USDA Proposes 2026-2027 Spearmint Oil Quotas to Stabilize Far West Market
The U.S. Department of Agriculture's Agricultural Marketing Service (AMS) has initiated a proposed rule to establish salable quantities and allotment percentages for Scotch and Native spearmint oil produced in the Far West region, encompassing Washington, Idaho, Oregon, and parts of Nevada and Utah. This action, slated for the 2026-2027 marketing year commencing June 1, 2026, is based on a unanimous recommendation from the Far West Spearmint Oil Administrative Committee. It represents a proactive measure to manage market supply and ensure stability within a critical agricultural sector.
Regulatory Framework and Committee Role
The proposed rule operates under Marketing Order No. 985, authorized by the Agricultural Marketing Agreement Act of 1937. This order grants the Committee the authority to recommend volume regulations annually. The Committee, composed of spearmint oil producers and a public member, convenes each year to assess market conditions, including current and projected supply, demand forecasts, production costs, and producer prices. Its recommendations for volume control are designed to meet market requirements and maintain orderly marketing conditions, preventing either undersupply or oversupply.
Salable quantity denotes the total amount of a specific class of spearmint oil (Scotch or Native) that handlers may acquire from producers during the marketing year. The allotment percentage, in turn, is calculated by dividing the salable quantity by the total allotment base of all producers for that class of oil. A producer's allotment base reflects their historical production and sales, undergoing periodic adjustments to account for evolving market dynamics. This system ensures that each producer's share of the market is regulated, aligning individual production with the overall market strategy.
Scotch Spearmint Oil: Increased Quotas Amid Shifting Trends
For Scotch spearmint oil, the Committee has recommended a salable quantity of 979,704 pounds and an allotment percentage of 42 percent for the 2026-2027 marketing year. These figures represent notable increases over the prior year: the salable quantity is 171,048 pounds greater than the 2025-2026 figure of 808,656 pounds, and the allotment percentage is up seven points from 35 percent. The total allotment base for the coming year is estimated at 2,332,629 pounds, a slight increase from the previous year.
The Committee's rationale for this increase is rooted in several factors. While Scotch spearmint oil production saw a significant decline from 2014 to an estimated low of 257,943 pounds in 2024, it has shown signs of a rebound, reaching an estimated 316,665 pounds in 2025. This recovery is attributed to a net increase of 950 acres of Scotch spearmint cultivation. Industry reports suggest that trade demand, which had been decreasing, has begun to stabilize. Despite competition from Canadian producers continuing to exert downward pressure, the Committee projects a trade demand of 650,000 pounds for Scotch spearmint oil in 2026-2027, an increase from the prior year's estimate. The recommended salable quantity is designed to fully supply this estimated demand, with a projected salable carry-in of 329,704 pounds at the end of the marketing year, suggesting a buffer for future needs.
Native Spearmint Oil: Recommendation with Dissent
Regarding Native spearmint oil, the Committee recommended a salable quantity of 1,145,220 pounds and an allotment percentage of 43 percent. This recommendation passed with a vote of six in favor and one opposed. The dissenting member did not oppose volume regulation itself but advocated for a higher salable quantity and allotment percentage for Native spearmint oil than what the majority approved. This highlights the inherent tension in balancing producer interests with overall market stability when setting these critical benchmarks.
Implications and Public Participation
These proposed regulations aim to provide producers with clear guidelines for the upcoming marketing year, allowing them to adjust their production decisions accordingly. The ability of the Committee to recommend intra-seasonal increases in salable quantities and allotment percentages provides flexibility should market needs shift unexpectedly. The overarching goal is to foster an environment where spearmint oil prices remain stable, and the market is consistently supplied without creating excessive surpluses.
Federal agencies, including AMS, consider the implications of their rulemaking actions. This proposed rule has been reviewed under Executive Orders 12866, 14192, 13175, and 12988, which address regulatory review, deregulation, tribal government consultation, and civil justice reform, respectively. AMS has determined that the rule is exempt from OMB review, from certain deregulation requirements, and is unlikely to have substantial direct effects on Indian Tribal Governments or retroactive impact. The public comment period for this proposed rule is open until August 24, 2026, offering stakeholders an opportunity to provide input to the USDA on these important agricultural policies.
