[Federal Register Volume 79, Number 88 (Wednesday, May 7, 2014)]
[Rules and Regulations]
[Pages 26109-26111]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-10369]
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Rules and Regulations
Federal Register
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Federal Register / Vol. 79, No. 88 / Wednesday, May 7, 2014 / Rules
and Regulations
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DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 946
[Doc. No. AMS-FV-14-0026; FV14-946-1 IR]
Irish Potatoes Grown in Washington; Modification of the Handling
Regulations for Yellow Fleshed and White Types of Potatoes
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Interim rule.
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SUMMARY: This rule extends the temporary exemption of yellow fleshed
and white skin (white types) potatoes from minimum quality, maturity,
pack, marking, and inspection requirements under the Washington potato
marketing order through the 2014-2015 and subsequent fiscal periods.
Without this action, the temporary exemption currently in effect would
end on June 30, 2014. The marketing order regulates the handling of
Irish potatoes grown in Washington and is administered locally by the
State of Washington Potato Committee (Committee). This rule is expected
to reduce overall industry expenses and increase net returns to
producers and handlers while continuing to give the industry the
opportunity to explore alternative marketing strategies.
DATES: Effective July 1, 2014; comments received by July 7, 2014 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 to the Docket Clerk,
Marketing Order and Agreement Division, Fruit and Vegetable Program,
AMS, USDA, 1400 Independence Avenue SW., STOP 0237, Washington, DC
20250-0237; Fax: (202) 720-8938; or internet: http://www.regulations.gov. All comments should reference the document 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, or can be viewed at: http://www.regulations.gov. All comments submitted in response to this rule
will be included in the record and will be made available to the
public. Please be advised that the identity of the individuals or
entities submitting comments will be made public on the internet at the
address provided above.
FOR FURTHER INFORMATION CONTACT: Teresa Hutchinson, 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 request information on complying with this
regulation 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 Order
No. 946, as amended (7 CFR part 946), regulating the handling of Irish
potatoes grown in Washington, 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 Orders 12866, 13563, and 13175.
This rule has been reviewed under Executive Order 12988, Civil
Justice Reform. This rule is not intended to have retroactive effect.
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 USDA 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, USDA 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 USDA's ruling on the petition,
provided an action is filed not later than 20 days after the date of
entry of the ruling.
This rule extends the temporary exemption of yellow fleshed and
white types of potatoes from the order's handling regulations through
the 2014-2015 and subsequent fiscal periods. Without this action, the
temporary exemption currently in effect would end on June 30, 2014.
This rule allows the Washington potato industry to continue to market
yellow fleshed and white types of potatoes without regard to the
minimum quality, maturity, pack, marking, and inspection requirements
prescribed under the order.
The order authorizes the establishment of handling regulations for
all varieties or varietal types of potatoes grown in the production
area. These regulations can include minimum grade, size, quality, or
maturity requirements. They can also stipulate the size, capacity,
weight, dimensions, pack, marking, or labeling of containers used in
the handling of such potatoes. The handling regulations may be
modified, suspended, or terminated upon the recommendation of the
Committee and the approval of the Secretary. When handling regulations
are in effect, regulated potatoes must be inspected and certified by
the Federal-State Inspection Service (FSIS).
The above-described authorities are found in Sec. Sec. 946.51,
946.52, and 946.60 of the order. Supporting rules and regulations for
these authorities are found in Sec. 946.336.
The Committee meets regularly to consider the effectiveness of
regulatory requirements in place for Washington potatoes. These
requirements are issued on a continuing basis and may be modified,
suspended, or terminated upon recommendation of the Committee and
approval by USDA. Committee meetings are open to the public, and
interested persons may express their views at these meetings. USDA
reviews
[[Page 26110]]
recommendations made by the Committee, along with any additional
information submitted by the Committee and other available information,
and determines whether such recommendations would tend to effectuate
the declared policy of the Act.
The Committee met on July 16, 2013, and unanimously recommended
exempting yellow fleshed and white types of potatoes from the handling
regulations through June 30, 2014. This recommendation was implemented
by USDA in an interim rule published in the Federal Register on October
23, 2013 [78 FR 62967], and finalized on May 2, 2014 [79 FR 24997].
During the temporary exemption, yellow fleshed and white types of
potatoes were able to be handled without regard for the order's
handling and inspection requirements. The Committee initiated this
action to evaluate the potential cost savings, and the corresponding
impact on the market, that might result from such an exemption.
Since October 24, 2013, initiation of the exemption period,
handlers have called upon FSIS only intermittently to inspect and
certify yellow fleshed and white types of potatoes prior to shipment in
order to meet their customers' needs or market requirements. With full-
time inspection no longer mandatory, handlers were able to coordinate
the timing and utilization of inspection services to meet the needs of
their individual operations, resulting in reduced costs. No negative
market impacts were experienced as a result of the temporary exemption
of yellow fleshed and white types of potatoes from the handling
regulations. Handlers have continued to meet their customers'
specifications, either with voluntary inspection or no inspection,
during the temporary exemption. Therefore, the Committee believes that
the temporary exemption of yellow fleshed and white types of potatoes
has reduced industry costs without negatively impacting the market.
At its December 10, 2013, meeting, the Committee unanimously
recommended indefinitely extending the temporary exemption for yellow
fleshed and white types of potatoes from the handling regulations past
the previously established end date of June 30, 2014. Therefore, this
rule modifies Sec. 946.336 to exempt yellow fleshed and white types of
potatoes from handling regulations through the 2014-2015 and subsequent
fiscal periods.
As a result of this exemption, yellow fleshed and white types of
potatoes will not be subject to the minimum grade, size, quality,
maturity, pack, marking, and inspection requirements of the order for
the 2014-2015 fiscal period and subsequent fiscal periods. However,
assessments on all fresh yellow fleshed and white types of potatoes
handled under the order will remain in effect during the exemption
period. Also during this interval, handlers will continue to be
required to submit reports of their shipments of fresh yellow fleshed
and white types of potatoes to the Committee for the purposes of
collecting assessments and compiling industry statistics.
Although this rule continues to provide handlers of yellow fleshed
and white types of potatoes the opportunity to decrease their total
costs by eliminating the expenses associated with mandatory inspection,
it does not restrict handlers from seeking inspection on a voluntary
basis. In addition, the Committee will continue to monitor and evaluate
the effects of the exemption on marketing and producer returns at
future Committee meetings.
Initial 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 initial 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 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 43 handlers of Washington potatoes subject to regulation
under the order and approximately 267 producers in the regulated
production area. 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)
For the 2011-2012 marketing year, the Committee reports that
11,018,670 hundredweight of Washington potatoes were shipped into the
fresh market. Based on average f.o.b. prices estimated by the USDA's
Economic Research Service and Committee data on individual handler
shipments, the Committee estimates that 42, or approximately 98 percent
of the handlers, had annual receipts of less than $7,000,000.
In addition, based on information provided by the National
Agricultural Statistics Service, the average producer price for
Washington potatoes for 2011-2012 was $7.90 per hundredweight. The
average gross annual revenue for the 267 Washington potato producers is
therefore calculated to be approximately $326,021. In view of the
foregoing, the majority of Washington potato handlers and producers may
be classified as small entities.
This rule extends the temporary exemption of yellow fleshed and
white types of potatoes from the handling regulations through the 2014-
2015 and subsequent fiscal periods. The industry is concerned that the
cost of mandatory inspection, which has increased, outweighs the
benefits of having quality regulations in place. The extension of the
temporary exemption is expected to further reduce overall industry
expenses and continue to provide the industry with the opportunity to
explore alternative marketing strategies.
The authority for regulation is provided in Sec. 946.52 of the
order. In addition, the handling regulations are specified under Sec.
946.336 of the order's administrative rules and regulations.
The Committee does not anticipate that this rule will negatively
impact small businesses. This rule will exempt yellow fleshed and white
types of potatoes from minimum quality, maturity, pack, marking, and
inspection requirements. Though inspections are not mandatory for such
potatoes during the exemption period, handlers may voluntarily choose
to have their potatoes inspected. Handlers are thus able to control
costs based on the demands of their customers.
The Committee discussed alternatives to this recommendation,
including taking no action and allowing the temporary exemption to
lapse on June 30, 2014. However, the Committee believes that the
temporary exemption for yellow fleshed and white types of potatoes has
been successful, and recommended extending the exemption of yellow
fleshed and white types of potatoes from the handling regulation
indefinitely.
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.
During the exemption period, handlers will continue to be required
to report fresh shipments of yellow fleshed
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and white types of potatoes monthly. While this rule requires a
reporting requirement for shipments of yellow fleshed and white types
of potatoes, their exemption from handling regulations also eliminates
the more frequent reporting requirements imposed under the order's
special purpose shipment exemptions (Sec. 946.336(d) and (e)). Under
these paragraphs, handlers are required to provide detailed reports
whenever they divert regulated potatoes for livestock feed, charity,
seed, prepeeling, processing, grading and storing in specified counties
in Oregon, and experimentation.
Therefore, any additional reporting or recordkeeping requirements
on either small or large handlers of yellow fleshed and white types of
potatoes are expected to be offset by the elimination of the other
reporting requirements currently in effect. In addition, the exemption
from handling regulations and inspection requirements for yellow
fleshed and white types of potatoes is expected to reduce industry
expenses.
AMS is committed to complying with the E-government Act, to promote
the use of the internet and other information technologies to provide
increased opportunities for citizen access to Government information
and services, and for other purposes.
USDA has not identified any relevant Federal rules that duplicate,
overlap or conflict with this rule.
The Committee's meetings were widely publicized throughout the
Washington potato industry, and all interested persons were invited to
participate in Committee deliberations. Like all Committee meetings,
the December 10, 2013, meeting was a public meeting. All entities, both
large and small, were able to express views on this issue. Further,
interested persons are invited to submit comments on this interim rule,
including the regulatory and informational impacts of this action on
small businesses.
A small business guide on complying with fruit, vegetable, and
specialty crop marketing agreements and orders may be viewed at: http://www.ams.usda.gov/MarketingOrdersSmallBusinessGuide. Any questions
about the compliance guide should be sent to Jeffrey Smutny at the
previously mentioned address in the FOR FURTHER INFORMATION CONTACT
section.
This interim rule invites comments on the exemption of yellow
fleshed and white types of potatoes from the handling regulations for
the 2014-2015 and subsequent fiscal periods. Any comments received will
be considered prior to finalization of this rule.
After consideration of all relevant material presented, including
the Committee's recommendation, and other information, it is found that
this interim rule, as hereinafter set forth, will tend to effectuate
the declared policy of the Act.
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) Any changes resulting from this rule should be effective
July 1, 2014, because the temporary exemption for Washington yellow
fleshed and white types of potatoes from the handling regulations ends
on June 30, 2014; (2) the Committee discussed and unanimously
recommended these changes at a public meeting, and all interested
parties had an opportunity to provide input; (3) potato handlers are
aware of this action and want to take advantage of this handling
regulation relaxation; 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 946
Marketing agreements, Potatoes, Reporting and recordkeeping
requirements.
For the reasons set forth in the preamble, 7 CFR part 946 is
amended as follows:
PART 946--IRISH POTATOES GROWN IN WASHINGTON
0
1. The authority citation for 7 CFR part 946 continues to read as
follows:
Authority: 7 U.S.C. 601-674.
0
2. The introductory text of Sec. 946.336 is revised to read as
follows:
Sec. 946.336 Handling regulation.
No person shall handle any lot of potatoes unless such potatoes
meet the requirements of paragraphs (a), (b), (c), and (g) of this
section or unless such potatoes are handled in accordance with
paragraphs (d) and (e), or (f) of this section, except that shipments
of the blue or purple flesh varieties of potatoes shall be exempt from
both this handling regulation and the assessment requirements specified
in Sec. 946.41: Provided, That yellow fleshed, white, red, and russet
type potatoes shall be exempt from the requirements of paragraphs (a),
(b), (c), (e), and (g) of this section.
* * * * *
Dated: May 1, 2014.
Rex A. Barnes,
Associate Administrator, Agricultural Marketing Service.
[FR Doc. 2014-10369 Filed 5-6-14; 8:45 am]
BILLING CODE P