[Federal Register Volume 78, Number 78 (Tuesday, April 23, 2013)]
[Rules and Regulations]
[Pages 23829-23830]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-09472]



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  Federal Register / Vol. 78, No. 78 / Tuesday, April 23, 2013 / Rules 
and Regulations  

[[Page 23829]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 948

[Doc. No. AMS-FV-12-0043; FV12-948-1 FIR]


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

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Affirmation of interim rule as final rule.

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SUMMARY: The Department of Agriculture (USDA) is adopting, as a final 
rule, without change, an interim rule that modified the grade 
requirements for potatoes handled under the Colorado potato marketing 
order, Area No. 2. The interim rule relaxed the minimum grade 
requirement for size B and 1-inch to 1\3/4\-inch diameter round, red-
skinned potatoes handled under the marketing order from U.S. No. 1 to 
U.S. Commercial. This change is expected to facilitate the handling and 
marketing of the Area No. 2 potato crop, provide producers and handlers 
with increased returns, and supply consumers with increased potato 
purchasing options.

DATES: Effective April 24, 2013.

FOR FURTHER INFORMATION CONTACT: Barry Broadbent, Senior Marketing 
Specialist, or Gary Olson, Regional Director, Northwest Marketing Field 
Office, Marketing Order and Agreement Division, Fruit and Vegetable 
Program, AMS, USDA; Telephone: (503) 326-2724, Fax: (503) 326-7440, or 
Email: [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/MarketingOrdersSmallBusinessGuide; or 
by contacting Jeffrey Smutny, Marketing Order and Agreement Division, 
Fruit and Vegetable Program, AMS, USDA, 1400 Independence Avenue SW., 
STOP 0237, Washington, DC 20250-0237; Telephone: (202) 720-2491, Fax: 
(202) 720-8938, or Email: [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.
    The handling of Irish potatoes grown in Colorado is regulated by 7 
CFR part 948. Prior to this action, the minimum grade requirement for 
size B and 1-inch to 1\3/4\-inch diameter round, red-skinned potatoes 
handled under the Colorado potato marketing order was U.S. No. 1. Under 
such grade requirements, industry participants were not able to pursue 
the emerging market for smaller diameter round, red-skinned U.S. 
Commercial grade potatoes sold in consumer packs and included in 
certain value added potato products. Relaxing the minimum grade 
requirement for such potatoes allows area handlers to pursue this new 
market category. Therefore, this rule continues in effect the rule that 
relaxed the minimum grade requirement for size B and 1-inch to 1\3/4\-
inch diameter round, red-skinned potatoes handled under the order from 
U.S. No. 1 to U.S. Commercial.
    In an interim rule published in the Federal Register on January 2, 
2013, and effective on January 3, 2013 (78 FR 3, Doc. No. AMS-FV-12-
0043, FV12-948-1 IR), Sec.  948.386 was amended by relaxing the minimum 
grade requirement for size B and 1-inch to 1\3/4\-inch diameter round, 
red-skinned potatoes handled under the marketing order from U.S. No. 1 
to U.S. Commercial.

Final Regulatory Flexibility Analysis

    Pursuant to requirements set forth in the Regulatory Flexibility 
Act (RFA) (5 U.S.C. 601-612), 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 or disproportionately burdened. Marketing orders issued 
pursuant to the Act, and the rules issued thereunder, are unique in 
that they are brought about through group action of essentially small 
entities acting on their own behalf.
    There are approximately 80 handlers of Colorado Area No. 2 potatoes 
subject to regulation under the order and approximately 180 producers 
in the regulated production area. 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 2010-2011 marketing year, the most recent full marketing 
year for which statistics are available, 15,583,512 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 
$12.75 per hundredweight, the Committee estimates that 71 Area No. 2 
handlers, or about 89 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, the average producer price for 
Colorado fall potatoes for 2010-2011 was $9.37 per hundredweight. The 
average annual fresh potato revenue for each of the 180 Colorado Area 
No. 2 potato producers is therefore calculated to be approximately 
$811,208. Consequently, on average, many of the Area No. 2 Colorado 
potato producers may not be classified as small entities.
    This rule continues in effect the action that relaxed the minimum 
grade requirement for size B and 1-inch to 1\3/4\-inch diameter round, 
red-skinned potato varieties from U.S. No. 1 grade to

[[Page 23830]]

U.S. Commercial. This change provides greater flexibility to handlers 
in the marketing of the Colorado potato crop. Authority for this action 
is contained in Sec. Sec.  948.21 and 948.22.
    This relaxation is expected to benefit the producers, handlers, and 
consumers of Colorado potatoes by allowing a greater quantity of fresh 
potatoes from the production area to enter the market. This anticipated 
increase in volume is expected to translate into greater returns for 
handlers and producers, and more purchasing options for consumers.
    This action is not expected to increase costs associated with the 
order requirements. Rather, this action makes additional product 
available to the market and has the potential to increase industry 
returns. The opportunities and benefits that may result from this rule 
are equally available to all Colorado potato handlers and producers, 
regardless of their size.
    In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 
Chapter 35), the order's information collection requirements have been 
previously approved by the Office of Management and Budget (OMB) and 
assigned OMB No. 0581-0178 (Generic Vegetable and Specialty Crops). No 
changes in those requirements as a result of this action are necessary. 
Should any changes become necessary, they would be submitted to OMB for 
approval.
    This rule will not impose any additional reporting or recordkeeping 
requirements on either small or large grapefruit 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, 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 potato industry and all interested persons were invited to 
attend the meeting and participate in Committee deliberations. Like all 
Committee meetings, the July 19, 2012, meeting was a public meeting and 
all entities, both large and small, were able to express their views on 
this issue.
    Comments on the interim rule were required to be received on or 
before March 4, 2013. No comments were received. Therefore, for the 
reasons given in the interim rule, we are adopting the interim rule as 
a final rule, without change.
    To view the interim rule, go to: http://www.regulations.gov/#!documentDetail;D=AMS-FV-12-0043-0001.
    This action also affirms information contained in the interim rule 
concerning 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).
    After consideration of all relevant material presented, it is found 
that finalizing the interim rule, without change, as published in the 
Federal Register (78 FR 3, January 2, 2013) 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.

    Accordingly, the interim rule that amended 7 CFR part 948 and was 
published at 78 FR 3 on January 2, 2013, is adopted as a final rule, 
without change.

    Dated: April 17, 2013.
David R. Shipman,
Administrator, Agricultural Marketing Service.
[FR Doc. 2013-09472 Filed 4-22-13; 8:45 am]
BILLING CODE 3410-02-P