[Federal Register Volume 86, Number 77 (Friday, April 23, 2021)]
[Proposed Rules]
[Pages 21667-21669]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-08408]
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Proposed Rules
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains notices to the public of
the proposed issuance of rules and regulations. The purpose of these
notices is to give interested persons an opportunity to participate in
the rule making prior to the adoption of the final rules.
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Federal Register / Vol. 86, No. 77 / Friday, April 23, 2021 /
Proposed Rules
[[Page 21667]]
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 945
[Doc. No. AMS-SC-20-0074; SC20-945-1 PR]
Irish Potatoes Grown in Certain Designated Counties in Idaho, and
Malheur County, Oregon; Modification of Handling Regulations
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Proposed rule.
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SUMMARY: This proposed rule invites comments on a recommendation from
the Idaho-Eastern Oregon Potato Committee (Committee) to revise the
size requirements for Irish potatoes grown in certain designated
counties of Idaho, and Malheur County, Oregon. The Committee
recommended this action to improve the handling and marketing of Idaho-
Eastern Oregon potatoes and increase returns to producers.
DATES: Comments must be received by June 22, 2021.
ADDRESSES: Interested persons are invited to submit written comments
concerning this proposed rule. Comments must be sent to the Docket
Clerk, Marketing Order and Agreement Division, Specialty Crops Program,
AMS, USDA, 1400 Independence Avenue SW, STOP 0237, Washington, DC
20250-0237; Fax: (202) 720-8938; or internet: https://www.regulations.gov. Comments should reference the document number and
the date and page number of this issue of the Federal Register and will
be available for public inspection in the Office of the Docket Clerk
during regular business hours or can be viewed at https://www.regulations.gov. All comments submitted in response to this
proposed 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 the comments will be made public on the internet
at the address provided above.
FOR FURTHER INFORMATION CONTACT: Gregory A. Breasher, Marketing
Specialist, or Gary D. Olson, Regional Manager, Northwest Marketing
Field Office, Marketing Order and Agreement Division, Specialty Crops
Program, AMS, USDA; Telephone: (503) 326-20544, Fax: (503) 326-7440, or
email: [email protected] or [email protected].
Small businesses may request information on complying with this
regulation by contacting Richard Lower, Marketing Order and Agreement
Division, Specialty Crops 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 action, pursuant to 5 U.S.C. 553,
proposes an amendment to regulations issued to carry out a marketing
order as defined in 7 CFR 900.2(j). This proposed rule is issued under
Marketing Agreement 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. Part 985
(referred to as 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 Committee locally
administers the Marketing Order and is comprised of potato producers
and handlers operating within the production area.
The Department of Agriculture (USDA) is issuing this proposed rule
in conformance with Executive Orders 13563 and 13175. This action falls
within a category of regulatory actions that the Office of Management
and Budget (OMB) exempted from Executive Order 12866 review.
This proposed rule has been reviewed under Executive Order 12988,
Civil Justice Reform. This action 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
the entry of the ruling.
Under the terms of the Order, fresh market shipments of Idaho-
Eastern Oregon potatoes are required to be inspected and are subject to
minimum grade, size, quality, maturity, pack, and container
requirements. This proposed rule invites comments on revising certain
provisions of the previously established size requirements for potatoes
handled under the Order.
At its meeting on August 6, 2020, the Committee unanimously
recommended revising the Order's size requirements to allow shipment of
Size B, U.S. No. 2 or better grade, non-Russet type potatoes. Sections
945.51 and 945.52 of the Order provide authority for the establishment
and modification of grade, size, quality, and maturity regulations
applicable to the handling of potatoes.
Section 945.341 of the Order establishes minimum grade, size,
quality, maturity, pack, and container requirements for potatoes
handled subject to the Order. The Order's handling regulations
currently require that U.S. No. 2 or better grade, non-Russet type
potatoes meet a minimum size of 1 \7/8\ inches diameter, unless
otherwise specified on the container in connection with the grade.
Additionally, all varieties of potatoes that meet the requirements of
the U.S. No. 1 grade or better may be Size B (1\1/2\ to 2\1/4\ inches)
or Creamer (\3/4\ to 1\5/8\ inches) size.
If implemented, this proposed rule would relax the size
requirements to allow handlers to ship Size B (1\1/2\ to 2\1/4\
inches), U.S. No. 2 or better grade, non-Russet variety potatoes. The
revised size requirements would not be applicable to Russet type
potatoes.
Committee members reported that the Idaho-Eastern Oregon potato
industry has been producing and shipping an increasing number of non-
Russet potato varieties--yellow and red skinned,
[[Page 21668]]
round types, in particular. Institutional customers have indicated that
they would like to purchase more of these potatoes, especially in the
smaller size profiles like Size B. Currently, Size B potatoes of all
varieties are required to meet the requirements of the U.S. No. 1 grade
or better. The Committee believes that this requirement is too
restrictive for non-Russet type potatoes and that market demand exists
for Size B, non-Russet type potatoes in the U.S. No. 2 or better grade.
The Committee believes that potato size is a significant
consideration of potato buyers. Providing potato buyers with the size
and grade of potato desired by their customers is important to
promoting potato sales. The Committee believes that size requirements
intended to facilitate orderly marketing should not unintentionally
inhibit a market segment, even if that segment is a minor one.
Modifying the size requirements to meet the intent of the Committee
would facilitate the growth of the emerging market for small profile,
non-Russet potato varieties. This proposed change is expected to
improve the marketing of Idaho-Eastern Oregon potatoes and enhance
overall returns to handlers and producers.
Initial Regulatory Flexibility Analysis
Pursuant to the 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 proposed rule
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. Import
regulations issued under the Act are based on those established under
Federal marketing orders.
There are approximately 32 handlers of Idaho-Eastern Oregon
potatoes who are subject to regulation under the Order and about 450
potato producers in the regulated area. Small agricultural service
firms, which include potato handlers, are defined by the Small Business
Administration (SBA) as those having annual receipts of less than
$30,000,000, and small agricultural producers are defined as those
whose annual receipts are less than $1,000,000 (13 CFR 121.201).
During the 2019-2020 fiscal period, the most recent full year of
statistics available, 34,306,700 hundredweight of Idaho-Eastern Oregon
potatoes were inspected as required by the Order and sold into the
fresh market. Based on information provided by the National
Agricultural Statistics Service (NASS), the average producer price for
the 2019 Idaho potato crop (the most recent full marketing year
recorded) was $8.41 per hundredweight. Multiplying $8.41 by the
shipment quantity of 34,306,700 hundredweight yields an annual crop
revenue estimate of $288,519,347. The average annual fresh potato
revenue for each of the 450 producers is therefore calculated to be
$641,154 ($288,519,347 divided by 450), which is less than the SBA
threshold of $1,000,000. Consequently, on average and given a normal,
bell curve distribution, most 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 (Market News), the average Free on Board shipping point price
for the 2019-2020 Idaho potato crop was $11.90 per hundredweight.
Multiplying $11.90 by the shipment quantity of 34,306,700 hundredweight
yields an annual crop revenue estimate of $408,249,730. The average
annual fresh potato revenue for each of the 32 handlers is therefore
calculated to be $12,757,804 ($408,249,730 divided by 32), which is
below the SBA threshold of $30,000,000 for agricultural service firms.
Therefore, according to a normal bell curve distribution, it can be
concluded that most of the Idaho-Eastern Oregon potato handlers may be
classified as small entities.
This proposed rule would revise the size requirements for non-
Russet type potatoes handled under the Order. Specifically, this action
would relax the size requirements to allow shipment of non-Russet type,
U.S. No. 2 or better grade, Size B potatoes. All other provisions of
the handling regulations would remain the same.
This proposed action was recommended by the Committee to ensure
that consumers are able to purchase the size and grade of potatoes that
they prefer and are familiar with. This proposed change is expected to
improve the marketability of Idaho-Eastern Oregon potatoes and increase
returns to handlers and producers. Authority for this proposed rule is
provided in Sec. Sec. 945.51 and 945.52 of the Order.
At the August 6, 2020, meeting, the Committee discussed the impact
of this change on handlers and producers. The proposed change to the
size requirements is a relaxation in regulation. The proposed
regulatory change is expected to have a positive, or neutral, economic
impact on industry participants.
The Committee relied on the opinions of producers and handlers
familiar with the industry to draw its conclusions regarding the
recommended handling regulation change. The Committee received
anecdotal evidence from industry members at the August 6, 2020, meeting
that customers were already familiar with the Size B potato profile and
the U.S. No. 2 grade standards. Allowing industry members to pack and
ship such potatoes would help them to move what has traditionally been
a difficult size profile to market.
The Committee believes that this change would increase the quantity
of potatoes in the Size B profile that are available to the fresh
market, potentially increasing producer, and handler revenue. The
benefits derived from this rule change are not expected to be
disproportionately more or less for small handlers or producers than
for larger entities.
The Committee discussed alternatives to this proposed change. One
consideration was making no change at all to the current requirements.
Another alternative was to further differentiate between various
varieties and types of potatoes in the handling regulations. The
Committee also discussed further relaxing the handling regulations to
allow shipment of U.S. No. 2 or better grade, Creamer size, non-Russet
type potatoes in addition to its recommendation for Size B potatoes.
After consideration of all the alternatives, the Committee believed
that the proposed changes contained herein would provide the greatest
benefit to producers and handlers while maintaining the integrity of
the Order.
The Committee's meeting was widely publicized throughout the potato
industry, and all interested persons were invited to attend the meeting
and participate in Committee deliberations. Like all Committee
meetings, the August 6, 2020, meeting was a public meeting and all
entities, both large and small, were able to express their views on
this issue. Interested persons are invited to submit comments on this
proposed rule, including the regulatory and informational impacts of
this action on small businesses.
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 OMB and assigned OMB No. 0581-0178,
[[Page 21669]]
Vegetable and Specialty Crops. No changes are necessary in those
requirements as a result of this action. Should any changes become
necessary, they would be submitted to OMB for approval.
This proposed rule would 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. USDA has not
identified any relevant Federal rules that duplicate, overlap, or
conflict with this proposed rule.
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.
A small business guide on complying with fruit, vegetable, and
specialty crop marketing agreements and orders may be viewed at:
https://www.ams.usda.gov/rules-regulations/moa/small-businesses. Any
questions about the compliance guide should be sent to Richard Lower at
the previously mentioned address in the FOR FURTHER INFORMATION CONTACT
section.
A 60-day comment period is provided to allow interested persons to
respond to this proposal. All written comments timely received will be
considered before a final determination is made on this matter.
List of Subjects in 7 CFR Part 945
Marketing agreements, Potatoes, Reporting and recordkeeping
requirements.
For the reasons set forth above, AMS proposes to amend 7 CFR part
945 as follows:
PART 945--IRISH POTATOES GROWN IN CERTAIN DESIGNATED COUNTIES IN
IDAHO, AND MALHEUR COUNTY, OREGON
0
1. The authority citation for 7 CFR part 945 continues to read as
follows:
Authority: 7 U.S.C. 601-674.
0
1. In Sec. 945.341, revise paragraphs (a)(2)(i) through (iii) to read
as follows:
Sec. 945.341 Handling regulation.
* * * * *
(a) * * *
(2) * * *
(i) All varieties, except Russet types.
(A) 1\7/8\ inches minimum diameter, unless otherwise specified on
the container in connection with the grade.
(B) Size B (1\1/2\ to 2\1/4\ inches diameter).
(ii) Russet types.
(A) 2 inches minimum diameter, or 4 ounces minimum weight:
Provided, That at least 40 percent of the potatoes in each lot shall be
5 ounces or heavier.
(B) Size B (1\1/2\ to 2\1/4\ inches diameter), if the potatoes
otherwise meet the requirements of the U.S. No. 1 grade or better.
(iii) All varieties, U.S. No. 1 grade or better. Creamer (\3/4\ to
1\5/8\ inches diameter).
* * * * *
Erin Morris,
Associate Administrator, Agricultural Marketing Service.
[FR Doc. 2021-08408 Filed 4-22-21; 8:45 am]
BILLING CODE 3410-02-P