Spearmint Oil Produced in the Far West; Revision of the Salable Quantity and Allotment Percentage for Class 3 (Native) Spearmint Oil for the 1995-96 Marketing Year

DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 985

[FV95-985-3IFR]

Spearmint Oil Produced in the Far West; Revision of the Salable

Quantity and Allotment Percentage for Class 3 (Native) Spearmint Oil

for the 1995-96 Marketing Year

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Interim final rule with request for comments.

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SUMMARY: This interim final rule increases the quantity of Class 3

(Native) spearmint oil produced in the Far West that handlers may

purchase from, or handle for, producers during the 1995-96 marketing

year. This rule was recommended by the Spearmint Oil Administrative

Committee (Committee), the agency responsible for local administration

of the marketing order for spearmint oil produced in the Far West. The

Committee recommended this rule to avoid extreme fluctuations in

supplies and prices and thus help to maintain stability in the Far West

spearmint oil market.

DATES: Effective on April 14, 1995; comments received by May 15, 1995

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 in triplicate to the Docket

Clerk, Fruit and Vegetable Division, AMS, USDA, room 2525, South

Building, P.O. Box 96456, Washington, DC 20090-6456; Fax: (202) 720-

5698. All comments should reference the docket 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.

FOR FURTHER INFORMATION CONTACT: Robert J. Curry, Northwest Marketing

Field Office, Marketing Order Administration Branch, Fruit and

Vegetable Division, AMS, USDA, 1220 SW. Third Avenue, room 369,

Portland, Oregon 97204-2807; telephone: (503) 326-2724; or Caroline C.

Thorpe, Marketing Order Administration Branch, Fruit and Vegetable

Division, AMS, USDA, room 2525, South Building, P.O. Box 96456,

Washington, DC 20090-6456; telephone: (202) 720-8139.

SUPPLEMENTARY INFORMATION: This rule is issued under Marketing Order

No. 985 (7 CFR Part 985), regulating the handling of spearmint oil

produced in the Far West (Washington, Idaho, Oregon, and designated

parts of California, Nevada, Montana, and Utah), hereinafter referred

to as the ``order.'' This 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 (Department) is issuing this rule in

conformance with Executive Order 12866.

This rule has been reviewed under Executive Order 12778, Civil

Justice Reform. Under the provisions of the marketing order now in

effect, salable quantities and allotment percentages may be established

for classes of spearmint oil produced in the Far West. This rule

increases the quantity of Class 3 spearmint oil produced in the Far

West that may be purchased from or handled for producers by handlers

during the 1995-96 marketing year, which ends on May 31, 1996. This

rule will not preempt any state or local laws, regulations, or

policies, unless they present an irreconcilable conflict with this

rule.

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 the Secretary 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 the Secretary 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 in equity to review the

Secretary's ruling on the petition, provided a bill in equity is filed

not later than 20 days after date of the entry of the ruling.

Pursuant to requirements set forth in the Regulatory Flexibility

Act (RFA), the Administrator of the Agricultural Marketing Service

(AMS) has considered the economic impact of this action on small

entities.

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 rules issued thereunder, are unique in that

they are brought about through group action of essentially

[[Page 18951]] small entities acting on their own behalf. Thus, both

statutes have small entity orientation and compatibility.

There are eight spearmint oil handlers subject to regulation under

the order and approximately 260 producers of spearmint oil in the

regulated production area. Of the 260 producers, approximately 160

producers hold Class 1 (Scotch) spearmint oil allotment base, and

approximately 145 producers hold Class 3 (Native) spearmint oil

allotment base. Small agricultural service firms have been defined by

the Small Business Administration (13 CFR 121.601) as those having

annual receipts of less than $5,000,000, and small agricultural

producers are defined as those whose annual receipts are less than

$500,000. A minority of handlers and producers of Far West spearmint

oil may 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 are not exclusively dependent on

the production of spearmint oil. The U.S. production of spearmint oil

is concentrated in the Far West, primarily Washington, Idaho, and

Oregon (part of the area covered by the order). Spearmint oil is also

produced in the Midwest. The production area covered by the order

normally accounts for approximately 75 percent of the annual U.S.

production of spearmint oil.

This rule increases the quantity of Native spearmint oil that

handlers may purchase from, or handle for, producers during the 1995-96

marketing year, which ends on May 31, 1996. This rule increases the

salable quantity from 906,449 pounds to 1,004,976 pounds and the

allotment percentage from 46 percent to 51 percent for Native spearmint

oil for the 1995-96 marketing year.

The salable quantity is the total quantity of each class of oil

that handlers may purchase from, or handle for, producers during a

marketing year. The salable quantity calculated by the Committee is

based on the estimated trade demand. The total salable quantity is

divided by the total industry allotment base to determine an allotment

percentage. Each producer is allotted a share of the salable quantity

by applying the allotment percentage to the producer's allotment base

for the applicable class of spearmint oil.

The initial salable quantity and allotment percentages for Scotch

and Native spearmint oils for the 1995-96 marketing year were

recommended by the Committee at its October 5, 1994, meeting. The

Committee recommended salable quantities of 908,531 pounds and 906,449

pounds, and allotment percentages of 51 percent and 46 percent,

respectively, for Scotch and Native spearmint oils. A proposed rule was

published in the December 15, 1994, issue of the Federal Register (59

FR 64625). Comments on the proposed rule were solicited from interested

persons until January 17, 1995. No comments were received. Accordingly,

based upon analysis of available information, a final rule establishing

the Committee's recommendation as the salable quantities and allotment

percentages for Scotch and Native spearmint oils for the 1995-96

marketing year was published in the February 15, 1995, issue of the

Federal Register (60 FR 8524).

Pursuant to authority contained in Secs. 985.50, 985.51, and 985.52

of the order, at its February 22, 1995, meeting, the Committee

recommended, with one member voting in opposition, that the salable

quantity for Native spearmint oil for the 1995-96 marketing year be

increased from 906,449 pounds to 1,004,976 pounds. The member voting in

opposition did not favor an increase in the salable quantity and

allotment percentage because he believed it was too early to determine

what the market conditions will be during the 1995-96 marketing year.

Based on the total allotment base of 1,970,542 pounds, the allotment

percentage for Native spearmint oil is increased from 46 percent to 51

percent, resulting in a 98,527 pound increase in the salable quantity.

Native Spearmint Oil Recommendations

(1) Salable Quantity

October 5, 1994

906,449 pounds

February 22, 1995

1,004,976 pounds

(2) Allotment Base

October 5, 1994

1,970,542 pounds

February 22, 1995

1,970,542 pounds

(3) Allotment Percentage

October 5, 1994

46 percent

February 22, 1995

51 percent

In making this latest recommendation, the Committee considered all

available information on supply and demand. The 1995-96 marketing year

begins on June 1, 1995. Handlers have indicated that the available

supply of Scotch spearmint oil appears adequate to meet anticipated

demand through May 31, 1996. Handlers have indicated, however, that

demand for Native spearmint oil is currently fairly strong and

anticipate that this trend will likely continue into the next marketing

year. Based upon this strengthening demand, as well as historical data

that indicates the annual average of sales for the last eight years is

1,006,512 pounds, the Committee believes that an increase in the

salable quantity to 1,004,976 pounds is necessary to meet anticipated

demand. This level of demand was not anticipated by the Committee when

it made its initial recommendation for the establishment of the Native

spearmint oil salable quantity and allotment percentage for the 1995-96

marketing year.

The recommended salable quantity of 1,004,976 pounds of Native

spearmint oil (an increase of 98,527 pounds), combined with a revised

estimated carry-in of 100,000 pounds on June 1, 1995, results in a

revised 1995-96 estimated available supply of 1,104,976 pounds. Thus,

the revised estimate for the 1995-96 marketing year Native spearmint

oil available supply is approximately 100,000 pounds higher than the

annual average of sales for the past eight years. With this revision,

the Committee anticipates that demand for Native spearmint oil during

the 1995-96 marketing year will be adequately met.

The Department, based on its analysis of available information, has

determined that an allotment percentage of 51 percent should be

established for Native spearmint oil for the 1995-96 marketing year.

This percentage will provide an increased salable quantity of 1,004,976

pounds of Native spearmint oil.

Based on available information, the Administrator of the AMS has

determined that the issuance of this interim final rule will not have a

significant economic impact on a substantial number of small entities.

After consideration of all relevant matter presented, including

that contained in the prior proposed and final rules in connection with

the establishment of the salable quantities and allotment percentages

for Scotch and Native spearmint oils for the 1995-96 marketing year,

the Committee's recommendation and other available information, it is

found that to revise Sec. 985.214 (60 FR 8524) to change the salable

quantity and allotment percentage for Native spearmint oil, 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 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) This interim final rule increases the quantity of Native

spearmint oil that may be marketed during the marketing year beginning

on June 1, 1995; (2) The quantity of Native [[Page 18952]] spearmint

planted for the 1995-96 marketing year may be affected, thus handlers

and producers should be apprised as soon as possible of the salable

quantity and allotment percentage of Native spearmint oil contained in

this interim final rule; and (3) This rule provides a 30-day comment

period and any comments received will be considered prior to

finalization of this rule.

List of Subjects in 7 CFR Part 985

Marketing agreements, Oils and fats, Reporting and recordkeeping

requirements, Spearmint oil.

For the reasons set forth in the preamble, 7 CFR part 985 is

amended as follows:

PART 985--SPEARMINT OIL PRODUCED IN THE FAR WEST

1. The authority citation for 7 CFR part 985 continues to read as

follows:

Authority: 7 U.S.C. 601-674.

2. Sec. 985.214 is amended by revising the introductory text and

paragraph (b) to read as follows:

Note: This section will not appear in the annual Code of Federal

Regulations.

Sec. 985.214 Salable quantities and allotment percentages--1995-96

marketing year.

The salable quantity and allotment percentage for each class of

spearmint oil during the marketing year beginning on June 1, 1995,

shall be as follows:

* * * * *

(b) Class 3 (Native) oil--a salable quantity of 1,004,976 pounds

and an allotment percentage of 51 percent.

Dated: April 7, 1995.

Sharon Bomer Lauritsen,

Deputy Director, Fruit and Vegetable Division.

[FR Doc. 95-9294 Filed 4-13-95; 8:45 am]

BILLING CODE 3410-02-P