[Federal Register Volume 79, Number 218 (Wednesday, November 12, 2014)]
[Rules and Regulations]
[Pages 67039-67041]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-26679]


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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 945

[Doc. No. AMS-FV-14-0046; FV14-945-2 FIR]


Irish Potatoes Grown in Certain Designated Counties in Idaho, and 
Malheur County, Oregon; Modification of Container Requirements

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 container 
requirements prescribed under the Idaho-Eastern Oregon potato marketing 
order. The interim rule removed the requirement that fiberboard cartons 
used to pack 50-pound quantities of U.S. No. 2 grade potatoes be of 
one-piece construction. This change is in response to market demands 
and provides handlers flexibility in shipping U.S. No. 2 grade 
potatoes. In addition, this rule corrected a citation reference in the 
handling regulations.

DATES: Effective November 13, 2014.

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

[[Page 67040]]

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. 98 and Marketing Order No. 945, both as amended (7 CFR 
part 945), regulating the handling of Irish potatoes grown in certain 
designated counties in Idaho, and Malheur County, Oregon, 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 USDA is issuing this rule in conformance with Executive Orders 
12866, 13563, and 13175.
    The handling of Irish potatoes grown in certain designated counties 
in Idaho, and Malheur County, Oregon is regulated by 7 CFR part 945. 
Prior to this change, handlers could only pack 50-pound quantities of 
U.S. No. 2 grade potatoes in a one-piece fiberboard carton. These one-
piece cartons were often damaged in transit and were more expensive to 
purchase. Therefore, this rule continues in effect the rule that 
removed the container requirement that fiberboard cartons used to pack 
50-pound quantities of U.S. No. 2 grade potatoes be of one-piece 
construction. Additionally, this rule corrected a citation reference in 
the order's handling regulations.
    In an interim rule published in the Federal Register on August 6, 
2014, and effective on August 7, 2014, (79 FR 45673, Doc. No. AMS-FV-
14-0046, FV14-945-2 IR), Sec.  945.341(c)(2)(ii) was amended by 
removing the word ``one-piece'' and Sec.  945.341(b)(3)(i) and (ii) 
were amended by replacing the reference ``(b)(4)(iii)'' with the 
reference ``(b)(3)(iii)''.

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 450 producers of potatoes in the production 
area and approximately 32 handlers subject to regulation under the 
marketing order. Small agricultural producers are defined by the Small 
Business Administration (SBA) as those having annual receipts of less 
than $750,000, and small agricultural service firms are defined as 
those whose annual receipts are less than $7,000,000 (13 CFR 121.201).
    During the 2012-2013 fiscal period, the most recent for which 
statistics are available, 35,148,900 hundredweight of Idaho-Eastern 
Oregon potatoes were inspected under the order and sold into the fresh 
market. Based on information provided by the National Agricultural 
Statistics Service, the average producer price for the 2012 Idaho 
potato crop was $5.30 per hundredweight. Multiplying $5.30 by the 
shipment quantity of 35,148,900 hundredweight yields an annual crop 
revenue estimate of $186,289,170. The average annual fresh potato 
revenue for each of the 450 producers is therefore calculated to be 
$413,396 ($186,289,170 divided by 450), which is less than the SBA 
threshold of $750,000. Consequently, on average almost all of the 
Idaho-Eastern Oregon potato producers may be classified as small 
entities.
    In addition, based on information reported by USDA's Market News 
Service, the average f.o.b. shipping point price for the 2012 Idaho 
potato crop was $5.87 per hundredweight. Multiplying $5.87 by the 
shipment quantity of 35,148,900 hundredweight yields an annual crop 
revenue estimate of $206,324,043. The average annual fresh potato 
revenue for each of the 32 handlers is therefore calculated to be 
$6,447,626 ($206,324,043 divided by 32), which is less than the SBA 
threshold of $7,000,000. Consequently, on average most all of the 
Idaho-Eastern Oregon potato handlers may be classified as small 
entities.
    This rule continues in effect the action that relaxed the container 
requirements to allow handlers to ship U.S. No. 2 grade potatoes in any 
type of 50-pound fiberboard cartons of natural kraft color, provided 
the cartons are permanently and conspicuously marked as to grade. This 
will enable handlers to respond to market demands and provide greater 
flexibility in shipping U.S. No. 2 grade potatoes. In addition, this 
rule makes changes to the order's handling regulations to correct a 
citation reference.
    The authority for the establishment of pack and marking 
requirements is provided in Sec.  945.52 of the order. Section 
945.341(c) of the order's administrative rules prescribes the pack and 
marking requirements for domestic and export shipments of potatoes.
    This action is expected to increase shipments of U.S. No. 2 
potatoes to the food service industry and help the Idaho-Eastern Oregon 
potato industry benefit from the recent increased growth in demand from 
the food service industry sector. The benefits of this rule are not 
expected to be disproportionately greater or lesser for small entities 
than large entities.
    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. 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 Idaho-Eastern Oregon potato industry and all interested persons 
were invited to attend the meeting and participate in Committee 
deliberations. Like all Committee meetings, the April 22, 2014, 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 October 6, 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-14-0046-0001.
    This action also affirms information contained in the interim rule 
concerning Executive Orders 12866, 12988, 13175, and 13563; 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

[[Page 67041]]

finalizing the interim rule, without change, as published in the 
Federal Register (79 FR 45673, August 6, 2014) will tend to effectuate 
the declared policy of the Act.

List of Subjects in 7 CFR Part 945

    Marketing agreements, Potatoes, Reporting and recordkeeping 
requirements.

0
Accordingly, the interim rule that amended 7 CFR part 945 and that was 
published at 79 FR 45673 on August 6, 2014, is adopted as a final rule, 
without change.

    Dated: November 5, 2014.
Rex A. Barnes,
Associate Administrator, Agricultural Marketing Service.
[FR Doc. 2014-26679 Filed 11-10-14; 8:45 am]
BILLING CODE 3410-02-P