Modification of Handling Regulations for Irish Potatoes Grown in Designated Idaho and Eastern Oregon Counties
| Published date | 13 September 2021 |
| Citation | 86 FR 50837 |
| Record Number | 2021-19678 |
| Section | Rules and Regulations |
| Court | Agricultural Marketing Service |
Federal Register, Volume 86 Issue 174 (Monday, September 13, 2021)
[Federal Register Volume 86, Number 174 (Monday, September 13, 2021)]
[Rules and Regulations]
[Pages 50837-50839]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-19678]
========================================================================
Rules and Regulations
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains regulatory documents
having general applicability and legal effect, most of which are keyed
to and codified in the Code of Federal Regulations, which is published
under 50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by the Superintendent of Documents.
========================================================================
Federal Register / Vol. 86, No. 174 / Monday, September 13, 2021 /
Rules and Regulations
[[Page 50837]]
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 945
[Doc. No. AMS-SC-20-0074; SC20-945-1 FR]
Modification of Handling Regulations for Irish Potatoes Grown in
Designated Idaho and Eastern Oregon Counties
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: This final rule revises size requirements for Irish potatoes
grown in certain designated counties of Idaho, and Malheur County,
Oregon. The Idaho-Eastern Oregon Potato Committee (Committee)
recommended this action to improve the handling and marketing of Idaho-
Eastern Oregon potatoes and increase returns to producers.
DATES: Effective October 13, 2021.
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) 326-2054, 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, or
Email: [email protected].
SUPPLEMENTARY INFORMATION: This action, pursuant to 5 U.S.C. 553,
amends regulations issued to carry out a marketing order as defined in
7 CFR 900.2(j). This final 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 945 (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 Order and is comprised
of potato producers and handlers operating within the production area.
The Department of Agriculture (USDA) is issuing this final rule in
conformance with Executive Orders 12866 and 13563. Executive Orders
12866 and 13563 direct agencies to assess all costs and benefits of
available regulatory alternatives and, if regulation is necessary, to
select regulatory approaches that maximize net benefits (including
potential economic, environmental, public health and safety effects,
distributive impacts and equity). Executive Order 13563 emphasizes the
importance of quantifying both costs and benefits, reducing costs,
harmonizing rules, and promoting flexibility. This action falls within
a category of regulatory actions that the Office of Management and
Budget (OMB) exempted from Executive Order 12866 review.
This final rule has been reviewed under Executive Order 13175--
Consultation and Coordination with Indian Tribal Governments, which
requires agencies to consider whether their rulemaking actions would
have tribal implications. The Agricultural Marketing Service (AMS) has
determined that this final rule is unlikely to have substantial direct
effects on one or more Indian tribes, on the relationship between the
Federal Government and Indian tribes, or on the distribution of power
and responsibilities between the Federal Government and Indian tribes.
This final rule has been reviewed under Executive Order 12988,
Civil Justice Reform. This final 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
the entry of the ruling.
Under 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
rule revises provisions of 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 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.
This rule relaxes 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. Revised size requirements are not 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, round types, in
particular. Institutional customers have indicated that they
[[Page 50838]]
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 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 for 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 size requirements to meet needs of potato buyers will
facilitate the growth of the emerging market for small profile, non-
Russet potato varieties. This change is expected to improve the
marketing of Idaho-Eastern Oregon potatoes and enhance overall returns
to handlers and producers.
Final Regulatory Flexibility Analysis
Pursuant to requirements set forth in the Regulatory Flexibility
Act (RFA) (5 U.S.C. 601-612), AMS has considered the economic impact of
this final 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 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 assuming a normal
distribution, most 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, assuming a normal distribution, it has been concluded that
most Idaho-Eastern Oregon potato handlers may be classified as small
entities.
This final rule revises size requirements for non-Russet type
potatoes handled under the Order. Specifically, this action relaxes
size requirements to allow shipment of non-Russet type, U.S. No. 2 or
better grade, Size B potatoes. All other provisions of handling
regulations will remain the same.
This 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 change is expected to improve the
marketability of Idaho-Eastern Oregon potatoes and increase returns to
handlers and producers. Authority for this 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 change to size
requirements is a relaxation in regulation. The regulatory change is
expected to have a neutral to positive economic impact on industry
participants.
The Committee relied on opinions of producers and handlers familiar
with the industry to draw its conclusions regarding the recommended
change in handling regulations. 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 will help them to move what has traditionally been a
difficult size profile to market.
The Committee believes that this change will increase the quantity
of potatoes in the Size B profile that are available to the fresh
market, potentially increasing producer and handler revenues. 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 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 handling regulations. The Committee
also discussed further relaxing 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 alternatives, the Committee believed that changes
contained herein 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. Finally, interested persons were invited to submit comments
on the proposed rule, including regulatory and information-collection
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, Vegetable
and Specialty Crops. No changes are necessary in these requirements as
a result of this action. Should any changes become necessary, they
would be submitted to OMB for approval.
This final rule does not impose any additional reporting or
recordkeeping requirements on either small or large potato handlers. As
with all Federal
[[Page 50839]]
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.
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.
A proposed rule concerning this action was published in the Federal
Register on April 23, 2021 (86 FR 21667). Copies of the proposal were
provided by the Committee to members and handlers. Finally, the
proposed rule was made available through the internet by USDA and the
Office of the Federal Register. A 60-day comment period ending June 22,
2021, was provided to allow interested persons to respond to the
proposal. No comments were received. Accordingly, no changes have been
made to the rule as proposed.
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.
After consideration of all relevant material presented, including
the information and recommendation submitted by the Committee and other
available information, it was found that this rule effectuates the
declared policy of the Act.
List of Subjects in 7 CFR Part 945
Marketing agreements, Potatoes, Reporting and recordkeeping
requirements.
For reasons set forth above, 7 CFR part 945 is amended as follows:
PART 945--IRISH POTATOES GROWN IN CERTAIN DESIGNATED COUNTIES IN
IDAHO, AND MALHEUR COUNTY, OREGON
0
1. The authority citation for part 945 continues to read as follows:
Authority: 7 U.S.C. 601-674.
0
2. 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 requirements of 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. 2021-19678 Filed 9-10-21; 8:45 am]
BILLING CODE P
