[Federal Register Volume 79, Number 143 (Friday, July 25, 2014)]
[Rules and Regulations]
[Pages 43231-43232]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-17505]



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  Federal Register / Vol. 79, No. 143 / Friday, July 25, 2014 / Rules 
and Regulations  

[[Page 43231]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 985

[Doc. No. AMS-FV-14-0027; FV14-985-3 FIR]


Spearmint Oil Produced in the Far West; Decreased Assessment Rate

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 decreased the assessment 
rate established for the Spearmint Oil Administrative Committee 
(Committee) for the 2014-2015 and subsequent marketing years from $0.10 
to $0.09 per pound of spearmint oil handled. The Committee locally 
administers the marketing order which regulates the handling of 
spearmint oil produced in the Far West. The interim rule was necessary 
to allow the Committee to reduce its financial reserve while still 
providing adequate funding to meet program expenses.

DATES: Effective July 28, 2014.

FOR FURTHER INFORMATION CONTACT: Manuel Michel or Gary D. Olson, 
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/AMSv1.0/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 Order 
No. 985 (7 CFR part 985), as amended, regulating the handling of 
spearmint oil grown in the Far West (Washington, Idaho, Oregon, and 
designated parts of Nevada and Utah), 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.
    Under the order, Far West spearmint oil handlers are subject to 
assessments, which provide funds to administer the order. Assessment 
rates issued under the order are intended to be applicable to all 
assessable Far West spearmint oil for the entire fiscal period and 
continue indefinitely until amended, suspended, or terminated. The 
Committee's fiscal period begins on June 1, and ends on May 31.
    In an interim rule published in the Federal Register on April 22, 
2014, and effective on April 23, 2014, (79 FR 22359, Doc. No. AMS-FV-
14-0027, FV11-985-3 IR), Sec.  985.141 was amended by decreasing the 
assessment rate established for Far West spearmint oil for the 2014-
2015 and subsequent marketing years from $0.10 to $0.09 per pound. The 
decrease in the per pound assessment rate allows the Committee to 
reduce its financial reserve while still providing adequate funding to 
meet program expenses.

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 rule 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 eight spearmint oil handlers subject to regulation under 
the order. In addition, there are approximately 39 producers of Scotch 
spearmint oil and approximately 91 producers of Native spearmint oil in 
the regulated production area. Small agricultural service firms are 
defined by the Small Business Administration (SBA) 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).
    Based on the SBA's definition of small entities, the Committee 
estimates that two of the eight handlers regulated by the order could 
be considered small entities. Most of the handlers are large 
corporations involved in the international trading of essential oils 
and the products of essential oils. In addition, the Committee 
estimates that 22 of the 39 Scotch spearmint oil producers, and 29 of 
the 91 Native spearmint oil producers, could be classified as small 
entities under the SBA definition. Thus, a majority of handlers and 
producers of Far West spearmint oil may not be classified as small 
entities.
    The Far West spearmint oil industry is characterized by producers 
whose farming operations generally involve more than one commodity, and 
whose income from farming operations is not exclusively dependent on 
the production of spearmint oil. A typical spearmint oil-producing 
operation has enough acreage for rotation such that the total acreage 
required to produce the crop is about one-third spearmint and two-
thirds rotational crops. Thus, the typical spearmint oil producer has 
to have considerably more acreage than is planted to spearmint during 
any given season. Crop rotation is an essential cultural practice in 
the production of spearmint oil for purposes of weed, insect, and 
disease control. To remain economically viable with the added costs 
associated with spearmint oil production, a majority of spearmint oil-
producing farms fall into the SBA category of large businesses.

[[Page 43232]]

    This rule continues in effect the action that decreased the 
assessment rate established for the Committee and collected from 
handlers for the 2014-2015 and subsequent marketing years from $0.10 to 
$0.09 per pound of spearmint oil handled. The Committee unanimously 
recommended 2014-2015 expenditures of $266,400 and an assessment rate 
of $0.09. The assessment rate of $0.09 is $0.01 lower than the rate 
previously in effect. The quantity of assessable spearmint oil for the 
2014-15 marketing year is estimated at 2,500,000 pounds. Thus, the 
$0.09 rate should provide $225,000 in assessment income. Income derived 
from handler assessments, along with interest income and funds from the 
Committee's monetary reserve will be adequate to cover the budgeted 
expenses. This action will allow the Committee to reduce its financial 
reserve while still providing adequate funding to meet program 
expenses.
    This rule continues in effect the action that decreased the 
assessment obligation imposed on handlers. Assessments are applied 
uniformly on all handlers, and some of the costs may be passed on to 
producers. However, decreasing the assessment rate reduces the burden 
on handlers, and may reduce the burden on producers.
    Additionally, the Committee's meeting was widely publicized 
throughout the Far West spearmint oil industry and all interested 
persons were invited to attend the meeting and participate in Committee 
deliberations on all issues. Like all Committee meetings, the February 
19, 2014, meeting was a public meeting and all entities, both large and 
small, were able to express views on this issue.
    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, Vegetable and Specialty Crops. No changes 
in those requirements as a result of this action are anticipated. 
Should any changes become necessary, they would be submitted to OMB for 
approval.
    This action imposes no additional reporting or recordkeeping 
requirements on either small or large Far West spearmint oil 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.
    USDA has not identified any relevant Federal rules that duplicate, 
overlap, or conflict with this rule.
    Comments on the interim rule were required to be received on or 
before June 23, 2014. 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-14-0027-0001.
    This action also affirms information contained in the interim rule 
concerning Executive Orders 12866, 13563, 12988, and 13175; 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, including 
the information and recommendation submitted by the Committee and other 
available information, it is found that finalizing the interim rule, 
without change, as published in the Federal Register (79 FR 22359, 
April 22, 2014) will tend to effectuate the declared policy of the Act.

List of Subjects in 7 CFR Part 985

    Marketing agreements, Oils and fats, Reporting and recordkeeping 
requirements, Spearmint oil.

PART 985--MARKETING ORDER REGULATING THE HANDLING OF SPEARMINT OIL 
PRODUCED IN THE FAR WEST

0
Accordingly, the interim rule amending 7 CFR part 985, which was 
published at 79 FR 22359 on April 22, 2014, is adopted as a final rule, 
without change.

    Dated: July 21, 2014.
Rex A. Barnes,
Associate Administrator, Agricultural Marketing Service.
[FR Doc. 2014-17505 Filed 7-24-14; 8:45 am]
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