[Federal Register Volume 74, Number 67 (Thursday, April 9, 2009)]
[Proposed Rules]
[Pages 16296-16319]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-7982]
[[Page 16295]]
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Part III
Department of Agriculture
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Agricultural Marketing Service
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7 CFR Parts 1000, 1001, 1005 et al.
Milk in the Northeast and Other Marketing Areas; Notice of Hearing on
Proposed Amendments to Tentative Marketing Agreements and Orders;
Proposed Rule
Federal Register / Vol. 74 , No. 67 / Thursday, April 9, 2009 /
Proposed Rules
[[Page 16296]]
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DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Parts 1000, 1001, 1005, 1006, 1007, 1030, 1032, 1033, 1124,
1126 and 1131
[Doc. No. AO-14-A78, et al.; DA-09-02; AMS-09-0007]
Milk in the Northeast and Other Marketing Areas; Notice of
Hearing on Proposed Amendments to Tentative Marketing Agreements and
Orders
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Notice of public hearing on proposed rulemaking.
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SUMMARY: A national public hearing is being held to consider and take
evidence on proposals seeking to amend or remove the producer-handler
provisions and revise the exempt plant provisions applicable to all
Federal milk marketing orders. Additionally, a proposal seeking to
amend the orders to include provisions related to individual handler
pools will be considered as an alternative to the producer-handler
provisions.
DATES: The hearing will convene at 1 p.m., on Monday, May 4, 2009.
ADDRESSES: The hearing will be held at The Westin, Cincinnati, 21 East
Fifth Street, Cincinnati, Ohio 45202, phone (513) 621-7700.
FOR FURTHER INFORMATION CONTACT: Gino M. Tosi, Senior Marketing
Specialist, Order Formulation and Enforcement Branch, USDA/AMS/Dairy
Programs, Stop 0231-Room 2971, 1400 Independence Avenue, SW.,
Washington, DC 20250-0231, (202) 690-1366, e-mail address:
gino.tosi@ams.usda.gov.
Persons requiring a sign language interpreter or other special
accommodations should contact Paul Huber, Assistant Market
Administrator, at (330) 225-4758; e-mail: phuber@fmmaclev.com before
the hearing begins.
SUPPLEMENTARY INFORMATION: This administrative action is governed by
the provisions of Sections 556 and 557 of Title 5 of the United States
Code and, therefore, is excluded from the requirements of Executive
Order 12866.
Notice is hereby given of a public hearing to be held at The
Westin, Cincinnati, Cincinnati, Ohio, beginning at 1 p.m. on Monday,
May 4, 2009, with respect to proposed amendments to the marketing
agreements and to the orders regulating the handling of milk in all
Federal milk marketing orders.
The hearing is called 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 governing the
formulation of marketing agreements and marketing orders (7 CFR part
900).
The purpose of the hearing is to receive evidence with respect to
the economic and marketing conditions which relate to the proposed
amendments, hereinafter set forth, and any appropriate modifications
thereof, to the tentative marketing agreements and to the orders.
Actions under the Federal milk order program are subject to the
Regulatory Flexibility Act (5 U.S.C. 601-612) (RFA). The RFA seeks to
ensure that, within the statutory authority of a program, the
regulatory and information collection requirements are tailored to the
size and nature of small businesses. For the purpose of the RFA, a
dairy farm is a ``small business'' if it has an annual gross revenue of
less than $750,000, and a dairy products manufacturer is a ``small
business'' if it has fewer than 500 employees (13 CFR 121.201). Most
parties subject to a milk order are considered as a small business.
Accordingly, interested parties are invited to present evidence on the
probable regulatory and informational impact of the hearing proposals
on small businesses. Also, parties may offer modifications of these
proposals for the purpose of tailoring their applicability to small
businesses.
The amendments to the rules proposed herein have been reviewed
under Executive Order 12988, Civil Justice Reform. They are not
intended to have a retroactive effect. If adopted, the proposed
amendments would not preempt any State or local laws, regulations, or
policies, unless they present an irreconcilable conflict with this
rule.
The Agricultural Marketing Agreement Act (Act) provides that
administrative proceedings must be exhausted before parties may file
suit in court. Under Section 8c(15)(A) of the Act, any handler subject
to an order may request modification or exemption from such order by
filing with the United States 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 the law. A handler is afforded the opportunity for a hearing on
the petition. After a 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, has its principle 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.
Interested parties who wish to introduce exhibits should provide
the Administrative Law Judge at the hearing with (4) copies of such
exhibits for the official record. Additional copies should be made
available for the use by other hearing participants. Any party that has
submitted a proposal noticed herein, when participating as a witness,
is required to make their testimony--if prepared as an exhibit--and any
other exhibits, available to USDA officials prior to the start of the
hearing on the day of their appearance. Individual dairy farmers are
not subject to this requirement.
The hearing will continue until such time as determined to have
ended by the presiding Administrative Law Judge. The schedule for the
next session will be announced at the time of adjournment. Such
reconvening date and time will also be posted on the AMS-Dairy Programs
Web site at http://www.ams.usda.gov/dairy.
The proposed amendments, as set forth below, have not received the
approval of USDA.
List of Subjects in 7 CFR Parts 1000, 1001, 1005, 1006, 1007, 1030,
1032, 1033, 1124, 1126 and 1131
Milk marketing orders.
The authority citation for 7 CFR Parts 1000, 1001, 1005, 1006,
1007, 1030, 1032, 1033, 1124, 1126 and 1131 read as follows:
Authority: 7 U.S.C. 601-674, and 7253.
Proposed by National Milk Producers Federation and International
Dairy Foods Association.
Proposal No. 1
This proposal seeks to eliminate the producer-handler provisions
from all orders.
PART 1000--GENERAL PROVISIONS OF FEDERAL MILK MARKETING ORDERS
Sec. 1000.8 [Amended]
1. Amend Sec. 1000.8 by:
(1) Removing paragraph (b); and
(2) Redesignating paragraphs (c), (d) and (e) as (b), (c) and (d).
PART 1001--MILK IN THE NORTHEAST MARKETING AREA
Sec. 1001.10 [Removed]
2. Remove and reserve Sec. 1001.10.
[[Page 16297]]
PART 1005--MILK IN THE APPALACHIAN MARKETING AREA
Sec. 1005.10 [Removed]
3. Remove and reserve Sec. 1005.10.
PART 1006--MILK IN THE FLORIDA MARKETING AREA
Sec. 1006.10 [Removed]
4. Remove and reserve Sec. 1006.10.
PART 1007--MILK IN THE SOUTHEAST MARKETING AREA
Sec. 1007.10 [Removed]
5. Remove and reserve Sec. 1007.10.
PART 1030--MILK IN THE UPPER MIDWEST MARKETING AREA
Sec. 1030.10 [Removed]
6. Remove and reserve Sec. 1030.10.
PART 1032--MILK IN THE CENTRAL MARKETING AREA
Sec. 1032.10 [Removed]
7. Remove and reserve Sec. 1032.10.
PART 1033--MILK IN THE MIDEAST MARKETING AREA
Sec. 1033.10 [Removed]
8. Remove and reserve Sec. 1033.10.
PART 1124--MILK IN THE PACIFIC NORTHWEST MARKETING AREA
Sec. 1124.10 [Removed]
9. Remove and reserve Sec. 1124.10.
PART 1126--MILK IN THE SOUTHWEST MARKETING AREA
Sec. 1126.10 [Removed]
10. Remove and reserve Sec. 1126.10.
PART 1131--MILK IN THE ARIZONA MARKETING AREA
Sec. 1131.10 [Removed]
11. Remove and reserve Sec. 1131.10.
Proposal No. 2
This proposal seeks to modify the exempt plant provision by: (1)
Increasing the current limit on monthly route disposition and packaged
sales of fluid milk products to other plants from 150,000 pounds or
less during the month to 450,000 pounds or less during the month; (2)
applying the 450,000 pound per month threshold to a plant's total
monthly disposition; and (3) limiting exemption status to plants that
produce uniquely labeled products.
PART 1000--GENERAL PROVISIONS OF FEDERAL MILK MARKETING ORDERS
12. Amend Sec. 1000.8 by revising paragraph (e)(4) to read as
follows:
Sec. 1000.8 Nonpool plant.
* * * * *
(e) * * *
(4) A plant that in all markets has route disposition and packaged
sales of fluid milk products to other plants of 450,000 pounds or less
during the month, all of which are uniquely branded.
Proposed by Hatchland Farm, LLC.
Proposal No. 3
This proposal seeks to end the regulatory exemption of producer-
handlers from the pooling and pricing provisions of the Northeast order
if their Class I route disposition exceeds 3,000,000 pounds of milk per
month.
PART 1001--GENERAL PROVISIONS OF FEDERAL MILK MARKETING ORDERS
13. Amend Sec. 1001.10 by revising paragraph (a) to read as
follows:
Sec. 1001.10 Producer-handler.
* * * * *
(a) Operates a dairy farm and a distributing plant from which there
is route disposition within the marketing area during the month not to
exceed 3,000,000 pounds per month;
* * * * *
Proposed by Lochmead Dairy.
Proposal No. 4
This proposal seeks to revise the producer-handler provisions in
all orders except the Pacific Northwest and Arizona orders.
Specifically, this proposal seeks to end the regulatory exemption of
producer-handlers from the pooling and pricing provisions of their
respective orders if their Class I route disposition exceeds 3,000,000
pounds of milk per month.
PART 1001--MILK IN THE NORTHEAST MARKETING AREA
14. Amend Sec. 1001.10 by revising paragraph (a) to read as
follows:
Sec. 1001.10 Producer-handler.
* * * * *
(a) Operates a dairy farm and a distributing plant from which there
is route disposition within the marketing area during the month not to
exceed 3,000,000 pounds per month;
* * * * *
PART 1005--MILK IN THE APPALACHIAN MARKETING AREA
15. Amend Sec. 1005.10 by revising paragraph (a) to read as
follows:
Sec. 1005.10 Producer-handler.
* * * * *
(a) Operates a dairy farm and a distributing plant from which there
is route disposition within the marketing area during the month not to
exceed 3,000,000 pounds per month;
* * * * *
PART 1006--MILK IN THE FLORIDA MARKETING AREA
16. Amend Sec. 1006.10 by revising paragraph (a) to read as
follows:
Sec. 1006.10 Producer-handler.
* * * * *
(a) Operates a dairy farm and a distributing plant from which there
is route disposition within the marketing area during the month not to
exceed 3,000,000 pounds per month;
* * * * *
PART 1007--MILK IN THE SOUTHEAST MARKETING AREA
17. Amend Sec. 1007.10 paragraph (a) to read as follows:
Sec. 1007.10 Producer-handler.
* * * * *
(a) Operates a dairy farm and a distributing plant from which there
is route disposition within the marketing area during the month not to
exceed 3,000,000 pounds per month;
* * * * *
PART 1030--MILK IN THE UPPER MIDWEST MARKETING AREA
18. Amend Sec. 1030.10 by revising paragraph (a) to read as
follows:
Sec. 1030.10 Producer-handler.
* * * * *
(a) Operates a dairy farm and a distributing plant from which there
is route disposition within the marketing area during the month not to
exceed 3,000,000 pounds per month;
* * * * *
PART 1032--MILK IN THE CENTRAL MARKETING AREA
19. Amend Sec. 1032.10 by revising paragraph (a) to read as
follows:
Sec. 1032.10 Producer-handler.
* * * * *
(a) Operates a dairy farm and a distributing plant from which there
is route disposition within the marketing
[[Page 16298]]
area during the month not to exceed 3,000,000 pounds per month;
* * * * *
PART 1033--MILK IN THE MIDEAST MARKETING AREA
20. Amend Sec. 1033.10 by revising paragraph (a) to read as
follows:
Sec. 1033.10 Producer-handler.
* * * * *
(a) Operates a dairy farm and a distributing plant from which there
is route disposition within the marketing area during the month not to
exceed 3,000,000 pounds per month;
* * * * *
PART 1126--MILK IN THE SOUTHWEST MARKETING AREA
21. Amend Sec. 1126.10 by revising paragraph (a) to read as
follows:
Sec. 1126.10 Producer-handler.
* * * * *
(a) Operates a dairy farm and a distributing plant from which there
is route disposition within the marketing area during the month not to
exceed 3,000,000 pounds per month;
* * * * *
Proposed by Homeland Creamery and Maple View Farm Milk Co., LLC.
Proposal No. 5
This proposal seeks to end the regulatory exemption of producer-
handlers from the pooling and pricing provisions of the Appalachian,
Florida and Southeast milk marketing orders if their Class I route
disposition and packaged sales of fluid milk products to other plants
exceeds 750,000 pounds of milk per month.
PART 1005--MILK IN THE APPALACHIAN MILK MARKETING ORDER
22. Amend Sec. 1005.10 by revising paragraph (a) to read as
follows:
Sec. 1005.10 Producer-handler.
* * * * *
(a) Operates a dairy farm and a distributing plant from which there
is route disposition and packaged sales of fluid milk products within
the marketing area during the month not to exceed 750,000 pounds per
month, all of which are uniquely branded;
* * * * *
PART 1006--MILK IN THE FLORIDA MILK MARKETING ORDER
23. Amend Sec. 1006.10 by revising paragraph (a) to read as
follows:
Sec. 1006.10 Producer-handler.
* * * * *
(a) Operates a dairy farm and a distributing plant from which there
is route disposition and packaged sales of fluid milk products within
the marketing area during the month not to exceed 750,000 pounds per
month, all of which are uniquely branded;
* * * * *
PART 1007--MILK IN THE SOUTHEAST MILK MARKETING ORDER
24. Amend Sec. 1007.10 by revising paragraph (a) to read as
follows:
Sec. 1007.10 Producer-handler.
* * * * *
(a) Operates a dairy farm and a distributing plant from which there
is route disposition and packaged sales of fluid milk products within
the marketing area during the month not to exceed 750,000 pounds per
month, all of which are uniquely branded;
* * * * *
Proposal No. 6
This proposal seeks to amend the exempt plant provision for the
Appalachian, Florida and Southeast milk marketing orders by increasing
the current limit on monthly route disposition and packaged sales of
fluid milk products to other plants from 150,000 pounds or less during
the month to 750,000 pounds or less during the month.
PART 1000--GENERAL PROVISIONS OF FEDERAL MILK MARKETING ORDERS
25. Amend Sec. 1000.8 by revising paragraph (e)(4) to read as
follows:
Sec. 1000.8 Nonpool plant.
* * * * *
(e) * * *
(4) A plant that has route disposition and packaged sales of fluid
milk products to other plants of 150,000 pounds or less during the
month, except in the Appalachian, Florida and Southeast milk marketing
orders.
PART 1005--MILK IN THE APPALACHIAN MILK MARKETING ORDER
26. Revise Sec. 1005.8 to read as follows:
Nonpool plant means any milk receiving, manufacturing, or
processing plant other than a pool plant. The following categories of
nonpool plants are further defined as follows:
(a) A fully regulated plant regulated under another Federal order
means a plant that is fully subject to the pricing and pooling
provisions of another Federal order.
(b) Producer-handler plant means a plant operated by a producer-
handler as defined under any Federal order.
(c) Partially regulated distributing plant means a nonpool plant
that is not a plant fully regulated under another Federal order, a
producer-handler plant, or an exempt plant, from which there is route
disposition in the marketing area during the month.
(d) Unregulated supply plant means a supply plant that does not
qualify as a pool supply plant and is not a plant fully regulated under
another Federal order, a producer-handler plant, or an exempt plant.
(e) An exempt plant means a plant described in this paragraph that
is exempt from the pricing and pooling provisions of any order provided
that the operator of the plant files reports as prescribed by the
market administrator of any marketing area in which the plant
distributes packaged fluid milk products to enable determination of the
handler's exempt status:
(1) A plant that is operated by a governmental agency that has no
route disposition incommercial channels;
(2) A plant that is operated by a duly accredited college or
university disposing of fluid milk products only through operation of
its own facilities with no route disposition in commercial channels;
(3) A plant from which the total route disposition is for
individuals or institutions for charitable purposes without
remuneration; or
(4) A plant that route disposition and packaged sales of fluid milk
products to other plants of 750,000 pound or less during the month.
PART 1006--MILK IN THE FLORIDA MILK MARKETING ORDER
27. Revise Sec. 1006.8 to read as follows:
Nonpool plant means any milk receiving, manufacturing, or
processing plant other than a pool plant. The following categories of
nonpool plants are further defined as follows:
(a) A fully regulated plant regulated under another Federal order
means a plant that is fully subject to the pricing and pooling
provisions of another Federal order.
(b) Producer-handler plant means a plant operated by a producer-
handler as defined under any Federal order.
(c) Partially regulated distributing plant means a nonpool plant
that is not a plant fully regulated under another Federal order, a
producer-handler plant, or an exempt plant, from which there is route
disposition in the marketing area during the month.
[[Page 16299]]
(d) Unregulated supply plant means a supply plant that does not
qualify as a pool supply plant and is not a plant fully regulated under
another Federal order, a producer-handler plant, or an exempt plant.
(e) An exempt plant means a plant described in this paragraph that
is exempt from the pricing and pooling provisions of any order provided
that the operator of the plant files reports as prescribed by the
market administrator of any marketing area in which the plant
distributes packaged fluid milk products to enable determination of the
handler's exempt status:
(1) A plant that is operated by a governmental agency that has no
route disposition in commercial channels;
(2) A plant that is operated by a duly accredited college or
university disposing of fluid milk products only through operation of
its own facilities with no route disposition in commercial channels;
(3) A plant from which the total route disposition is for
individuals or institutions for charitable purposes without
remuneration; or
(4) A plant that route disposition and packaged sales of fluid milk
products to other plants of 750,000 pound or less during the month.
PART 1007--MILK IN THE SOUTHEAST MILK MARKETING ORDER
28. Revise Sec. 1007.8 to read as follows:
Nonpool plant means any milk receiving, manufacturing, or
processing plant other than a pool plant. The following categories of
nonpool plants are further defined as follows:
(a) A fully regulated plant regulated under another Federal order
means a plant that is fully subject to the pricing and pooling
provisions of another Federal order.
(b) Producer-handler plant means a plant operated by a producer-
handler as defined under any Federal order.
(c) Partially regulated distributing plant means a nonpool plant
that is not a plant fully regulated under another Federal order, a
producer-handler plant, or an exempt plant, from which there is route
disposition in the marketing area during the month.
(d) Unregulated supply plant means a supply plant that does not
qualify as a pool supply plant and is not a plant fully regulated under
another Federal order, a producer-handler plant, or an exempt plant.
(e) An exempt plant means a plant described in this paragraph that
is exempt from the pricing and pooling provisions of any order provided
that the operator of the plant files reports as prescribed by the
market administrator of any marketing area in which the plant
distributes packaged fluid milk products to enable determination of the
handler's exempt status:
(1) A plant that is operated by a governmental agency that has no
route disposition in commercial channels;
(2) A plant that is operated by a duly accredited college or
university disposing of fluid milk products only through operation of
its own facilities with no route disposition in commercial channels;
(3) A plant from which the total route disposition is for
individuals or institutions for charitable purposes without
remuneration; or
(4) A plant that route disposition and packaged sales of fluid milk
products to other plants of 750,000 pound or less during the month.
Proposed by Dunajski Dairy.
Proposal No. 7
This proposal seeks to end the regulatory exemption of producer-
handlers from the pooling and pricing provisions of the Northeast order
if their Class I route disposition exceeds 3,000,000 pounds of milk per
month.
PART 1001--MILK IN THE NORTHEAST MILK MARKETING ORDER
29. Amend Sec. 1001.10 by revising paragraph (a) to read as
follows:
Sec. 1001.10 Producer-handler.
* * * * *
(a) Operates a dairy farm and a distributing plant from which there
is route disposition within the marketing area during the month not to
exceed 3,000,000 pounds per month.
* * * * *
Proposed by Administrator, Division of Agricultural Development,
Wisconsin Department of Agriculture, Trade and Consumer Protection.
Proposal No. 8
This proposal seeks to end the regulatory exemption of producer-
handlers from the pooling and pricing provisions of all orders if their
Class I route disposition exceeds 2,000,000 pounds of milk per month.
PART 1000--GENERAL PROVISIONS OF FEDERAL MILK MARKETING ORDERS
30. Amend Sec. 1000.8 by revising paragraph (b) to read as
follows:
Sec. 1000.8 Nonpool plant.
* * * * *
(b) Producer-handler plant means a plant operated by a producer-
handler as defined under any Federal order provided the producer-
handler in all markets has route disposition and packaged fluid sales
of fluid milk products of 2,000,000 million pounds or less during the
month.
* * * * *
Proposal No. 9
This proposal seeks to amend the exempt plant provision for all
milk orders by increasing the current limit on monthly route
disposition and packaged sales of fluid milk products to other plants
from 150,000 pounds or less during the month to 2,000,000 pounds or
less during the month.
PART 1000--GENERAL PROVISIONS OF FEDERAL MILK MARKETING ORDERS
31. Amend Sec. 1000.8 by revising paragraph (e)(4) to read as
follows:
Sec. 1000.8 Nonpool plant.
* * * * *
(e) * * *
(4) A plant that in all markets has route disposition and packaged
sales of fluid milk products to other plants of 2,000,000 pounds or
less during the month.
Proposed by Way-Har Farms.
Proposal No. 10
This proposal seeks to amend the exempt plant provision for all
milk orders by increasing the current limit on monthly route
disposition and packaged sales of fluid milk products to other plants
from 150,000 pounds or less during the month to 450,000 pounds or less
during the month.
PART 1000--GENERAL PROVISIONS OF FEDERAL MILK MARKETING ORDERS
32. Amend Sec. 1000.8 by revising paragraph (e)(4) to read as
follows:
Sec. 1000.8 Nonpool plant.
* * * * *
(e) * * *
(4) A plant that has route disposition and packaged sales of fluid
milk products to other plants of 450,000 pounds or less during the
month.
Proposed by Shatto Farms, Inc.
Proposal No. 11
This proposal seeks to end the regulatory exemption of producer-
handlers from the pooling and pricing provisions of all orders if their
Class I route disposition exceeds 1,000,000 pounds of milk per month.
[[Page 16300]]
PART 1000--GENERAL PROVISIONS OF FEDERAL MILK MARKETING ORDERS
33. Amend Sec. 1000.8 by revising paragraph (b) to read as
follows:
Sec. 1000.8 Nonpool plant.
* * * * *
(b) Producer-handler plant means a plant operated by a producer-
handler as defined under any Federal order provided the producer-
handler has route disposition and packaged fluid sales of fluid milk
products of 1,000,000 million pounds or less during the month.
* * * * *
Proposal No. 12
This proposal seeks, assuming elimination of producer-handler's
exemption from pricing and pooling provisions of the orders, to amend
the exempt plant provision for all milk orders by increasing the
current limit on monthly route disposition and packaged sales of fluid
milk products to other plants from 150,000 pounds or less during the
month to 1,000,000 pounds or less during the month.
PART 1000--GENERAL PROVISIONS OF FEDERAL MILK MARKETING ORDERS
34. Amend Sec. 1000.8 by revising paragraph (e)(4) to read as
follows:
Sec. 1000.8 Nonpool plant.
* * * * *
(e) * * *
(4) A plant that has route disposition and packaged sales of fluid
milk products to other plants of 1,000,000 pounds or less during the
month.
Proposal No. 13
Proposed by New England Producer-Handlers Association, Inc. et al.
This proposal seeks to expand the producer-handler exemption from
pricing and pooling provisions, in all orders, to apply to the Class I
route disposition and packaged sales of fluid milk products of handlers
who operate, in common, a milk production facility and the processing
and packaging facility used to process and package the raw milk from
the aforementioned milk production facility, up to 3,000,000 pounds per
month. Should this proposal not be adopted in all orders, then it shall
apply exclusively to the Northeast and Appalachian milk marketing
orders.
PART 1000--GENERAL PROVISIONS OF FEDERAL MILK MARKETING ORDERS
35. Amend Sec. 1000.8 by revising paragraph (b) to read as
follows:
Sec. 1000.8 Nonpool plant.
* * * * *
(b) Producer-handler plant means a plant operated by a producer-
handler as defined under any Federal order provided that the producer-
handler:
(1) Owns or operates, in common, the processing and packaging
operations and the dairy animals and other necessary resources to
produce all Class I milk handled, up to 3,000,000 pounds of route
disposition and packaged fluid sales of fluid milk products during the
month. All Class I route disposition and packaged sales of fluid milk
products above 3,000,000 pounds per month will be subject to the
pricing and pooling provisions of the order.
(b) [Reserved]
* * * * *
Proposal No. 14
PART 1000--GENERAL PROVISIONS OF FEDERAL MILK MARKETING ORDERS
36. Amend Sec. 1000.8 by revising paragraph (e)(4) to read as
follows:
Sec. 1000.8 Nonpool plant.
* * * * *
(e) * * *
(4) A plant that has route disposition and packaged sales of fluid
milk products to other plants of up to 3,000,000 pounds or less during
the month. All Class I route disposition and packaged sales of fluid
milk products above 3,000,000 pounds per month will be subject to the
pricing and pooling provisions of the order.
Proposed by Coopers' Hilltop Farm.
Proposal No. 15
This proposal seeks to end the regulatory exemption of producer-
handlers from the pooling and pricing provisions of the Northeast order
if their Class I route disposition exceeds 3,000,000 pounds of milk per
month.
PART 1001--MILK IN THE NORTHEAST MILK MARKETING ORDER
37. Amend Sec. 1001.10 by revising paragraph (a) to read as
follows:
Sec. 1001.10 Producer-handler.
* * * * *
(a) Operates a dairy farm and a distributing plant from which there
is route disposition within the marketing area during the month not to
exceed 3,000,000 pounds per month.
* * * * *
Proposal No. 16
This proposal seeks to amend the exempt plant provision for all
milk orders by increasing the current limit on monthly route
disposition and packaged sales of fluid milk products to other plants
from 150,000 pounds or less during the month to 450,000 pounds or less
during the month.
PART 1000--GENERAL PROVISIONS OF FEDERAL MILK MARKETING ORDERS
38. Amend Sec. 1000.8 by revising paragraph (e)(4) to read as
follows:
Sec. 1000.8 Nonpool plant.
* * * * *
(e) * * *
(4) A plant that has route disposition and packaged sales of fluid
milk products to other plants of 450,000 pounds or less during the
month.
Proposed by Mallorie's Dairy, Inc, Country Morning Farms and
Nature's Dairy.
Proposal No. 17
This proposal seeks to exempt, from pricing and pooling provisions,
the own-farm milk of handlers--who are either producer-handlers, exempt
plants, or non-pool plants--with own-farm production during at least 3
consecutive months during the 24-month period immediately prior to the
effective date of this proposal, should it be adopted. The exemption
would apply to the lesser of: (1) A monthly volume based on the daily
average milk production marketed from the handler's own-farm during any
3 consecutive months of production from January 2007 through February
2009; or (2) 3,000,000 pounds per month, with an additional allowance
of up to 10 percent additional own-farm production for non-Class I
balancing. Under this proposal any milk in excess of the defined
exemption would be subject to the pricing and pooling provisions of the
respective order.
PART 1000--GENERAL PROVISIONS OF FEDERAL MILK MARKETING ORDERS
39. Add new Sec. 1000.10 to read as follows:
Sec. 1000.10 Pool-exempt own-farm production of distributing plants.
Any handler operating a plant subject to regulation as a pool
distributing plant, as defined in Sec. ----.7 of any milk
[[Page 16301]]
marketing order, or as a partially regulated distributing plant under
any milk marketing order, may make a one-time election to exempt the
handler's own-farm milk production from the volume of producer milk
receipts eligible to participate in the marketwide pool as ``producer
milk,'' and otherwise subject to producer-settlement fund payment
obligations under Sec. Sec. ----.71 and ----.72 of the milk marketing
order, or Sec. 1000.76(b) of the General Provisions. Such election and
exemption shall be subject to the following conditions and limitations:
(a) Volume limitation for pool-exempt own-farm milk production. The
volume of own-farm milk production that a distributing plant handler
may elect to exempt under this section shall, for any month, be the
lesser of:
(1) A monthly volume based on the daily average milk production
marketed from the handler's own-farm(s) during any three consecutive
months of production, as designated by the handler and subject to
verification by the market administrator, from January 2007 through
February 2009, or
(2) A daily average production of 110,000 pounds times the number
of days in the month to which the exemption may apply provided that the
volume of packaged fluid milk products distributed on routes from such
pool-exempt production shall in no event exceed a daily average of
100,000 pounds. Own-farm production of the handler in excess of the
exempt volume shall be subject to producer-settlement fund payment
obligations in the same manner as milk produced by any dairy farmer.
(b) Limitations based upon prior operations of handlers eligible
elect exemption for own-farm milk production. Handlers with own-farm
production are not eligible to elect pool exemption for such production
under this section unless the handler operated a distributing plant
supplied with milk from its own-farm(s) during at least three
consecutive months during the 24-month period immediately preceding the
effective date of this section, and the distributing plant was either:
a producer-handler plant, an exempt plant, or a non-pool plant during
those months.
(c) Limitations based upon common ownership in the handler's plant
and farm facilities. As used in this section, ``own-farm'' means any
dairy farm(s) of the handler that is owned by the same person or
persons who own and operate the handler plant facility, and their
ownership in the farm(s) is at least 95 percent identical with their
ownership in the handler. Additionally,
(1) Owners of the handler and associated producer shall not exceed
10 individual persons or owners of equitable interest in the handler or
producer business entity,
(2) For purposes of this section, ownership held by members of a
family shall be considered single ownership by one person. Members of a
family for purposes of such single ownership include only: A spouse, a
former spouse, and persons of lineal consanguinity of the first or
second degree or collateral consanguinity to the fourth degree, and
their spouses (or former spouses), and includes an adopted child the
same as a natural child and kindred of the half blood equally with
those of the whole blood of the owner(s).
(3) Property pledged or hypothecated in any manner to others shall
nevertheless be considered ``owned'' if equitable ownership with
management and control remain with the persons operating the plant and
associated dairy farm(s).
(d) Date upon which, and manner in which, the one-time election
must be exercised. The market administrator shall provide timely notice
in writing to handlers with own-farm production who are or may be
eligible to elect a pool exemption for such production under this
section. The election for pool-exempt own-farm production shall be
exercised by an eligible handler by giving notice of election in
writing to the market administrator, which notice shall contain facts
upon which the handler claims to qualify under this section, on or
before:
(1) Thirty days after the effective date of this provision; or
(2) For a handler with own-farm production on the effective date of
this provision, but without route disposition in any Federal milk
marketing area for twelve months preceding the effective date, thirty
days following first route disposition in the marketing area, or
fifteen days after notice by the market administrator, whichever is
later.
(e) Applicability of minimum classified prices to handlers with
pool-exempt own-farm milk. Exemption from payment obligations in
Sec. Sec. ----.71 and ----.72 for own-farm milk under this section
shall not constitute an exemption for own-farm milk from compliance
with minimum classified price obligations. For payment purposes, the
handler will be deemed to have paid to its own-farm a price for pool-
exempt own-farm milk equal to its butterfat and skim milk (or skim
components) value, as provided by calculations for ``handler's value of
milk'' in Sec. ----.60 of the marketing order.
(f) Waiver or loss of eligibility for pool-exempt own-farm
production. The own-farm production of any handler
(1) Who has failed to make the election provided by this section;
(2) Who, after making the election, fails to conform with any
limitation or requirement for such exemption; or
(3) Who has given notice in writing to the market administrator
that it no longer wishes to exempt its own-farm production from the
pool, shall be regulated, pooled, and priced in the same manner as milk
produced by any dairy farm not eligible for pool exemption, and the
handler shall not thereafter be eligible to exercise the exemption
provided herein.
40. Amend Sec. 1000.14 by adding new paragraph (d) to read as
follows:
* * * * *
(d) Receipts of fluid milk products and bulk fluid cream products
from any dairy farm eligible to market pool-exempt own-farm milk
pursuant to Sec. ----.10, except with respect to such receipts by the
distributing plant owned in common with the farm as described in Sec.
----.10.
PART 1001--MILK IN THE NORTHEAST MARKETING AREA
41. Amend Sec. 1001.60 by adding new paragraph (j) to read as
follows:
Sec. 1001.60 Handler's value of milk.
* * * * *
(j) For purposes of calculating the producer price differential in
Sec. ----.61, or a handler's obligation to or from the producer-
settlement fund in Sec. Sec. ----.71, ----.72, and ----.76, the value
and volume of pool-exempt own-farm milk of the handler qualified for
exemption pursuant to Sec. ----.10 shall not be included as part of the
``total value'' of milk, ``total hundredweight'' of producer milk, or
``total pounds'' of milk components wherever those terms (or equivalent
terms) are used in or incorporated by Sec. Sec. ----.61 and ----.71
through ----.76.
PART 1005--MILK IN THE APPALACHIAN MARKETING AREA
42. Amend Sec. 1005.60 by adding new paragraph (h) to read as
follows:
Sec. 1005.60 Handler's value of milk.
* * * * *
(h) For purposes of calculating the producer price differential in
Sec. ----.61, or a handler's obligation to or from the producer-
settlement fund in Sec. Sec. ----.71, ----.72, and ----.76, the value
and volume of pool-exempt own-farm milk
[[Page 16302]]
of the handler qualified for exemption pursuant to Sec. ----.10 shall
not be included as part of the ``total value'' of milk, ``total
hundredweight'' of producer milk, or ``total pounds'' of milk
components wherever those terms (or equivalent terms) are used in or
incorporated by Sec. Sec. ----.61 and ----.71 through ----.76.
PART 1006--MILK IN THE FLORIDA MARKETING AREA
43. Amend Sec. 1006.60 by adding new paragraph (h) to read as
follows:
Sec. 1006.60 Handler's value of milk.
* * * * *
(h) For purposes of calculating the producer price differential in
Sec. ----.61, or a handler's obligation to or from the producer-
settlement fund in Sec. Sec. ----.71, ----.72, and ----.76, the value
and volume of pool-exempt own-farm milk of the handler qualified for
exemption pursuant to Sec. ----.10 shall not be included as part of the
``total value'' of milk, ``total hundredweight'' of producer milk, or
``total pounds'' of milk components wherever those terms (or equivalent
terms) are used in or incorporated by Sec. Sec. ----.61 and ----.71
through ----.76.
PART 1007--MILK IN THE SOUTHEAST MARKETING AREA
44. Amend Sec. 1007.60. by adding new paragraph (h) to read as
follows:
Sec. 1007.60 Handler's value of milk.
* * * * *
(h) For purposes of calculating the producer price differential in
Sec. ----.61, or a handler's obligation to or from the producer-
settlement fund in Sec. Sec. ----.71, ----.72, and ----.76, the value
and volume of pool-exempt own-farm milk of the handler qualified for
exemption pursuant to Sec. ----.10 shall not be included as part of the
``total value'' of milk, ``total hundredweight'' of producer milk, or
``total pounds'' of milk components wherever those terms (or equivalent
terms) are used in or incorporated by Sec. Sec. ----.61 and ----.71
through ----.76.
PART 1030--MILK IN THE UPPER MIDWEST MARKETING AREA
45. Amend Sec. 1030.60 by adding new paragraph (l) to read as
follows:
Sec. 1030.60 Handler's value of milk.
* * * * *
(l) For purposes of calculating the producer price differential in
Sec. ----.61, or a handler's obligation to or from the producer-
settlement fund in Sec. Sec. ----.71, ----.72, and ----.76, the value
and volume of pool-exempt own-farm milk of the handler qualified for
exemption pursuant to Sec. ----.10 shall not be included as part of the
``total value'' of milk, ``total hundredweight'' of producer milk, or
``total pounds'' of milk components wherever those terms (or equivalent
terms) are used in or incorporated by Sec. Sec. ----.61 and ----.71
through ----.76.
PART 1032--MILK IN THE CENTRAL MARKETING AREA
46. Amend Sec. 1032.60 by adding new paragraph (k) to read as
follows:
Sec. 1032.60 Handler's value of milk.
* * * * *
(k) For purposes of calculating the producer price differential in
Sec. ----.61, or a handler's obligation to or from the producer-
settlement fund in Sec. Sec. ----.71, ----.72, and ----.76, the value
and volume of pool-exempt own-farm milk of the handler qualified for
exemption pursuant to Sec. ----.10 shall not be included as part of the
``total value'' of milk, ``total hundredweight'' of producer milk, or
``total pounds'' of milk components wherever those terms (or equivalent
terms) are used in or incorporated by Sec. Sec. ----.61 and ----.71
through ----.76.
PART 1033--MILK IN THE MIDEAST MARKETING AREA
47. Amend Sec. 1033.60 by adding new paragraph (k) to read as
follows:
Sec. 1033.60 Handler's value of milk.
* * * * *
(k) For purposes of calculating the producer price differential in
Sec. ----.61, or a handler's obligation to or from the producer-
settlement fund in Sec. Sec. ----.71, ----.72, and ----.76, the value
and volume of pool-exempt own-farm milk of the handler qualified for
exemption pursuant to Sec. ----.10 shall not be included as part of the
``total value'' of milk, ``total hundredweight'' of producer milk, or
``total pounds'' of milk components wherever those terms (or equivalent
terms) are used in or incorporated by Sec. Sec. ----.61 and ----.71
through ----.76.
PART 1124--MILK IN THE PACIFIC NORTHWEST MARKETING AREA
48. Amend Sec. 1124.60 by adding new paragraph (j) to read as
follows:
Sec. 1124.60 Handler's value of milk.
* * * * *
(j) For purposes of calculating the producer price differential in
Sec. ----.61, or a handler's obligation to or from the producer-
settlement fund in Sec. Sec. ----.71, ----.72, and ----.76, the value
and volume of pool-exempt own-farm milk of the handler qualified for
exemption pursuant to Sec. ----.10 shall not be included as part of the
``total value'' of milk, ``total hundredweight'' of producer milk, or
``total pounds'' of milk components wherever those terms (or equivalent
terms) are used in or incorporated by Sec. Sec. ----.61 and ----.71
through ----.76.
PART 1126--MILK IN THE SOUTHWEST MARKETING AREA
49. Amend Sec. 1126.60 by adding new paragraph (k) to read as
follows:
Sec. 1126.60 Handler's value of milk.
* * * * *
(k) For purposes of calculating the producer price differential in
Sec. ----.61, or a handler's obligation to or from the producer-
settlement fund in Sec. Sec. ----.71, ----.72, and ----.76, the value
and volume of pool-exempt own-farm milk of the handler qualified for
exemption pursuant to Sec. ----.10 shall not be included as part of the
``total value'' of milk, ``total hundredweight'' of producer milk, or
``total pounds'' of milk components wherever those terms (or equivalent
terms) are used in or incorporated by Sec. Sec. ----.61 and ----.71
through ----.76.
PART 1131--MILK IN THE ARIZONA MARKETING AREA
50. Amend Sec. 1131.60 by adding new paragraph (g) to read as
follows:
Sec. 1131.60 Handler's value of milk.
* * * * *
(g) For purposes of calculating the producer price differential in
Sec. ----.61, or a handler's obligation to or from the producer-
settlement fund in Sec. Sec. ----.71, ----.72, and ----.76, the value
and volume of pool-exempt own-farm milk of the handler qualified for
exemption pursuant to Sec. ----.10 shall not be included as part of the
``total value'' of milk, ``total hundredweight'' of producer milk, or
``total pounds'' of milk components wherever those terms (or equivalent
terms) are used in or incorporated by Sec. Sec. ----.61 and ----.71
through ----.76.
Proposed by Hornstra Farms.
Proposal No. 18
This proposal seeks to end the regulatory exemption of producer-
handlers from the pooling and pricing provisions of all orders if their
production exceeds 1,500,000 pounds of milk per month.
[[Page 16303]]
PART 1000--GENERAL PROVISIONS OF FEDERAL MILK MARKETING ORDERS
51. Amend Sec. 1000.8 by revising paragraph (b) to read as
follows:
Sec. 1000.8 Nonpool plant.
* * * * *
(b) Producer-handler plant means a plant operated by a producer-
handler as defined under any Federal order provided the producer-
handler in all markets has milk production of 1,500,000 million pounds
or less during the month.
* * * * *
Proposed Pennsylvania Association of Milk Dealers.
Proposal No. 19
This proposal seeks to amend the exempt plant provision for all
milk orders by increasing the current limit on monthly route
disposition and packaged sales of fluid milk products to other plants
from 150,000 pounds or less during the month to 450,000 pounds or less
during the month.
PART 1000--GENERAL PROVISIONS OF FEDERAL MILK MARKETING ORDERS
52. Amend Sec. 1000.8 by revising paragraph (e)(4) to read as
follows:
Sec. 1000.8 Nonpool plant.
* * * * *
(e) * * *
(4) A plant that in all markets has route disposition and packaged
sales of fluid milk products to other plants of 450,000 pounds or less
during the month.
Proposed by Select Milk Producers, Inc. and Continental Dairy
Products, Inc.
Proposal No. 20
This proposal would establish a one-time exemption from pricing and
pooling provisions for certain types of handlers.
PART 1000--GENERAL PROVISIONS OF FEDERAL MILK MARKETING ORDERS
53. Add new section Sec. 1000.10 to read as follows:
1000.10 Pool-exempt own-farm production of distributing plants.
Any handler operating a plant subject to regulation as a pool
distributing plant, as defined in Sec. ----.7 of any milk marketing
order, or as a partially regulated distributing plant under any milk
marketing order, may make a one-time election to exempt the handler's
own-farm milk production from the volume of producer milk receipts
otherwise subject to producer-settlement fund payment obligations under
Sec. Sec. ----.71 and ----.72 of the milk marketing order, or Sec.
1000.76 of the General Provisions. Such election and exemption shall be
subject to the following conditions and limitations:
(a) Volume limitation for pool-exempt own-farm milk production. The
volume of own-farm milk production that a distributing plant handler
may elect to exempt under this section shall, for any month, be the
lesser of:
(1) A monthly volume based on the daily average milk production
marketed from the handler's own-farm(s) during any three consecutive
months of production, as designated by the handler and subject to
verification by the market administrator, from January 2007 through
February 2008, or,
(2) A daily average production of 100,000 pounds times the number
of days in the month to which the exemption may apply. Own-farm
production of the handler in excess of the exempt volume shall be
subject to producer-settlement fund payment obligations in the same
manner as milk produced by any dairy farmer.
(b) Limitations based upon prior operations of handlers eligible
elect exemption for own-farm milk production. Handlers with own-farm
production are not eligible to elect pool exemption for such production
under this section unless:
(1) The handler operated a distributing plant supplied with milk
from its own-farm(s) during at least three consecutive months from
January 2007 through February 2008, and
(2) Milk produced by the own-farm(s) that supplied the handler's
distributing plant was not received as producer milk at the pool plant
of any other handler under any Federal milk marketing order at any time
after February 2008.
(c) Limitations based upon ownership in the handler's plant and
farm facilities. Handlers with own-farm production are not eligible to
elect own-farm pool exemption under this section unless all of the
ownership of the handler as plant operator and all of the ownership of
the dairy farm(s) is owned by the same person or persons, and their
ownership in the producer is at least 95 percent identical with their
ownership in the handler. Additionally,
(1) Owners of the plant and associated producer shall not exceed 10
individual persons or owners of equitable interest in the handler or
producer business entity,
(2) For purposes of this section, a ``person'' or ``persons''
includes the spouse, or other persons of lineal consanguinity of the
first or second degree or collateral consanguinity to the fourth
degree, and their spouses, and includes an adopted child the same as a
natural child and kindred of the half blood equally with those of the
whole blood of the owner and ownerships by persons so related shall be
considered single ownership by one person.
(3) For purposes of this section, property pledged or hypothecated
in any manner to others shall nevertheless be considered ``owned'' if
equitable ownership with management and control remain with the persons
operating the plant and associated dairy farm(s).
(d) Date upon which, and manner in which, the one-time election
must be exercised. The market administrator shall provide timely notice
in writing to handlers with own-farm production who are or may be
eligible to elect a pool exemption for such production under this
section. The election for pool-exempt own-farm production shall be
exercised by an eligible handler by giving notice of election in
writing to the market administrator, which notice shall contain facts
upon which the handler claims to qualify under this section, on or
before:
(1) Thirty days after the effective date of this provision; or
(2) For a handler with own-farm production on the effective date of
this provision, but without route disposition in any Federal milk
marketing area for 12 months preceding the effective date, 30 days
following first route disposition in the marketing area, or 15 days
after notice by the market administrator, whichever is later.
(e) Applicability of minimum classified prices to handlers with
pool-exempt own-farm milk. Exemption from payment obligations in
Sec. Sec. ----.71 and ----.72 for own-farm milk under this section
shall not constitute an exemption for own-farm milk from compliance
with minimum classified price obligations. For payment purposes, the
handler will be deemed to have paid to its own-farm a price for pool-
exempt own-farm milk equal to its butterfat and skim milk (or skim
components) value, as provided by calculations for a handler's value of
milk in Sec. ----.60 of the marketing order.
(f) Waiver or loss of eligibility for pool-exempt own-farm
production. The own-farm production of any handler
(1) Who has failed to make the election provided by this section;
(2) Who, after making the election, fails to conform with any
limitation or requirement for such exemption for any
[[Page 16304]]
period in which it fails to so conform; or
(3) Who has given notice in writing to the market administrator
that it no longer wishes to exempt its own-farm production from the
pool shall be regulated and priced in the same manner as milk produced
by any dairy farm not eligible for pool exemption, and the handler
shall not thereafter be eligible to exercise the exemption provided
herein.
PART 1000--GENERAL PROVISIONS OF FEDERAL MILK MARKETING ORDERS
54. Amend Sec. 1000.14 by adding paragraph (d) to read as follows:
* * * * *
(d) Receipts of fluid milk products and bulk fluid cream products
from any dairy farm eligible to market pool-exempt own-farm milk
pursuant to Sec. ----.10, except with respect to such receipts by the
distributing plant owned in common with the farm as described in Sec.
----.10.
PART 1001--MILK IN THE NORTHEAST MARKETING AREA
55. Revise Sec. 1001.10 to read as follows:
Sec. 1001.10 Producer-handler.
See Sec. 1000.10.
PART 1005--MILK IN THE APPALACHIAN MARKETING AREA
56. Revise Sec. 1005.10 to read as follows:
Sec. 1005.10 Producer-handler.
See Sec. 1000.10.
PART 1006--MILK IN THE FLORIDA MARKETING AREA
57. Revise Sec. 1006.10 to read as follows:
Sec. 1006.10 Producer-handler.
See Sec. 1000.10.
PART 1007--MILK IN THE SOUTHEAST MARKETING AREA
58. Revise Sec. 1007.10 to read as follows:
Sec. 1007.10 Producer-handler.
See Sec. 1000.10.
PART 1030--MILK IN THE UPPER MIDWEST MARKETING AREA
59. Revise Sec. 1030.10 to read as follows:
Sec. 1030.10 Producer-handler.
See Sec. 1000.10.
PART 1032--MILK IN THE CENTRAL MARKETING AREA
60. Revise Sec. 1032.10 to read as follows:
Sec. 1032.10 Producer-handler.
See Sec. 1000.10.
PART 1033--MILK IN THE MIDEAST MARKETING AREA
61. Revise Sec. 1033.10 to read as follows:
Sec. 1033.10 Producer-handler.
See Sec. 1000.10.
PART 1124--MILK IN THE PACIFIC NORTHWEST MARKETING AREA
62. Revise Sec. 1124.10 to read as follows:
Sec. 1124.10 Producer-handler.
See Sec. 1000.10.
PART 1126--MILK IN THE SOUTHWEST MARKETING AREA
63. Revise Sec. 1126.10 to read as follows:
Sec. 1126.10 Producer-handler.
See Sec. 1000.10.
PART 1131--MILK IN THE ARIZONA MARKETING AREA
64. Revise Sec. 1131.10 to read as follows:
Sec. 1131.10 Producer-handler.
See Sec. 1000.10.
PART 1001--MILK IN THE NORTHEAST MARKETING AREA
65. Amend Sec. 1001.60 by adding paragraph (j) to read as follows:
Sec. 1001.60 Handler's value of milk.
* * * * *
(j) For purposes of calculating the producer price differential in
Sec. ----.61, or a handler's obligation to or from the producer-
settlement fund in Sec. Sec. ----.71, ----.72, and ----.76, the value
and volume of pool-exempt own-farm milk of the handler qualified for
exemption pursuant to Sec. ----.10 shall not be included as part of
the ``total value'' of milk, ``total hundredweight'' of producer milk,
or ``total pounds'' of milk components wherever those terms (or
equivalent terms) are used in or incorporated by Sec. Sec. ----.61 and
----.71 through ----.76.
PART 1005--MILK IN THE APPALACHIAN MARKETING AREA
66. Amend Sec. 1005.60 by adding paragraph (h) to read as follows:
Sec. 1005.60 Handler's value of milk.
* * * * *
(h) For purposes of calculating the producer price differential in
Sec. ----.61, or a handler's obligation to or from the producer-
settlement fund in Sec. Sec. ----.71, ----.72, and ----.76, the value
and volume of pool-exempt own-farm milk of the handler qualified for
exemption pursuant to Sec. ----.10 shall not be included as part of
the ``total value'' of milk, ``total hundredweight'' of producer milk,
or ``total pounds'' of milk components wherever those terms (or
equivalent terms) are used in or incorporated by Sec. Sec. ----.61 and
----.71 through ----.76.
PART 1006--MILK IN THE FLORIDA MARKETING AREA
67. Amend Sec. 1006.60 by adding paragraph (h) to read as follows:
Sec. 1006.60 Handler's value of milk.
* * * * *
(h) For purposes of calculating the producer price differential in
Sec. ----.61, or a handler's obligation to or from the producer-
settlement fund in Sec. Sec. ----.71, ----.72, and ----.76, the value
and volume of pool-exempt own-farm milk of the handler qualified for
exemption pursuant to Sec. ----.10 shall not be included as part of
the ``total value'' of milk, ``total hundredweight'' of producer milk,
or ``total pounds'' of milk components wherever those terms (or
equivalent terms) are used in or incorporated by Sec. Sec. ----.61 and
----.71 through ----.76.
PART 1007--MILK IN THE SOUTHEAST MARKETING AREA
68. Amend Sec. 1007.60 by adding paragraph (h) to read as follows:
Sec. 1007.60 Handler's value of milk.
* * * * *
(h) For purposes of calculating the producer price differential in
Sec. ----.61, or a handler's obligation to or from the producer-
settlement fund in Sec. Sec. ----.71, ----.72, and ----.76, the value
and volume of pool-exempt own-farm milk of the handler qualified for
exemption pursuant to Sec. ----.10 shall not be included as part of
the ``total value'' of milk, ``total hundredweight'' of producer milk,
or ``total pounds'' of milk components wherever those terms (or
equivalent terms) are used in or incorporated by Sec. Sec. ----.61 and
----.71 through ----.76.
PART 1030--MILK IN THE UPPER MIDWEST MARKETING AREA
69. Amend Sec. 1030.60 by adding paragraph (l) to read as follows:
[[Page 16305]]
Sec. 1030.60 Handler's value of milk.
* * * * *
(l) For purposes of calculating the producer price differential in
Sec. ----.61, or a handler's obligation to or from the producer-
settlement fund in Sec. Sec. ----.71, ----.72, and ----.76, the value
and volume of pool-exempt own-farm milk of the handler qualified for
exemption pursuant to Sec. ----.10 shall not be included as part of
the ``total value'' of milk, ``total hundredweight'' of producer milk,
or ``total pounds'' of milk components wherever those terms (or
equivalent terms) are used in or incorporated by Sec. Sec. ----.61 and
----.71 through ----.76.
PART 1032--MILK IN THE CENTRAL MARKETING AREA
70. Amend Sec. 1032.60 by adding paragraph (k) to read as follows:
Sec. 1032.60 Handler's value of milk.
* * * * *
(k) For purposes of calculating the producer price differential in
Sec. ----.61, or a handler's obligation to or from the producer-
settlement fund in Sec. Sec. ----.71, ----.72, and ----.76, the value
and volume of pool-exempt own-farm milk of the handler qualified for
exemption pursuant to Sec. ----.10 shall not be included as part of
the ``total value'' of milk, ``total hundredweight'' of producer milk,
or ``total pounds'' of milk components wherever those terms (or
equivalent terms) are used in or incorporated by Sec. Sec. ----.61 and
----.71 through ----.76.
PART 1033--MILK IN THE MIDEAST MARKETING AREA
71. Amend Sec. 1033.60 by adding paragraph (k) to read as follows:
Sec. 1033.60 Handler's value of milk.
* * * * *
(k) For purposes of calculating the producer price differential in
Sec. ----.61, or a handler's obligation to or from the producer-
settlement fund in Sec. Sec. ----.71, ----.72, and ----.76, the value
and volume of pool-exempt own-farm milk of the handler qualified for
exemption pursuant to Sec. ----.10 shall not be included as part of
the ``total value'' of milk, ``total hundredweight'' of producer milk,
or ``total pounds'' of milk components wherever those terms (or
equivalent terms) are used in or incorporated by Sec. Sec. ----.61 and
----.71 through ----.76.
PART 1124--MILK IN THE PACIFIC NORTHWEST MARKETING AREA
72. Amend Sec. 1124.60 by adding paragraph (j) to read as follows:
Sec. 1124.60 Handler's value of milk.
* * * * *
(j) For purposes of calculating the producer price differential in
Sec. ----.61, or a handler's obligation to or from the producer-
settlement fund in Sec. Sec. ----.71, ----.72, and ----.76, the value
and volume of pool-exempt own-farm milk of the handler qualified for
exemption pursuant to Sec. ----.10 shall not be included as part of
the ``total value'' of milk, ``total hundredweight'' of producer milk,
or ``total pounds'' of milk components wherever those terms (or
equivalent terms) are used in or incorporated by Sec. Sec. ----.61 and
----.71 through ----.76.
PART 1126--MILK IN THE SOUTHWEST MARKETING AREA
73. Amend Sec. 1126.60 by adding paragraph (k) to read as follows:
Sec. 1126.60 Handler's value of milk.
* * * * *
(k) For purposes of calculating the producer price differential in
Sec. ----.61, or a handler's obligation to or from the producer-
settlement fund in Sec. Sec. ----.71, ----.72, and ----.76, the value
and volume of pool-exempt own-farm milk of the handler qualified for
exemption pursuant to Sec. ----.10 shall not be included as part of
the ``total value'' of milk, ``total hundredweight'' of producer milk,
or ``total pounds'' of milk components wherever those terms (or
equivalent terms) are used in or incorporated by Sec. Sec. ----.61 and
----.71 through ----.76.
PART 1131--MILK IN THE ARIZONA MARKETING AREA
74. Amend Sec. 1131.60 by adding paragraph (g) to read as follows:
Sec. 1131.60 Handler's value of milk.
* * * * *
(g) For purposes of calculating the producer price differential in
Sec. ----.61, or a handler's obligation to or from the producer-
settlement fund in Sec. Sec. ----.71, ----.72, and ----.76, the value
and volume of pool-exempt own-farm milk of the handler qualified for
exemption pursuant to Sec. ----.10 shall not be included as part of
the ``total value'' of milk, ``total hundredweight'' of producer milk,
or ``total pounds'' of milk components wherever those terms (or
equivalent terms) are used in or incorporated by Sec. Sec. ----.61 and
----.71 through ----.76.
Proposal No. 21
This proposal seeks to end the regulatory exemption of producer-
handlers from the pricing and pooling provisions of all orders, except
the Pacific Northwest and Arizona milk marketing orders, if their route
disposition exceeds 3,000,000 pounds of milk per month.
PART 1001--MILK IN THE NORTHEAST MARKETING AREA
75. Amend Sec. 1001.10 by revising paragraph (a) to read as
follows:
Sec. 1001.10 Producer-handler.
* * * * *
(a) Operates a dairy farm and a distributing plant from which there
is monthly route disposition in the marketing area, not to exceed 3
million pounds;
* * * * *
PART 1005--MILK IN THE APPALACHIAN MARKETING AREA
76. Amend Sec. 1005.10 by revising paragraph (a) to read as
follows:
Sec. 1005.10 Producer-handler.
* * * * *
(a) Operates a dairy farm and a distributing plant from which there
is monthly route disposition in the marketing area, not to exceed 3
million pounds;
* * * * *
PART 1006--MILK IN THE FLORIDA MARKETING AREA
77. Amend Sec. 1006.10 by revising paragraph (a) to read as
follows:
Sec. 1006.10 Producer-handler.
* * * * *
(a) Operates a dairy farm and a distributing plant from which there
is monthly route disposition in the marketing area, not to exceed 3
million pounds;
* * * * *
PART 1007--MILK IN THE SOUTHEAST MARKETING AREA
78. Amend Sec. 1007.10 by revising paragraph (a) to read as
follows:
Sec. 1007.10 Producer-handler.
* * * * *
(a) Operates a dairy farm and a distributing plant from which there
is monthly route disposition in the marketing area, not to exceed 3
million pounds;
* * * * *
PART 1030--MILK IN THE UPPER MIDWEST MARKETING AREA
79. Amend Sec. 1030.10 by revising paragraph (a) to read as
follows:
[[Page 16306]]
Sec. 1030.10 Producer-handler.
* * * * *
(a) Operates a dairy farm and a distributing plant from which there
is monthly route disposition in the marketing area, not to exceed 3
million pounds;
* * * * *
PART 1032--MILK IN THE CENTRAL MARKETING AREA
80. Amend Sec. 1032.10 by revising paragraph (a) to read as
follows:
Sec. 1032.10 Producer-handler.
* * * * *
(a) Operates a dairy farm and a distributing plant from which there
is monthly route disposition in the marketing area, not to exceed 3
million pounds;
* * * * *
PART 1033--MILK IN THE MIDEAST MARKETING AREA
81. Amend Sec. 1033.10 by revising paragraph (a) to read as
follows:
Sec. 1033.10 Producer-handler.
* * * * *
(a) Operates a dairy farm and a distributing plant from which there
is monthly route disposition in the marketing area, not to exceed 3
million pounds;
* * * * *
PART 1126--MILK IN THE SOUTHWEST MARKETING AREA
82. Amend Sec. 1126.10 by revising paragraph (a) to read as
follows:
Sec. 1126.10 Producer-handler.
* * * * *
(a) Operates a dairy farm and a distributing plant from which there
is monthly route disposition in the marketing area, not to exceed 3
million pounds;
* * * * *
Proposed by Northeast Dairy Foods Association, Inc.
Proposal No. 22
This proposal seeks to eliminate the producer-handler provision of
all orders.
PART 1000--GENERAL PROVISIONS OF FEDERAL MILK MARKETING ORDERS
Sec. 1000.8 [Amended]
83. Amend Sec. 1000.8 by:
(1) Removing paragraph (b); and
2) Redesignating paragraphs (c), (d) and (e) as (b), (c) and (d).
PART 1001--MILK IN THE NORTHEAST MARKETING AREA
Sec. 1001.10 [Removed]
84. Remove and reserve Sec. 1001.10.
PART 1005--MILK IN THE APPALACHIAN MARKETING AREA
Sec. 1005.10 [Removed]
85. Remove and reserve Sec. 1005.10.
PART 1006--MILK IN THE FLORIDA MARKETING AREA
Sec. 1006.10 [Removed]
86. Remove and reserve Sec. 1006.10.
PART 1007--MILK IN THE SOUTHEAST MARKETING AREA
Sec. 1007.10 [Removed]
87. Remove and reserve Sec. 1007.10.
PART 1030--MILK IN THE UPPER MIDWEST MARKETING AREA
Sec. 1030.10 [Removed]
88. Remove and reserve Sec. 1030.10.
PART 1032--MILK IN THE CENTRAL MARKETING AREA
Sec. 1032.10 [Removed]
89. Remove and reserve Sec. 1032.10.
PART 1033--MILK IN THE MIDEAST MARKETING AREA
Sec. 1033.10 [Removed]
90. Remove and reserve Sec. 1033.10.
PART 1124--MILK IN THE PACIFIC NORTHWEST MARKETING AREA
Sec. 1124.10 [Removed]
91. Remove and reserve Sec. 1124.10.
PART 1126--MILK IN THE SOUTHWEST MARKETING AREA
Sec. 1126.10 [Removed]
92. Remove and reserve Sec. 1126.10.
PART 1131--MILK IN THE ARIZONA MARKETING AREA
Sec. 1131.10 [Removed]
93. Remove and reserve Sec. 1131.10.
Proposed by American Independent Dairy Alliance.
Proposal No. 23
This proposal would remove the producer-handler provision from all
milk orders and establish a provision to exempt, from regulation, milk
procured from a farm owned by a handler. Additionally, this proposal
seeks to treat handlers with own-farm production as partially regulated
distributing plants.
PART 1000--GENERAL PROVISIONS OF FEDERAL MILK MARKETING ORDERS
Sec. 1000.8 [Amended]
94. Amend Sec. 1000.8 by:
(1) Removing paragraph (b); and
(2) Redesignating paragraphs (c), (d) and (e) as (b), (c) and (d).
95. Amend Sec. 1000.76 by adding paragraph (e) to read as follows:
Sec. 1000.76 Payments by a handler operating a partially regulated
distributing plant.
* * * * *
(e) Any handler may elect partially regulated distributing plant
status for any pool plant with respect to receipts of milk from a dairy
farm owned and operated by the handler (hereinafter ``own farm
production''), subject to the following conditions:
(1) The handler provides proof satisfactory to the market
administrator that the care and management of the dairy animals and
other resources necessary to produce own farm milk, and the processing
and packaging operations, are the plant operator's own enterprise and
at its own risk;
(2) Packaged fluid milk products distributed from the plant are not
sold or marketed below the handler's costs, provided:
(i) Handler's costs shall be Class I prices plus costs of
manufacturing, processing, handling, marketing and delivery,
(ii) The Deputy Administrator, Dairy Programs, may issue rules and
procedures for determining handler's costs, or to evaluate any
complaint by any person that a handler subject to this paragraph (e) is
marketing packaged fluid milk products below cost.
(3) The volume of own farm production of milk (or of milk
components in own farm production) shall be deemed to be received and
paid for by the handler at a price equal to the distributing plant's
value of milk computed pursuant to paragraph (b)(1) of this section,
and shall not be included in the volume of milk or milk components that
are subject to payments to or from the producer settlement fund
pursuant to Sec. Sec. ----.71 or ----.72 of any order.
PART 1001--MILK IN THE NORTHEAST MARKETING AREA
96. Revise Sec. 1001.10 to read as follows:
Sec. 1001.10 Exemption for own-farm production of handlers.
Any operator of a pool plant or partially regulated distributing
plant:
[[Page 16307]]
(a) From which there is route disposition in the marketing area
during the month; and
(b) That receives fluid milk from the own-farm production of a farm
under the ownership and control of the operator; and
(c) Who provides proof satisfactory to the market administrator
that the care and management of the dairy animals and other resources
necessary to produce the volume of milk processed under paragraph (b)
of this section and the processing and packaging operations are the
operator's own enterprise and at its own risk;
(d) Shall have such the volumes of own-farm production treated as
exempt volumes for the purposes of calculating any obligation of the
handler under Sec. Sec. ----.71 and ----.72 of the order. For handlers
also purchasing producer milk for use at its plant, the market
administrator shall down-allocate the volumes of own-farm produced milk
to the plant's lowest value use before calculating the plant's value of
milk and any obligations to the producer-settlement fund.
PART 1005--MILK IN THE APPALACHIAN MARKETING AREA
97. Revise Sec. 1005.10 to read as follows:
Sec. 1005.10 Exemption for own-farm production of handlers.
Any operator of a pool plant or partially regulated distributing
plant:
(a) From which there is route disposition in the marketing area
during the month; and
(b) That receives fluid milk from the own-farm production of a farm
under the ownership and control of the operator; and
(c) Who provides proof satisfactory to the market administrator
that the care and management of the dairy animals and other resources
necessary to produce the volume of milk processed under paragraph (b)
of this section and the processing and packaging operations are the
operator's own enterprise and at its own risk;
(d) Shall have such the volumes of own-farm production treated as
exempt volumes for the purposes of calculating any obligation of the
handler under Sec. Sec. ----.71 and ----.72 of the order. For handlers
also purchasing producer milk for use at its plant, the market
administrator shall down-allocate the volumes of own-farm produced milk
to the plant's lowest value use before calculating the plant's value of
milk and any obligations to the producer-settlement fund.
PART 1006--MILK IN THE FLORIDA MARKETING AREA
98. Revise Sec. 1006.10 to read as follows:
Sec. 1006.10 Exemption for own-farm production of handlers.
Any operator of a pool plant or partially regulated distributing
plant:
(a) From which there is route disposition in the marketing area
during the month; and
(b) That receives fluid milk from the own-farm production of a farm
under the ownership and control of the operator; and
(c) Who provides proof satisfactory to the market administrator
that the care and management of the dairy animals and other resources
necessary to produce the volume of milk processed under paragraph (b)
of this section and the processing and packaging operations are the
operator's own enterprise and at its own risk;
(d) Shall have such the volumes of own-farm production treated as
exempt volumes for the purposes of calculating any obligation of the
handler under Sec. Sec. ----.71 and ----.72 of the order. For handlers
also purchasing producer milk for use at its plant, the market
administrator shall down-allocate the volumes of own-farm produced milk
to the plant's lowest value use before calculating the plant's value of
milk and any obligations to the producer-settlement fund.
PART 1007--MILK IN THE SOUTHEAST MARKETING AREA
99. Revise Sec. 1007.10 to read as follows:
Sec. 1007.10 Exemption for own-farm production of handlers.
Any operator of a pool plant or partially regulated distributing
plant:
(a) From which there is route disposition in the marketing area
during the month; and
(b) That receives fluid milk from the own-farm production of a farm
under the ownership and control of the operator; and
(c) Who provides proof satisfactory to the market administrator
that the care and management of the dairy animals and other resources
necessary to produce the volume of milk processed under paragraph (b)
of this section and the processing and packaging operations are the
operator's own enterprise and at its own risk;
(d) Shall have such the volumes of own-farm production treated as
exempt volumes for the purposes of calculating any obligation of the
handler under Sec. Sec. ----.71 and ----.72 of the order. For handlers
also purchasing producer milk for use at its plant, the market
administrator shall down-allocate the volumes of own-farm produced milk
to the plant's lowest value use before calculating the plant's value of
milk and any obligations to the producer-settlement fund.
PART 1030--MILK IN THE UPPER MIDWEST MARKETING AREA
100. Revise Sec. 1030.10 to read as follows:
Sec. 1030.10 Exemption for own-farm production of handlers.
Any operator of a pool plant or partially regulated distributing
plant:
(a) From which there is route disposition in the marketing area
during the month; and
(b) That receives fluid milk from the own-farm production of a farm
under the ownership and control of the operator; and
(c) Who provides proof satisfactory to the market administrator
that the care and management of the dairy animals and other resources
necessary to produce the volume of milk processed under paragraph (b)
of this section and the processing and packaging operations are the
operator's own enterprise and at its own risk;
(d) Shall have such the volumes of own-farm production treated as
exempt volumes for the purposes of calculating any obligation of the
handler under Sec. Sec. ----.71 and ----.72 of the order. For handlers
also purchasing producer milk for use at its plant, the market
administrator shall down-allocate the volumes of own-farm produced milk
to the plant's lowest value use before calculating the plant's value of
milk and any obligations to the producer-settlement fund.
PART 1032--MILK IN THE CENTRAL MARKETING AREA
101. Revise Sec. 1032.10 to read as follows:
Sec. 1032.10 Exemption for own-farm production of handlers.
Any operator of a pool plant or partially regulated distributing
plant:
(a) From which there is route disposition in the marketing area
during the month; and
(b) That receives fluid milk from the own-farm production of a farm
under the ownership and control of the operator; and
(c) Who provides proof satisfactory to the market administrator
that the care and management of the dairy animals
[[Page 16308]]
and other resources necessary to produce the volume of milk processed
under paragraph (b) of this section and the processing and packaging
operations are the operator's own enterprise and at its own risk;
(d) Shall have such the volumes of own-farm production treated as
exempt volumes for the purposes of calculating any obligation of the
handler under Sec. Sec. ----.71 and ----.72 of the order. For handlers
also purchasing producer milk for use at its plant, the market
administrator shall down-allocate the volumes of own-farm produced milk
to the plant's lowest value use before calculating the plant's value of
milk and any obligations to the producer-settlement fund.
PART 1033--MILK IN THE MIDEAST MARKETING AREA
102. Revise Sec. 1033.10 to read as follows:
Sec. 1033.10 Exemption for own-farm production of handlers.
Any operator of a pool plant or partially regulated distributing
plant:
(a) From which there is route disposition in the marketing area
during the month; and
(b) That receives fluid milk from the own-farm production of a farm
under the ownership and control of the operator; and
(c) Who provides proof satisfactory to the market administrator
that the care and management of the dairy animals and other resources
necessary to produce the volume of milk processed under paragraph (b)
of this section and the processing and packaging operations are the
operator's own enterprise and at its own risk;
(d) Shall have such the volumes of own-farm production treated as
exempt volumes for the purposes of calculating any obligation of the
handler under Sec. Sec. ----.71 and ----.72 of the order. For handlers
also purchasing producer milk for use at its plant, the market
administrator shall down-allocate the volumes of own-farm produced milk
to the plant's lowest value use before calculating the plant's value of
milk and any obligations to the producer-settlement fund.
PART 1124--MILK IN THE PACIFIC NORTHWEST MARKETING AREA
103. Revise Sec. 1124.10 to read as follows:
Sec. 1124.10 Exemption for own-farm production of handlers.
Any operator of a pool plant or partially regulated distributing
plant:
(a) From which there is route disposition in the marketing area
during the month; and
(b) That receives fluid milk from the own-farm production of a farm
under the ownership and control of the operator; and
(c) Who provides proof satisfactory to the market administrator
that the care and management of the dairy animals and other resources
necessary to produce the volume of milk processed under paragraph (b)
of this section and the processing and packaging operations are the
operator's own enterprise and at its own risk;
(d) Shall have such the volumes of own-farm production treated as
exempt volumes for the purposes of calculating any obligation of the
handler under Sec. Sec. ----.71 and ----.72 of the order. For handlers
also purchasing producer milk for use at its plant, the market
administrator shall down-allocate the volumes of own-farm produced milk
to the plant's lowest value use before calculating the plant's value of
milk and any obligations to the producer-settlement fund.
PART 1126--MILK IN THE SOUTHWEST MARKETING AREA
104. Revise Sec. 1126.10 to read as follows:
Sec. 1126.10 Exemption for own-farm production of handlers.
Any operator of a pool plant or partially regulated distributing
plant:
(a) From which there is route disposition in the marketing area
during the month; and
(b) That receives fluid milk from the own-farm production of a farm
under the ownership and control of the operator; and
(c) Who provides proof satisfactory to the market administrator
that the care and management of the dairy animals and other resources
necessary to produce the volume of milk processed under paragraph (b)
of this section and the processing and packaging operations are the
operator's own enterprise and at its own risk;
(d) Shall have such the volumes of own-farm production treated as
exempt volumes for the purposes of calculating any obligation of the
handler under Sec. Sec. ----.71 and ----.72 of the order. For handlers
also purchasing producer milk for use at its plant, the market
administrator shall down-allocate the volumes of own-farm produced milk
to the plant's lowest value use before calculating the plant's value of
milk and any obligations to the producer-settlement fund.
PART 1131--MILK IN THE ARIZONA MARKETING AREA
105. Revise Sec. 1131.10 to read as follows:
Sec. 1131.10 Exemption for own-farm production of handlers.
Any operator of a pool plant or partially regulated distributing
plant:
(a) From which there is route disposition in the marketing area
during the month; and
(b) That receives fluid milk from the own-farm production of a farm
under the ownership and control of the operator; and
(c) Who provides proof satisfactory to the market administrator
that the care and management of the dairy animals and other resources
necessary to produce the volume of milk processed under paragraph(b) of
this section and the processing and packaging operations are the
operator's own enterprise and at its own risk;
(d) Shall have such the volumes of own-farm production treated as
exempt volumes for the purposes of calculating any obligation of the
handler under Sec. Sec. ----.71 and ----.72 of the order. For handlers
also purchasing producer milk for use at its plant, the market
administrator shall down-allocate the volumes of own-farm produced milk
to the plant's lowest value use before calculating the plant's value of
milk and any obligations to the producer-settlement fund.
Proposal No. 24
This proposal would exempt from regulation milk sold by producer-
handlers through ``handler controlled retail channels'' including home-
delivery and handler controlled retail outlets, regardless of volume of
sales.
PART 1001--MILK IN THE NORTHEAST MARKETING AREA
106. Amend Sec. 1001.10 by adding a new paragraph (g) to read as
follows:
Sec. 1001.10 Producer-handler.
* * * * *
(g) Any producer-handler with route disposition through retail
channels, either by sales direct to consumers, through home delivery,
or to distribution outlets owned or controlled by the producer-handler,
shall have such retail sales volumes treated as exempt volumes for the
purposes of calculating any obligation of the producer-handler under
Sec. 1001.71 and Sec. 1001.72. The producer-handler shall provide
proof satisfactory to the market administrator that the retail
dispositions are made by the producer-handler direct
[[Page 16309]]
to consumers, through home delivery, or to distribution outlets owned
or controlled by the producer-handler.
* * * * *
PART 1005--MILK IN THE APPALACHIAN MARKETING AREA
107. Amend Sec. 1005.10 by adding a new paragraph (f) to read as
follows:
Sec. 1005.10 Producer-handler.
* * * * *
(f) Any producer-handler with route disposition through retail
channels, either by sales direct to consumers, through home delivery,
or to distribution outlets owned or controlled by the producer-handler,
shall have such retail sales volumes treated as exempt volumes for the
purposes of calculating any obligation of the producer-handler under
Sec. 1005.71 and Sec. 1005.72. The producer-handler shall provide
proof satisfactory to the market administrator that the retail
dispositions are made by the producer-handler direct to consumers,
through home delivery, or to distribution outlets owned or controlled
by the producer-handler.
PART 1006--MILK IN THE FLORIDA MARKETING AREA
108. Amend Sec. 1006.10 by adding a new paragraph (f) to read as
follows:
Sec. 1006.10 Producer-handler.
* * * * *
(f) Any producer-handler with route disposition through retail
channels, either by sales direct to consumers, through home delivery,
or to distribution outlets owned or controlled by the producer-handler,
shall have such retail sales volumes treated as exempt volumes for the
purposes of calculating any obligation of the producer-handler under
Sec. 1006.71 and Sec. 1006.72. The producer-handler shall provide
proof satisfactory to the market administrator that the retail
dispositions are made by the producer-handler direct to consumers,
through home delivery, or to distribution outlets owned or controlled
by the producer-handler.
PART 1007--MILK IN THE SOUTHEAST MARKETING AREA
109. Amend Sec. 1007.10 by adding a new paragraph (f) to read as
follows:
Sec. 1007.10 Producer-handler.
* * * * *
(f) Any producer-handler with route disposition through retail
channels, either by sales direct to consumers, through home delivery,
or to distribution outlets owned or controlled by the producer-handler,
shall have such retail sales volumes treated as exempt volumes for the
purposes of calculating any obligation of the producer-handler under
Sec. 1007.71 and Sec. 1007.72. The producer-handler shall provide
proof satisfactory to the market administrator that the retail
dispositions are made by the producer-handler direct to consumers,
through home delivery, or to distribution outlets owned or controlled
by the producer-handler.
* * * * *
PART 1030--MILK IN THE UPPER MIDWEST MARKETING AREA
110. Amend Sec. 1030.10 by adding a new paragraph (g) to read as
follows:
Sec. 1030.10 Producer-handler.
* * * * *
(g) Any producer-handler with route disposition through retail
channels, either by sales direct to consumers, through home delivery,
or to distribution outlets owned or controlled by the producer-handler,
shall have such retail sales volumes treated as exempt volumes for the
purposes of calculating any obligation of the producer-handler under
Sec. 1030.71 and Sec. 1030.72. The producer-handler shall provide
proof satisfactory to the market administrator that the retail
dispositions are made by the producer-handler direct to consumers,
through home delivery, or to distribution outlets owned or controlled
by the producer-handler.
PART 1032--MILK IN THE CENTRAL MARKETING AREA
111. Amend Sec. 1032.10 by adding a new paragraph (g) to read as
follows:
Sec. 1032.10 Producer-handler.
* * * * *
(g) Any producer-handler with route disposition through retail
channels, either by sales direct to consumers, through home delivery,
or to distribution outlets owned or controlled by the producer-handler,
shall have such retail sales volumes treated as exempt volumes for the
purposes of calculating any obligation of the producer-handler under
Sec. 1032.71 and Sec. 1032.72. The producer-handler shall provide
proof satisfactory to the market administrator that the retail
dispositions are made by the producer-handler direct to consumers,
through home delivery, or to distribution outlets owned or controlled
by the producer-handler.
PART 1033--MILK IN THE MIDEAST MARKETING AREA
112. Amend Sec. 1033.10 by adding a new paragraph (g) to read as
follows:
Sec. 1033.10 Producer-handler.
* * * * *
(g) Any producer-handler with route disposition through retail
channels, either by sales direct to consumers, through home delivery,
or to distribution outlets owned or controlled by the producer-handler,
shall have such retail sales volumes treated as exempt volumes for the
purposes of calculating any obligation of the producer-handler under
Sec. 1033.71 and Sec. 1033.72. The producer-handler shall provide
proof satisfactory to the market administrator that the retail
dispositions are made by the producer-handler direct to consumers,
through home delivery, or to distribution outlets owned or controlled
by the producer-handler.
PART 1124--MILK IN THE PACIFIC NORTHWEST MARKETING AREA
113. Amend 1124.10 by adding a new paragraph (g) to read as
follows:
Sec. 1124.10 Producer-handler.
* * * * *
(g) Any producer-handler with route disposition through retail
channels, either by sales direct to consumers, through home delivery,
or to distribution outlets owned or controlled by the producer-handler,
shall have such retail sales volumes treated as exempt volumes for the
purposes of calculating any obligation of the producer-handler under
Sec. 1124.71 and Sec. 1124.72. The producer-handler shall provide
proof satisfactory to the market administrator that the retail
dispositions are made by the producer-handler direct to consumers,
through home delivery, or to distribution outlets owned or controlled
by the producer-handler.
PART 1126--MILK IN THE SOUTHWEST MARKETING AREA
114. Amend Sec. 1126.10 by adding a new paragraph (g) to read as
follows:
Sec. 1126.10 Producer-handler.
* * * * *
(g) Any producer-handler with route disposition through retail
channels, either by sales direct to consumers, through home delivery,
or to distribution outlets owned or controlled by the producer-handler,
shall have such retail sales volumes treated as exempt volumes for the
purposes of calculating any obligation of the producer-handler under
Sec. 1126.71 and Sec. 1126.72. The producer-handler shall provide
proof satisfactory to the market administrator that the retail
dispositions are made by the producer-handler direct to consumers,
through home delivery, or
[[Page 16310]]
to distribution outlets owned or controlled by the producer-handler.
PART 1131--MILK IN THE ARIZONA MARKETING AREA
115. Amend Sec. 1131.10 by adding a new paragraph (g) to read as
follows:
Sec. 1131.10 Producer-handler.
* * * * *
(g) Any producer-handler with route disposition through retail
channels, either by sales direct to consumers, through home delivery,
or to distribution outlets owned or controlled by the producer-handler,
shall have such retail sales volumes treated as exempt volumes for the
purposes of calculating any obligation of the producer-handler under
Sec. 1131.71 and Sec. 1131.72. The producer-handler shall provide
proof satisfactory to the market administrator that the retail
dispositions are made by the producer-handler direct to consumers,
through home delivery, or to distribution outlets owned or controlled
by the producer-handler.
Proposal No. 25
This proposal would establish ``individual handler'' pools for all
handlers across all orders.
PART 1001--MILK IN THE NORTHEAST MARKETING AREA
116. Amend Sec. 1001.61 by revising the introductory text and
paragraphs (a) and (b) to read as follows:
Sec. 1001.61 Computation of producer price differential.
For each month, the market administrator shall compute a producer
price differential per hundredweight for each handler required to file
a report prescribed by Sec. 1001.30 and for the order in aggregate.
(a) Subject to the conditions in this paragraph, the market
administrator shall compute the producer price differential for the
order in aggregate in the following manner:
(1) Combine into one total the values computed pursuant to Sec.
1001.60 for all handlers required to file reports prescribed in Sec.
1001.30;
(2) Subtract the total of the values obtained by multiplying each
handler's total pounds of protein, other solids, and butterfat
contained in the milk for which an obligation was computed pursuant to
Sec. 1001.60 by the protein price, other solids price, and the
butterfat price, respectively;
(3) Add an amount equal to the minus location adjustments and
subtract an amount equal to the plus location adjustments computed
pursuant to Sec. 1001.75;
(4) Add an amount equal to not less than one-half of the
unobligated balance in the producer-settlement fund;
(5) Divide the resulting amount by the sum of the following for all
handlers included in these computations:
(i) The total hundredweight of producer milk; and
(ii) The total hundredweight for which a value is computed pursuant
to Sec. 1001.60(h); and
(6) Subtract not less than 4 cents nor more than 5 cents from the
price computed pursuant to paragraph (e) of this section. The result,
rounded to the nearest cent, shall be known as the orders' producer
price differential for the month and shall be calculated for purposes
of statistical comparison.
(b) For each handler required to file a report prescribed by Sec.
1001.30, the market administrator shall calculate the handler's
producer price differential in the following manner:
(1) Subtract the total of the values obtained by multiplying the
handler's total pounds of protein, other solids, and butterfat
contained in the milk for which an obligation was computed pursuant to
Sec. 1001.60 by the protein price, other solids price, and the
butterfat price, respectively;
(2) Add or subtract an amount equal to the location adjustments
computed pursuant to Sec. 1001.75;
(3) Divide the resulting amount by the handler's total
hundredweight of producer milk; and
(4) Subtract not less than 4 cents nor more than 5 cents from the
price computed pursuant to paragraph (b)(3) of this section. The
result, rounded to the nearest cent, shall be known as the handler's
producer price differential for the month and shall be utilized for
determining the pay prices for producers and cooperative associations
shipping to that handler.
* * * * *
117. Revise Sec. 1001.62 to read as follows:
Sec. 1001.62 Announcement of producer prices.
On or before the 14th day after the end of the month, the market
administrator shall announce the following prices and information:
(a) The producer price differentials for the order in aggregate and
for each handler;
(b) The protein price;
(c) The nonfat solids price;
(d) The other solids price;
(e) The butterfat price;
(f) The average butterfat, protein, nonfat solids, and other solids
content of producer milk; and
(g) The statistical uniform price for milk containing 3.5 percent
butterfat computed by combining the Class III price and the producer
price differential.
(h) If the 14th falls on a Saturday, Sunday, or national holiday,
the market administrator may have up to two additional business days to
announce the producer price differentials and the statistical uniform
price.
Sec. Sec. 1001.70, 1001.71 and 1001.72 [Removed]
118. Remove and reserve Sec. Sec. 1001.70, 1001.71 and 1001.72.
119. Amend Sec. 1001.73 by:
a. Revising paragraph (a)(2)(i);
b. Removing paragraph (c);
c. Redesignating paragraphs (d) and (e) as (c) and (d); and
d. Revising newly redesignated paragraph(c).
The revisions read as follows:
Sec. 1001.73 Payments to producers and cooperative associations.
(a) * * *
(2) * * *
(i) Multiply the hundredweight of producer milk received by the
handler's producer price differential for the month as adjusted
pursuant to Sec. 1001.75;
* * * * *
(c) If a handler claims that a required payment to a producer
cannot be made because the producer is deceased or cannot be located,
or because the cooperative association or its lawful successor or
assignee is no longer in existence, the payment shall be made in trust
to the market administrator to the producer-settlement fund, and in the
event that the handler subsequently locates and pays the producer or a
lawful claimant, or in the event that the handler no longer exists and
a lawful claim is later established, the market administrator shall
make the required payment from the producer-settlement fund to the
handler or to the lawful claimant as the case may be.
* * * * *
PART 1005--MILK IN THE APPALACHIAN MARKETING AREA
120. Revise Sec. 1005.61 to read as follows:
Sec. 1005.61 Computation of uniform prices.
On or before the 11th day of each month, the market administrator
shall compute a uniform butterfat price, a uniform skim milk price, and
a uniform price for producer milk receipts reported for the prior month
for each handler required to file a report prescribed by Sec. 1005.30
and for the order in aggregate.
[[Page 16311]]
(a) Uniform butterfat price. The uniform butterfat price per pound,
rounded to the nearest one-hundredth cent, shall be computed by:
(1) Multiplying the pounds of butterfat in producer milk allocated
to each class pursuant to Sec. 1000.44(b) by the respective class
butterfat prices;
(2) Adding the butterfat value calculated in Sec. 1005.60(e) for
other source milk allocated to Class I pursuant to Sec. 1000.43(d) and
the steps of Sec. 1000.44(b) that correspond to Sec. 1000.44(a)(3)(i)
and Sec. 1000.44(a)(8) by the Class I price; and
(3) Dividing the sum of paragraphs (a)(1) and (a)(2) of this
section by the sum of the pounds of butterfat in producer milk and
other source milk used to calculate the values in paragraphs (a)(1) and
(a)(2) of this section.
(b) Uniform skim milk price. The uniform skim milk price per
hundredweight, rounded to the nearest cent, shall be computed as
follows:
(1) Combine into one total the values computed pursuant to Sec.
1005.60 for all handlers;
(2) Add an amount equal to the minus location adjustments and
subtract an amount equal to the plus location adjustments computed
pursuant to Sec. 1005.75;
(3) Add an amount equal to not less than one-half of the
unobligated balance in the producer-settlement fund;
(4) Subtract the value of the total pounds of butterfat for all
handlers. The butterfat value shall be computed by multiplying the sum
of the pounds of butterfat in producer milk and other source milk used
to calculate the values in paragraphs (a)(1) and (a)(2) of this section
by the butterfat price computed in paragraph (a) of this section;
(5) Divide the resulting amount by the sum of the following for all
handlers included in these computations:
(i) The total skim pounds of producer milk; and
(ii) The total skim pounds for which a value is computed pursuant
to Sec. 1005.60(e); and
(6) Subtract not less than 4 cents and not more than 5 cents.
(c) Uniform price. The uniform price per hundredweight, rounded to
the nearest cent, shall be the sum of the following:
(1) Multiply the uniform butterfat price for the month pursuant to
paragraph (a) of this section times 3.5 pounds of butterfat; and
(2) Multiply the uniform skim milk price for the month pursuant to
paragraph (b) of this section times 96.5 pounds of skim milk.
(d) Handler's uniform butterfat price. The uniform butterfat price
per pound, rounded to the nearest one-hundredth cent, shall be computed
by:
(1) Multiplying the pounds of butterfat in producer milk allocated
to each class pursuant to Sec. 1000.44(b) by the respective class
butterfat prices;
(2) Adding the butterfat value calculated in Sec. 1005.60(e) for
other source milk allocated to Class I pursuant to Sec. 1000.43(d) and
the steps of Sec. 1000.44(b) that correspond to Sec. 1000.44(a)(3)(i)
and Sec. 1000.44(a)(8) by the Class I price; and
(3) Dividing the sum of paragraphs (a)(1) and (a)(2) of this
section by the sum of the pounds of butterfat in producer milk and
other source milk reported by the handler used to calculate the values
in paragraphs (a)(1) and (a)(2) of this section.
(e) Handler's uniform skim milk price. The uniform skim milk price
per hundredweight, rounded to the nearest cent, shall be computed as
follows:
(1) Begin with the handler's values computed pursuant to Sec.
1005.60;
(2) Add or subtract an amount equal to location adjustments
computed pursuant to Sec. 1005.75;
(3) Subtract the value of the total pounds of butterfat for the
handler. The butterfat value shall be computed by multiplying the sum
of the pounds of butterfat in producer milk and other source milk used
to calculate the values in paragraphs (d)(1) and (d)(2) of this section
by the butterfat price computed in paragraph (a) of this section;
(4) Divide the resulting amount by the sum of the following for the
handler:
(i) The total skim pounds of producer milk; and
(ii) The total skim pounds for which a value is computed pursuant
to Sec. 1005.60(e); and
(5) Subtract not less than 4 cents and not more than 5 cents.
(f) Handler's uniform price. The handler's uniform price per
hundredweight, rounded to the nearest cent, shall be the sum of the
following:
(1) Multiply the handler's uniform butterfat price for the month
pursuant to paragraph (a) of this section times 3.5 pounds of
butterfat; and
(2) Multiply the handler's uniform skim milk price for the month
pursuant to paragraph (b) of this section times 96.5 pounds of skim
milk.
121. Section 1005.62 is revised to read as follows:
Sec. 1005.62 Announcement of uniform prices.
On or before the 14th day after the end of the month, the market
administrator shall announce the following prices and information:
(a) The producer price differentials for the order in aggregate and
for each handler;
(b) The protein price;
(c) The nonfat solids price;
(d) The other solids price;
(e) The butterfat price;
(f) The average butterfat, protein, nonfat solids, and other solids
content of producer milk; and
(g) The statistical uniform price for milk containing 3.5 percent
butterfat computed by combining the Class III price and the producer
price differential.
(h) If the 14th falls on a Saturday, Sunday, or national holiday,
the market administrator may have up to two additional business days to
announce the producer price differentials and the statistical uniform
price.
Sec. Sec. 1005.70, 1005.71 and 1005.72 [Removed]
122. Remove and reserve Sec. 1005.70, Sec. 1005.71 and Sec.
1005.72.
123. Amend Sec. 1005.73 by:
a. Revising paragraphs (a)(2)(i) and (ii);
b. Removing paragraph (c);
c. Redesignating paragraphs (d) and (e) as (c) and (d); and
d. Revising newly redesignated paragraph (c).
The revisions read as follows:
Sec. 1005.73 Payments to producers and cooperative associations.
(a) * * *
(2) * * *
(i) Multiply the hundredweight of producer skim milk received times
the handler's uniform skim milk price for the month;
(ii) Multiply the pounds of butterfat received times the handler's
uniform butterfat price for the month;
* * * * *
(c) If a handler claims that a required payment to a producer
cannot be made because the producer is deceased or cannot be located,
or because the cooperative association or its lawful successor or
assignee is no longer in existence, the payment shall be made in trust
to the market administrator, and in the event that the handler
subsequently locates and pays the producer or a lawful claimant, or in
the event that the handler no longer exists and a lawful claim is later
established, the market administrator shall make the required payment
to the handler or to the lawful claimant as the case may be.
* * * * *
PART 1006--MILK IN THE FLORIDA MARKETING AREA
124. Section 1006.61 is revised to read as follows:
[[Page 16312]]
Sec. 1006.61 Computation of uniform prices.
On or before the 11th day of each month, the market administrator
shall compute a uniform butterfat price, a uniform skim milk price, and
a uniform price for producer milk receipts reported for the prior month
for each handler required to file a report prescribed by Sec. 1005.30
and for the order in aggregate.
(a) Uniform butterfat price. The uniform butterfat price per pound,
rounded to the nearest one-hundredth cent, shall be computed by:
(1) Multiplying the pounds of butterfat in producer milk allocated
to each class pursuant to Sec. 1000.44(b) by the respective class
butterfat prices;
(2) Adding the butterfat value calculated in Sec. 1005.60(e) for
other source milk allocated to Class I pursuant to Sec. 1000.43(d) and
the steps of Sec. 1000.44(b) that correspond to Sec. 1000.44(a)(3)(i)
and Sec. 1000.44(a)(8) by the Class I price; and
(3) Dividing the sum of paragraphs (a)(1) and (a)(2) of this
section by the sum of the pounds of butterfat in producer milk and
other source milk used to calculate the values in paragraphs (a)(1) and
(a)(2) of this section.
(b) Uniform skim milk price. The uniform skim milk price per
hundredweight, rounded to the nearest cent, shall be computed as
follows:
(1) Combine into one total the values computed pursuant to Sec.
1005.60 for all handlers;
(2) Add an amount equal to the minus location adjustments and
subtract an amount equal to the plus location adjustments computed
pursuant to Sec. 1005.75;
(3) Add an amount equal to not less than one-half of the
unobligated balance in the producer-settlement fund;
(4) Subtract the value of the total pounds of butterfat for all
handlers. The butterfat value shall be computed by multiplying the sum
of the pounds of butterfat in producer milk and other source milk used
to calculate the values in paragraphs (a)(1) and (a)(2) of this section
by the butterfat price computed in paragraph (a) of this section;
(5) Divide the resulting amount by the sum of the following for all
handlers included in these computations:
(i) The total skim pounds of producer milk; and
(ii) The total skim pounds for which a value is computed pursuant
to Sec. 1005.60(e); and
(6) Subtract not less than 4 cents and not more than 5 cents.
(c) Uniform price. The uniform price per hundredweight, rounded to
the nearest cent, shall be the sum of the following:
(1) Multiply the uniform butterfat price for the month pursuant to
paragraph (a) of this section times 3.5 pounds of butterfat; and
(2) Multiply the uniform skim milk price for the month pursuant to
paragraph (b) of this section times 96.5 pounds of skim milk.
(d) Handler's uniform butterfat price. The uniform butterfat price
per pound, rounded to the nearest one-hundredth cent, shall be computed
by:
(1) Multiplying the pounds of butterfat in producer milk allocated
to each class pursuant to Sec. 1000.44(b) by the respective class
butterfat prices;
(2) Adding the butterfat value calculated in Sec. 1005.60(e) for
other source milk allocated to Class I pursuant to Sec. 1000.43(d) and
the steps of Sec. 1000.44(b) that correspond to Sec. 1000.44(a)(3)(i)
and Sec. 1000.44(a)(8) by the Class I price; and
(3) Dividing the sum of paragraphs (a)(1) and (a)(2) of this
section by the sum of the pounds of butterfat in producer milk and
other source milk reported by the handler used to calculate the values
in paragraphs (a)(1) and (a)(2) of this section.
(e) Handler's uniform skim milk price. The uniform skim milk price
per hundredweight, rounded to the nearest cent, shall be computed as
follows:
(1) Begin with the handler's values computed pursuant to Sec.
1005.60;
(2) Add or subtract an amount equal to location adjustments
computed pursuant to Sec. 1005.75;
(3) Subtract the value of the total pounds of butterfat for the
handler. The butterfat value shall be computed by multiplying the sum
of the pounds of butterfat in producer milk and other source milk used
to calculate the values in paragraphs (d)(1) and (d)(2) of this section
by the butterfat price computed in paragraph (a) of this section;
(4) Divide the resulting amount by the sum of the following for the
handler:
(i) The total skim pounds of producer milk; and
(ii) The total skim pounds for which a value is computed pursuant
to Sec. 1005.60(e); and
(5) Subtract not less than 4 cents and not more than 5 cents.
(f) Handler's uniform price. The handler's uniform price per
hundredweight, rounded to the nearest cent, shall be the sum of the
following:
(1) Multiply the handler's uniform butterfat price for the month
pursuant to paragraph (a) of this section times 3.5 pounds of
butterfat; and
(2) Multiply the handler's uniform skim milk price for the month
pursuant to paragraph
(b) of this section times 96.5 pounds of skim milk.
125. Section 1006.62 is revised to read as follows:
Sec. 1006.62 Announcement of uniform prices.
On or before the 14th day after the end of the month, the market
administrator shall announce the following prices and information:
(a) The producer price differentials for the order in aggregate and
for each handler;
(b) The protein price;
(c) The nonfat solids price;
(d) The other solids price;
(e) The butterfat price;
(f) The average butterfat, protein, nonfat solids, and other solids
content of producer milk; and
(g) The statistical uniform price for milk containing 3.5 percent
butterfat computed by combining the Class III price and the producer
price differential.
(h) If the 14th falls on a Saturday, Sunday, or national holiday,
the market administrator may have up to two additional business days to
announce the producer price differentials and the statistical uniform
price.
Sec. Sec. 1006.70, 1006.71 and 1006.72 [Removed]
126. Remove and reserve Sec. Sec. 1006.70, 1006.71 and 1006.72.
127. Amend Sec. 1006.73 by:
a. Revising paragraphs (a)(2)(i) and (ii);
b. Removing paragraph (c);
c. Redesignating paragraphs (d) and (e) as (c) and (d); and
d. Revising newly redesignated paragraph (c).
The revisions read as follows:
Sec. 1006.73 Payments to producers and cooperative associations.
(a) * * *
(2) * * *
(i) Multiply the hundredweight of producer skim milk received times
the handler's uniform skim milk price for the month;
(ii) Multiply the pounds of butterfat received times the handler's
uniform butterfat price for the month;
* * * * *
(c) If a handler claims that a required payment to a producer
cannot be made because the producer is deceased or cannot be located,
or because the cooperative association or its lawful successor or
assignee is no longer in existence, the payment shall be made in trust
to the market administrator, and in the event that the handler
subsequently locates and pays the producer or a
[[Page 16313]]
lawful claimant, or in the event that the handler no longer exists and
a lawful claim is later established, the market administrator shall
make the required payment to the handler or to the lawful claimant as
the case may be.
* * * * *
PART 1007--MILK IN THE SOUTHEAST MARKETING AREA
128. Revise Sec. 1007.61 to read as follows:
Sec. 1007.61 Computation of uniform prices.
On or before the 11th day of each month, the market administrator
shall compute a uniform butterfat price, a uniform skim milk price, and
a uniform price for producer milk receipts reported for the prior month
for each handler required to file a report prescribed by Sec. 1005.30
and for the order in aggregate.
(a) Uniform butterfat price. The uniform butterfat price per pound,
rounded to the nearest one-hundredth cent, shall be computed by:
(1) Multiplying the pounds of butterfat in producer milk allocated
to each class pursuant to Sec. 1000.44(b) by the respective class
butterfat prices;
(2) Adding the butterfat value calculated in Sec. 1005.60(e) for
other source milk allocated to Class I pursuant to Sec. 1000.43(d) and
the steps of Sec. 1000.44(b) that correspond to Sec. 1000.44(a)(3)(i)
and Sec. 1000.44(a)(8) by the Class I price; and
(3) Dividing the sum of paragraphs (a)(1) and (a)(2) of this
section by the sum of the pounds of butterfat in producer milk and
other source milk used to calculate the values in paragraphs (a)(1) and
(a)(2) of this section.
(b) Uniform skim milk price. The uniform skim milk price per
hundredweight, rounded to the nearest cent, shall be computed as
follows:
(1) Combine into one total the values computed pursuant to Sec.
1005.60 for all handlers;
(2) Add an amount equal to the minus location adjustments and
subtract an amount equal to the plus location adjustments computed
pursuant to Sec. 1005.75;
(3) Add an amount equal to not less than one-half of the
unobligated balance in the producer-settlement fund;
(4) Subtract the value of the total pounds of butterfat for all
handlers. The butterfat value shall be computed by multiplying the sum
of the pounds of butterfat in producer milk and other source milk used
to calculate the values in paragraphs (a)(1) and (a)(2) of this section
by the butterfat price computed in paragraph (a) of this section;
(5) Divide the resulting amount by the sum of the following for all
handlers included in these computations:
(i) The total skim pounds of producer milk; and
(ii) The total skim pounds for which a value is computed pursuant
to Sec. 1005.60(e); and
(6) Subtract not less than 4 cents and not more than 5 cents.
(c) Uniform price. The uniform price per hundredweight, rounded to
the nearest cent, shall be the sum of the following:
(1) Multiply the uniform butterfat price for the month pursuant to
paragraph (a) of this section times 3.5 pounds of butterfat; and
(2) Multiply the uniform skim milk price for the month pursuant to
paragraph (b) of this section times 96.5 pounds of skim milk.
(d) Handler's uniform butterfat price. The uniform butterfat price
per pound, rounded to the nearest one-hundredth cent, shall be computed
by:
(1) Multiplying the pounds of butterfat in producer milk allocated
to each class pursuant to Sec. 1000.44(b) by the respective class
butterfat prices;
(2) Adding the butterfat value calculated in Sec. 1005.60(e) for
other source milk allocated to Class I pursuant to Sec. 1000.43(d) and
the steps of Sec. 1000.44(b) that correspond to Sec. 1000.44(a)(3)(i)
and Sec. 1000.44(a)(8) by the Class I price; and
(3) Dividing the sum of paragraphs (a)(1) and (a)(2) of this
section by the sum of the pounds of butterfat in producer milk and
other source milk reported by the handler used to calculate the values
in paragraphs (a)(1) and (a)(2) of this section.
(e) Handler's uniform skim milk price. The uniform skim milk price
per hundredweight, rounded to the nearest cent, shall be computed as
follows:
(1) Begin with the handler's values computed pursuant to Sec.
1005.60;
(2) Add or subtract an amount equal to location adjustments
computed pursuant to Sec. 1005.75;
(3) Subtract the value of the total pounds of butterfat for the
handler. The butterfat value shall be computed by multiplying the sum
of the pounds of butterfat in producer milk and other source milk used
to calculate the values in paragraphs (d)(1) and (d)(2) of this section
by the butterfat price computed in paragraph (a) of this section;
(4) Divide the resulting amount by the sum of the following for the
handler:
(i) The total skim pounds of producer milk; and
(ii) The total skim pounds for which a value is computed pursuant
to Sec. 1005.60(e); and
(5) Subtract not less than 4 cents and not more than 5 cents.
(f) Handler's uniform price. The handler's uniform price per
hundredweight, rounded to the nearest cent, shall be the sum of the
following:
(1) Multiply the handler's uniform butterfat price for the month
pursuant to paragraph (a) of this section times 3.5 pounds of
butterfat; and
(2) Multiply the handler's uniform skim milk price for the month
pursuant to paragraph (b) of this section times 96.5 pounds of skim
milk.
129. Revise Sec. 1007.62 to read as follows:
Sec. 1007.62 Announcement of uniform prices.
On or before the 14th day after the end of the month, the market
administrator shall announce the following prices and information:
(a) The producer price differentials for the order in aggregate and
for each handler;
(b) The protein price;
(c) The nonfat solids price;
(d) The other solids price;
(e) The butterfat price;
(f) The average butterfat, protein, nonfat solids, and other solids
content of producer milk; and
(g) The statistical uniform price for milk containing 3.5 percent
butterfat computed by combining the Class III price and the producer
price differential.
(h) If the 14th falls on a Saturday, Sunday, or national holiday,
the market administrator may have up to two additional business days to
announce the producer price differentials and the statistical uniform
price.
Sec. Sec. 1007.70, 1007.71 and 1007.72 [Removed]
130. Remove and reserve Sec. 1007.70, Sec. 1007.71 and Sec.
1007.72.
131. Amend Sec. 1007.73 by:
a. Revising paragraphs (a)(2)(i) and (ii);
b. Removing paragraph (c);
c. Redesignating paragraphs (d) and (e) as (c) and (d); and
d. Revising newly redesignated paragraph (c).
The revisions read as follows:
Sec. 1007.73 Payments to producers and cooperative associations.
(a) * * *
(2) * * *
(i) Multiply the hundredweight of producer skim milk received times
the handler's uniform skim milk price for the month;
(ii) Multiply the pounds of butterfat received times the handler's
uniform butterfat price for the month;
* * * * *
[[Page 16314]]
(c) If a handler claims that a required payment to a producer
cannot be made because the producer is deceased or cannot be located,
or because the cooperative association or its lawful successor or
assignee is no longer in existence, the payment shall be made in trust
to the market administrator, and in the event that the handler
subsequently locates and pays the producer or a lawful claimant, or in
the event that the handler no longer exists and a lawful claim is later
established, the market administrator shall make the required payment
to the handler or to the lawful claimant as the case may be.
* * * * *
PART 1030--MILK IN THE UPPER MIDWEST MARKETING AREA
132. Section 1030.61 is revised to read as follows:
Sec. 1030.61 Computation of producer price differential.
For each month, the market administrator shall compute a producer
price differential per hundredweight for each handler required to file
a report prescribed by Sec. 1001.30 and for the order in aggregate.
(a) Subject to the conditions in this paragraph, the market
administrator shall compute the producer price differential for the
order in aggregate in the following manner:
(1) Combine into one total the values computed pursuant to Sec.
1030.60 for all handlers required to file reports prescribed in Sec.
1030.30;
(2) Subtract the total of the values obtained by multiplying each
handler's total pounds of protein, other solids, and butterfat
contained in the milk for which an obligation was computed pursuant to
Sec. 1030.60 by the protein price, other solids price, and the
butterfat price, respectively;
(3) Add an amount equal to the minus location adjustments and
subtract an amount equal to the plus location adjustments computed
pursuant to Sec. 1030.75;
(4) Add an amount equal to not less than one-half of the
unobligated balance in the producer-settlement fund;
(5) Divide the resulting amount by the sum of the following for all
handlers included in these computations:
(a) The total hundredweight of producer milk; and
(b) The total hundredweight for which a value is computed pursuant
to Sec. 1030.60(h); and
(6) Subtract not less than 4 cents nor more than 5 cents from the
price computed pursuant to paragraph (e) of this section. The result,
rounded to the nearest cent, shall be known as the orders' producer
price differential for the month and shall be calculated for purposes
of statistical comparison.
(b) For each handler required to file a report prescribed by Sec.
1030.30, the market administrator shall calculate the handler's
producer price differential in the following manner:
(1) Subtract the total of the values obtained by multiplying the
handler's total pounds of protein, other solids, and butterfat
contained in the milk for which an obligation was computed pursuant to
Sec. 1030.60 by the protein price, other solids price, and the
butterfat price, respectively;
(2) Add or subtract an amount equal to the location adjustments
computed pursuant to Sec. 1030.75;
(3) Divide the resulting amount by the handler's total
hundredweight of producer milk; and
(4) Subtract not less than 4 cents nor more than 5 cents from the
price computed pursuant to paragraph (b)(3) of this section. The
result, rounded to the nearest cent, shall be known as the handler's
producer price differential for the month and shall be utilized for
determining the pay prices for producers and cooperative associations
shipping to that handler.
133. Section 1030.62 is revised to read as follows:
Sec. 1030.62 Announcement of uniform prices.
On or before the 14th day after the end of the month, the market
administrator shall announce the following prices and information:
(a) The producer price differentials for the order in aggregate and
for each handler;
(b) The protein price;
(c) The nonfat solids price;
(d) The other solids price;
(e) The butterfat price;
(f) The average butterfat, protein, nonfat solids, and other solids
content of producer milk; and
(g) The statistical uniform price for milk containing 3.5 percent
butterfat computed by combining the Class III price and the producer
price differential.
(h) If the 14th falls on a Saturday, Sunday, or national holiday,
the market administrator may have up to two additional business days to
announce the producer price differentials and the statistical uniform
price.
Sec. Sec. 1030.70, 1030.71 and 1030.72 [Removed]
134. Remove and reserve Sec. Sec. 1030.70, 1030.71 and 1030.72.
135. Amend Sec. 1030.73 by:
a. Revising paragraph (a)(2)(i);
b. Removing paragraph (c);
c. Redesignating paragraphs (d) and (e) as (c) and (d); and
d. Revising newly redesignated paragraph (c).
The revisions read as follows:
Sec. 1030.73 Payments to producers and cooperative associations.
(a) * * *
(2) * * *
(i) Multiply the hundredweight of producer milk received by the
handler's producer price differential for the month as adjusted
pursuant to Sec. 1001.75;
* * * * *
(c) If a handler claims that a required payment to a producer
cannot be made because the producer is deceased or cannot be located,
or because the cooperative association or its lawful successor or
assignee is no longer in existence, the payment shall be made in trust
to the market administrator to the producer-settlement fund, and in the
event that the handler subsequently locates and pays the producer or a
lawful claimant, or in the event that the handler no longer exists and
a lawful claim is later established, the market administrator shall
make the required payment from the producer-settlement fund to the
handler or to the lawful claimant as the case may be.
* * * * *
PART 1032--MILK IN THE CENTRAL MARKETING AREA
136. Amend Sec. 1032.61 by revising the introductory text and
paragraphs (a) and (b) to read as follows:
Sec. 1032.61 Computation of producer price differential.
For each month, the market administrator shall compute a producer
price differential per hundredweight for each handler required to file
a report prescribed by Sec. 1032.30 and for the order in aggregate.
(a) Subject to the conditions in this paragraph, the market
administrator shall compute the producer price differential for the
order in aggregate in the following manner:
(1) Combine into one total the values computed pursuant to Sec.
1032.60 for all handlers required to file reports prescribed in Sec.
1032.30;
(2) Subtract the total of the values obtained by multiplying each
handler's total pounds of protein, other solids, and butterfat
contained in the milk for which an obligation was computed pursuant to
Sec. 1032.60 by the protein price, other solids price, and the
butterfat price, respectively;
[[Page 16315]]
(3) Add an amount equal to the minus location adjustments and
subtract an amount equal to the plus location adjustments computed
pursuant to Sec. 1032.75;
(4) Add an amount equal to not less than one-half of the
unobligated balance in the producer-settlement fund;
(5) Divide the resulting amount by the sum of the following for all
handlers included in these computations:
(i) The total hundredweight of producer milk; and
(ii) The total hundredweight for which a value is computed pursuant
to Sec. 1032.60(h); and
(6) Subtract not less than 4 cents nor more than 5 cents from the
price computed pursuant to paragraph (e) of this section. The result,
rounded to the nearest cent, shall be known as the orders' producer
price differential for the month and shall be calculated for purposes
of statistical comparison.
(b) For each handler required to file a report prescribed by Sec.
1032.30, the market administrator shall calculate the handler's
producer price differential in the following manner:
(1) Subtract the total of the values obtained by multiplying the
handler's total pounds of protein, other solids, and butterfat
contained in the milk for which an obligation was computed pursuant to
Sec. 1032.60 by the protein price, other solids price, and the
butterfat price, respectively;
(2) Add or subtract an amount equal to the location adjustments
computed pursuant to Sec. 1032.75;
(3) Divide the resulting amount by the handler's total
hundredweight of producer milk; and
(4) Subtract not less than 4 cents nor more than 5 cents from the
price computed pursuant to paragraph (b)(3) of this section. The
result, rounded to the nearest cent, shall be known as the handler's
producer price differential for the month and shall be utilized for
determining the pay prices for producers and cooperative associations
shipping to that handler.
* * * * *
137. Section 1032.62 is revised to read as follows:
Sec. 1032.62 Announcement of uniform prices.
On or before the 14th day after the end of the month, the market
administrator shall announce the following prices and information:
(a) The producer price differentials for the order in aggregate and
for each handler;
(b) The protein price;
(c) The nonfat solids price;
(d) The other solids price;
(e) The butterfat price;
(f) The average butterfat, protein, nonfat solids, and other solids
content of producer milk; and
(g) The statistical uniform price for milk containing 3.5 percent
butterfat computed by combining the Class III price and the producer
price differential.
(h) If the 14th falls on a Saturday, Sunday, or national holiday,
the market administrator may have up to two additional business days to
announce the producer price differentials and the statistical uniform
price.
Sec. Sec. 1032.70, 1032.71 and 1032.72 [Removed]
138. Remove and reserve Sec. Sec. 1032.70, 1032.71 and 1032.72.
139. Revise Sec. 1032.73 by:
a. Revising paragraph (a)(2)(i);
b. Removing paragraph (c);
c. Redesignating paragraphs (d) and (e) as (c) and (d); and
d. Revising newly redesignated paragraph(c).
The revisions read as follows:
Sec. 1032.73 Payments to producers and cooperative associations.
(a) * * *
(2) * * *
(i) Multiply the hundredweight of producer milk received by the
handler's producer price differential for the month as adjusted
pursuant to Sec. 1032.75;
* * * * *
(c) If a handler claims that a required payment to a producer
cannot be made because the producer is deceased or cannot be located,
or because the cooperative association or its lawful successor or
assignee is no longer in existence, the payment shall be made in trust
to the market administrator to the producer-settlement fund, and in the
event that the handler subsequently locates and pays the producer or a
lawful claimant, or in the event that the handler no longer exists and
a lawful claim is later established, the market administrator shall
make the required payment from the producer-settlement fund to the
handler or to the lawful claimant as the case may be.
* * * * *
PART 1033--MILK IN THE MIDEAST MARKETING AREA
140. Amend Sec. 1032.61 by revising the introductory text and
paragraphs (a) and (b) to read as follows:
Sec. 1033.61 Computation of producer price differential.
For each month, the market administrator shall compute a producer
price differential per hundredweight for each handler required to file
a report prescribed by Sec. 1033.30 and for the order in aggregate.
(a) Subject to the conditions in this paragraph, the market
administrator shall compute the producer price differential for the
order in aggregate in the following manner:
(1) Combine into one total the values computed pursuant to Sec.
1033.60 for all handlers required to file reports prescribed in Sec.
1033.30;
(2) Subtract the total of the values obtained by multiplying each
handler's total pounds of protein, other solids, and butterfat
contained in the milk for which an obligation was computed pursuant to
Sec. 1033.60 by the protein price, other solids price, and the
butterfat price, respectively;
(3) Add an amount equal to the minus location adjustments and
subtract an amount equal to the plus location adjustments computed
pursuant to Sec. 1033.75;
(4) Add an amount equal to not less than one-half of the
unobligated balance in the producer-settlement fund;
(5) Divide the resulting amount by the sum of the following for all
handlers included in these computations:
(i) The total hundredweight of producer milk; and
(ii) The total hundredweight for which a value is computed pursuant
to Sec. 1033.60(h); and
(6) Subtract not less than 4 cents nor more than 5 cents from the
price computed pursuant to paragraph (e) of this section. The result,
rounded to the nearest cent, shall be known as the orders' producer
price differential for the month and shall be calculated for purposes
of statistical comparison.
(b) For each handler required to file a report prescribed by Sec.
1033.30, the market administrator shall calculate the handler's
producer price differential in the following manner:
(1) Subtract the total of the values obtained by multiplying the
handler's total pounds of protein, other solids, and butterfat
contained in the milk for which an obligation was computed pursuant to
Sec. 1033.60 by the protein price, other solids price, and the
butterfat price, respectively;
(2) Add or subtract an amount equal to the location adjustments
computed pursuant to Sec. 1033.75;
(3) Divide the resulting amount by the handler's total
hundredweight of producer milk; and
(4) Subtract not less than 4 cents nor more than 5 cents from the
price computed pursuant to paragraph (b)(3) of this section. The
result, rounded to the nearest cent, shall be known as the
[[Page 16316]]
handler's producer price differential for the month and shall be
utilized for determining the pay prices for producers and cooperative
associations shipping to that handler.
* * * * *
141. Sec. 1033.62 is revised to read as follows:
Sec. 1033.62 Announcement of uniform prices.
On or before the 14th day after the end of the month, the market
administrator shall announce the following prices and information:
(a) The producer price differentials for the order in aggregate and
for each handler;
(b) The protein price;
(c) The nonfat solids price;
(d) The other solids price;
(e) The butterfat price;
(f) The average butterfat, protein, nonfat solids, and other solids
content of producer milk; and
(g) The statistical uniform price for milk containing 3.5 percent
butterfat computed by combining the Class III price and the producer
price differential.
(h) If the 14th falls on a Saturday, Sunday, or national holiday,
the market administrator may have up to two additional business days to
announce the producer price differentials and the statistical uniform
price.
Sec. Sec. 1033.70, 1033.71 and 1033.72 [Removed]
142. Remove and reserve Sec. Sec. 1033.70, 1033.71 and 1033.72.
143. Amend Sec. 1033.73 by:
a. Revising paragraph (a)(2)(i);
b. Removing paragraph (c);
c. Redesignating paragraphs (d) and (e) as (c) and (d); and
d. Revising newly redesignated paragraph (c).
The revisons read as follows:
Sec. 1033.73 Payments to producers and cooperative associations.
(a) * * *
(2) * * *
(i) Multiply the hundredweight of producer milk received by the
handler's producer price differential for the month as adjusted
pursuant to Sec. 1001.75;
* * * * *
(c) If a handler claims that a required payment to a producer
cannot be made because the producer is deceased or cannot be located,
or because the cooperative association or its lawful successor or
assignee is no longer in existence, the payment shall be made in trust
to the market administrator to the producer-settlement fund, and in the
event that the handler subsequently locates and pays the producer or a
lawful claimant, or in the event that the handler no longer exists and
a lawful claim is later established, the market administrator shall
make the required payment from the producer-settlement fund to the
handler or to the lawful claimant as the case may be.
* * * * *
PART 1124--MILK IN THE PACIFIC NORTHWEST MARKETING AREA
144. Amend Sec. 1124.61 by revising introductory text and
paragraphs (a) and (b) to read as follows:
Sec. 1124.61 Computation of producer price differential.
For each month, the market administrator shall compute a producer
price differential per hundredweight for each handler required to file
a report prescribed by Sec. 1124.30 and for the order in aggregate.
(a) Subject to the conditions in this paragraph, the market
administrator shall compute the producer price differential for the
order in aggregate in the following manner:
(1) Combine into one total the values computed pursuant to Sec.
1124.60 for all handlers required to file reports prescribed in Sec.
1124.30;
(2) Subtract the total of the values obtained by multiplying each
handler's total pounds of protein, other solids, and butterfat
contained in the milk for which an obligation was computed pursuant to
Sec. 1124.60 by the protein price, other solids price, and the
butterfat price, respectively;
(3) Add an amount equal to the minus location adjustments and
subtract an amount equal to the plus location adjustments computed
pursuant to Sec. 1124.75;
(4) Add an amount equal to not less than one-half of the
unobligated balance in the producer-settlement fund;
(5) Divide the resulting amount by the sum of the following for all
handlers included in these computations:
(i) The total hundredweight of producer milk; and
(ii) The total hundredweight for which a value is computed pursuant
to Sec. 1124.60(h); and
(6) Subtract not less than 4 cents nor more than 5 cents from the
price computed pursuant to paragraph (e) of this section. The result,
rounded to the nearest cent, shall be known as the orders' producer
price differential for the month and shall be calculated for purposes
of statistical comparison.
(b) For each handler required to file a report prescribed by Sec.
1124.30, the market administrator shall calculate the handler's
producer price differential in the following manner:
(1) Subtract the total of the values obtained by multiplying the
handler's total pounds of protein, other solids, and butterfat
contained in the milk for which an obligation was computed pursuant to
Sec. 1124.60 by the protein price, other solids price, and the
butterfat price, respectively;
(2) Add or subtract an amount equal to the location adjustments
computed pursuant to Sec. 1124.75;
(3) Divide the resulting amount by the handler's total
hundredweight of producer milk; and
(4) Subtract not less than 4 cents nor more than 5 cents from the
price computed pursuant to paragraph (b)(3) of this section. The
result, rounded to the nearest cent, shall be known as the handler's
producer price differential for the month and shall be utilized for
determining the pay prices for producers and cooperative associations
shipping to that handler.
* * * * *
145. Section 1124.62 is revised to read as follows:
Sec. 1124.62 Announcement of uniform prices.
On or before the 14th day after the end of the month, the market
administrator shall announce the following prices and information:
(a) The producer price differentials for the order in aggregate and
for each handler;
(b) The protein price;
(c) The nonfat solids price;
(d) The other solids price;
(e) The butterfat price;
(f) The average butterfat, protein, nonfat solids, and other solids
content of producer milk; and
(g) The statistical uniform price for milk containing 3.5 percent
butterfat computed by combining the Class III price and the producer
price differential.
(h) If the 14th falls on a Saturday, Sunday, or national holiday,
the market administrator may have up to two additional business days to
announce the producer price differentials and the statistical uniform
price.
Sec. Sec. 1124.70, 1124.71 and 1124.72 [Removed]
146. Remove and reserve Sec. Sec. 1124.70, 1124.71 and 1124.72.
147. Amend Sec. 1124.73 by:
a. Revising paragraph (a)(2)(i);
b. Removing paragraph (c);
c. Redesignating paragraphs (d) and (e) as (c) and (d); and
d. Revising newly redesignated paragraph(c).
[[Page 16317]]
The revisions read as follows:
Sec. 1124.73 Payments to producers and cooperative associations.
(a) * * *
(2) * * *
(i) Multiply the hundredweight of producer milk received by the
handler's producer price differential for the month as adjusted
pursuant to Sec. 1001.75;
* * * * *
(c) If a handler claims that a required payment to a producer
cannot be made because the producer is deceased or cannot be located,
or because the cooperative association or its lawful successor or
assignee is no longer in existence, the payment shall be made in trust
to the market administrator to the producer-settlement fund, and in the
event that the handler subsequently locates and pays the producer or a
lawful claimant, or in the event that the handler no longer exists and
a lawful claim is later established, the market administrator shall
make the required payment from the producer-settlement fund to the
handler or to the lawful claimant as the case may be.
* * * * *
PART 1126--MILK IN THE SOUTHWEST MARKETING AREA
148. Amend Sec. 1126.61 by revising the introductory text and
paragraphs (a) and (b) to read as follows:
Sec. 1126.61 Computation of producer price differential.
For each month, the market administrator shall compute a producer
price differential per hundredweight for each handler required to file
a report prescribed by Sec. 1126.30 and for the order in aggregate.
(a) Subject to the conditions in this paragraph, the market
administrator shall compute the producer price differential for the
order in aggregate in the following manner:
(1) Combine into one total the values computed pursuant to Sec.
1126.60 for all handlers required to file reports prescribed in Sec.
1126.30;
(2) Subtract the total of the values obtained by multiplying each
handler's total pounds of protein, other solids, and butterfat
contained in the milk for which an obligation was computed pursuant to
Sec. 1126.60 by the protein price, other solids price, and the
butterfat price, respectively;
(3) Add an amount equal to the minus location adjustments and
subtract an amount equal to the plus location adjustments computed
pursuant to Sec. 1126.75;
(4) Add an amount equal to not less than one-half of the
unobligated balance in the producer-settlement fund;
(5) Divide the resulting amount by the sum of the following for all
handlers included in these computations:
(i) The total hundredweight of producer milk; and
(ii) The total hundredweight for which a value is computed pursuant
to Sec. 1126.60(h); and
(6) Subtract not less than 4 cents nor more than 5 cents from the
price computed pursuant to paragraph (e) of this section. The result,
rounded to the nearest cent, shall be known as the orders' producer
price differential for the month and shall be calculated for purposes
of statistical comparison.
(b) For each handler required to file a report prescribed by Sec.
1126.30, the market administrator shall calculate the handler's
producer price differential in the following manner:
(1) Subtract the total of the values obtained by multiplying the
handler's total pounds of protein, other solids, and butterfat
contained in the milk for which an obligation was computed pursuant to
Sec. 1126.60 by the protein price, other solids price, and the
butterfat price, respectively;
(2) Add or subtract an amount equal to the location adjustments
computed pursuant to Sec. 1126.75;
(3) Divide the resulting amount by the handler's total
hundredweight of producer milk; and
(4) Subtract not less than 4 cents nor more than 5 cents from the
price computed pursuant to paragraph (b)(3) of this section. The
result, rounded to the nearest cent, shall be known as the handler's
producer price differential for the month and shall be utilized for
determining the pay prices for producers and cooperative associations
shipping to that handler.
* * * * *
149. Section 1126.62 is revised to read as follows:
Sec. 1126.62 Announcement of uniform prices.
On or before the 14th day after the end of the month, the market
administrator shall announce the following prices and information:
(a) The producer price differentials for the order in aggregate and
for each handler;
(b) The protein price;
(c) The nonfat solids price;
(d) The other solids price;
(e) The butterfat price;
(f) The average butterfat, protein, nonfat solids, and other solids
content of producer milk; and
(g) The statistical uniform price for milk containing 3.5 percent
butterfat computed by combining the Class III price and the producer
price differential.
(h) If the 14th falls on a Saturday, Sunday, or national holiday,
the market administrator may have up to two additional business days to
announce the producer price differentials and the statistical uniform
price.
Sec. Sec. 1126.70, 1126.71 and 1126.72 [Removed]
150. Remove and reserve Sec. Sec. 1126.70, 1126.71 and 1126.72.
151. Amend Sec. 1126.73 by:
a. Revising paragraph (a)(2)(i);
b. Removing paragraph (c);
c. Redesignating paragraphs (d) and (e) as (c) and (d); and
d. Revising newly redesignated paragraph (c).
The revisions read as follows:
Sec. 1126.73 Payments to producers and cooperative associations.
(a) * * *
(2) * * *
(i) Multiply the hundredweight of producer milk received by the
handler's producer price differential for the month as adjusted
pursuant to Sec. 1001.75;
* * * * *
(c) If a handler claims that a required payment to a producer
cannot be made because the producer is deceased or cannot be located,
or because the cooperative association or its lawful successor or
assignee is no longer in existence, the payment shall be made in trust
to the market administrator to the producer-settlement fund, and in the
event that the handler subsequently locates and pays the producer or a
lawful claimant, or in the event that the handler no longer exists and
a lawful claim is later established, the market administrator shall
make the required payment from the producer-settlement fund to the
handler or to the lawful claimant as the case may be.
* * * * *
PART 1131--MILK IN THE ARIZONA MARKETING AREA
152. Section 1131.61 is revised to read as follows:
Sec. 1131.61 Computation of uniform prices.
On or before the 11th day of each month, the market administrator
shall compute a uniform butterfat price, a uniform skim milk price, and
a uniform price for producer milk receipts reported for the prior month
for each handler required to file a report prescribed by Sec. 1005.30
and for the order in aggregate.
[[Page 16318]]
(a) Uniform butterfat price. The uniform butterfat price per pound,
rounded to the nearest one-hundredth cent, shall be computed by:
(1) Multiplying the pounds of butterfat in producer milk allocated
to each class pursuant to Sec. 1000.44(b) by the respective class
butterfat prices;
(2) Adding the butterfat value calculated in Sec. 1005.60(e) for
other source milk allocated to Class I pursuant to Sec. 1000.43(d) and
the steps of Sec. 1000.44(b) that correspond to Sec. 1000.44(a)(3)(i)
and Sec. 1000.44(a)(8) by the Class I price; and
(3) Dividing the sum of paragraphs (a)(1) and (a)(2) of this
section by the sum of the pounds of butterfat in producer milk and
other source milk used to calculate the values in paragraphs (a)(1) and
(a)(2) of this section.
(b) Uniform skim milk price. The uniform skim milk price per
hundredweight, rounded to the nearest cent, shall be computed as
follows:
(1) Combine into one total the values computed pursuant to Sec.
1005.60 for all handlers;
(2) Add an amount equal to the minus location adjustments and
subtract an amount equal to the plus location adjustments computed
pursuant to Sec. 1005.75;
(3) Add an amount equal to not less than one-half of the
unobligated balance in the producer-settlement fund;
(4) Subtract the value of the total pounds of butterfat for all
handlers. The butterfat value shall be computed by multiplying the sum
of the pounds of butterfat in producer milk and other source milk used
to calculate the values in paragraphs (a)(1) and (a)(2) of this section
by the butterfat price computed in paragraph (a) of this section;
(5) Divide the resulting amount by the sum of the following for all
handlers included in these computations:
(i) The total skim pounds of producer milk; and
(ii) The total skim pounds for which a value is computed pursuant
to Sec. 1005.60(e); and
(6) Subtract not less than 4 cents and not more than 5 cents.
(c) Uniform price. The uniform price per hundredweight, rounded to
the nearest cent, shall be the sum of the following:
(1) Multiply the uniform butterfat price for the month pursuant to
paragraph (a) of this section times 3.5 pounds of butterfat; and
(2) Multiply the uniform skim milk price for the month pursuant to
paragraph (b) of this section times 96.5 pounds of skim milk.
(d) Handler's uniform butterfat price. The uniform butterfat price
per pound, rounded to the nearest one-hundredth cent, shall be computed
by:
(1) Multiplying the pounds of butterfat in producer milk allocated
to each class pursuant to Sec. 1000.44(b) by the respective class
butterfat prices;
(2) Adding the butterfat value calculated in Sec. 1005.60(e) for
other source milk allocated to Class I pursuant to Sec. 1000.43(d) and
the steps of Sec. 1000.44(b) that correspond to Sec. 1000.44(a)(3)(i)
and Sec. 1000.44(a)(8) by the Class I price; and
(3) Dividing the sum of paragraphs (a)(1) and (a)(2) of this
section by the sum of the pounds of butterfat in producer milk and
other source milk reported by the handler used to calculate the values
in paragraphs (a)(1) and (a)(2) of this section.
(e) Handler's uniform skim milk price. The uniform skim milk price
per hundredweight, rounded to the nearest cent, shall be computed as
follows:
(1) Begin with the handler's values computed pursuant to Sec.
1005.60;
(2) Add or subtract an amount equal to location adjustments
computed pursuant to Sec. 1005.75;
(3) Subtract the value of the total pounds of butterfat for the
handler. The butterfat value shall be computed by multiplying the sum
of the pounds of butterfat in producer milk and other source milk used
to calculate the values in paragraphs (d)(1) and (d)(2) of this section
by the butterfat price computed in paragraph (a) of this section;
(4) Divide the resulting amount by the sum of the following for the
handler:
(i) The total skim pounds of producer milk; and
(ii) The total skim pounds for which a value is computed pursuant
to Sec. 1005.60(e); and
(5) Subtract not less than 4 cents and not more than 5 cents.
(f) Handler's uniform price. The handler's uniform price per
hundredweight, rounded to the nearest cent, shall be the sum of the
following:
(1) Multiply the handler's uniform butterfat price for the month
pursuant to paragraph (a) of this section times 3.5 pounds of
butterfat; and
(2) Multiply the handler's uniform skim milk price for the month
pursuant to paragraph
(b) of this section times 96.5 pounds of skim milk.
153. Section 1131.62 is revised to read as follows:
Sec. 1131.62 Announcement of uniform prices.
On or before the 14th day after the end of the month, the market
administrator shall announce the following prices and information:
(a) The producer price differentials for the order in aggregate and
for each handler;
(b) The protein price;
(c) The nonfat solids price;
(d) The other solids price;
(e) The butterfat price;
(f) The average butterfat, protein, nonfat solids, and other solids
content of producer milk; and
(g) The statistical uniform price for milk containing 3.5 percent
butterfat computed by combining the Class III price and the producer
price differential.
(h) If the 14th falls on a Saturday, Sunday, or national holiday,
the market administrator may have up to two additional business days to
announce the producer price differentials and the statistical uniform
price.
Sec. Sec. 1131.70, 1131.71 and 1131.72 [Removed]
154. Remove and reserve Sec. Sec. 1131.70, 1131.71 and 1131.72.
155. Amend Sec. 1131.73 by:
a. Revising paragraphs (a)(2)(i) and (ii);
b. Removing paragraph (c);
c. Redesignating paragraphs (d) and (e) as (c) and (d); and
d. Revising newly redesignated paragraph (c).
The revisions read as follows:
Sec. 1131.73 Payments to producers and cooperative associations.
(a) * * *
(2) * * *
(i) Multiply the hundredweight of producer skim milk received times
the handler's uniform skim milk price for the month;
(ii) Multiply the pounds of butterfat received times the handler's
uniform butterfat price for the month;
* * * * *
(c) If a handler claims that a required payment to a producer
cannot be made because the producer is deceased or cannot be located,
or because the cooperative association or its lawful successor or
assignee is no longer in existence, the payment shall be made in trust
to the market administrator, and in the event that the handler
subsequently locates and pays the producer or a lawful claimant, or in
the event that the handler no longer exists and a lawful claim is later
established, the market administrator shall make the required payment
to the handler or to the lawful claimant as the case may be.
* * * * *
Proposed by National Milk Producers Federation.
[[Page 16319]]
Proposal No. 26
This proposal seeks to allow current qualified producer-handlers an
exemption from the pricing and pooling provisions of their respective
order. Specifically, producer-handlers would be exempt from pricing and
pooling provisions on the first 3,000,000 pounds of total route
disposition and packaged sales of fluid milk products provided that the
products distributed are uniquely branded.
PART 1000--GENERAL PROVISIONS OF FEDERAL MILK MARKETING ORDERS
156. Amend Sec. 1000.8 by adding new paragraph (e)(5) to read as
follows:
Sec. 1000.8 Nonpool plant.
* * * * *
(e) * * *
(5) A distributing plant that was operated during 2008 by a
producer-handler in a Federal order market within the meaning of the
Federal milk marketing order at that time, provided that the plant:
(i) Has route disposition in all markets and packaged sales of
fluid milk products to other plants in all markets that are uniquely
branded and total 3,000,000 pounds or less during the month.
(ii) Receives no fluid milk products, and acquires no fluid milk
products for route disposition, from sources other than own-farm
production;
(iii) The plant disposes of no other source milk as Class I milk
except by increasing the nonfat milk solids content of the fluid milk
products received from own-farm production; and
(iv) Provides proof satisfactory to the market administrator that
the care and management of the dairy animals and other resources
necessary to produce all Class I milk handled, and the processing and
packaging operations, are the plant owner's own enterprise and are
operated at the plant owner's own risk, and that the plant owner has no
interest in any other distributing plant (except through membership in
a Capper-Volstead cooperative association) or in any farms from which
the plant does not receive milk. The burden rests upon the handler who
is designated as exempt under this paragraph (e)(5) to establish
through records required pursuant to Sec. 1000.27 that the
requirements of such exemption are met.
Proposed by New Hampshire Department of Agriculture, Markets and
Food and Vermont Agency of Agriculture, Food and Markets.
Proposal No. 27
This proposal seeks to end the regulatory exemption of producer-
handlers from the pooling and pricing provisions of their respective
orders if their Class I route disposition and sales of packaged fluid
milk products exceeds 3,000,000 pounds of milk per month within the
marketing area.
PART 1000--GENERAL PROVISIONS OF FEDERAL MILK MARKETING ORDERS
157. Revise Sec. 1000.8(b) to read as follows:
Sec. 1000.8 Nonpool plant.
* * * * *
(b) Producer-handler plant means a plant with route disposition and
packaged sales of fluid milk products of 3,000,000 pounds of milk per
month or less in the marketing area that is operated by a producer-
handler as defined under any Federal order.
* * * * *
Proposed by Weber's Farm Store, Inc.
Proposal No. 28
This proposal seeks to end the regulatory exemption of producer-
handlers from the pooling and pricing provisions of the Upper Midwest
order if their Class I route disposition and sales of packaged fluid
milk products exceeds 2,000,000 pounds of milk per month within the
marketing area.
PART 1030--MILK IN THE UPPER MIDWEST MARKETING AREA
158. Amend Sec. 1030.10 by revising paragraph (a) to read as
follows:
Sec. 1000.8 Nonpool plant.
* * * * *
(a) Operates a dairy farm and a distributing plant from which there
is route disposition of 2,000,000 pounds of milk per month or less in
the marketing area.
* * * * *
Proposed by Dairy Programs, Agricultural Marketing Service.
Proposal No. 29
For all Federal Milk Marketing Orders, make necessary changes to
make the entire marketing agreements and the orders conform with any
amendments thereto that may result from this hearing.
Copies of this notice of hearing and the orders may be procured
from the Market Administrator of each of the aforesaid marketing areas,
Online at http://www.ams.usda.gov/dairy, or from the Hearing Clerk,
United States Department of Agriculture, STOP 9200--Room 1031, 1400
Independence Avenue, SW., Washington, DC 20250-9200, or may be
inspected there.
Copies of the transcript of testimony taken at the hearing will not
be available for distribution through the Hearing Clerk's Office. If
you wish to purchase a copy, arrangements may be made with the reporter
at the hearing. Copies of the transcript are also available Online at
http://www.ams.usda.gov/dairy.
From the time that a hearing notice is issued and until the
issuance of a final decision, USDA employees are prohibited from
discussing the merits of the hearing issues on an ex parte basis with
any person. For this particular proceeding, the prohibition applies to
employees in the following organizational units:
Office of the Secretary of Agriculture;
Office of the Administrator, Agricultural Marketing Service;
Office of the General Counsel; and
Dairy Programs, Agricultural Marketing Service (Washington office) and
the Offices of all Market Administrators.
Procedural matters are not subject to the above prohibition and may
be discussed at any time.
Dated: April 3, 2009.
David R. Shipman,
Acting Administrator.
[FR Doc. E9-7982 Filed 4-6-09; 4:15 pm]
BILLING CODE 3410-02-P