Exempt Plant Definition Request for Information

Issuing agencies

Abstract

The Agricultural Marketing Service (AMS) is seeking input from the public, including dairy industry stakeholders, on market conditions related to monthly route sales limits within the exempt plant definition in its regulations. AMS is requesting input on whether and how marketing conditions have changed since the definition was implemented in 1999.

Full Text

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[Federal Register Volume 91, Number 204 (Friday, October 23, 2026)]
[Notices]
[Page 66829]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-21668]


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Federal Register / Vol. 91, No. 204 / Friday, October 23, 2026 / 
Notices

[[Page 66829]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

[Doc. No. AMS-DA-26-0298]


Exempt Plant Definition Request for Information

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Request for information.

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SUMMARY: The Agricultural Marketing Service (AMS) is seeking input from 
the public, including dairy industry stakeholders, on market conditions 
related to monthly route sales limits within the exempt plant 
definition in its regulations. AMS is requesting input on whether and 
how marketing conditions have changed since the definition was 
implemented in 1999.

DATES: Comments must be received by November 23, 2026 to be considered.

ADDRESSES: Interested persons are invited to submit comments concerning 
this notice. Comments may be submitted through the Federal e-rulemaking 
portal at <a href="https://www.regulations.gov">https://www.regulations.gov</a> and should reference the document 
number, date, and page number of this issue of the Federal Register. 
Written comments may be submitted via mail to USDA/AMS/Dairy Programs, 
Stop 0225--Room 2530, 1400 Independence Avenue SW, Washington, DC 
20250-0225. All comments submitted in response to this notice, 
including the identity of the individuals or entities submitting the 
comments, will be included in the record and made available to the 
public, and can be viewed at <a href="https://www.regulations.gov">https://www.regulations.gov</a>.

FOR FURTHER INFORMATION CONTACT: Erin Taylor, USDA/AMS/Dairy Programs, 
Order Formulation and Enforcement Division, STOP 0225--Room 2530, 1400 
Independence Avenue SW, Washington, DC 20250-0225; telephone: (202) 
720-4392; email address: <a href="/cdn-cgi/l/email-protection#28676e6d6a685d5b4c49064f475e"><span class="__cf_email__" data-cfemail="0649404344467375626728616970">[email&#160;protected]</span></a>.

SUPPLEMENTARY INFORMATION:

Background

    A nonpool plant is defined within the Federal milk marketing order 
(FMMO) regulations in 7 CFR 1000.8, which includes the definition for 
an exempt plant in Sec.  1000.8(e), and specifically a definition for a 
de minimis plant exemption in Sec.  1000.8(e)(4). The regulations were 
implemented in the Federal Milk Marketing Order Reform (Order Reform) 
final rule published on September 1, 1999 (64 FR 47898), and the 
definition of a nonpool plant has not been amended since.
    To determine the monthly pounds threshold that would qualify a 
plant for an exemption under the de minimis definition being 
established during the Order Reform process, AMS reviewed the route 
sales limits of all FMMOs that had a de minimis exempt plant provision 
in place at the time. In an effort not to impose a pool obligation on 
any plant that was exempt for size at the time, AMS selected the 
highest plant exemption level allowed in any FMMO, which was 150,000 
pounds or less of monthly route disposition.
    In considering whether marketing conditions have changed since the 
definition was implemented in 1999, AMS seeks input from impacted dairy 
stakeholders on relevant market conditions, route disposition levels, 
and other related factors.

Request for Information

    In this Request for Information (RFI), AMS will consider how fluid 
milk market conditions have changed since the de minimis route 
disposition limit in the exempt plant definition was implemented, as 
well as current fluid milk marketing conditions. Through this RFI, AMS 
is soliciting comments on the market effects for handlers currently 
operating an exempt plant, as well as the effects of the disposition 
limit on regulated handlers who are not exempt. All interested parties 
are encouraged to provide input during the comment period. AMS will 
review and consider all information submitted in response to this RFI.
    Respondents may provide information for one or more of the 
questions or topics listed below, as desired.
    1. What market conditions or other factors should AMS consider in 
evaluating the current de minimis exempt plant route disposition limit?
    2. Has the dairy market changed in such a way that the 150,000 
pound per month route disposition limit may no longer be appropriate? 
If so, how?
    3. What plant data or other data should AMS consider in its 
evaluation of the de minimis exempt plant definition relative to the 
current marketing of fluid milk?
    4. What impact on the industry--including on producers, handlers, 
and consumers--would a change in the de minimis exempt plant route 
disposition have, including any increasing or decreasing costs for 
producers, handlers, or consumers?
    5. What effects does the de minimis exempt plant route disposition 
limit have on small businesses? Currently, the Small Business 
Administration defines a small fluid milk processing plant as a plant, 
or larger company operating multiple plants, with 1,150 or fewer 
employees collectively.

Erin Morris,
Administrator, Agricultural Marketing Service.
[FR Doc. 2026-21668 Filed 10-22-26; 8:45 am]
BILLING CODE 3410-02-P


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