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Federal Register / Vol. 86, No. 174 / Monday, September 13, 2021 / Rules and Regulations
lotter on DSK11XQN23PROD with RULES1

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, nonRusset 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 IdahoEastern 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. 601612, 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 20192020 fiscal period, the most recent full year of statistics available, 34,306,700 hundredweight of Idaho-Eastern Oregon potatoes were
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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 IdahoEastern Oregon potato producers may be classified as small entities.
In addition, based on information reported by USDAs Market News Service Market News, the average Free-On-Board shipping point price for the 20192020 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 nonRusset 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 IdahoEastern Oregon potatoes and increase returns to handlers and producers.
Authority for this rule is provided in 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
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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, nonRusset 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 Committees 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 Orders information collection requirements have been previously approved by OMB and assigned OMB No. 05810178, 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
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