81_FR_85335 81 FR 85108 - Irish Potatoes Grown in Colorado; Modification of the Handling Regulation for Area No. 2

81 FR 85108 - Irish Potatoes Grown in Colorado; Modification of the Handling Regulation for Area No. 2

DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service

Federal Register Volume 81, Issue 227 (November 25, 2016)

Page Range85108-85110
FR Document2016-28252

This rule implements a recommendation from the Colorado Potato Administrative Committee, Area No. 2 (Committee) to revise the grade requirement currently prescribed for 1\1/2\-inch minimum to 2\1/4\-inch maximum diameter (Size B) potatoes under the Colorado potato marketing order (order). The Committee locally administers the order and is comprised of producers and handlers of potatoes operating within the area of production. This rule relaxes the current minimum grade requirement for Size B red potatoes from U.S. Commercial grade or better to U.S. No. 2 grade or better. Relaxing this grade requirement will allow area handlers to supply new markets with U.S. No. 2 grade Size B red potatoes and is expected to benefit producers, handlers, and consumers.

Federal Register, Volume 81 Issue 227 (Friday, November 25, 2016)
[Federal Register Volume 81, Number 227 (Friday, November 25, 2016)]
[Rules and Regulations]
[Pages 85108-85110]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-28252]


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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 948

[Doc. No. AMS-SC-16-0042; SC16-948-1 FR]


Irish Potatoes Grown in Colorado; Modification of the Handling 
Regulation for Area No. 2

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: This rule implements a recommendation from the Colorado Potato 
Administrative Committee, Area No. 2 (Committee) to revise the grade 
requirement currently prescribed for 1\1/2\-inch minimum to 2\1/4\-inch 
maximum diameter (Size B) potatoes under the Colorado potato marketing 
order (order). The Committee locally administers the order and is 
comprised of producers and handlers of potatoes operating within the 
area of production. This rule relaxes the current minimum grade 
requirement for Size B red potatoes from U.S. Commercial grade or 
better to U.S. No. 2 grade or better. Relaxing this grade requirement 
will allow area handlers to supply new markets with U.S. No. 2 grade 
Size B red potatoes and is expected to benefit producers, handlers, and 
consumers.

DATES: Effective November 28, 2016.

FOR FURTHER INFORMATION CONTACT: Sue Coleman, Marketing Specialist, or 
Gary D. Olson, Regional Director, Northwest Marketing Field Office, 
Marketing Order and Agreement Division, Specialty Crops Program, AMS, 
USDA; Telephone: (503) 326-2724, 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 final rule is issued under Marketing 
Agreement No. 97 and Marketing Order No. 948, both as amended (7 CFR 
part 948), regulating the handling of Irish potatoes grown in Colorado, 
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.''

[[Page 85109]]

    The Department of Agriculture (USDA) is issuing this rule in 
conformance with Executive Orders 12866, 13563, and 13175.
    This final rule has been reviewed under Executive Order 12988, 
Civil Justice Reform. This 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.
    This final rule revises the grade requirement currently prescribed 
for Size B potatoes under the order. This rule relaxes the current 
minimum grade requirement for Size B red potatoes from U.S. Commercial 
grade to U.S. No. 2 grade. This change was unanimously recommended by 
the Committee at a meeting held on March 17, 2016.
    Section 948.22 of the order authorizes the issuance of grade, size, 
quality, maturity, pack, and container regulations for potatoes grown 
in the order's production area. Section 948.21 authorizes the 
modification, suspension, or termination of regulations issued pursuant 
to Sec.  948.22.
    Under the Colorado potato marketing order, the State of Colorado is 
divided into three areas of regulation for marketing order purposes. 
These include: Area 1, commonly known as the Western Slope; Area 2, 
commonly known as San Luis Valley; and Area 3, which consists of the 
remaining producing areas within the State of Colorado not included in 
the definitions of Area 1 or Area 2. Currently, the order only 
regulates the handling of potatoes produced in Area 2 and Area 3. 
Regulation for Area 1 has been suspended.
    The grade, size, and maturity requirements specific to the handling 
of potatoes grown in Area 2 are contained in Sec.  948.386 of the 
order. The current handling regulation requires that, for all 
varieties, Size B potatoes (1\1/2\-inch minimum to 2\1/4\-inch maximum 
diameter, as designated in the U.S. Standards for Grades of Potatoes) 
may be handled under the order, if such potatoes meet or exceed the 
requirements of the U.S. Commercial grade.
    At the March 17, 2016, Committee meeting, industry participants 
indicated to the Committee that there is demand in several markets, 
including the food service market, for Size B, U.S. No. 2 grade red 
potatoes. They further stated that the order's current grade 
requirement for Size B potatoes (U.S. Commercial grade or better) 
precludes handlers from supplying this growing and profitable market. 
Relaxing the grade requirement for Size B red potatoes will allow area 
handlers to compete with other domestic potato producing regions. This 
change will effectively lower the allowable grade for red varieties of 
Size B potatoes from U.S. Commercial grade or better to U.S. No. 2 
grade or better.
    Relaxing the grade requirement to allow shipments of U.S. No. 2 
grade Size B red potatoes should make more potatoes available to 
consumers and should allow Area 2 handlers to move more of the area's 
potato production into the fresh market. This change is expected to 
benefit producers, handlers, and consumers of potatoes.

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 
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.
    There are approximately 66 handlers of Colorado Area No. 2 potatoes 
subject to regulation under the order and approximately 150 producers 
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 $7,500,000, and small agricultural 
producers are defined as those having annual receipts of less than 
$750,000 (13 CFR 121.201).
    During the 2014-2015 marketing year, the most recent full marketing 
year for which statistics are available, 14,075,876 hundredweight of 
Colorado Area No. 2 potatoes were inspected under the order and sold 
into the fresh market. Based on information reported by USDA's Market 
News Service, the average f.o.b. shipping point price for the 2014-2015 
Colorado potato crop was $8.60 per hundredweight. Multiplying $8.60 by 
the shipment quantity of 14,075,876 hundredweight yields an annual crop 
revenue estimate of $121,052,534. The average annual fresh potato 
revenue for each of the 66 handlers is therefore calculated to be 
$1,834,129 ($121,052,534 divided by 66), which is less than the SBA 
threshold of $7,500,000. Consequently, on average, most of the Colorado 
Area No. 2 potato handlers may be classified as small entities.
    In addition, based on information provided by the National 
Agricultural Statistics Service, the average producer price for the 
2014 Colorado fall potato crop was $8.25 per hundredweight. Multiplying 
$8.25 by the shipment quantity of 14,075,876 hundredweight yields an 
annual crop revenue estimate of $116,125,977. The average annual fresh 
potato revenue for each of the 150 Colorado Area No. 2 potato producers 
is therefore calculated to be approximately $774,173 ($116,125,977 
divided by 150), which is greater than the SBA threshold of $750,000. 
Consequently, on average, many of the Area No. 2 Colorado potato 
producers may not be classified as small entities.
    This final rule relaxes the minimum grade requirement prescribed 
for 1\1/2\-inch minimum diameter to 2\1/4\-inch maximum diameter (Size 
B) red potatoes under the order. Currently, the handling of Size B 
potatoes is allowed if the potatoes otherwise meet or exceed the 
requirements of the U.S. Commercial grade standard. This change will 
effectively lower the minimum grade requirement for Size B red potatoes 
from U.S. Commercial grade or better to U.S. No. 2 grade or better. 
Relaxing the grade requirement will allow Colorado Area 2 handlers to 
supply markets with U.S. No. 2 grade Size B red potatoes and enable 
them to better compete with the other domestic potato producing 
regions. This change in the handling regulations is expected to benefit 
producers, handlers, and consumers. All other requirements in the 
order's handling regulations would remain unchanged. Authority for this 
action is contained in Sec. Sec.  948.21 and 948.22 of the order.
    This relaxation is expected to benefit producers, handlers, and 
consumers of Colorado Area 2 potatoes by allowing a greater quantity of 
potatoes from the

[[Page 85110]]

production area to enter the fresh market. The anticipated increase in 
volume is expected to translate into greater returns for handlers and 
producers, and more purchasing options for consumers.
    After discussing possible alternatives to this change, the 
Committee determined that a relaxation in the grade requirement for 
Size B red potatoes should meet the industry's current needs while 
maintaining the integrity of the order's quality objectives. During its 
deliberations, the Committee considered making no changes to the 
handling regulation, as well as relaxing the grade requirement for all 
Size B potatoes. The Committee believes that a relaxation in the 
handling regulation for Size B red potatoes is necessary to allow 
handlers to pursue new markets, but lowering the grade requirement for 
all other types and varieties of Size B potatoes to U.S. No. 2 grade or 
better could erode the quality reputation of the area's production. 
Therefore, the Committee found that there were no other viable 
alternatives to the proposal as recommended.
    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 final rule relaxes the minimum grade requirements under the 
Colorado Area 2 potato marketing order. Accordingly, this action 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.
    As noted in the initial regulatory flexibility analysis, USDA has 
not identified any relevant Federal rules that duplicate, overlap or 
conflict with this final 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.
    In addition, the Committee's meeting was widely publicized 
throughout the Colorado potato industry, and all interested persons 
were invited to attend the meeting and participate in Committee 
deliberations on all issues. Like all Committee meetings, the March 17, 
2016, meeting was a public meeting, and all entities, both large and 
small, were able to express views on this issue.
    A proposed rule concerning this action was published in the Federal 
Register on August 1, 2016 (81 FR 50406). Copies of the rule were made 
available to all interested Colorado potato producers and handlers. 
Finally, the rule was made available through the internet by USDA and 
the Office of the Federal Register. A 60-day comment period ending 
September 30, 2016, was provided to allow interested persons to respond 
to the proposal. No comments were received.
    A small business guide on complying with fruit, vegetable, and 
specialty crop marketing agreements and orders may be viewed at: http://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 matter presented, including the 
information and recommendation submitted by the Committee and other 
available information, it is hereby found that this rule, as 
hereinafter set forth, will tend to effectuate the declared policy of 
the Act.
    It is further found that good cause exists for not postponing the 
effective date of this rule until 30 days after publication in the 
Federal Register (5 U.S.C. 553) because handlers are already shipping 
potatoes from the 2016 crop, and handlers want to take advantage of the 
relaxation as soon as possible. Further, handlers are aware of this 
rule, which was recommended at a public meeting. Also, a 60-day comment 
period was provided for in the proposed rule.

List of Subjects in 7 CFR Part 948

    Marketing agreements, Potatoes, Reporting and recordkeeping 
requirements.

    For the reasons set forth in the preamble, 7 CFR part 948 is 
amended as follows:

PART 948--IRISH POTATOES GROWN IN COLORADO

0
1. The authority citation for 7 CFR part 948 continues to read as 
follows:

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


0
2. In Sec.  948.386, paragraph (a)(3) is revised to read as follows:


Sec.  948.386  Handling regulation.

* * * * *
    (a) * * *
    (3) 1\1/2\-inch minimum to 2\1/4\-inch maximum diameter (Size B). 
U.S. Commercial grade or better, except that red varieties may be U.S. 
No. 2 grade or better.
* * * * *

    Dated: November 18, 2016.
Bruce Summers,
Associate Administrator, Agricultural Marketing Service.
[FR Doc. 2016-28252 Filed 11-23-16; 8:45 am]
 BILLING CODE 3410-02-P



                                           85108            Federal Register / Vol. 81, No. 227 / Friday, November 25, 2016 / Rules and Regulations

                                             There are two California olive                        duplication by industry and public                    DEPARTMENT OF AGRICULTURE
                                           handlers subject to regulation under the                sector agencies. In addition, USDA has
                                           marketing order and about 1,000 olive                   not identified any relevant Federal rules             Agricultural Marketing Service
                                           producers in the production area. Small                 that duplicate, overlap or conflict with
                                           agricultural service firms are defined by               this rule.                                            7 CFR Part 948
                                           the Small Business Administration                                                                             [Doc. No. AMS–SC–16–0042; SC16–948–1
                                                                                                      Further, the Committee’s meeting was
                                           (SBA) as those having annual receipts of                                                                      FR]
                                           less than $7,500,000, and small                         widely publicized throughout the
                                           agricultural producers are defined as                   California olive industry and all                     Irish Potatoes Grown in Colorado;
                                           those whose annual receipts are less                    interested persons were invited to                    Modification of the Handling
                                           than $750,000 (13 CFR 121.201). Based                   attend the meeting and participate in                 Regulation for Area No. 2
                                           upon information from the Committee                     Committee deliberations. Like all
                                           and the National Agricultural Statistics                Committee meetings, the February 17,                  AGENCY:  Agricultural Marketing Service,
                                           Service (NASS), the average producer                    2016, meeting was a public meeting and                USDA.
                                           price for the 2013–14 crop year (the last               all entities, both large and small, were              ACTION: Final rule.
                                           year information was available) was                     able to express their views on this issue.            SUMMARY:    This rule implements a
                                           $1,150 per ton of canning-size olives                      Comments on the interim rule were                  recommendation from the Colorado
                                           and $385 per ton for limited-use size                   required to be received on or before                  Potato Administrative Committee, Area
                                           olives. The total assessable volume was                 September 16, 2016. No comments were                  No. 2 (Committee) to revise the grade
                                           85,668 tons. Canning sizes represented                                                                        requirement currently prescribed for
                                                                                                   received. Therefore, for the reasons
                                           88 percent of the assessable olive                                                                            11⁄2-inch minimum to 21⁄4-inch
                                                                                                   given in the interim rule, we are
                                           volume, while limited-use sizes                                                                               maximum diameter (Size B) potatoes
                                           represented 12 percent of the assessable                adopting the interim rule as a final rule,
                                                                                                   without change.                                       under the Colorado potato marketing
                                           olive volume. Based on production,                                                                            order (order). The Committee locally
                                           producer prices, and the total number of                   To view the interim rule, go to:                   administers the order and is comprised
                                           California olive producers, the average                 https://www.gpo.gov/fdsys/pkg/FR-                     of producers and handlers of potatoes
                                           annual producer revenue is less than                    2016-07-18/pdf/2016-16704.pdf.                        operating within the area of production.
                                           $750,000. Thus, the majority of olive                      This action also affirms information               This rule relaxes the current minimum
                                           producers may be classified as small                    contained in the interim rule concerning              grade requirement for Size B red
                                           entities. Both of the handlers may be                                                                         potatoes from U.S. Commercial grade or
                                                                                                   Executive Orders 12866, 12988, 13175,
                                           classified as large entities.                                                                                 better to U.S. No. 2 grade or better.
                                             This rule continues in effect the                     and 13563; the Paperwork Reduction
                                                                                                   Act (44 U.S.C. Chapter 35); and the E-                Relaxing this grade requirement will
                                           suspension of the incoming size-grading                                                                       allow area handlers to supply new
                                           regulations in § 932.51, beginning with                 Gov Act (44 U.S.C. 101).
                                                                                                                                                         markets with U.S. No. 2 grade Size B red
                                           the 2016–17 crop year. It also continues                   After consideration of all relevant                potatoes and is expected to benefit
                                           in effect the revision of regulations in                material presented, it is found that                  producers, handlers, and consumers.
                                           § 932.151, bringing the rules and                       finalizing the interim rule, without                  DATES: Effective November 28, 2016.
                                           regulations into conformity with the                    change, as published in the Federal
                                           rule and its intent. In addition, the rule                                                                    FOR FURTHER INFORMATION CONTACT: Sue
                                                                                                   Register (81 FR 46567, July 18, 2016)                 Coleman, Marketing Specialist, or Gary
                                           continues in effect conforming changes                  will tend to effectuate the declared
                                           made to the Committee forms, COC–3c                                                                           D. Olson, Regional Director, Northwest
                                                                                                   policy of the Act.                                    Marketing Field Office, Marketing Order
                                           and COC–5.
                                             This action is expected to result in                  List of Subjects in 7 CFR Part 932                    and Agreement Division, Specialty
                                           increased handler flexibility and                                                                             Crops Program, AMS, USDA;
                                           competitiveness, while reducing some                      Marketing agreements, Olives,                       Telephone: (503) 326–2724, Fax: (503)
                                           of the costs associated with size-grading.              Reporting and recordkeeping                           326–7440, or Email: Sue.Coleman@
                                           In addition, this action will allow the                 requirements.                                         ams.usda.gov or GaryD.Olson@
                                           Committee time to develop new                                                                                 ams.usda.gov.
                                           requirements that address advancing                     ■ Accordingly, the interim rule that                     Small businesses may request
                                           technology and equipment.                               amended 7 CFR part 932 and that was                   information on complying with this
                                             In accordance with the Paperwork                      published at 81 FR 46567 on July 18,                  regulation by contacting Richard Lower,
                                           Reduction Act of 1995 (44 U.S.C.                        2016, is adopted as a final rule, without             Marketing Order and Agreement
                                           Chapter 35), the order’s information                    change.                                               Division, Specialty Crops Program,
                                           collection requirements have been                         Dated: November 18, 2016.
                                                                                                                                                         AMS, USDA, 1400 Independence
                                           previously approved by the Office of                                                                          Avenue SW., STOP 0237, Washington,
                                                                                                   Bruce Summers,                                        DC 20250–0237; Telephone: (202) 720–
                                           Management and Budget (OMB) and
                                           assigned OMB No. 0581–0178. Minor                       Associate Administrator, Agricultural                 2491, Fax: (202) 720–8938, or Email:
                                                                                                   Marketing Service.                                    Richard.Lower@ams.usda.gov.
                                           conforming changes to those
                                                                                                   [FR Doc. 2016–28254 Filed 11–23–16; 8:45 am]          SUPPLEMENTARY INFORMATION: This final
                                           requirements were necessary as a result
                                           of this action. AMS submitted a request                 BILLING CODE 3410–02–P                                rule is issued under Marketing
                                           to OMB to make minor conforming                                                                               Agreement No. 97 and Marketing Order
                                           changes to forms COC–3c and COC–5.                                                                            No. 948, both as amended (7 CFR part
                                             This rule will not impose any                                                                               948), regulating the handling of Irish
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                                           additional reporting or recordkeeping                                                                         potatoes grown in Colorado, hereinafter
                                           requirements on either small or large                                                                         referred to as the ‘‘order.’’ The order is
                                           olive handlers. As with all Federal                                                                           effective under the Agricultural
                                           marketing order programs, reports and                                                                         Marketing Agreement Act of 1937, as
                                           forms are periodically reviewed to                                                                            amended (7 U.S.C. 601–674), hereinafter
                                           reduce information requirements and                                                                           referred to as the ‘‘Act.’’


                                      VerDate Sep<11>2014   14:00 Nov 23, 2016   Jkt 241001   PO 00000   Frm 00004   Fmt 4700   Sfmt 4700   E:\FR\FM\25NOR1.SGM   25NOR1


                                                            Federal Register / Vol. 81, No. 227 / Friday, November 25, 2016 / Rules and Regulations                                       85109

                                              The Department of Agriculture                        diameter, as designated in the U.S.                   which statistics are available,
                                           (USDA) is issuing this rule in                          Standards for Grades of Potatoes) may                 14,075,876 hundredweight of Colorado
                                           conformance with Executive Orders                       be handled under the order, if such                   Area No. 2 potatoes were inspected
                                           12866, 13563, and 13175.                                potatoes meet or exceed the                           under the order and sold into the fresh
                                              This final rule has been reviewed                    requirements of the U.S. Commercial                   market. Based on information reported
                                           under Executive Order 12988, Civil                      grade.                                                by USDA’s Market News Service, the
                                           Justice Reform. This rule is not intended                  At the March 17, 2016, Committee                   average f.o.b. shipping point price for
                                           to have retroactive effect.                             meeting, industry participants indicated              the 2014–2015 Colorado potato crop
                                              The Act provides that administrative                 to the Committee that there is demand                 was $8.60 per hundredweight.
                                           proceedings must be exhausted before                    in several markets, including the food                Multiplying $8.60 by the shipment
                                           parties may file suit in court. Under                   service market, for Size B, U.S. No. 2                quantity of 14,075,876 hundredweight
                                           section 608c(15)(A) of the Act, any                     grade red potatoes. They further stated               yields an annual crop revenue estimate
                                           handler subject to an order may file                    that the order’s current grade                        of $121,052,534. The average annual
                                           with USDA a petition stating that the                   requirement for Size B potatoes (U.S.                 fresh potato revenue for each of the 66
                                           order, any provision of the order, or any               Commercial grade or better) precludes                 handlers is therefore calculated to be
                                           obligation imposed in connection with                   handlers from supplying this growing                  $1,834,129 ($121,052,534 divided by
                                           the order is not in accordance with law                 and profitable market. Relaxing the                   66), which is less than the SBA
                                           and request a modification of the order                 grade requirement for Size B red                      threshold of $7,500,000. Consequently,
                                           or to be exempted therefrom. A handler                  potatoes will allow area handlers to                  on average, most of the Colorado Area
                                           is afforded the opportunity for a hearing               compete with other domestic potato                    No. 2 potato handlers may be classified
                                           on the petition. After the hearing, USDA                producing regions. This change will                   as small entities.
                                           would rule on the petition. The Act                     effectively lower the allowable grade for                In addition, based on information
                                           provides that the district court of the                 red varieties of Size B potatoes from                 provided by the National Agricultural
                                           United States in any district in which                  U.S. Commercial grade or better to U.S.               Statistics Service, the average producer
                                           the handler is an inhabitant, or has his                No. 2 grade or better.                                price for the 2014 Colorado fall potato
                                           or her principal place of business, has                    Relaxing the grade requirement to                  crop was $8.25 per hundredweight.
                                           jurisdiction to review USDA’s ruling on                 allow shipments of U.S. No. 2 grade                   Multiplying $8.25 by the shipment
                                           the petition, provided an action is filed               Size B red potatoes should make more                  quantity of 14,075,876 hundredweight
                                           not later than 20 days after the date of                potatoes available to consumers and                   yields an annual crop revenue estimate
                                           the entry of the ruling.                                should allow Area 2 handlers to move                  of $116,125,977. The average annual
                                              This final rule revises the grade                    more of the area’s potato production                  fresh potato revenue for each of the 150
                                           requirement currently prescribed for                    into the fresh market. This change is                 Colorado Area No. 2 potato producers is
                                           Size B potatoes under the order. This                   expected to benefit producers, handlers,              therefore calculated to be approximately
                                           rule relaxes the current minimum grade                  and consumers of potatoes.                            $774,173 ($116,125,977 divided by 150),
                                           requirement for Size B red potatoes from                                                                      which is greater than the SBA threshold
                                           U.S. Commercial grade to U.S. No. 2                     Final Regulatory Flexibility Analysis
                                                                                                                                                         of $750,000. Consequently, on average,
                                           grade. This change was unanimously                         Pursuant to requirements set forth in              many of the Area No. 2 Colorado potato
                                           recommended by the Committee at a                       the Regulatory Flexibility Act (RFA) (5               producers may not be classified as small
                                           meeting held on March 17, 2016.                         U.S.C. 601–612), the Agricultural                     entities.
                                              Section 948.22 of the order authorizes               Marketing Service (AMS) has                              This final rule relaxes the minimum
                                           the issuance of grade, size, quality,                   considered the economic impact of this                grade requirement prescribed for 11⁄2-
                                           maturity, pack, and container                           action on small entities. Accordingly,                inch minimum diameter to 21⁄4-inch
                                           regulations for potatoes grown in the                   AMS has prepared this final regulatory                maximum diameter (Size B) red
                                           order’s production area. Section 948.21                 flexibility analysis.                                 potatoes under the order. Currently, the
                                           authorizes the modification, suspension,                   The purpose of the RFA is to fit                   handling of Size B potatoes is allowed
                                           or termination of regulations issued                    regulatory actions to the scale of                    if the potatoes otherwise meet or exceed
                                           pursuant to § 948.22.                                   businesses subject to such actions in                 the requirements of the U.S.
                                              Under the Colorado potato marketing                  order that small businesses will not be               Commercial grade standard. This
                                           order, the State of Colorado is divided                 unduly or disproportionately burdened.                change will effectively lower the
                                           into three areas of regulation for                      Marketing orders issued pursuant to the               minimum grade requirement for Size B
                                           marketing order purposes. These                         Act, and rules issued thereunder, are                 red potatoes from U.S. Commercial
                                           include: Area 1, commonly known as                      unique in that they are brought about                 grade or better to U.S. No. 2 grade or
                                           the Western Slope; Area 2, commonly                     through group action of essentially                   better. Relaxing the grade requirement
                                           known as San Luis Valley; and Area 3,                   small entities acting on their own                    will allow Colorado Area 2 handlers to
                                           which consists of the remaining                         behalf.                                               supply markets with U.S. No. 2 grade
                                           producing areas within the State of                        There are approximately 66 handlers                Size B red potatoes and enable them to
                                           Colorado not included in the definitions                of Colorado Area No. 2 potatoes subject               better compete with the other domestic
                                           of Area 1 or Area 2. Currently, the order               to regulation under the order and                     potato producing regions. This change
                                           only regulates the handling of potatoes                 approximately 150 producers in the                    in the handling regulations is expected
                                           produced in Area 2 and Area 3.                          regulated production area. Small                      to benefit producers, handlers, and
                                           Regulation for Area 1 has been                          agricultural service firms are defined by             consumers. All other requirements in
                                           suspended.                                              the Small Business Administration                     the order’s handling regulations would
                                              The grade, size, and maturity                        (SBA) as those having annual receipts of              remain unchanged. Authority for this
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                                           requirements specific to the handling of                less than $7,500,000, and small                       action is contained in §§ 948.21 and
                                           potatoes grown in Area 2 are contained                  agricultural producers are defined as                 948.22 of the order.
                                           in § 948.386 of the order. The current                  those having annual receipts of less than                This relaxation is expected to benefit
                                           handling regulation requires that, for all              $750,000 (13 CFR 121.201).                            producers, handlers, and consumers of
                                           varieties, Size B potatoes (11⁄2-inch                      During the 2014–2015 marketing year,               Colorado Area 2 potatoes by allowing a
                                           minimum to 21⁄4-inch maximum                            the most recent full marketing year for               greater quantity of potatoes from the


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                                           85110            Federal Register / Vol. 81, No. 227 / Friday, November 25, 2016 / Rules and Regulations

                                           production area to enter the fresh                      Colorado potato industry, and all                     § 948.386        Handling regulation.
                                           market. The anticipated increase in                     interested persons were invited to                    *     *      *   *    *
                                           volume is expected to translate into                    attend the meeting and participate in                   (a) * * *
                                           greater returns for handlers and                        Committee deliberations on all issues.                  (3) 11⁄2-inch minimum to 21⁄4-inch
                                           producers, and more purchasing options                  Like all Committee meetings, the March                maximum diameter (Size B). U.S.
                                           for consumers.                                          17, 2016, meeting was a public meeting,               Commercial grade or better, except that
                                              After discussing possible alternatives               and all entities, both large and small,               red varieties may be U.S. No. 2 grade or
                                           to this change, the Committee                           were able to express views on this issue.             better.
                                           determined that a relaxation in the                        A proposed rule concerning this                    *     *      *   *    *
                                           grade requirement for Size B red                        action was published in the Federal
                                           potatoes should meet the industry’s                                                                             Dated: November 18, 2016.
                                                                                                   Register on August 1, 2016 (81 FR
                                           current needs while maintaining the                                                                           Bruce Summers,
                                                                                                   50406). Copies of the rule were made
                                           integrity of the order’s quality                        available to all interested Colorado                  Associate Administrator, Agricultural
                                           objectives. During its deliberations, the                                                                     Marketing Service.
                                                                                                   potato producers and handlers. Finally,
                                           Committee considered making no                          the rule was made available through the               [FR Doc. 2016–28252 Filed 11–23–16; 8:45 am]
                                           changes to the handling regulation, as                  internet by USDA and the Office of the                BILLING CODE 3410–02–P
                                           well as relaxing the grade requirement                  Federal Register. A 60-day comment
                                           for all Size B potatoes. The Committee                  period ending September 30, 2016, was
                                           believes that a relaxation in the                       provided to allow interested persons to               NATIONAL CREDIT UNION
                                           handling regulation for Size B red                      respond to the proposal. No comments                  ADMINISTRATION
                                           potatoes is necessary to allow handlers                 were received.
                                           to pursue new markets, but lowering the                    A small business guide on complying                12 CFR Part 705
                                           grade requirement for all other types                   with fruit, vegetable, and specialty crop             RIN 3133–AE58
                                           and varieties of Size B potatoes to U.S.                marketing agreements and orders may
                                           No. 2 grade or better could erode the                   be viewed at: http://www.ams.usda.gov/                Community Development Revolving
                                           quality reputation of the area’s                        rules-regulations/moa/small-businesses.               Loan Fund
                                           production. Therefore, the Committee                    Any questions about the compliance
                                           found that there were no other viable                                                                         AGENCY:  National Credit Union
                                                                                                   guide should be sent to Richard Lower
                                           alternatives to the proposal as                                                                               Administration (NCUA).
                                                                                                   at the previously mentioned address in
                                           recommended.                                                                                                  ACTION: Final rule.
                                                                                                   the FOR FURTHER INFORMATION CONTACT
                                              In accordance with the Paperwork                     section.
                                           Reduction Act of 1995 (44 U.S.C.                                                                              SUMMARY:   The NCUA Board (Board) is
                                                                                                      After consideration of all relevant                finalizing a rule to make several
                                           Chapter 35), the order’s information                    matter presented, including the
                                           collection requirements have been                                                                             technical amendments to NCUA’s rule
                                                                                                   information and recommendation                        governing the Community Development
                                           previously approved by the Office of                    submitted by the Committee and other
                                           Management and Budget (OMB) and                                                                               Revolving Loan Fund (CDRLF). The
                                                                                                   available information, it is hereby found             amendments will make the rule more
                                           assigned OMB No. 0581–0178, (Generic                    that this rule, as hereinafter set forth,
                                           Vegetable and Specialty Crops). No                                                                            succinct and improve its transparency,
                                                                                                   will tend to effectuate the declared                  organization, and ease of use by credit
                                           changes in those requirements as a                      policy of the Act.
                                           result of this action are necessary.                                                                          unions.
                                                                                                      It is further found that good cause
                                           Should any changes become necessary,                                                                          DATES: This rule is effective December
                                                                                                   exists for not postponing the effective
                                           they would be submitted to OMB for                                                                            27, 2016.
                                                                                                   date of this rule until 30 days after
                                           approval.                                                                                                     FOR FURTHER INFORMATION CONTACT:
                                                                                                   publication in the Federal Register (5
                                              This final rule relaxes the minimum                  U.S.C. 553) because handlers are already              Geetha Valiyil, Manager, Grants and
                                           grade requirements under the Colorado                   shipping potatoes from the 2016 crop,                 Loans, Office of Small Credit Union
                                           Area 2 potato marketing order.                          and handlers want to take advantage of                Initiatives, or Justin Anderson, Senior
                                           Accordingly, this action will not impose                the relaxation as soon as possible.                   Staff Attorney, Office of General
                                           any additional reporting or                             Further, handlers are aware of this rule,             Counsel, at 1775 Duke Street,
                                           recordkeeping requirements on either                    which was recommended at a public                     Alexandria, VA 22314 or telephone
                                           small or large potato handlers. As with                 meeting. Also, a 60-day comment period                (703) 518–6645 (Ms. Valiyil) or (703)
                                           all Federal marketing order programs,                   was provided for in the proposed rule.                518–6540 (Mr. Anderson).
                                           reports and forms are periodically                                                                            SUPPLEMENTARY INFORMATION:
                                           reviewed to reduce information                          List of Subjects in 7 CFR Part 948
                                           requirements and duplication by                                                                               A. Background
                                                                                                     Marketing agreements, Potatoes,
                                           industry and public sector agencies.                    Reporting and recordkeeping                             In June 2016, the Board issued a
                                              As noted in the initial regulatory                   requirements.                                         proposed rule to amend NCUA’s CDRLF
                                           flexibility analysis, USDA has not                                                                            rule.1 The proposed amendments were
                                           identified any relevant Federal rules                     For the reasons set forth in the
                                                                                                                                                         largely technical in nature or clarified
                                           that duplicate, overlap or conflict with                preamble, 7 CFR part 948 is amended as
                                                                                                                                                         NCUA’s practices with respect to
                                           this final rule.                                        follows:
                                                                                                                                                         disbursing money from the CDRLF.
                                              AMS is committed to complying with
                                                                                                   PART 948—IRISH POTATOES GROWN                         B. Summary of Comments
                                           the E-Government Act, to promote the
                                                                                                   IN COLORADO
                                           use of the internet and other                                                                                   NCUA received three comments on
ehiers on DSK5VPTVN1PROD with RULES




                                           information technologies to provide                     ■ 1. The authority citation for 7 CFR                 the proposed rule, all of which were
                                           increased opportunities for citizen                     part 948 continues to read as follows:                generally supportive of the rule. One
                                           access to Government information and                                                                          commenter, however, did request
                                                                                                       Authority: 7 U.S.C. 601–674.
                                           services, and for other purposes.                                                                             additional changes and clarifications.
                                              In addition, the Committee’s meeting                 ■ 2. In § 948.386, paragraph (a)(3) is
                                           was widely publicized throughout the                    revised to read as follows:                               1 81   FR 40197 (June 21, 2016).



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Document Created: 2016-11-23 23:17:49
Document Modified: 2016-11-23 23:17:49
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionRules and Regulations
ActionFinal rule.
DatesEffective November 28, 2016.
ContactSue Coleman, Marketing Specialist, or Gary D. Olson, Regional Director, Northwest Marketing Field Office, Marketing Order and Agreement Division, Specialty Crops Program, AMS, USDA; Telephone: (503) 326-2724, Fax: (503) 326-7440, or Email: [email protected] or [email protected]
FR Citation81 FR 85108 
CFR AssociatedMarketing Agreements; Potatoes and Reporting and Recordkeeping Requirements

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