Rule2024-01829
Milk in the Appalachian, Florida, and Southeast Marketing Areas; Amendments to Marketing Agreements and to Orders
Primary source
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
February 1, 2024
Effective
March 1, 2024
Issuing agencies
Agriculture DepartmentAgricultural Marketing Service
Abstract
This final rule amends the transportation credit balancing fund provisions for the Appalachian and Southeast Federal milk marketing orders and establishes distributing plant delivery credits in the Appalachian, Florida, and Southeast Federal milk marketing orders. More than the required number of producers in the three impacted marketing areas have approved the issuance of the final order.
Full Text
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[Federal Register Volume 89, Number 22 (Thursday, February 1, 2024)]
[Rules and Regulations]
[Pages 6401-6411]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-01829]
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Rules and Regulations
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains regulatory documents
having general applicability and legal effect, most of which are keyed
to and codified in the Code of Federal Regulations, which is published
under 50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by the Superintendent of Documents.
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Federal Register / Vol. 89, No. 22 / Thursday, February 1, 2024 /
Rules and Regulations
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DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Parts 1005, 1006, and 1007
[Doc. No. AMS-DA-23-0003; 23-J-0019]
Milk in the Appalachian, Florida, and Southeast Marketing Areas;
Amendments to Marketing Agreements and to Orders
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Final rule.
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SUMMARY: This final rule amends the transportation credit balancing
fund provisions for the Appalachian and Southeast Federal milk
marketing orders and establishes distributing plant delivery credits in
the Appalachian, Florida, and Southeast Federal milk marketing orders.
More than the required number of producers in the three impacted
marketing areas have approved the issuance of the final order.
DATES: This rule is effective March 1, 2024.
ADDRESSES: To review the hearing record and relevant materials, please
see <a href="https://www.ams.usda.gov/rules-regulations/milk-appalachian-southeast-and-florida-areas-hearing-proposed-amendments">https://www.ams.usda.gov/rules-regulations/milk-appalachian-southeast-and-florida-areas-hearing-proposed-amendments</a>.
FOR FURTHER INFORMATION CONTACT: Erin Taylor, USDA/AMS/Dairy Programs,
Order Formulation and Enforcement Branch, STOP 0231--Room 2530, 1400
Independence Avenue SW, Washington, DC 20250-0231, Telephone: (202)
720-7183, Email: <a href="/cdn-cgi/l/email-protection#fcb98e9592d2a89d8590938ebc898f989dd29b938a"><span class="__cf_email__" data-cfemail="c085b2a9aeee94a1b9acafb280b5b3a4a1eea7afb6">[email protected]</span></a>.
SUPPLEMENTARY INFORMATION: This rule, in accordance with 7 CFR
900.14(c), is the Secretary's final rule in this proceeding and adopts
the amendments detailed in the proposed rule published in the Federal
Register on December 1, 2023 (88 FR 84038).
This final rule amends the transportation credit balancing fund
(TCBF) provisions in the Appalachian and Southeast Federal milk
marketing orders (FMMOs or orders) by (1) updating the components of
the mileage rate calculation; (2) revising the months of mandatory and
discretionary payment; (3) revising the non-reimbursed mileage factor;
and (4) increasing the maximum assessment rate on Class I milk. This
final rule also establishes distributing plant delivery credit (DPDC)
provisions in the Appalachian, Florida, and Southeast FMMOs that will
make marketwide service payments to qualifying handlers and
cooperatives for milk shipments to pool distributing plants from farms
that are year-round, consistent suppliers. As required by regulation,
AMS conducted a vote where more than two-thirds of the participating
producers approved the amended orders. Thus, AMS is issuing this final
rule implementing new and amended provisions.
This administrative action is governed by sections 556 and 557 of
Title 5 of the United States Code and, therefore, is excluded from the
requirements of Executive Orders 12866, 13175, 13563, and 14094. This
action falls within a category of regulatory actions that the Office of
Management and Budget (OMB) exempted from Executive Orders 12866,
13563, and 14094 review.
The amendments adopted in this final rule have been reviewed under
Executive Order 12988, Civil Justice Reform. They are not intended to
have a retroactive effect and will not preempt any state or local laws,
regulations, or policies, unless they present an irreconcilable
conflict with this rule.
The Agricultural Marketing Agreement Act of 1937, as amended (7
U.S.C. 601-674) (AMAA), provides that administrative proceedings must
be exhausted before parties may file suit in court. Under section
608c(15)(A) of the AMAA, any handler subject to an order may request
modification or exemption from such order by filing a petition with the
United States Department of Agriculture (USDA) stating that the order,
any provision of the order, or any obligation imposed in connection
with the order is not in accordance with the law. A handler is afforded
the opportunity for a hearing on the petition. After a hearing, USDA
would rule on the petition. The AMAA provides that the district court
of the United States in any district in which the handler is an
inhabitant, or has its principal place of business, has jurisdiction in
equity to review USDA's ruling on the petition, provided a bill in
equity is filed not later than 20 days after the date of the entry of
the ruling.
Regulatory Flexibility Act and Paperwork Reduction Act
In accordance with the Regulatory Flexibility Act (RFA) (5 U.S.C.
601 et seq.), the Agricultural Marketing Service has considered the
economic impact of this action on small entities and has certified this
final rule will not have a significant economic impact on a substantial
number of small entities. The purpose of the RFA is to fit regulatory
actions to the scale of businesses subject to such actions so that
small businesses will not be unduly or disproportionately burdened.
Marketing orders and amendments thereto are unique in that they are
normally brought about through group action of essentially small
entities for their own benefit. A small dairy farm as defined by the
Small Business Administration (SBA) (13 CFR 121.201) is one that has an
annual gross revenue of $3.75 million or less, and a small dairy
products manufacturer is one that has no more than the number of
employees listed in the chart below:
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Size standards
NAICS code NAICS U.S. industry title in number of
employees
----------------------------------------------------------------------------------------------------------------
311511.................................. Fluid Milk Manufacturing............................ 1,150
311512.................................. Creamery Butter Manufacturing....................... 750
311513.................................. Cheese Manufacturing................................ 1,250
311514.................................. Dry, Condensed, and Evaporated Dairy Product 1,000
Manufacturing.
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[[Page 6402]]
To determine which dairy farms are ``small businesses,'' the $3.75
million per year income limit was used to establish a milk marketing
threshold of 1,220,703 pounds per month. Although this threshold does
not factor in additional monies that may be received by dairy
producers, it should be an accurate standard for most ``small'' dairy
farmers. To determine a handler's size, if the plant is part of a
larger company operating multiple plants that collectively exceed the
750-employee limit for creamery butter; the 1,000-employee limit for
dry, condensed, and evaporated dairy product manufacturing; the 1,150-
employee limit for fluid milk manufacturing; or the 1,250-employee
limit for cheese manufacturing; the plant was considered a large
business even if the local plant does not exceed the 750-; 1,000-;
1,150-; or 1,250-employee limits, respectively.
During March 2023, the milk of 2,191 dairy farms was pooled on the
Appalachian (1,359), Florida (83), and Southeast (749) FMMOs. Of the
totals, 1,233 farms on the Appalachian FMMO (91 percent), 37 on the
Florida FMMO (45 percent), and 658 on the Southeast FMMO (88 percent)
were considered small businesses.
During March 2023, there were a total of 17 plants associated with
the Appalachian FMMO (16 pool distributing plants and 1 pool supply
plant), 7 plants associated with the Florida FMMO (all pool
distributing plants), and 16 plants associated with the Southeast FMMO
(15 pool distributing plants and 1 pool supply plant). The number of
plants meeting the small business criteria under the Appalachian,
Florida, and Southeast FMMOs were estimated to be 2 (13 percent), 2 (29
percent), and 2 (13 percent), respectively.
Currently, the Appalachian and Southeast orders provide
transportation credit balancing fund (TCBF) payments on supplemental
shipments of milk for Class I use provided the milk was from producers
located outside of the marketing areas who are not regular suppliers to
the market. Producer milk received at a pool distributing plant
eligible for a transportation credit under the orders is defined as
bulk milk received directly from a dairy farmer (1) from whom not more
than 50 percent of the dairy farmer's milk production, in aggregate, is
received as producer milk during the immediately preceding months of
March through May of each order; and (2) who produced milk on a farm
not located within the specified marketing areas of either order. Milk
deliveries from producers located outside the marketing area who are
consistent suppliers to the market, or from producers located inside
the marketing areas, is not eligible for transportation credits.
This final rule amends the Appalachian and Southeast TCBF
provisions. Specifically, the amendments amend the non-reimbursed
mileage level from 85 miles to 15 percent of total miles and update
components of the mileage rate factor to reflect more current market
transportation costs.
The amendments also will increase the maximum TCBF assessment rates
for the Appalachian and Southeast orders. Specifically, the maximum
transportation credit assessment rate for the Appalachian and Southeast
orders will increase to $0.30 and $0.60 per hundredweight (cwt),
respectively. The increases are intended to minimize the proration and
depletion of each order's TCBF to provide more adequate TCBF payments.
This final rule also adopts DPDCs in the Appalachian, Florida, and
Southeast FMMOs to provide transportation assistance to handlers and
cooperatives procuring year-round, consistent milk supplies for the
region. Currently, there are no provisions in any of the three
southeastern FMMOs to provide transportation assistance to handlers and
cooperatives for these types of milk deliveries.
The DPDCs adopted in this final rule will operate similar to the
TCBF program: (1) DPDCs will be funded through an assessment on Class I
producer milk; (2) DPDCs will be payable to handlers and cooperatives
for procuring year-round milk supplies as determined by location and
delivery criteria; (3) DPDC payment provisions will be identical to
those for TCBF payments; and (4) DPDC provisions are designed to
safeguard against excess assessment collections and prevent persistent
and pervasive uneconomic milk movements for the purpose of receiving a
DPDC payment.
The TCBF and DPDC provisions are applied identically to large and
small handlers and cooperatives regulated by the Appalachian, Florida,
and Southeast FMMOs. Since the amendments will apply to all regulated
cooperatives and handlers regardless of their size, the amendments
should not have a significant economic impact on a substantial number
of small entities.
A review of reporting requirements was completed under the
Paperwork Reduction Act of 1995 (44 U.S.C. chapter 35). It was
determined that these amendments will have no impact on reporting,
recordkeeping, or other compliance requirements because those
requirements will remain unchanged. No new forms are proposed, and no
additional reporting requirements will be necessary.
This final rule does not require additional information collection
that requires clearance by the OMB beyond currently approved
information collection. The primary sources of data used to complete
the forms are routinely used in most business transactions. Forms
require only a minimal amount of information which can be supplied
without data processing equipment or a trained statistical staff. Thus,
since the information is already provided, no new information
collection requirements are needed, and the current information
collection and reporting burden is relatively small. Requiring the same
reports for all handlers does not significantly disadvantage any
handler that is smaller than the industry average.
The Agricultural Marketing Service 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.
No other burdens are expected to fall on the dairy industry as a
result of overlapping Federal rules. This rulemaking proceeding does
not duplicate, overlap, or conflict with any existing Federal rules.
Prior Documents in This Proceeding
Notice of Hearing: Published in the Federal Register on January 30,
2023 (88 FR 5800).
Recommended Decision: Published in the Federal Register on July 18,
2023 (88 FR 46016).
Final Decision: Published in the Federal Register on December 1,
2023 (88 FR 84038).
Findings and Determinations
The findings and determinations hereinafter set forth supplement
those that were made when the orders were first issued and when they
were amended. The previous findings and determinations are hereby
ratified and confirmed, except where they may conflict with those set
forth herein.
(a) Findings Upon the Basis of the Hearing Record
The amendments to the order are based on the record of a public
hearing held in Franklin, Tennessee, February 28-March 2, 2023,
pursuant to a notice of hearing published January 30, 2023 (88 FR
5800). The hearing was held
[[Page 6403]]
pursuant to the provisions of the Agricultural Marketing Agreement Act
of 1937, as amended (7 U.S.C. 601-674), and the applicable rules of
practice and procedure (7 CFR part 900).
Upon the basis of the evidence introduced at such hearing and the
record thereof, it is determined that:
(1) The said orders as hereby amended, and all of the terms and
conditions thereof, will tend to effectuate the declared policy of the
AMAA;
(2) The parity prices of milk, as determined pursuant to section 2
of the AMAA, are not reasonable in view of the price of feeds,
available supplies of feeds, and other economic conditions which affect
market supply and demand for milk in the aforesaid marketing area. The
minimum prices specified in the orders as hereby amended are such
prices as will reflect the aforesaid factors, ensure a sufficient
quantity of pure and wholesome milk, and be in the public interest; and
(3) The said orders as hereby amended regulate the handling of milk
in the same manner as, and are applicable only to persons in the
respective classes of industrial or commercial activity specified in,
marketing agreements upon which a hearing has been held.
(b) Additional Findings
The amendments to these orders are known to handlers. The final
decision containing the amendments to these orders was issued and
published in the Federal Register (88 FR 84038) on December 1, 2023.
(c) Determinations
It is hereby determined that:
(1) The refusal or failure of handlers (excluding cooperative
associations specified in section 8c(9) of the AMAA) of more than 50
percent of the milk marketed within the specified marketing areas to
sign a proposed marketing agreement, tends to prevent the effectuation
of the declared policy of the AMAA;
(2) The issuance of this order amending the Appalachian, Florida,
and Southeast orders is the only practical means pursuant to the
declared policy of the AMAA of advancing the interests of producers as
defined in the order as hereby amended; and
(3) The issuance of this order amending the Appalachian, Florida,
and Southeast FMMOs is favored by at least two-thirds of the producers
who were engaged in the production of milk for sale in the respective
marketing areas.
List of Subjects in 7 CFR Parts 1005, 1006, and 1007
Milk marketing orders.
Order Amending the Order Regulating the Handling of Milk in the
Appalachian, Florida, and Southeast Marketing Areas
It is therefore ordered, that on and after the effective date
hereof, the handling of milk in the Appalachian, Florida, and Southeast
marketing areas shall be in conformity to and in compliance with the
terms and conditions of the orders, as amended, and as hereby amended,
as follows:
PART 1005--MILK IN THE APPALACHIAN MARKETING AREA
0
1. The authority citation for part 1005 continues to read as follows:
Authority: 7 U.S.C. 601-674, and 7253.
0
2. Amend Sec. 1005.30 by:
0
a. Redesignating paragraphs (a)(5) through (9) as paragraphs (a)(7)
through (11), respectively;
0
b. Adding new paragraphs (a)(5) and (6);
0
c. Redesignating paragraph (c)(3) as (c)(4) and revising it; and
0
d. Adding new paragraph (c)(3).
The additions and revision read as follows:
Sec. 1005.30 Reports of receipts and utilization.
(a) * * *
(5) Receipts of producer milk described in Sec. 1005.84(e),
including the identity of the individual producers whose milk is
eligible for the distributing plant delivery credit pursuant to that
paragraph and the date that such milk was received;
(6) For handlers submitting distributing plant delivery credit
requests, transfers of bulk unconcentrated milk to nonpool plants,
including the dates that such milk was transferred;
* * * * *
(c) * * *
(3) With respect to milk for which a cooperative association is
requesting a distributing plant delivery credit pursuant to Sec.
1005.84, all of the information required in paragraphs (a)(5) and (6)
of this section.
(4) With respect to milk for which a cooperative association is
requesting a transportation credit pursuant to Sec. 1005.82, all of
the information required in paragraphs (a)(7) through (9) of this
section.
* * * * *
0
3. Amend Sec. 1005.32 by revising paragraph (a) to read as follows:
Sec. 1005.32 Other reports.
(a) On or before the 20th day after the end of each month, each
handler described in Sec. 1000.9(a) and (c) of this chapter shall
report to the market administrator any adjustments to distributing
plant delivery credit requests as reported pursuant to Sec.
1005.30(a)(5) and (6), and any adjustments to transportation credit
requests as reported pursuant to Sec. 1005.30(a)(7) through (9).
* * * * *
0
4. Amend Sec. 1005.81 by revising the first sentence of paragraph (a)
to read as follows:
Sec. 1005.81 Payments to the transportation credit balancing fund.
(a) On or before the 12th day after the end of the month (except as
provided in Sec. 1000.90 of this chapter), each handler operating a
pool plant and each handler specified in Sec. 1000.9(c) of this
chapter shall pay to the market administrator a transportation credit
balancing fund assessment determined by multiplying the pounds of Class
I producer milk assigned pursuant to Sec. 1005.44 by $0.30 per
hundredweight or such lesser amount as the market administrator deems
necessary to maintain a balance in the fund equal to the total
transportation credits disbursed during the prior June--February
period. * * *
* * * * *
0
5. Amend Sec. 1005.82 by:
0
a. Revising the first sentence of paragraph (a)(1), the first sentence
of paragraph (b), and paragraph (d)(3)(iii); and
0
b. Adding paragraph (d)(3)(viii).
The revisions and addition read as follows:
Sec. 1005.82 Payments from the transportation credit balancing fund.
(a) * * *
(1) On or before the 13th day (except as provided in Sec. 1000.90
of this chapter) after the end of each of the months of January and
July through December and any other month in which transportation
credits are in effect pursuant to paragraph (b) of this section, the
market administrator shall pay to each handler that received, and
reported pursuant to Sec. 1005.30(a)(7), bulk milk transferred from a
plant fully regulated under another Federal order as described in
paragraph (c)(1) of this section or that received, and reported
pursuant to Sec. 1005.30(a)(8), milk directly from producers' farms as
specified in paragraph (c)(2) of this section, a preliminary amount
determined pursuant to paragraph (d) of this section to the extent that
funds are
[[Page 6404]]
available in the transportation credit balancing fund. * * *
* * * * *
(b) The market administrator may extend the period during which
transportation credits are in effect (i.e., the transportation credit
period) to the month of February or June if a written request to do so
is received fifteen (15) days prior to the beginning of the month for
which the request is made and, after conducting an independent
investigation, finds that such extension is necessary to assure the
market of an adequate supply of milk for fluid use. * * *
* * * * *
(d) * * *
(3) * * *
(iii) Subtract 15 percent (15%) of the miles from the mileage so
determined;
* * * * *
(viii) The market administrator may revise the factor described in
paragraph (d)(3)(iii) of this section (the mileage adjustment factor)
if a written request to do so is received fifteen (15) days prior to
the beginning of the month for which the request is made and, after
conducting an independent investigation, finds that such revision is
necessary to assure orderly marketing, efficient handling of milk in
the marketing area, and an adequate supply of milk for fluid use. The
market administrator may increase the mileage adjustment factor by as
much as ten percentage points, up to twenty-five percent (25%) or
decrease it by as much as ten percentage points, to a minimum of five
percent (5%). Before making such a finding, the market administrator
shall notify all handlers in the market that a revision is being
considered and invite written data, comments, and arguments. Any
decision to revise the mileage rate factor must be issued in writing
prior to the first day of the month for which the revision is to be
effective.
0
6. Amend Sec. 1005.83 by revising paragraphs (a)(2) through (5) to
read as follows:
Sec. 1005.83 Mileage rate for the transportation credit balancing
fund.
(a) * * *
(2) From the result in paragraph (a)(1) of this section subtract
$2.26 per gallon;
(3) Divide the result in paragraph (a)(2) of this section by 6.2,
and round down to three decimal places to compute the fuel cost
adjustment factor;
(4) Add the result in paragraph (a)(3) of this section to $3.67;
(5) Divide the result in paragraph (a)(4) of this section by 497;
* * * * *
0
7. Add Sec. 1005.84 before the undesignated center heading
``Administrative Assessment and Marketing Service Deduction'' to read
as follows:
Sec. 1005.84 Distributing plant delivery credits.
(a) Distributing plant delivery credit fund. The market
administrator shall maintain a separate fund known as the Distributing
Plant Delivery Credit Fund into which shall be deposited the payments
made by handlers pursuant to paragraph (b) of this section and out of
which shall be made the payments due handlers pursuant to paragraph (d)
of this section. Payments due a handler shall be offset against
payments due from the handler.
(b) Payments to the distributing plant delivery credit fund. On or
before the 12th day after the end of the month (except as provided in
Sec. 1000.90 of this chapter), each handler operating a pool plant and
each handler specified in Sec. 1000.9(c) of this chapter shall pay to
the market administrator a distributing plant delivery credit fund
assessment determined by multiplying the pounds of Class I producer
milk assigned pursuant to Sec. 1005.44 by a per hundredweight
assessment rate of $0.60 or such lesser amount as the market
administrator deems necessary to maintain a balance in the fund equal
to the total distributing plant delivery credit disbursed during the
prior calendar year. If the distributing plant delivery credit fund is
in an overfunded position, the market administrator may completely
waive the distributing plant delivery credit assessment for one or more
months. In determining the distributing plant delivery credit
assessment rate, in the event that during any month of that previous
calendar year the fund balance was insufficient to cover the amount of
credits that were due, the assessment should be based upon the amount
of credits that would have been disbursed had the fund balance been
sufficient.
(c) Assessment rate announcement. The market administrator shall
announce publicly on or before the 23rd day of the month (except as
provided in Sec. 1000.90 of this chapter), the assessment rate per
hundredweight pursuant to paragraph (b) of this section for the
following month.
(d) Payments from the distributing plant delivery credit fund.
Payments from the distributing plant delivery credit fund to handlers
and cooperative associations requesting distributing plant delivery
credits shall be made as follows:
(1) On or before the 13th day (except as provided in Sec. 1000.90
of this chapter) after the end of each month, the market administrator
shall pay to each handler that received, and reported pursuant to Sec.
1005.30(a)(5), bulk unconcentrated milk directly from producers' farms,
or receipts of bulk unconcentrated milk by transfer from a pool supply
plant as defined in Sec. 1005.7(c) or (d), a preliminary amount
determined pursuant to paragraph (f) of this section to the extent that
funds are available in the distributing plant delivery credit fund. If
an insufficient balance exists to pay all of the credits computed
pursuant to this section, the market administrator shall distribute the
balance available in the distributing plant delivery credit fund by
reducing payments pro rata using the percentage derived by dividing the
balance in the fund by the total credits that are due for the month.
The credits resulting from this initial proration shall be subject to
audit adjustment pursuant to paragraph (d)(3) of this section.
(2) The market administrator shall accept adjusted requests for
distributing plant delivery credits on or before the 20th day of the
month following the month for which such credits were requested
pursuant to Sec. 1005.32(a). After such date, a preliminary audit will
be conducted by the market administrator, who will recalculate any
necessary proration of distributing plant delivery credit payments for
the preceding month pursuant to the process provided in paragraph
(d)(1) of this section. Handlers will be promptly notified of an
overpayment of credits based upon this final computation and remedial
payments to or from the distributing plant delivery credit fund will be
made on or before the next payment date for the following month.
(3) Distributing plant delivery credits paid pursuant to paragraphs
(d)(1) and (2) of this section shall be subject to final verification
by the market administrator pursuant to Sec. 1000.77 of this chapter.
Adjusted payments to or from the distributing plant delivery credit
fund will remain subject to the final proration established pursuant to
paragraph (d)(2) of this section.
(4) In the event that a qualified cooperative association is the
responsible party for whose account such milk is received and written
documentation of this fact is provided to the market administrator
pursuant to Sec. 1005.30(c)(3) prior to the date payment is due, the
distributing plant delivery credits for such milk computed pursuant to
this section shall be made to such cooperative association rather
[[Page 6405]]
than to the operator of the pool plant at which the milk was received.
(5) The market administrator shall provide monthly, to producers
who are not members of a qualified cooperative association, a statement
of the amount per hundredweight of distributing plant delivery credit
which the distributing plant handler receiving their milk is entitled
to claim.
(e) Eligible milk. Distributing plant delivery credits shall apply
to the following milk:
(1) Bulk unconcentrated fluid milk received directly from dairy
farms at a pool distributing plant as producer milk subject to the
following conditions:
(i) The farm on which the milk was produced is located within the
specified marketing areas of the order in this part or the marketing
area of Federal Order 1007 (7 CFR part 1007).
(ii) The farm on which the milk was produced is located in the
following counties:
(A) Illinois: Alexander, Bond, Champaign, Christian, Clark, Clay,
Clinton, Coles, Crawford, Cumberland, Douglas, Edgar, Edwards,
Effingham, Fayette, Franklin, Gallatin, Hamilton, Hardin, Jackson,
Jasper, Jefferson, Johnson, Lawrence, Macon, Marion, Massac, Monroe,
Montgomery, Moultrie, Perry, Piatt, Pope, Pulaski, Randolph, Richland,
St Clair, Saline, Shelby, Union, Vermilion, Wabash, Washington, Wayne,
White, and Williamson.
(B) Indiana: Bartholomew, Boone, Brown, Clay, Clinton, Dearborn,
Decatur, Delaware, Fayette, Fountain, Franklin, Hamilton, Hancock,
Hendricks, Henry, Jackson, Jefferson, Jennings, Johnson, Lawrence,
Madison, Marion, Monroe, Montgomery, Morgan, Ohio, Owen, Parke, Putnam,
Randolph, Ripley, Rush, Shelby, Switzerland, Tippecanoe, Tipton, Union,
Vermillion, Vigo, Warren, and Wayne.
(C) Kentucky: Boone, Boyd, Bracken, Campbell, Floyd, Grant,
Greenup, Harrison, Johnson, Kenton, Lawrence, Lewis, Magoffin, Martin,
Mason, Pendleton, Pike, and Robertson.
(D) Maryland: Allegany, Frederick, Garrett, Montgomery, and
Washington.
(E) Ohio: Adams, Athens, Brown, Butler, Clark, Clermont, Clinton,
Darke, Fairfield, Fayette, Franklin, Gallia, Greene, Hamilton,
Highland, Hocking, Jackson, Lawrence, Madison, Meigs, Miami,
Montgomery, Morgan, Perry, Pickaway, Pike, Preble, Ross, Scioto,
Vinton, Warren, Washington.
(F) Pennsylvania: Bedford, Fayette, Franklin, Fulton, Greene, and
Somerset.
(G) Virginia counties: Albemarle, Amelia, Appomattox, Arlington,
Brunswick, Buckingham, Caroline, Charles City, Charlotte, Chesterfield,
Clarke, Culpeper, Cumberland, Dinwiddie, Essex, Fairfax, Fauquier,
Fluvanna, Frederick, Gloucester, Goochland, Greene, Greensville,
Halifax, Hanover, Henrico, Isle Of Wight, James City, King And Queen,
King George, King William, Lancaster, Loudoun, Louisa, Lunenburg,
Madison, Mathews, Mecklenburg, Middlesex, Nelson, New Kent,
Northumberland, Nottoway, Orange, Page, Powhatan, Prince Edward, Prince
George, Prince William, Rappahannock, Richmond, Shenandoah,
Southampton, Spotsylvania, Stafford, Surry, Sussex, Warren,
Westmoreland, York.
(H) Virginia cities: Alexandria City, Charlottesville City,
Chesapeake City, Colonial Heights City, Emporia City, Fairfax City,
Falls Church City, Franklin City, Fredericksburg City, Hampton City,
Hopewell City, Manassas City, Manassas Park City, Newport News City,
Norfolk City, Petersburg City, Poquoson City, Portsmouth City, Richmond
City, Suffolk City, Virginia Beach City, Williamsburg City, and
Winchester City.
(I) West Virginia: Barbour, Berkeley, Boone, Braxton, Cabell,
Calhoun, Clay, Doddridge, Fayette, Gilmer, Grant, Greenbrier,
Hampshire, Hardy, Harrison, Jackson, Jefferson, Kanawha, Lewis,
Lincoln, Logan, Marion, Mason, Mineral, Mingo, Monongalia, Monroe,
Morgan, Nicholas, Pendleton, Pleasants, Pocahontas, Preston, Putnam,
Raleigh, Randolph, Ritchie, Roane, Summers, Taylor, Tucker, Tyler,
Upshur, Wayne, Webster, Wetzel, Wirt, Wood, and Wyoming.
(iii) The market administrator may include additional counties from
the states listed in paragraph (e)(1)(ii) of this section upon the
request of a pool handler and provision of satisfactory proof that the
county is a source of regular supply of milk to order distributing
plants.
(iv) Producer milk eligible for a payment under this section cannot
be eligible for payment from the transportation credit balancing fund
as specified in Sec. 1005.82(c)(2).
(v) The quantity of milk described herein shall be reduced by the
quantity of any bulk unconcentrated fluid milk products transferred
from a pool distributing plant to a nonpool plant or transferred to a
pool supply plant on the same calendar day as producer milk was
received at such plant for which a distributing plant delivery credit
is requested.
(2) Bulk unconcentrated fluid milk transferred from a pool plant
regulated pursuant to Sec. 1005.7(c) or (d) to a pool distributing
plant regulated pursuant to Sec. 1005.7(a) or (b). The quantity of
milk described herein shall be reduced by the quantity of any bulk
unconcentrated fluid milk products transferred from a pool distributing
plant to a nonpool plant or transferred to a pool supply plant on the
same calendar day as milk was received by transfer from a pool supply
plant at such pool distributing plant for which a distributing plant
delivery credit is requested.
(f) Credit computation. Distributing plant delivery credits shall
be computed as follows:
(1) With respect to milk delivered directly from the farm to a
distributing plant:
(i) Determine the shortest hard-surface highway distance between
the shipping farm's county seat and the receiving plant and multiply
the miles by an adjustment rate of not greater than ninety-five percent
(95%) and not less than seventy-five percent (75%);
(ii) Subtract the Class I price specified in Sec. 1000.50(a) of
this chapter for the county in which the shipping farm is located from
the Class I price applicable for the county in which the receiving pool
distributing plant is located;
(iii) Multiply the adjusted miles so computed in paragraph
(f)(1)(i) of this section by the monthly mileage rate factor for the
month computed pursuant to paragraph (h) of this section;
(iv) Subtract any positive difference in Class I prices computed in
paragraph (f)(1)(ii) of this section from the rate determined in
paragraph (f)(1)(iii) of this section;
(v) Multiply the remainder computed in paragraph (f)(1)(iv) of this
section by the hundredweight of milk described in paragraph (e)(1) of
this section.
(2) With respect to milk delivered from a pool supply plant to a
distributing plant:
(i) Determine the shortest hard-surface highway distance between
the transferring pool plant and the receiving plant, and multiply the
miles by an adjustment rate not greater than ninety-five percent (95%)
and not less than seventy-five percent (75%);
(ii) Subtract the Class I price specified in Sec. 1000.50(a) of
this chapter for the transferring pool plant from the Class I price
applicable for the county in which the receiving pool distributing
plant is located;
(iii) Multiply the adjusted miles so computed in paragraph
(f)(2)(i) of this section by the mileage rate factor for the month
computed pursuant to paragraph (h) of this section;
(iv) Subtract any positive difference in Class I prices computed in
paragraph (f)(2)(ii) of this section from the rate determined in
paragraph (f)(2)(iii) of this section;
[[Page 6406]]
(v) Multiply the remainder computed in paragraph (f)(2)(iv) of this
section by the hundredweight of milk described in paragraph (e)(2) of
this section.
(g) Mileage percentage rate adjustment. The monthly percentage rate
adjustment within the range of permissible percentage adjustments
provided in paragraphs (f)(1)(i) and (f)(2)(i) of this section shall be
determined by the market administrator, and publicly announced prior to
the month for which effective. In determining the percentage adjustment
to the actual mileages of milk delivered from farms and milk
transferred from pool plants the market administrator shall evaluate
the general supply and demand for milk in the marketing area, any
previous occurrences of sustained uneconomic movements of milk, and the
balances in the distributing plant delivery credit fund. The adjustment
percentage pursuant to paragraphs (f)(1)(i) and (f)(2)(i) of this
section to the actual miles used for computing distributing plant
delivery credits and announced by the market administrator shall always
be the same percentage.
(h) Mileage rate for the distributing plant delivery credit fund.
The mileage rate for the distributing plant delivery credit fund shall
be the mileage rate computed by the market administrator pursuant to
Sec. 1005.83.
(i) Oversight of milk movements. The market administrator shall
regularly monitor and evaluate the requests for distributing plant
delivery credits to determine that such credits are not encouraging
uneconomic movements of milk, and that the credits continue to assure
orderly marketing and efficient handling of milk in the marketing area.
In making such determinations, the market administrator will include in
the evaluation the general supply and demand for milk. If the market
administrator finds that uneconomic movements are occurring, and such
movements are persistent and pervasive, or are not being made in a way
that assures orderly marketing and efficient handling of milk in the
marketing area, after good cause shown, the market administrator may
disallow the payments of distributing plant delivery credit on such
milk. Before making such a finding, the market administrator shall give
the handler of such milk sufficient notice that an investigation is
being considered and shall provide notice that the handler has the
opportunity to explain why such movements were necessary, or the
opportunity to correct such movements prior to the disallowance of any
distributing plant delivery credits. Any disallowance of distributing
plant delivery credit pursuant to this provision shall remain
confidential between the market administrator and the handler.
PART 1006--MILK IN THE FLORIDA MARKETING AREA
0
8. The authority citation for part 1006 continues to read as follows:
Authority: 7 U.S.C. 601-674, and 7253.
0
9. Amend Sec. 1006.30 by:
0
a. Redesignating paragraphs (a)(5) and (6) as paragraphs (a)(7) and
(8), respectively;
0
b. Adding new paragraphs (a)(5) and (6); and
0
c. Adding paragraph (c)(3).
The additions read as follows:
Sec. 1006.30 Reports of receipts and utilization.
(a) * * *
(5) Receipts of producer milk described in Sec. 1006.84(e),
including the identity of the individual producers whose milk is
eligible for the distributing plant delivery credit pursuant to that
paragraph and the date that such milk was received;
(6) For handlers submitting distributing plant delivery credit
requests, transfers of bulk unconcentrated milk to nonpool plants,
including the dates that such milk was transferred.
* * * * *
(c) * * *
(3) With respect to milk for which a cooperative association is
requesting a distributing plant delivery credit pursuant to Sec.
1006.84, all of the information required in paragraphs (a)(5) and (6)
of this section.
* * * * *
0
10. Revise Sec. 1006.32 to read as follows:
Sec. 1006.32 Other reports.
(a) On or before the 20th day after the end of each month, each
handler described in Sec. 1000.9(a) and (c) of this chapter shall
report to the market administrator any adjustments to distributing
plant delivery credit requests as reported pursuant to Sec.
1006.30(a)(5) and (6).
(b) In addition to the reports required pursuant to Sec. Sec.
1006.30 and 1006.31 and paragraph (a) of this section, each handler
shall report any information the market administrator deems necessary
to verify or establish each handler's obligation under the order.
0
11. Add an undesignated center heading preceding the undesignated
center heading ``Administrative Assessment and Marketing Service
Deduction'' to read as follows: Marketwide Service Payments.
0
12. Add Sec. 1006.84 preceding the undesignated center heading
``Administrative Assessment and Marketing Service Deduction'' to read
as follows:
Sec. 1006.84 Distributing plant delivery credits.
(a) Distributing plant delivery credit fund. The market
administrator shall maintain a separate fund known as the Distributing
Plant Delivery Credit Fund into which shall be deposited the payments
made by handlers pursuant to paragraph (b) of this section and out of
which shall be made the payments due handlers pursuant to Sec.
1005.84(b) of this chapter. Payments due a handler shall be offset
against payments due from the handler.
(b) Payments to the distributing plant delivery credit fund. On or
before the 12th day after the end of the month (except as provided in
Sec. 1000.90 of this chapter), each handler operating a pool plant and
each handler specified in Sec. 1000.9(c) of this chapter shall pay to
the market administrator a distributing plant delivery credit fund
assessment determined by multiplying the pounds of Class I producer
milk assigned pursuant to Sec. 1006.44 by a per hundredweight
assessment rate of $0.85 or such lesser amount as the market
administrator deems necessary to maintain a balance in the fund equal
to the total distributing plant delivery credit disbursed during the
prior calendar year. If the distributing plant delivery credit fund is
in an overfunded position, the market administrator may completely
waive the distributing plant delivery credit assessment for one or more
months. In determining the distributing plant delivery credit
assessment rate, in the event that during any month of that previous
calendar year the fund balance was insufficient to cover the amount of
credits that were due, the assessment should be based upon the amount
of credits that would have been disbursed had the fund balance been
sufficient.
(c) Assessment rate announcement. The market administrator shall
announce publicly on or before the 23rd day of the month (except as
provided in Sec. 1000.90 of this chapter) the assessment rate per
hundredweight pursuant to paragraph (b) of this section for the
following month.
(d) Payments from the distributing plant delivery credit fund.
Payments from the distributing plant delivery credit fund to handlers
and cooperative associations requesting distributing plant delivery
credits shall be made as follows:
[[Page 6407]]
(1) On or before the 13th day (except as provided in Sec. 1000.90
of this chapter) after the end of each month, the market administrator
shall pay to each handler that received, and reported pursuant to Sec.
1006.30(a)(5), bulk unconcentrated milk directly from producers' farms,
or receipts of bulk unconcentrated milk by transfer from a pool supply
plant as defined in Sec. 1006.7(c) or (d), a preliminary amount
determined pursuant to paragraph (f) of this section to the extent that
funds are available in the distributing plant delivery credit fund. If
an insufficient balance exists to pay all of the credits computed
pursuant to this section, the market administrator shall distribute the
balance available in the distributing plant delivery credit fund by
reducing payments pro rata using the percentage derived by dividing the
balance in the fund by the total credits that are due for the month.
The credits resulting from this initial proration shall be subject to
audit adjustment pursuant to paragraph (d)(3) of this section.
(2) The market administrator shall accept adjusted requests for
distributing plant delivery credits on or before the 20th day of the
month following the month for which such credits were requested
pursuant to Sec. 1006.32(a). After such date, a preliminary audit will
be conducted by the market administrator, who will recalculate any
necessary proration of distributing plant delivery credit payments for
the preceding month pursuant to the process provided in paragraph
(d)(1) of this section. Handlers will be promptly notified of an
overpayment of credits based upon this final computation and remedial
payments to or from the distributing plant delivery credit fund will be
made on or before the next payment date for the following month.
(3) Distributing plant delivery credits paid pursuant to paragraphs
(d)(1) and (2) of this section shall be subject to final verification
by the market administrator pursuant to Sec. 1000.77 of this chapter.
Adjusted payments to or from the distributing plant delivery credit
fund will remain subject to the final proration established pursuant to
paragraph (d)(2) of this section.
(4) In the event that a qualified cooperative association is the
responsible party for whose account such milk is received and written
documentation of this fact is provided to the market administrator
pursuant to Sec. 1006.30(c)(3) prior to the date payment is due, the
distributing plant delivery credits for such milk computed pursuant to
this section shall be made to such cooperative association rather than
to the operator of the pool plant at which the milk was received.
(5) The market administrator shall provide monthly, to producers
who are not members of a qualified cooperative association, a statement
of the amount per hundredweight of distributing plant delivery credit
which the distributing plant handler receiving their milk is entitled
to claim.
(e) Eligible milk. Distributing plant delivery credits shall apply
to the following milk:
(1) Bulk unconcentrated fluid milk received at a pool distributing
plant as producer milk directly from dairy farms located within the
marketing area; or located within the Georgia counties of Appling,
Atkinson, Bacon, Baker, Ben Hill, Berrien, Brooks, Calhoun, Charlton,
Chattahoochee, Clay, Clinch, Coffee, Cook, Colquitt, Crisp, Decatur,
Dodge, Dooley, Dougherty, Early, Echols, Grady, Irwin, Lanier, Lee,
Lowndes, Jeff Davis, Macon, Marion, Miller, Mitchell, Pierce, Pulaski,
Quitman, Randolph, Schley, Seminole, Stewart, Sumter, Telfair, Terrel,
Thomas, Tift, Turner, Ware, Webster, Wilcox, and Worth, and received at
pool distributing plants. The quantity of milk described herein shall
be reduced by the quantity of any bulk unconcentrated fluid milk
products transferred from a pool distributing plant to a nonpool plant
or transferred to a pool supply plant on the same calendar day as
producer milk was received at such plant for which a distributing plant
delivery credit is requested.
(2) Bulk unconcentrated fluid milk transferred from a pool plant
regulated pursuant to Sec. 1006.7(c) or (d) to a pool distributing
plant regulated pursuant to Sec. 1006.7(a) or (b). The quantity of
milk described herein shall be reduced by the quantity of any bulk
unconcentrated fluid milk products transferred from a pool distributing
plant to a nonpool plant or transferred to a pool supply plant on the
same calendar day as milk was received by transfer from a pool supply
plant at such pool distributing plant for which a distributing plant
delivery credit is requested.
(f) Credit computation. Distributing plant delivery credits shall
be computed as follows:
(1) With respect to milk delivered directly from the farm to a
distributing plant:
(i) Determine the shortest hard-surface highway distance between
the shipping farm's county seat and the receiving plant and multiply
the miles by an adjustment rate of not greater than ninety-five percent
(95%) and not less than seventy-five percent (75%);
(ii) Subtract the Class I price specified in Sec. 1000.50(a) of
this chapter for the county in which the shipping farm is located from
the Class I price applicable for the county in which the receiving pool
distributing plant is located;
(iii) Multiply the adjusted miles so computed in (f)(1)(i) of this
section by the monthly mileage rate factor for the month computed
pursuant to paragraph (h) of this section;
(iv) Subtract any positive difference in Class I prices computed in
paragraph (f)(1)(ii) of this section from the rate determined in
paragraph (f)(1)(iii) of this section;
(v) Multiply the remainder computed in paragraph (f)(1(iv) of this
section by the hundredweight of milk described in paragraph (e)(1) of
this section;
(2) With respect to milk delivered from a pool supply plant to a
distributing plant:
(i) Determine the shortest hard-surface highway distance between
the transferring pool plant and the receiving plant, and multiply the
miles by an adjustment rate of not greater than ninety-five percent
(95%) and not less than seventy-five percent (75%);
(ii) Subtract the Class I price specified in Sec. 1000.50(a) of
this chapter for the transferring pool plant from the Class I price
applicable for the county in which the receiving pool distributing
plant is located;
(iii) Multiply the adjusted miles so computed in paragraph
(f)(2)(i) of this section by the mileage rate factor for the month
computed pursuant to paragraph (h) of this section;
(iv) Subtract any positive difference in Class I prices computed in
paragraph (f)(2)(ii) from the rate determined in paragraph (f)(2)(iii)
of this section;
(v) Multiply the remainder computed in paragraph (f)(2)(iv) of this
section by the hundredweight of milk described in paragraph (e)(2) of
this section.
(g) Mileage percentage rate adjustment. The monthly percentage rate
adjustment within the range of permissible percentage adjustments
provided in paragraphs (f)(1)(i) and (f)(2)(i) of this section shall be
determined by the market administrator, and publicly announced prior to
the month for which effective. In determining the percentage adjustment
to the actual mileages of milk delivered from farms and milk
transferred from pool plants the market administrator shall evaluate
the general supply and demand for milk in the marketing area, any
previous occurrences of sustained uneconomic movements of milk, and the
balances in the distributing plant delivery credit fund. The adjustment
percentage pursuant to paragraphs
[[Page 6408]]
(f)(1)(i) and (f)(2)(i) to of this section the actual miles used for
computing distributing plant credits and announced by the market
administrator shall always be the same percentage.
(h) Mileage rate for the distributing plant delivery credit fund.
The market administrator shall compute a mileage rate factor each month
as follows:
(1) Compute the simple average rounded down to three decimal places
for the most recent four (4) weeks of the Diesel Price per Gallon as
reported by the Energy Information Administration of the United States
Department of Energy for the Lower Atlantic and Gulf Coast Districts
combined;
(2) From the result in paragraph (h)(1) of this section subtract
$2.26 per gallon;
(3) Divide the result in paragraph (h)(2) of this section by 6.2,
and round down to three decimal places to compute the fuel cost
adjustment factor;
(4) Add the result in paragraph (h)(3) of this section to $3.67;
(5) Divide the result in paragraph (h)(4) of this section by 497;
(6) Round the result in paragraph (h)(5) of this section down to
five decimal places to compute the mileage rate.
(i) Oversight of milk movements. The market administrator shall
regularly monitor and evaluate the requests for distributing plant
delivery credits to determine that such credits are not encouraging
uneconomic movements of milk, and the credits continue to assure
orderly marketing and efficient handling of milk in the marketing area.
In making such determinations the market administrator will include in
the evaluation the general supply and demands for milk. If the market
administrator finds that uneconomic movements are occurring, and such
movements are persistent and pervasive, or are not being made in a way
that assures orderly marketing and efficient handling of milk in the
marketing area, after good cause shown, the market administrator may
disallow the payments of distributing plant delivery credit on such
milk. Before making such a finding, the market administrator shall give
the handler on such milk sufficient notice that an investigation is
being considered and shall provide notice that the handler has the
opportunity to explain why such movements were necessary, or the
opportunity to correct such movements prior to the disallowance of any
distributing plant delivery credits. Any disallowance of distributing
plant delivery credit pursuant to this provision shall remain
confidential between the market administrator and the handler.
PART 1007--MILK IN THE SOUTHEAST MARKETING AREA
0
13. The authority citation for part 1007 continues to read as follows:
Authority: 7 U.S.C. 601-674, and 7253.
0
14. Amend Sec. 1007.30 by:
0
a. Redesignating paragraphs (a)(5) through (9) as paragraphs (a)(7)
through (11), respectively;
0
b. Adding new paragraphs (a)(5) and (6);
0
c. Redesignating paragraph (c)(3) as paragraph (c)(4) and revising it;
and
0
d. Adding new paragraph (c)(3).
The revisions and additions read as follows.
Sec. 1007.30 Reports of receipts and utilization.
(a) * * *
(5) Receipts of producer milk described in Sec. 1007.84(e),
including the identity of the individual producers whose milk is
eligible for the distributing plant delivery credit pursuant to that
paragraph and the date that such milk was received;
(6) For handlers submitting distributing plant delivery credit
requests, transfers of bulk unconcentrated milk to nonpool plants,
including the dates that such milk was transferred;
* * * * *
(c) * * *
(3) With respect to milk for which a cooperative association is
requesting a distributing plant delivery credit pursuant to Sec.
1007.84, all of the information required in paragraphs (a)(5) and (6)
of this section.
(4) With respect to milk for which a cooperative association is
requesting a transportation credit pursuant to Sec. 1007.82, all of
the information required in paragraphs (a)(7) through (9) of this
section.
* * * * *
0
15. Amend Sec. 1007.32 by revising paragraph (a) to read as follows:
Sec. 1007.32 Other reports.
(a) On or before the 20th day after the end of each month, each
handler described in Sec. 1000.9(a) and (c) of this chapter shall
report to the market administrator any adjustments to distributing
plant delivery credit requests as reported pursuant to Sec.
1007.30(a)(5) and (6) and any adjustments to transportation credit
requests as reported pursuant to Sec. 1007.30(a)(7) through (9) of
this part.
* * * * *
0
16. Amend Sec. 1007.81 by revising the first sentence of paragraph (a)
to read as follows:
Sec. 1007.81 Payments to the transportation credit balancing fund.
(a) On or before the 12th day after the end of the month (except as
provided in Sec. 1000.90 of this chapter), each handler operating a
pool plant and each handler specified in Sec. 1000.9(c) of this
chapter shall pay to the market administrator a transportation credit
balancing fund assessment determined by multiplying the pounds of Class
I producer milk assigned pursuant to Sec. 1007.44 by $0.60 per
hundredweight or such lesser amount as the market administrator deems
necessary to maintain a balance in the fund equal to the total
transportation credits disbursed during the prior June through February
period to reflect any changes in the current mileage rate versus the
mileage rate(s) in effect during the prior June through February
period. * * *
* * * * *
0
17. Amend Sec. 1007.82 by:
0
a. Revising the first sentence of paragraph (a)(1), the first sentence
of paragraph (b), and paragraph (d)(3)(iii); and
0
b. Adding paragraph (d)(3)(viii).
The revisions and addition read as follows:
Sec. 1007.82 Payments from the transportation credit balancing fund.
(a) * * *
(1) On or before the 13th day (except as provided in Sec. 1000.90)
after the end of each of the months of January, and July through
December and any other month in which transportation credits are in
effect pursuant to paragraph (b) of this section, the market
administrator shall pay to each handler that received, and reported
pursuant to Sec. 1007.30(a)(7), bulk milk transferred from a plant
fully regulated under another Federal order as described in paragraph
(c)(1) of this section or that received, and reported pursuant to Sec.
1007.30(a)(8), milk directly from producers' farms as specified in
paragraph (c)(2) of this section, a preliminary amount determined
pursuant to paragraph (d) of this section to the extent that funds are
available in the transportation credit balancing fund. * * *
(b) The market administrator may extend the period during which
transportation credits are in effect (i.e., the transportation credit
period) to the month of February or June if a written request to do so
is received fifteen (15) days prior to the beginning of the month for
which the request is made and, after conducting an independent
investigation, finds that such extension is necessary to assure the
market of an
[[Page 6409]]
adequate supply of milk for fluid use. * * *
* * * * *
(d) * * *
(3) * * *
(iii) Subtract 15 percent (15%) of the miles from the mileage so
determined;
* * * * *
(viii) The market administrator may revise the factor described in
(3)(iii) of this section (the mileage adjustment factor) if a written
request to do so is received fifteen (15) days prior to the beginning
of the month for which the request is made and, (15) days prior to the
beginning of the month for which the request is made and, after
conducting an independent investigation, finds that such revision is
necessary to assure orderly marketing, efficient handling of milk in
the marketing area, and an adequate supply of milk for fluid use. The
market administrator may increase the mileage adjustment factor by as
much as ten percentage points (10%) up to twenty-five percent (25%) or
decrease it by as much as ten percentage points (10%), to a minimum of
five percent (5%). Before making such a finding, the market
administrator shall notify all handlers in the market that a revision
is being considered and invite written data, comments, and arguments.
Any decision to revise the mileage rate factor must be issued in
writing prior to the first day of the month for which the revision is
to be effective.
0
18. Amend Sec. 1007.83 by revising paragraphs (a)(2) through (5) to
read as follows:
Sec. 1007.83 Mileage rate for the transportation credit balancing
fund.
(a) * * *
(2) From the result in paragraph (a)(1) of this section subtract
$2.26 per gallon;
(3) Divide the result in paragraph (a)(2) of this section by 6.2,
and round down to three decimal places to compute the fuel cost
adjustment factor;
(4) Add the result in paragraph (a)(3) of this section to $3.67;
(5) Divide the result in paragraph (a)(4) of this section by 497;
* * * * *
0
19. Add Sec. 1007.84 before the undesignated center heading
``Administrative Assessment and Marketing Service Deduction'' to read
as follows:
Sec. 1007.84 Distributing plant delivery credits.
(a) Distributing plant delivery credit fund. The market
administrator shall maintain a separate fund known as the Distributing
Plant Delivery Credit Fund into which shall be deposited the payments
made by handlers pursuant to paragraph (b) of this section and out of
which shall be made the payments due handlers pursuant to paragraph (d)
of this section. Payments due a handler shall be offset against
payments due from the handler.
(b) Payments to the distributing plant delivery credit fund. On or
before the 12th day after the end of the month (except as provided in
Sec. 1000.90 of this chapter), each handler operating a pool plant and
each handler specified in Sec. 1000.9(c) of this chapter shall pay to
the market administrator a distributing plant delivery credit fund
assessment determined by multiplying the pounds of Class I producer
milk assigned pursuant to Sec. 1007.44 by a per hundredweight
assessment rate of $0.50 or such lesser amount as the market
administrator deems necessary to maintain a balance in the fund equal
to the total distributing plant delivery credit disbursed during the
prior calendar year. If the distributing plant delivery credit fund is
in an overfunded position, the market administrator may completely
waive the distributing plant delivery credit assessment for one or more
months. In determining the distributing plant delivery credit
assessment rate, in the event that during any month of that previous
calendar year the fund balance was insufficient to cover the amount of
credits that were due, the assessment should be based upon the amount
of credits that would have been disbursed had the fund balance been
sufficient.
(c) Assessment rate announcement. The market administrator shall
announce publicly on or before the 23rd day of the month (except as
provided in Sec. 1000.90 of this chapter), the assessment rate per
hundredweight pursuant to paragraph (b) of this section for the
following month.
(d) Payments from the distributing plant delivery credit fund.
Payments from the distributing plant delivery credit fund to handlers
and cooperative associations requesting distributing plant delivery
credits shall be made as follows:
(1) On or before the 13th day (except as provided in Sec. 1000.90
of this chapter) after the end of each month, the market administrator
shall pay to each handler that received, and reported pursuant to Sec.
1007.30(a)(5), bulk unconcentrated milk directly from producers' farms,
or receipts of bulk unconcentrated milk by transfer from a pool supply
plant as defined in Sec. 1007.7(c) or (d), a preliminary amount
determined pursuant to paragraph (f) of this section to the extent that
funds are available in the distributing plant delivery credit fund. If
an insufficient balance exists to pay all of the credits computed
pursuant to this section, the market administrator shall distribute the
balance available in the distributing plant delivery credit fund by
reducing payments pro rata using the percentage derived by dividing the
balance in the fund by the total credits that are due for the month.
The credits resulting from this initial proration shall be subject to
audit adjustment pursuant to paragraph (d)(3) of this section.
(2) The market administrator shall accept adjusted requests for
distributing plant delivery credits on or before the 20th day of the
month following the month for which such credits were requested
pursuant to Sec. 1007.32(a). After such date, a preliminary audit will
be conducted by the market administrator, who will recalculate any
necessary proration of distributing plant delivery credit payments for
the preceding month pursuant to the process provided in paragraph
(d)(1) of this section. Handlers will be promptly notified of an
overpayment of credits based upon this final computation and remedial
payments to or from the distributing plant delivery credit fund will be
made on or before the next payment date for the following month.
(3) Distributing plant delivery credits paid pursuant to paragraphs
(d)(1) and (2) of this section shall be subject to final verification
by the market administrator pursuant to Sec. 1000.77 of this chapter.
Adjusted payments to or from the distributing plant delivery credit
fund will remain subject to the final proration established pursuant to
paragraph (d)(2) of this section.
(4) In the event that a qualified cooperative association is the
responsible party for whose account such milk is received and written
documentation of this fact is provided to the market administrator
pursuant to Sec. 1007.30(c)(3) prior to the date payment is due, the
distributing plant delivery credits for such milk computed pursuant to
this section shall be made to such cooperative association rather than
to the operator of the pool plant at which the milk was received.
(5) The market administrator shall provide monthly to producers who
are not members of a qualified cooperative association a statement of
the amount per hundredweight of distributing plant delivery credit
which the distributing plant handler receiving their milk is entitled
to claim.
(e) Eligible milk. Distributing plant delivery credits shall apply
to the following milk:
[[Page 6410]]
(1) Bulk unconcentrated fluid milk received directly from dairy
farms at a pool distributing plant as producer milk subject to the
following conditions:
(i) The farm on which the milk was produced is located within the
specified marketing areas of the order in this part or the marketing
area of Federal Order 1005 (7 CFR part 1005).
(ii) The farm on which the milk was produced is located in the
following counties in the State of:
(A) Illinois: Alexander, Bond, Clay, Clinton, Crawford, Edwards,
Effingham, Fayette, Franklin, Gallatin, Hamilton, Hardin, Jackson,
Jasper, Jefferson, Johnson, Lawrence, Marion, Massac, Monroe,
Montgomery, Perry, Pope, Pulaski, Randolph, Richland, St Clair, Saline,
Union, Washington, Wayne, White, Williamson, Calhoun, Greene, Jersey,
Macoupin, Madison, and Wabash.
(B) Kansas: Allen, Anderson, Bourbon, Chautauqua, Cherokee, Coffey,
Crawford, Douglas, Elk, Franklin, Greenwood, Jefferson, Johnson,
Labette, Leavenworth, Linn, Lyon, Miami, Montgomery, Neosho, Osage,
Shawnee, Wabaunsee, Wilson, Woodson, and Wyandotte
(C) Missouri: Audrain, Bates, Benton, Boone, Callaway, Camden,
Cass, Clay, Cole, Cooper, Franklin, Gasconade, Henry, Hickory, Howard,
Jackson, Jefferson, Johnson, Lafayette, Lincoln, Maries, Miller,
Moniteau, Montgomery, Morgan, Osage, Pettis, Phelps, Pike, Platte,
Pulaski, Ray, St Charles, St Clair, Ste Genevieve, St Louis, St. Louis
City, Saline, and Warren
(D) Oklahoma: Adair, Atoka, Bryan, Cherokee, Choctaw, Coal, Craig,
Creek, Delaware, Haskell, Hughes, Latimer, Le Flore, McCurtain,
Mcintosh, Mayes, Muskogee, Nowata, Okfuskee, Okmulgee, Osage, Ottawa,
Pawnee, Pittsburg, Pushmataha, Rogers, Sequoyah, Tulsa, Wagoner, and
Washington
(E) Texas: Anderson, Angelina, Bowie, Camp, Cass, Chambers,
Cherokee, Delta, Fannin, Franklin, Galveston, Gregg, Hardin, Harris,
Harrison, Henderson, Hopkins, Houston, Hunt, Jasper, Jefferson,
Kaufman, Lamar, Liberty, Marion, Montgomery, Morris, Nacogdoches,
Newton, Orange, Panola, Polk, Rains, Red River, Rusk, Sabine, San
Augustine, San Jacinto, Shelby, Smith, Titus, Trinity, Tyler, Upshur,
Van Zandt, Walker, and Wood.
(iii) The Market Administrator may include additional counties from
the states listed in paragraph (e)(1)(ii) of this section upon the
request of a pool handler and provision of satisfactory proof that the
county is a source of regular supply of milk to order distributing
plants.
(iv) Producer milk eligible for a payment under this section cannot
be eligible for payment from the transportation credit balancing fund
as specified in Sec. 1007.82(c)(2).
(v) The quantity of milk described herein shall be reduced by the
quantity of any bulk unconcentrated fluid milk products transferred
from a pool distributing plant to a nonpool plant or transferred to a
pool supply plant on the same calendar day as producer milk was
received at such plant for which a distributing plant delivery credit
is requested.
(2) Bulk unconcentrated fluid milk transferred from a pool supply
plant regulated pursuant to Sec. 1007.7(c) or (d) to a pool
distributing plant regulated pursuant to Sec. 1007.7(a) or (b). The
quantity of milk described herein shall be reduced by the quantity of
any bulk unconcentrated fluid milk products transferred from a pool
distributing plant to a nonpool plant or transferred to a pool supply
plant on the same calendar day as milk was received by transfer from a
pool supply plant at such pool distributing plant for which a
distributing plant delivery credit is requested.
(f) Credit computation. Distributing plant delivery credits shall
be computed as follows:
(1) With respect to milk delivered directly from the farm to a
distributing plant:
(i) Determine the shortest hard-surface highway distance between
the shipping farm's county seat and the receiving plant, and multiply
the miles by an adjustment rate of not greater than ninety-five percent
(95%) and not less than seventy-five percent (75%);
(ii) Subtract the Class I price specified in Sec. 1000.50(a) of
this chapter for the county in which the shipping farm is located from
the Class I price applicable for the county in which the receiving pool
distributing plant is located;
(iii) Multiply the adjusted miles so computed in (f)(1)(i) of this
section by the monthly mileage rate factor for the month computed
pursuant to paragraph (h) of this section;
(iv) Subtract any positive difference in Class I prices computed in
paragraph (f)(1)(ii) of this section from the rate determined in
paragraph (f)(1)(iii) of this section;
(v) Multiply the remainder computed in paragraph (f)(1)(iv) of this
section by the hundredweight of milk described in paragraph (e)(1) of
this section;
(2) With respect to milk delivered from a pool supply plant to a
distributing plant:
(i) Determine the shortest hard-surface highway distance between
the transferring pool plant and the receiving plant, and multiply the
miles by an adjustment rate of not greater than ninety-five (95%)
percent and not less than seventy-five (75%) percent;
(ii) Subtract the Class I price specified in Sec. 1000.50(a) of
this chapter for the transferring pool plant from the Class I price
applicable for the county in which the receiving pool distributing
plant is located;
(iii) Multiply the adjusted miles so computed in paragraph
(f)(2)(i) of this section by the mileage rate factor for the month
computed pursuant to paragraph (h) of this section;
(iv) Subtract any positive difference in Class I prices computed in
paragraph (f)(2)(ii) of this section from the rate determined in
paragraph (f)(2)(iii) of this section;
(v) Multiply the remainder computed in paragraph (f)(2)(iv) of this
section by the hundredweight of milk described in paragraph (e)(2) of
this section;
(g) Mileage percentage rate adjustment. The monthly percentage rate
adjustment within the range of permissible percentage adjustments
provided in paragraphs (f)(1)(i) and (f)(2)(i) of this section shall be
determined by the market administrator, and publicly announced prior to
the month for which effective. In determining the percentage adjustment
to the actual mileages of milk delivered from farms and milk
transferred from pool plants the market administrator shall evaluate
the general supply and demand for milk in the marketing area, any
previous occurrences of sustained uneconomic movements of milk, and the
balances in the distributing plant delivery credit fund. The adjustment
percentage pursuant to paragraphs (f)(1) and (2) of this section to the
actual miles used for computing distributing plant delivery credits and
announced by the market administrator shall always be the same
percentage.
(h) Mileage rate for the distributing plant delivery credit fund.
The mileage rate for the distributing plant delivery credit fund shall
be the mileage rate computed by the market administrator pursuant to
Sec. 1007.83.
(i) Oversight of milk movements. The market administrator shall
regularly monitor and evaluate the requests for distributing plant
delivery credits to determine that such credits are not encouraging
uneconomic movements of milk, and the credits continue to assure
orderly marketing and efficient handling of milk in the marketing area.
In making such determinations the market administrator will include in
the
[[Page 6411]]
evaluation the general supply and demand for milk. If the market
administrator finds that uneconomic movements are occurring, and such
movements are persistent and pervasive, or are not being made in a way
that assures orderly marketing and efficient handling of milk in the
marketing area, after good cause shown, the market administrator may
disallow the payments of distributing plant delivery credit on such
milk. Before making such a finding, the market administrator shall give
the handler on such milk sufficient notice that an investigation is
being considered and shall provide notice that the handler has the
opportunity to explain why such movements were necessary, or the
opportunity to correct such movements prior to the disallowance of any
distributing plant delivery credits. Any disallowance of distributing
plant delivery credit pursuant to this provision shall remain
confidential between the market administrator and the handler.
Erin Morris,
Associate Administrator, Agricultural Marketing Service.
[FR Doc. 2024-01829 Filed 1-30-24; 8:45 am]
BILLING CODE 3410-02-P
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</html>Indexed from Federal Register on February 1, 2024.
This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.