive Order 12866.
    An interim final rule was published in the Federal Register on 
April 16, 2009, and was effective on April 17, 2009 (74 FR 17589, Doc. 
No AMS-FV-0094, FV09-948-1 IFR). The interim final rule amended Sec.  
948.386 by modifying the minimum size requirement for most long 
varieties of potatoes handled under the marketing order. The exceptions 
to these requirements are for potatoes handled under the size 
designations referred to in the U.S. Standards as ``Size B'' and 
``creamers.'' The revisions described in the interim final rule were 
made to the handling regulations for all regulated potatoes except 
those potatoes considered ``Size B'' or ``creamers.'' The current size 
requirements for ``Size B'' and ``creamers'' remain unchanged.
    Except as explained above, for long potato varieties, the interim 
final rule changed the minimum size requirement from 2 inches in 
diameter to 1\7/8\ inches in diameter and removed the minimum weight 
requirement.
    This action did not impact imported potatoes covered by section 
608(e) of the Act.

Final Regulatory Flexibility Analysis

    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.
    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

[[Page 38505]]

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.

Industry Information

    There are approximately 73 handlers of Colorado Area No. 2 potatoes 
subject to regulation under the order and approximately 180 producers 
in the regulated production area. The order is administered locally by 
the Colorado Potato Administrative Committee, Area No. 2 (Committee). 
Small agricultural service firms are defined by the Small Business 
Administration (13 CFR 121.201) as those having annual receipts of less 
than $7,000,000, and small agricultural producers are defined as those 
having annual receipts of less than $750,000.
    During the 2007-2008 marketing year, approximately 14,225,568 
hundredweight of Colorado Area No. 2 potatoes were inspected under the 
order and sold into the fresh market. Based on an estimated average 
f.o.b. price of $12.05 per hundredweight, the Committee estimates that 
62 Area No. 2 handlers, or about 85 percent, had annual receipts of 
less than $7,000,000. In view of the foregoing, the majority of 
Colorado Area No. 2 potato handlers may be classified as small 
entities.
    In addition, based on information provided by the National 
Agricultural Statistics Service (NASS), the average producer price for 
Colorado potatoes for 2007 was $9.85 per hundredweight. The average 
annual fresh potato revenue for the Colorado Area No. 2 potato 
producers is therefore calculated to be approximately $778,455. 
Consequently, on average, the majority of the Area No. 2 Colorado 
potato producers may not be classified as small entities.
    Section 948.22 authorizes the issuance of grade, size, quality, 
maturity, pack, and container regulations for potatoes grown in the 
production area. Section 948.21 further authorizes the modification, 
suspension, or termination of requirements issued pursuant to Sec.  
948.22.
    Section 948.386 of the marketing order's rules and regulations 
establishes minimum sizes for various varieties of potatoes. This rule 
continues in effect the action that changed the minimum size 
requirement from 2 inches in diameter to 1\7/8\ inches in diameter and 
removed the minimum weight requirement for long potatoes that are 
considered neither ``Size B'' nor ``creamer'' size potatoes.
    In 2007, handlers were unable to adequately supply the fresh market 
because of low yields due to poor weather conditions and because of 
more restrictive regulations. Adverse weather conditions contributed to 
lower yields and short supplies of potatoes for the market again in the 
2008-2009 season. The Committee believes that relaxing the minimum size 
and weight requirements on long potato varieties allows handlers to 
market a larger portion of the crop in fresh market outlets, and thus 
better meet demand. This action is expected to foster increased 
consumption and have a positive impact on the Colorado potato industry.
    This change is expected to improve returns to producers. The 
interim final rule was a relaxation of the minimum size regulation and, 
as such, should have a positive impact on industry participants. The 
Committee believes that this change should not negatively impact either 
handlers or producers.
    The Committee discussed alternatives to this change, including not 
taking any action. However, for the reasons discussed earlier, the 
Committee believes this action best meets the needs of buyers and is 
most beneficial to the industry.
    This rule will not impose any additional reporting or recordkeeping 
requirements on either small or large Colorado Area No. 2 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 sector agencies.
    In addition, as noted in the initial regulatory flexibility 
analysis, USDA 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 Area No. 2 potato industry and all interested persons were 
invited to attend the meeting and participate in Committee 
deliberations on all issues. Like all Committee meetings, the August 
21, 2008, meeting was a public meeting and all entities, both large and 
small, were able to express views on this issue.
    This action also affirms information contained in the interim final 
rule concerning the authority for marketing orders under the 
Agricultural Marketing Agreement Act of 1937 (7 U.S.C. 601-674), as 
well as information regarding Executive Orders 12866 and 12988, the 
Paperwork Reduction Act (44 U.S.C. Chapter 35), and the E-Gov Act (44 
U.S.C. 101).
    Comments on the interim final rule were required to be received on 
or before June 15, 2009. No comments were received. Therefore, for 
reasons given in the interim final rule, USDA is adopting the interim 
final rule as a final rule, without change.
    To view the interim final rule, go to: http://www.regulations.gov/fdmspublic/component/main?main=DocketDetail&d=AMS-FV-08-0094.
    After consideration of all relevant material presented, it is found 
that finalizing the interim final rule, without change, as published in 
the Federal Register (74 FR 17589, April 16, 2009) 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

0
Accordingly, the interim final rule that amended 7 CFR part 948 and 
that was published at 74 FR 17589 on April 16, 2009, is adopted as a 
final rule, without change.

    Dated: July 29, 2009.
Rayne Pegg,
Administrator, Agricultural Marketing Service.
[FR Doc. E9-18539 Filed 8-3-09; 8:45 am]
BILLING CODE