Rule2026-09058
Spearmint Oil Produced in the Far West; Salable Quantities and Allotment Percentages for the 2025-2026 Marketing Year
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Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
May 7, 2026
Effective
June 8, 2026
Issuing agencies
Agriculture DepartmentAgricultural Marketing Service
Abstract
This final rule implements a recommendation from the Far West Spearmint Oil Administrative Committee (Committee) to establish salable quantities and allotment percentages for Class 1 (Scotch) and Class 3 (Native) spearmint oil produced in Washington, Idaho, and Oregon and parts of Nevada and Utah (Far West) for the 2025-2026 marketing year.
Full Text
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[Federal Register Volume 91, Number 88 (Thursday, May 7, 2026)]
[Rules and Regulations]
[Pages 24705-24711]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-09058]
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Rules and Regulations
Federal Register
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having general applicability and legal effect, most of which are keyed
to and codified in the Code of Federal Regulations, which is published
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Federal Register / Vol. 91, No. 88 / Thursday, May 7, 2026 / Rules
and Regulations
[[Page 24705]]
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 985
[Doc. No. AMS-SC-24-0069]
Spearmint Oil Produced in the Far West; Salable Quantities and
Allotment Percentages for the 2025-2026 Marketing Year
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: This final rule implements a recommendation from the Far West
Spearmint Oil Administrative Committee (Committee) to establish salable
quantities and allotment percentages for Class 1 (Scotch) and Class 3
(Native) spearmint oil produced in Washington, Idaho, and Oregon and
parts of Nevada and Utah (Far West) for the 2025-2026 marketing year.
DATES: Effective June 8, 2026.
FOR FURTHER INFORMATION CONTACT: Joshua R. Wilde, Marketing Specialist,
or Barry Broadbent, Chief, Northwest Region Branch, Market Development
Division, Specialty Crops Program, AMS, USDA; Telephone: (503) 326-
2724, or Email: <a href="/cdn-cgi/l/email-protection#450f2a362d30246b176b122c29212005303621246b222a33"><span class="__cf_email__" data-cfemail="dc96b3afb4a9bdf28ef28bb5b0b8b99ca9afb8bdf2bbb3aa">[email protected]</span></a> or <a href="/cdn-cgi/l/email-protection#eeac8f9c9c97c0ac9c818f8a8c8b809aae9b9d8a8fc0898198"><span class="__cf_email__" data-cfemail="a1e3c0d3d3d88fe3d3cec0c5c3c4cfd5e1d4d2c5c08fc6ced7">[email protected]</span></a>.
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 the Agricultural
Marketing Agreement Act of 1937, as amended (7 U.S.C. 601-674) (the
Act), amending Marketing Order No. 985 (7 CFR part 985; the Order). The
Far West Spearmint Oil Administrative Committee (Committee) locally
administers the Order and comprises spearmint oil producers operating
within the area of production, and a public member.
This action is exempt from the Office of Management and Budget
(OMB) review process required by Executive Order 12866. This rule
amends existing Marketing Order No. 985, as amended (7 CFR part 985),
Marketing Order Regulating the Handling of Spearmint Oil Produced in
the Far West, and is necessary for the continued operation of Marketing
Order No. 985. Additionally, this action is exempt from the
requirements of Executive Order 14192, ``Unleashing Prosperity Through
Deregulation,'' pursuant to section 5(c).
This final rule has been reviewed under Executive Order 13175--
Consultation and Coordination with Indian Tribal Governments, which
requires federal agencies to consider whether their rulemaking actions
would have tribal implications. The Agricultural Marketing Service
(AMS) has determined 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. Under the Order now in effect, salable quantities
and allotment percentages have been established for both classes of
spearmint oil produced in the Far West. This final rule establishes the
quantity of spearmint oil produced in the Far West that handlers may
purchase from, or handle on behalf of, producers during the 2025-2026
marketing year, which began on June 1, 2025.
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 U.S. Department
of Agriculture (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. Such 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.
Pursuant to the requirements in Sec. 985.50 of the Order, the
Committee meets each year to consider supply and demand of spearmint
oil and to adopt a marketing policy for the ensuing marketing year. In
determining such marketing policy, the Committee considers several
factors, including, but not limited to, the current and projected
supply of oil, estimated future demand, production costs, and producer
prices for both Class 1 (Scotch) and Class 3 (Native) spearmint oil.
Input from spearmint oil handlers and producers are considered as well.
Pursuant to the provisions in Sec. 985.51, when the Committee's
marketing policy considerations indicate a need to establish or to
maintain stable market conditions through volume regulation, the
Committee subsequently recommends to AMS the establishment of a salable
quantity and allotment percentage for such class or classes of oil for
the upcoming marketing year. Recommendations for volume control are
intended to ensure market requirements for Far West spearmint oil are
satisfied and orderly marketing conditions are maintained.
Salable quantity represents the total quantity of each class of oil
(Class 1, commonly referred to as ``Scotch'', or Class 3, commonly
referred to as ``Native'') which handlers may purchase from, or handle
on behalf of, producers during a given marketing year. The allotment
percentage for each class of spearmint oil is the salable quantity for
that class of oil divided by the total of all producers' allotment base
for the same class of oil. A producer's allotment base is their
calculated share of the spearmint oil market based on a statistical
representation of their past spearmint production and sales. To account
for changes in production and demand over time, the Committee
periodically reviews and adjusts each producer's allotment base in
accordance with a formula prescribed by the Committee and approved by
AMS. Each producer's annual allotment of the salable quantity is
calculated by multiplying their respective allotment base for each
class of spearmint oil by the allotment percentage for that class of
spearmint oil. The total allotment base
[[Page 24706]]
is revised each year on June 1 to account for producer allotment base
being lost as a result of the ``bona fide effort'' production provision
of Sec. 985.53(e) and additional base made available pursuant to the
provisions of Sec. 985.153.
Salable quantities and allotment percentages are established at
levels intended to maintain orderly marketing conditions while also
ensuring that markets are adequately supplied. Further, the Committee's
recommendations for volume control are made in advance of the upcoming
marketing year in which the regulations are to be effective, thereby
allowing producers ample time to adjust their production decisions
accordingly.
The Committee met on October 9, 2024, to consider its marketing
policy for the 2025-2026 marketing year. At that meeting, the Committee
determined that, based on the current market and supply conditions,
volume regulation for both classes of oil would be necessary. The
Committee unanimously recommended, with a vote of eight in favor and
none opposed, a salable quantity and allotment percentage for Scotch
spearmint oil of 808,656 pounds and 35 percent, respectively. In
addition, the Committee also unanimously recommended a salable quantity
and allotment percentage for Native spearmint oil of 1,028,670 pounds
and 39 percent, respectively.
This final rule establishes the amount of Scotch and Native
spearmint oil that handlers may purchase from, or handle on behalf of,
producers during the 2025-2026 marketing year, which began on June 1,
2025. Salable quantities and allotment percentages have been in effect
each season since the Order's inception in 1980.
Scotch Spearmint Oil
The Committee recommended a Scotch spearmint oil salable quantity
of 808,656 pounds and an allotment percentage of 35 percent for the
2025-2026 marketing year. The salable quantity of 808,656 pounds is
145,008 pounds greater than the salable quantity of 663,648 pounds
established for the 2024-2025 marketing year. The recommended 35
percent allotment percentage for the 2025-2026 marketing year is six
percent more than the 29 percent in effect the previous marketing year.
The total allotment base for the coming marketing year is estimated
to be 2,310,445 pounds. This figure represents a one-percent increase
over the revised 2024-2025 marketing year total allotment base of
2,287,569 pounds. The salable quantity (808,656 pounds) is the product
of total allotment base (2,310,445 pounds) times the allotment
percentage (35 percent).
The Committee considered several factors in making its
recommendation, including the current and projected future supply,
estimated future demand, production costs, and producer prices. The
Committee's recommendation also accounts for the established acreage of
Scotch spearmint, consumer demand, existing carry-in, reserve pool
volume, and production in competing markets.
According to the Committee, as costs of production have increased
and spearmint oil prices have lagged behind inflation, many producers
have forgone new plantings of Scotch spearmint. This has resulted in a
significant decline in production of Scotch spearmint oil in recent
years. Production has decreased from 498,332 pounds produced in 2020 to
an estimated 257,943 pounds of Scotch spearmint production in 2024.
Industry reports indicate that trade demand for Far West Scotch
spearmint oil, which had been declining in recent years, has begun to
stabilize. Sales of Far West Scotch spearmint oil declined from a high
of 1,060,232 pounds during the 2014-2015 marketing year to a low of
488,484 pounds in the 2020-2021 marketing year. Sales of Far West
Scotch spearmint oil totaled 549,323 pounds during the 2023-2024
marketing year, the last full year of available data. The Committee
indicates that production of Scotch spearmint oil in competing markets,
most notably by Canadian producers, continues to exert downward
pressure on trade demand for Scotch spearmint oil from the Far West.
Given the anticipated market conditions for the coming year, the
Committee estimates that Scotch spearmint oil trade demand for the
2025-2026 marketing year will be 645,000 pounds, which is 23,000 pounds
greater than the Committee's estimate for the prior year and 64,568
pounds greater than the 5-year moving sales average of 580,432 pounds.
Should the volume regulation levels established herein prove to be
insufficient to adequately supply the market, the Committee has the
authority to recommend intra-seasonal increases of the salable quantity
and allotment percentage, as it has in previous marketing years.
The Committee calculated the minimum salable quantity of Scotch
spearmint oil that would be required during the 2025-2026 marketing
year (619,120 pounds) by subtracting the estimated salable carry-in on
June 1, 2025, (25,880 pounds) from the estimated trade demand (645,000
pounds). This minimum salable quantity represents the estimated minimum
amount of Scotch spearmint oil that would be needed to satisfy
estimated trade demand for the coming year. To ensure that the market
will be fully supplied, the Committee recommended a 2025-2026 marketing
year salable quantity of 808,656 pounds. The recommended salable
quantity, combined with an estimated 25,880 pounds of salable carry-in
from the previous year, is expected to yield a total available supply
of 834,536 pounds of Scotch spearmint oil for the 2025-2026 marketing
year.
Salable carry-in is the primary measure of excess spearmint oil
supply under the Order, as it represents overproduction in prior years
that is currently available to the market without restriction. Under
volume regulation, spearmint oil that is designated as salable
continues to be available to the market until it is sold and may be
marketed at any time at the discretion of the owner.
The Committee estimated that there will be 25,880 pounds of salable
carry-in of Scotch spearmint oil on June 1, 2025. At the recommended
salable quantity, the Committee projects that salable carry-in will
increase to 189,536 pounds at the beginning of the 2026-2027 marketing
year if current market conditions are maintained. This level is greater
than the quantity that the Committee generally considers favorable
(150,000 pounds). However, the Committee believes that, given the
current economic conditions in the Scotch spearmint oil industry, some
Scotch spearmint oil producers may not produce their full annual
allotment for the 2025-2026 marketing year. Therefore, the Committee
anticipates that the actual quantity of Scotch spearmint oil carried
into the 2026-2027 marketing year will be less than the quantity
calculated above (189,536 pounds).
Spearmint oil held in reserve is oil that has been produced in
excess of a producer's annual allotment, either in the current
marketing year or in prior years, and is restricted from freely
entering the market. After December 1 of each marketing year, reserve
pool oil is not available to the market in the current marketing year
without an increase in the salable quantity and allotment percentage.
The Order does include a provision for reserve oil to be released for
limited market development projects, with approval of the Secretary,
but this provision is rarely utilized.
Oil held in the reserve pool is another indicator of excess supply.
Scotch spearmint oil held in reserve was 30,487 pounds as of May 31,
2024, up from 14,095 pounds as of May 31, 2023. This
[[Page 24707]]
quantity of reserve pool oil should be an adequate buffer to supply the
market, if necessary, should the industry experience an unexpected
increase in demand.
The Committee recommended an allotment percentage of 35 percent for
the 2025-2026 marketing year for Scotch spearmint oil. During its
October 9, 2024, meeting, the Committee calculated an initial allotment
percentage by dividing the minimum required salable quantity (619,120
pounds) by the total estimated allotment base (2,310,445 pounds),
resulting in 26.8 percent. However, producers and handlers at the
meeting indicated that the computed percentage (26.8 percent) might not
adequately satisfy potential 2025-2026 marketing year Scotch spearmint
oil market demand and may also result in a less than desirable carry-in
for the subsequent marketing year. After deliberation, the Committee
recommended an allotment percentage of 35 percent. The total estimated
allotment base (2,310,445 pounds) for the 2025-2026 marketing year,
multiplied by the recommended allotment percentage (35 percent), yields
808,656 pounds, which is the recommended salable quantity for the 2025-
2026 marketing year.
The 2025-2026 marketing year computational data for the Committee's
recommendation is detailed below.
(A) Estimated carry-in of Scotch spearmint oil on June 1, 2025:
25,880 pounds. This figure is the difference between the 2024-2025
marketing year total available supply of 647,880 pounds and the
estimated carry-in. The Committee initially estimated the production
year at 600,000 and then revised the 2024-2025 marketing year estimated
trade demand to 622,000 pounds.
(B) Estimated trade demand of Scotch spearmint oil for the 2025-
2026 marketing year: 645,000 pounds. This figure was established at the
Committee meeting held on October 9, 2024.
(C) Minimum salable quantity of Scotch spearmint oil required from
the 2025-2026 marketing year production: 619,120 pounds. This figure is
the difference between the estimated 2025-2026 marketing year trade
demand (645,000 pounds) and the estimated carry-in on June 1, 2025
(25,880 pounds). This salable quantity represents the minimum amount of
Scotch spearmint oil that would be needed to satisfy estimated demand
for the coming year.
(D) Total estimated Scotch spearmint oil allotment base for the
2025-2026 marketing year: 2,310,445 pounds. This figure represents a
one-percent increase over the 2024-2025 marketing year total actual
allotment base of 2,287,569 pounds, as prescribed by Sec. 985.53(d).
The one percent increase equals 22,876 pounds. This total estimated
allotment base is revised each year on June 1 in accordance with Sec.
985.53(e).
(E) Computed Scotch spearmint oil allotment percentage for the
2025-2026 marketing year: 26.8 percent. This percentage is computed by
dividing the minimum required salable quantity (619,120) by the total
estimated allotment base (2,310,445 pounds).
(F) Recommended Scotch spearmint oil allotment percentage for the
2025-2026 marketing year: 35 percent. This is the Committee's
recommendation and is based on the computed allotment percentage, (26.8
percent) and input from producers and handlers at the October 9, 2024,
meeting. The recommended 35 percent allotment percentage reflects the
Committee's belief that the computed percentage (26.8 percent) may not
adequately supply the anticipated 2025-2026 marketing year Scotch
spearmint oil market demand.
(G) Recommended Scotch spearmint oil salable quantity for the 2025-
2026 marketing year: 808,656 pounds. This figure is the product of the
recommended salable allotment percentage (35 percent) and the total
estimated allotment base (2,310,445 pounds) for the 2025-2026 marketing
year.
(H) Estimated total available supply of Scotch spearmint oil for
the 2025-2026 marketing year: 834,536 pounds. This figure is the sum of
the 2025-2026 marketing year recommended salable quantity (808,656
pounds) and the estimated carry-in on June 1, 2025 (25,880 pounds).
For the reasons stated above, the Committee believes that the
recommended salable quantity and allotment percentage, as established
herein, will adequately satisfy trade demand, will result in a
reasonable carry-in for the following year, and will contribute to the
orderly marketing of Scotch spearmint oil.
Native Spearmint Oil
The Committee recommended a Native spearmint oil salable quantity
of 1,028,670 pounds and an allotment percentage of 39 percent for the
2025-2026 marketing year. These figures are, respectively, 349,690
pounds and 13 percentage points greater than the levels initially
established for the 2024-2025 marketing year. The Committee utilized
handlers' estimated trade demand of Native spearmint oil for the coming
year, historical and current Native spearmint oil production, inventory
statistics, and international market data obtained from consultants for
the spearmint oil industry to arrive at these recommendations.
The Committee anticipated that 2024 Native spearmint oil production
would total 987,947 pounds, down from the Committee's previous year's
production of 1,015,570 pounds. The Committee's records indicate that
Native spearmint acreage in the Far West declined from a recent high of
9,013 acres in 2019 to 6,106 acres in 2024.
Sales of Native spearmint oil have been trending downward since the
2020-2021 marketing year, declining from 1,332,260 pounds during the
2020-2021 marketing year to 987,041 pounds for the 2023-2024 marketing
year, the last full year for which data is available. The Committee
expects demand to remain fairly stable, estimating trade demand for
Native spearmint oil at 1,087,500 pounds for the 2025-2026 marketing
year, an increase of 87,500 pounds from the Committee's estimated trade
demand of 1,000,000 pounds for the 2024-2025 marketing year.
The Committee anticipated that 173,974 pounds of salable Native
spearmint oil from prior years would be carried into the 2025-2026
marketing year. This amount is down from the 447,520 pounds of salable
oil carried into the 2024-2025 marketing year and slightly above the
level that the Committee generally considers favorable (150,000
pounds).
The Committee estimates that there will be 1,336,505 pounds of
Native spearmint oil in the reserve pool at the beginning of the 2025-
2026 marketing year. Native reserve pool oil has been fairly stable
over the past several marketing years. The reserve pool declined from
1,219,122 pounds at the start of the 2021-2022 marketing year to a
recent-low of 1,026,336 pounds to begin the 2023-2024 marketing year.
However, the estimated 1,336,505 pounds that the Committee projected to
be held in the reserve pool to begin the 2025-2026 marketing year
represents a 20-year high and reflects the Committee's previous efforts
to reduce year-over-year salable carry-in by establishing a relatively
low salable quantity for Native spearmint oil for the 2024-2025
marketing year.
The Committee expects end users of Native spearmint oil to continue
to rely on Far West production as their primary source of high-quality
Native spearmint oil. However, increases in domestic production of
Native spearmint from regions outside of the Far West production area
has created additional
[[Page 24708]]
competition for market share. For example, there were fewer than 2,000
acres of Native spearmint production in the U.S. Midwest region in
2016, compared with over 10,000 acres of Native spearmint oil
production in the Far West. However, the Committee's 2024 estimates
indicate that Far West acreage has declined to approximately 6,106
acres, compared to Native spearmint producing acreage of around 3,000
acres in the Midwest. This situation has contributed to declining trade
demand for Far West Native spearmint oil and led to downward pressure
on producer prices.
Given the anticipated market conditions for the coming year, the
Committee estimated the 2025-2026 marketing year Native spearmint oil
trade demand to be 1,087,500 pounds. This figure is based on input
provided by producers at six production area meetings held in September
and October 2024, as well as estimates provided by handlers and other
meeting participants at the October 9, 2024, Committee meeting. This
figure represents an increase of 87,500 pounds from the previous year's
estimated trade demand for the 2024-2025 marketing year. The average
estimated trade demand for Native spearmint oil derived from the
production area meetings was 1,072,917 pounds, whereas the handlers'
estimates ranged from 1,000,000 to 1,200,000 pounds. The quantity
marketed over the most recent full marketing year, 2023-2024, was
987,041 pounds.
The estimated June 1, 2025, carry-in of 173,974 pounds of Native
spearmint oil, plus the 2025-2026 marketing year salable quantity of
1,028,670 pounds as established herein, will result in an estimated
total available supply of 1,202,644 pounds of Native spearmint oil
during the 2025-2026 marketing year. With the corresponding estimated
trade demand of 1,087,500 pounds, the Committee projects that 115,144
pounds of salable oil will be carried into the 2026-2027 marketing
year. The Committee estimated there will be 1,336,505 pounds of Native
spearmint oil held in the reserve pool at the beginning of the 2025-
2026 marketing year. Should the volume regulation levels established
herein prove insufficient to adequately supply the market, the
Committee has the authority to recommend an intra-seasonal increase to
the salable quantity and allotment percentage to satisfy that demand.
The Committee recommended a Native spearmint oil allotment
percentage of 39 percent for the 2025-2026 marketing year. During its
October 9, 2024, meeting, the Committee calculated an initial allotment
percentage of 34.6 percent by dividing the minimum required salable
quantity to satisfy estimated trade demand (913,526 pounds) by the
total allotment base (2,637,615 pounds). However, producers and
handlers at the meeting expressed concern that the computed percentage
of 34.6 percent may not adequately supply the potential 2025-2026
marketing year Native spearmint oil market demand. Further, it could
result in a less than adequate carry-in for the subsequent marketing
year. After deliberation, the Committee increased its allotment
percentage recommendation to 39 percent. The total estimated Native
spearmint oil allotment base (2,637,615 pounds) multiplied by the
recommended salable allotment percentage (39 percent) yields 1,028,670
pounds, the recommended Native spearmint oil salable quantity for the
2025-2026 marketing year.
The 2025-2026 marketing year computational data for the Committee's
recommendation is further outlined below.
(A) Estimated carry-in of Native spearmint oil on June 1, 2025:
173,974 pounds. This figure is the difference between the estimated
2024-2025 marketing year total available supply of 1,173,974 pounds and
the revised 2024-2025 marketing year estimated trade demand of
1,000,000 pounds.
(B) Estimated trade demand of Native spearmint oil for the 2025-
2026 marketing year: 1,087,500 pounds. This estimate was established by
the Committee at its October 9, 2024, meeting.
(C) Minimum salable quantity of Native spearmint oil required from
the 2025-2026 marketing year production: 913,526 pounds. This figure is
the difference between the 2025-2026 marketing year's estimated trade
demand (1,087,500 pounds) and the estimated carry-in on June 1, 2025
(173,974 pounds). This is the minimum amount of Native spearmint oil
that the Committee believes would be required to meet the anticipated
2025-2026 marketing year trade demand.
(D) Total estimated allotment base of Native spearmint oil for the
2025-2065 marketing year: 2,637,615 pounds. This figure represents a
one-percent increase over the 2024-2025 marketing year actual total
allotment base of 2,611,500 pounds as prescribed in Sec. 985.53(d).
The one-percent increase equals 26,115 pounds of oil. This estimate is
revised each year on June 1, to adjust for the bona fide effort
production provisions of Sec. 985.53(e).
(E) Computed Native spearmint oil allotment percentage for the
2025-2026 marketing year: 34.6 percent. This percentage is calculated
by dividing the required minimum salable quantity (913,526 pounds) by
the total estimated allotment base (2,637,615 pounds) for the 2025-2026
marketing year.
(F) Recommended Native spearmint oil allotment percentage for the
2025-2026 marketing year: 39 percent. This is the Committee's
recommendation based on the computed allotment percentage (34.6
percent) and input from producers and handlers at the October 9, 2024,
meeting. The recommended 39 percent allotment percentage is also based
on the Committee's belief that the computed percentage (34.6 percent)
may not adequately supply the potential market for Native spearmint oil
in the 2025-2026 marketing year or allow for sufficient salable Native
spearmint oil to be carried into the beginning of the 2025-2026
marketing year.
(G) Recommended Native spearmint oil 2025-2026 marketing year
salable quantity: 1,028,670 pounds. This figure is the product of the
recommended allotment percentage (39 percent) and the total estimated
allotment base (2,637,615 pounds).
(H) Estimated available supply of Native spearmint oil for the
2025-2026 marketing year: 1,202,644 pounds. This figure is the sum of
the 2025-2026 marketing year recommended salable quantity (1,028,670
pounds) and the estimated carry-in on June 1, 2025 (173,974 pounds).
This amount could be increased, as needed, through an intra-seasonal
increase in the salable quantity and allotment percentage.
The Scotch and Native spearmint oil salable quantities and
allotment percentages of 808,656 pounds and 35 percent, and 1,028,670
pounds and 39 percent, respectively, are expected to match the
available supply of each class of spearmint oil to the estimated demand
of each, thus avoiding extreme fluctuations in inventories and prices.
Further, this final rule is similar to regulations issued in prior
seasons.
The salable quantities established in this final rule are not
expected to cause a shortage of either class of spearmint oil. Any
unanticipated or additional market demand for either class of spearmint
oil which may develop during the marketing year could be satisfied by
an intra-seasonal increase in the salable quantity and corresponding
allotment percentage. The Order contains authority in Sec. 985.51 for
intra-seasonal increases to allow the Committee the flexibility to
respond quickly to changing market conditions.
[[Page 24709]]
Under volume regulation, producers who produce more than their
annual allotments during the marketing year may transfer such excess
spearmint oil to producers who have produced less than their annual
allotment. In addition, on December 1 of each year, producers who have
not transferred their excess spearmint oil to other producers must
place their excess spearmint oil production into the reserve pool to be
released in future marketing years. Each producer controls the
disposition of their respective reserve pool spearmint oil, in
accordance with market needs and the Order's volume regulation
provisions, and under the Committee's oversight.
In conjunction with the issuance of this final rule, AMS has
reviewed the Committee's marketing policy statement for the 2025-2026
marketing year. The Committee's marketing policy statement, a
requirement whenever the Committee recommends volume regulation, meets
the requirements of Sec. Sec. 985.50 and 985.51.
The establishment of the salable quantities and allotment
percentages is expected to allow for anticipated market needs. In
determining anticipated market needs, the Committee considered
historical sales, as well as changes and trends in production and
demand. This final rule also provides producers with information
regarding the amount of spearmint oil that should be produced for the
2025-2026 and subsequent marketing years to meet anticipated market
demand.
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 are unique regulations in that they are brought
about through group action of typically small entities acting on their
own behalf.
There are approximately 39 producers of Scotch spearmint oil and 89
producers of Native spearmint oil operating within the regulated
production area. In addition, there are approximately six spearmint oil
handlers (both Scotch and Native spearmint) subject to regulation under
the Order. At the time this analysis was prepared, the Small Business
Administration (SBA) defined small agricultural producers of spearmint
oil as those having annual receipts equal to or less than $2,500,000
(NAICS code 111998, All Other Miscellaneous Crop Farming). Small
agricultural service firms are defined by SBA as those having annual
receipts equal to or less than $34,000,000 (NAICS code 11514,
Postharvest Crop Activities) (13 CFR 121.201).
The National Agricultural Statistics Service (NASS) reported that
the 2023 U.S. season average spearmint oil producer price per pound was
$18.40. Spearmint oil utilization for the 2023-2024 marketing year, as
reported by the Committee, was 549,323 pounds and 987,041 pounds for
Scotch and Native spearmint oil, respectively, for a total of 1,536,364
pounds. Multiplying $18.40 per pound by 2023-2024 marketing year
spearmint oil utilization of 1,536,364 pounds yields a crop value
estimate of about $28.3 million.
Given the accounting requirements for the volume regulation
provisions of the Order, the Committee maintains accurate records of
each producer's production and sales. Using the $18.40 average
spearmint oil price and Committee production data for each producer,
the Committee estimates that 38 of the 39 Scotch spearmint oil
producers and all of the 89 Native spearmint oil producers could be
classified as small entities under the SBA definition.
There is no third-party or governmental entity that collects and
reports spearmint oil prices received by spearmint oil handlers.
However, the Committee estimates an average spearmint oil handling
markup at approximately 20 percent of the price received by producers.
Twenty percent of the 2023 producer price ($18.40) is $3.68, which
results in a handler Free on Board (f.o.b.) price per pound estimate of
$22.08 ($18.40 + $3.68).
Multiplying this estimated handler f.o.b. price by the 2023-2024
marketing year total spearmint oil utilization of 1,536,364 pounds
results in an estimated handler-level spearmint oil value of $33.9
million. Dividing this figure by the number of handlers (6) yields
estimated average annual handler receipts of about $5.7 million, which
is well below the $34.0 million SBA threshold for small agricultural
service firms.
Furthermore, using confidential data compiled by the Committee on
the pounds of spearmint oil handled by each handler and the
abovementioned estimated handler price per pound, the Committee
reported that it is not likely that any of the six handlers had 2023-
2024 marketing year spearmint oil sales that exceeded SBA's threshold.
Therefore, in view of the foregoing, the majority of producers of
spearmint oil may be classified as small entities, and all of the
handlers of spearmint oil may be classified as small entities.
This final rule establishes the quantity of spearmint oil produced
in the Far West, by class, which handlers may purchase from, or handle
on behalf of, producers during the 2025-2026 marketing year. The
Committee recommended this action to help maintain stability in the
spearmint oil market by matching supply to estimated demand, thereby
avoiding extreme fluctuations in supplies and prices. Establishing
quantities that may be purchased from or handled on behalf of producers
during the marketing year through volume regulation allows producers to
coordinate their spearmint oil production with the expected market
demand. Authority for this proposal is provided in Sec. Sec. 985.50,
985.51, and 985.52 of the Order.
The Committee estimates the total trade demand for the 2025-2026
marketing year for both classes of oil at 1,732,500 pounds. In
addition, the Committee expects that the combined salable carry-in for
both classes of spearmint oil will be 199,854 pounds. As such, the
combined required salable quantity for the 2025-2026 marketing year is
estimated to be 1,532,646 pounds (1,732,500 pounds trade demand, less
199,854 pounds carry-in). Under volume regulation, total sales of
spearmint oil by producers for the 2025-2026 marketing year would be
held to 2,037,180 pounds (the recommended salable quantity for both
classes of spearmint oil of 1,837,326 pounds plus 199,854 of carry-in).
This total available supply of 2,037,180 pounds should be more than
adequate to supply the 1,732,500 pounds of anticipated total trade
demand for spearmint oil. In addition, as of May 31, 2024, the total
reserve pool for both classes of spearmint oil stood at 1,100,011
pounds. That quantity was expected to increase over the course of the
2024-2025 marketing year, with Committee reserve pool estimates
totaling 1,366,992 pounds on May 31, 2025. Should trade demand increase
unexpectedly during the 2025-2026 marketing year, reserve pool
spearmint oil could be released into the market to supply that increase
in demand.
The recommended allotment percentages, upon which 2025-2026
marketing year annual producer allotments are based, are 35 percent for
Scotch spearmint oil and 39 percent for
[[Page 24710]]
Native spearmint oil. Without volume regulation, producers would not be
held to these allotment levels and would be able to sell unrestricted
quantities of spearmint oil.
The AMS econometric model used to evaluate the Far West spearmint
oil market estimated that the season average producer price per pound
(for both classes of spearmint oil) would decline about $2.78 per pound
without volume regulation. The surplus situation for the spearmint oil
market that would exist without volume regulation in the 2025-2026
marketing year also would likely dampen prospects for improved producer
prices in future years because of the excessive buildup in stocks.
In addition, spearmint oil prices would likely fluctuate with
greater amplitude in the absence of volume regulation. The coefficient
of variation, or CV (a standard measure of variability), of Far West
spearmint oil producer prices for the period 1980-2022 (the years in
which the Order has been in effect, and for which NASS data is
available), is 24 percent, compared to 49 percent for the 20-year
period (1960-1979) immediately prior to the establishment of the Order.
Since higher CV values correspond to greater variability, this is an
indicator of the price-stabilizing impact of the Order.
The use of volume regulation allows the industry to fully supply
spearmint oil markets while avoiding the negative consequences of over-
supplying these markets. The use of volume regulation is believed to
have little or no effect on consumer prices of products containing
spearmint oil and will not result in fewer retail sales of such
products.
The Committee discussed alternatives to the recommendations
contained in this final rule for both classes of spearmint oil. The
Committee rejected the idea of not regulating volume for either class
of spearmint oil because of the severe, price-depressing effects that
are more likely to occur without volume regulation. The Committee also
discussed and considered salable quantities and allotment percentages
that were above and below the levels that were eventually recommended
for both classes of spearmint oil. Ultimately, the action recommended
by the Committee was to increase the allotment percentage and salable
quantity for both Scotch spearmint oil and Native spearmint oil from
the levels established for the 2024-2025 marketing year.
As noted earlier, the Committee's recommendation to establish
salable quantities and allotment percentages for both classes of
spearmint oil was made after careful consideration of all available
information including: (1) The estimated quantity of salable oil of
each class held by producers and handlers; (2) the estimated demand for
each class of oil; (3) the prospective production of each class of oil;
(4) the total of allotment bases of each class of oil for the current
marketing year and the estimated total of allotment bases of each class
for the ensuing marketing year; (5) the quantity of reserve oil, by
class, in storage; (6) producer prices of oil, including prices for
each class of oil; and (7) general market conditions for each class of
oil, including whether the estimated season average price to producers
is likely to exceed parity.
Based on its review, the Committee believes that the salable
quantities and allotment percentages recommended will achieve the
objectives sought. The Committee also believes that, should there be no
volume regulation in effect for the upcoming marketing year, the Far
West spearmint oil industry will return to the pronounced cyclical
price patterns that occurred prior to the promulgation of the Order. As
previously stated, annual salable quantities and allotment percentages
have been issued for both classes of spearmint oil since the Order's
inception. The salable quantities and allotment percentages established
herein are expected to facilitate the goal of maintaining orderly
marketing conditions for Far West spearmint oil for the 2025-2026 and
future marketing years.
This final rule establishes the salable quantities and allotment
percentages for Scotch and Native spearmint oil produced in the Far
West during the 2025-2026 marketing year. Costs to producers and
handlers, large and small, resulting from this proposal are expected to
be offset by the benefits derived from a more stable market and
increased returns. The benefits of this action are expected to be
equally available to all producers and handlers, regardless of their
size.
The Committee's meetings are widely publicized throughout the
spearmint oil industry and all interested persons are invited to attend
the meeting and participate in the Committee deliberations on all
issues. Like all Committee's meetings, the October 9, 2024 meeting was
a public meeting and all entities, both large and small, were able to
express views on this issue. Finally, interested persons were invited
to submit comments on this rule, including the regulatory and
informational impacts of this action on small businesses.
In accordance with the Paperwork Reduction Act of 1995, (44 U.S.C.
Chapter 35), the Order's information collection requirements have been
previously approved by OMB and assigned OMB No. 0581-0178, Vegetable
and Specialty Crops. No changes in those requirements would be
necessary as a result of this final rule. Should any changes become
necessary, they would be submitted to OMB for approval.
This final rule will not impose any additional reporting or
recordkeeping requirements on either small or large Far West spearmint
oil 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.
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.
AMS has not identified any relevant Federal rules that duplicate,
overlap, or conflict with this final rule.
A proposed rule concerning this action published in the Federal
Register on September 25, 2025 (90 FR 46092). Copies of the proposed
rule were provided to all members of the Committee and industry
handlers. In addition, the proposal was made available through the
internet by AMS and the Office of the Federal Register via <a href="https://www.regulations.gov">https://www.regulations.gov</a>. A 30-day comment period ending October 27, 2025,
was provided for interested persons to respond to the proposal. AMS
received one comment during the comment period which challenged the
procedural sufficiency of the rulemaking, asserting that AMS did not
adhere to the requirements of the Administrative Procedure Act, the
Regulatory Flexibility Act, and Executive Order 12866.
Specifically, the commenter claimed that AMS procedurally bypassed
notice and comment or waived the 30-day delayed effective date without
adequate good cause, failed to present an analysis of the impacts on
small businesses, and deprived interested parties a meaningful
opportunity to comment. After reviewing the comment, AMS determined
that all of the statutory and procedural requirements for rulemaking
have been met regarding this action.
Contrary to the comment's assertions, AMS did not bypass notice and
comment or invoke good cause. Interested persons had numerous
[[Page 24711]]
opportunities to review pertinent information, present their views, and
participate in the rulemaking process. AMS notes that in conducting all
meetings publicly, the Committee provided, rather than deprived,
interested persons a meaningful opportunity to comment. In addition,
AMS published a notice of proposed rulemaking to the Federal Register
on September 25, 2025, that included the basis for and relevant
information underlying the Committee's proposal and a 30-day comment
period for interested persons, ending October 27, 2025.
In addition, contrary to the comment's assertion, the proposed
rulemaking also included an Initial Regulatory Flexibility Analysis,
pursuant to requirements set forth in the Regulatory Flexibility Act,
that considered and detailed for the public's review and the economic
impact of this rule on small entities. AMS has provided adequate
opportunity for interested persons to consider the proposal and provide
comments.
Lastly, to address the comment's statements concerning Executive
Order 12866, AMS reiterates that this rule is exempt from the OMB
review process required by Executive Order 12866. Accordingly, AMS made
no changes to the rule as proposed. After consideration of all relevant
material presented, including the information and recommendations
submitted by the Committee and other available information, AMS has
determined that this final rule is consistent with and will effectuate
the purposes of the Act.
List of Subjects in 7 CFR Part 985
Marketing agreements, Oils and fats, Reporting and recordkeeping
requirements.
For the reasons set forth in the preamble, the Agricultural
Marketing Service amends 7 CFR part 985 as follows:
PART 985--MARKETING ORDER REGULATING THE HANDLING OF SPEARMINT OIL
PRODUCED IN THE FAR WEST
0
1. The authority citation for 7 CFR part 985 continues to read as
follows:
Authority: 7 U.S.C. 601-674.
0
2. Add Sec. 985.235 to read as follows:
Sec. 985.235 Salable quantities and allotment percentages--2025-2026
marketing year.
The salable quantity and allotment percentage for each class of
spearmint oil during the marketing year beginning on June 1, 2025,
shall be as follows:
(a) Class 1 (Scotch) oil--a salable quantity of 808,656 pounds and
an allotment percentage of 35 percent.
(b) Class 3 (Native) oil--a salable quantity of 1,028,670 pounds
and an allotment percentage of 39 percent.
Erin Morris,
Administrator, Agricultural Marketing Service.
[FR Doc. 2026-09058 Filed 5-6-26; 8:45 am]
BILLING CODE 3410-02-P
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