[Federal Register Volume 78, Number 227 (Monday, November 25, 2013)]
[Rules and Regulations]
[Pages 70191-70193]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-28067]


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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 948 and Part 980

[Doc. No. AMS-FV-13-0001; FV13-948-1 FIR]


Irish Potatoes Grown in Colorado; Modification of the General 
Cull and 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 size 
requirements for potatoes handled under the Colorado potato marketing 
order, Area No. 2 (order). The order regulates the handling of Irish 
potatoes grown in Colorado and is administered locally by the Colorado 
Potato Administrative Committee, Area No. 2 (Committee). The interim 
rule revised the 1-inch minimum to 1\3/4\-inch maximum diameter size 
allowance for U.S. Commercial and better grade potatoes contained in 
the order's handling regulation for Area No. 2 to \3/4\-inch minimum to 
1\5/8\-inch maximum diameter. In addition, this action revised the 
minimum size requirement under the order's general cull regulation to 
\3/4\-inch diameter. As required under section 8e of the Agricultural 
Marketing Agreement Act of 1937, this action also revised the size 
requirements for imported round type potatoes, other than red-skinned 
varieties. This change is expected to facilitate the handling and 
marketing of the Area No. 2 potato crop; provide producers, handlers, 
and importers with increased returns; and offer consumers increased 
potato purchasing options.

DATES: Effective November 26, 2013.

FOR FURTHER INFORMATION CONTACT: Sue Coleman, Marketing Specialist, or 
Gary D. 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 and agreement 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 
and 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.''
    This rule is also issued under section 8e of the Act, which 
provides that whenever certain specified commodities, including 
potatoes, are regulated under a Federal marketing order, imports of 
these commodities into the United States are prohibited unless they 
meet the same or comparable grade, size, quality, or maturity 
requirements as those in effect for the domestically produced 
commodities.
    The Department of Agriculture (USDA) is issuing this rule in 
conformance with Executive Order 12866.
    The handling of potatoes grown in Area No. 2 of Colorado is 
regulated by

[[Page 70192]]

7 CFR part 948. Prior to this change, the smallest potatoes that could 
be shipped outside the state of Colorado under the order were 1-inch to 
1\3/4\-inch diameter potatoes that met or exceeded the requirements of 
the U.S. Commercial grade. Potatoes measuring less than 1-inch could 
not be shipped outside the state, regardless of grade. This restrictive 
requirement precluded the Colorado Area No. 2 handlers from supplying 
an emerging market for smaller size U.S. Commercial grade potatoes. 
Therefore, this rule continues in effect the interim rule that relaxed 
the allowable minimum diameter for U.S. Commercial and better grade 
potatoes to \3/4\-inch, which is in line with the minimum size 
requirements contained in the handling regulations of the other 
domestic potato marketing orders.
    Additionally, prior to this change, the order's general cull 
regulation required all potatoes handled under the order to meet the 
minimum requirements of the U.S. No. 2 grade, or be greater than 1\1/
2\-inches in diameter. For marketing purposes, the general cull 
regulations need to be consistent with the handling regulations. 
Therefore, this rule also continues in effect the interim rule that 
relaxed the minimum size requirement under the order's general cull 
regulation to \3/4\-inch diameter.
    Imported potatoes are subject to regulations specified in 7 CFR 
part 980. Under those regulations, imported potatoes must meet the same 
or comparable grade, size, quality, and maturity requirements as 
specified for domestic potatoes under the order. Therefore, the 
relaxation of the size requirements effectuated by this rule for 
domestic potatoes covered by the order likewise relaxes the size 
requirements for U.S. Commercial and better grade round type potatoes, 
other than red-skinned varieties, that are imported into the United 
States. Importers may now ship Creamer size (\3/4\-inch minimum to 1\5/
8\-inch maximum diameter) U.S. Commercial and better grade round type 
potatoes, other than red-skinned varieties, into the United States.
    In an interim rule (Doc. No. AMS-FV-13-0001; FV13-948-1 IR) 
published in the Federal Register on June 14, 2013, and effective on 
June 15, 2013 (78 FR 35743), Sec.  948.126 was amended by changing the 
minimum diameter for potatoes handled under the order from 1\1/2\-inch 
to \3/4\-inches. Likewise, Sec.  948.386 was modified by relaxing the 
size allowance for U.S. Commercial and better grade potatoes from 1-
inch minimum to 1\3/4\-inch maximum diameter to \3/4\-inch minimum to 
1\5/8\-inch maximum diameter (Creamer size).

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 
businesses 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. In addition, there are approximately 
571 potato importers. Small agricultural service firms are defined by 
the Small Business Administration 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. (13 CFR 121.201)
    During the 2011-2012 marketing year, the most recent full marketing 
year for which statistics are available, 15,072,963 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 
$12.60 per hundredweight, the Committee estimates that 66 Area No. 2 
handlers, or about 83 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 the 
2011 Colorado fall potato crop was $10.70 per hundredweight. 
Multiplying $10.70 by the shipment quantity of 15,072,963 hundredweight 
yields an annual crop revenue estimate of $161.281 million. Therefore, 
the average annual fresh potato revenue for each of the 180 Colorado 
Area No. 2 potato producers is calculated to be approximately $896,000 
($161.281 million divided by 180), which is greater than the SBA 
threshold of $750,000. Consequently, on average, many of the Area No. 2 
Colorado potato producers may not be classified as small entities.
    Information from the Foreign Agricultural Service, USDA, indicates 
that the dollar value of imported fresh potatoes averaged $128.962 
million over the past five years, ranging from a low of approximately 
$106.502 million in 2012 to a high of approximately $155.358 million in 
2008. Using these values, it is estimated that the majority of the 571 
potato importers have annual receipts of less than $7 million and may 
be classified as small entities.
    This rule continues in effect the action that relaxed the size 
allowance for U.S. Commercial and better grade potatoes in the order's 
handling regulation and modified the size requirement in the order's 
general cull regulation. Prior to this action, the smallest size range 
allowed to be handled under the order was 1-inch minimum diameter to 
1\3/4\-inch maximum diameter if the potatoes were otherwise U.S. 
Commercial or better grade. As a result of this rule, Creamer size (\3/
4\-inch to 1\5/8\-inch diameter) U.S. Commercial and better grade 
potatoes may now be handled under the order. Additionally, the minimum 
size requirement under the order's general cull regulation was changed 
from 1\1/2\-inch to \3/4\-inch diameter. All other size requirements in 
the order's handling regulation remain unchanged. Authority for this 
action is contained in Sec. Sec.  948.20, 948.21, and 948.22.
    This relaxation is expected to benefit the producers, handlers, 
importers, and consumers of potatoes by allowing a greater quantity of 
fresh potatoes to enter the market. This anticipated increase in volume 
is expected to translate into greater returns for producers, handlers, 
and importers, and more purchasing options for consumers.
    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 potato handlers and importers. 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

[[Page 70193]]

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. Like all Committee meetings, the December 20, 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 August 13, 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-13-0001-0001.
    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).
    In accordance with section 8e of the Act, the United States Trade 
Representative has concurred with the issuance of this rule.
    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 35743, June 14, 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 that 
was published at 78 FR 35743 on June 14, 2013, is adopted as a final 
rule, without change.

    Dated: November 18, 2013
Rex A. Barnes,
Associate Administrator, Agricultural Marketing Service.
[FR Doc. 2013-28067 Filed 11-22-13; 8:45 am]
BILLING CODE 3410-02-P