83_FR_21935 83 FR 21843 - Milk in the Florida Marketing Area; Order Amending the Order

83 FR 21843 - Milk in the Florida Marketing Area; Order Amending the Order

DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service

Federal Register Volume 83, Issue 92 (May 11, 2018)

Page Range21843-21846
FR Document2018-10085

This final rule amends the Florida Federal milk marketing order (FMMO) to adopt a temporary assessment on Class I milk. Assessment revenue will be disbursed to handlers and producers who incurred extraordinary marketing losses and expenses due to Hurricane Irma in September 2017. More than the required number of producers for the Florida marketing area have approved the issuance of the final order as amended.

Federal Register, Volume 83 Issue 92 (Friday, May 11, 2018)
[Federal Register Volume 83, Number 92 (Friday, May 11, 2018)]
[Rules and Regulations]
[Pages 21843-21846]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-10085]


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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 1006

[AMS-DA-17-0068; AO-18-0008]


Milk in the Florida Marketing Area; Order Amending the Order

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: This final rule amends the Florida Federal milk marketing 
order (FMMO) to adopt a temporary assessment on Class I milk. 
Assessment revenue will be disbursed to handlers and producers who 
incurred extraordinary marketing losses and expenses due to Hurricane 
Irma in September 2017. More than the required number of producers for 
the Florida marketing area have approved the issuance of the final 
order as amended.

DATES: This rule is effective July 1, 2018.

FOR FURTHER INFORMATION CONTACT: Erin C. Taylor, Order Formulation and 
Enforcement Division, USDA/AMS/Dairy Program, STOP 0231-Room 2963, 1400 
Independence Ave SW, Washington, DC 20250-0231, (202) 720-7183, email 
address: [email protected].

SUPPLEMENTARY INFORMATION: This rule, in accordance with 7 CFR 
900.14(c), is the Secretary's final rule in this proceeding and issues 
a marketing order as defined in 7 CFR 900.2(j).
    Accordingly, this final rule adopts proposed amendments detailed in 
the proposed rule (83 FR 13691).
    This administrative action is governed by the provisions of 
Sections 556 and 557 of Title 5 of the United States Code and is 
therefore excluded from the requirements of Executive Order 12866.
    This final rule is not considered an Executive Order 13771 
regulatory action because it does not meet the definition of a 
``regulation'' or ``rule'' under Executive Order 12866.
    The proposed amendments adopted in this final rule have been 
reviewed

[[Page 21844]]

under Executive Order 12988, Civil Justice Reform. This rule is not 
intended to have retroactive effect and will not preempt any state or 
local law, regulations, or policies, unless they present an 
irreconcilable conflict with this rule.
    AMS is committed to complying with the E-Government Act to promote 
the use of the internet and other information technologies, to provide 
increased opportunities for citizen access to Government information 
and services, and for other purposes.
    The Agricultural Marketing Agreement Act of 1937 (AMAA), as amended 
(7 U.S.C. 601-674 and 7253), provides that administrative proceedings 
must be exhausted before parties may file suit in court. Under section 
608c(15)(A) of the AMAA, any handler subject to a marketing order may 
request modification or exemption from such order by filing with the 
U.S. Department of Agriculture (USDA) a petition stating that the 
order, any provision of the order, or any obligation imposed in 
connection with the order is not in accordance with law. A handler is 
afforded the opportunity for a hearing on the petition. After a 
hearing, USDA would rule on the petition. The AMAA provides that the 
district court of the United States in any district in which the 
handler is an inhabitant, or has its principal place of business, has 
jurisdiction in equity to review USDA's ruling on the petition, 
provided a bill in equity is filed not later than 20 days after the 
date of the entry of the ruling.

Regulatory Flexibility Act and Paperwork Reduction Act

    In accordance with the Regulatory Flexibility Act (RFA) (5 U.S.C. 
601-612), AMS has considered the economic impact of this action on 
small entities and has determined that this rule will not have a 
significant economic impact on a substantial number of small entities.
    For the purpose of the RFA, a dairy farm is considered a small 
business if it has an annual gross revenue of less than $750,000. Dairy 
product manufacturers are considered small businesses based on the 
number of people they employ. Small fluid milk and ice cream 
manufacturers are defined as having 1,000 or fewer employees. Small 
butter and dry or condensed dairy product manufacturers are defined as 
having 750 or fewer employees. Small cheese manufacturers are defined 
as having 1,250 or fewer employees. Manufacturing plants that are part 
of larger companies operating multiple plants with total numbers of 
employees that exceed the threshold for small businesses will be 
considered large businesses, even if the local plant has fewer 
employees than the threshold number.
    AMS estimates that 248 dairy farms produced milk pooled on the 
Florida FMMO in 2017. One hundred forty-one farms delivered milk to 
Florida pool plants fewer than 100 days during 2017, and of those, 66 
had less than 48,000 pounds of pooled milk on the order during the 
entire year. AMS estimates 107 farms (248 minus 141) were part of the 
``normal'' Florida milk supply last year. Nineteen of those farms had 
less than $750,000 in gross milk sales, based upon estimated 2017 
production and a weighted average uniform price of $20.98 per cwt.
    Considering all 248 farms that had producer milk on the Florida 
FMMO, AMS estimates that 101 farms had less than $750,000 in gross milk 
sales, regardless of where all of their production was pooled, and 
would be considered small businesses.
    AMS data indicates that six dairy farmer cooperatives, in their 
capacity as handlers, pooled producer milk on the Florida FMMO in 2017. 
AMS estimates that two of those cooperative handlers have fewer than 
500 employees and would be considered small businesses. Thirty-eight 
processing plants received producer milk in 2017, of which AMS 
estimates that 13 would be considered small businesses. Two of the 13 
small businesses are fully regulated distributing plants on the Florida 
FMMO. The remaining 11 small businesses are nonpool or exempt plants.
    The proposed amendments adopted in this final rule will provide 
temporary reimbursement to handlers (cooperative associations and 
proprietary handlers) who incurred extraordinary losses in connection 
with Hurricane Irma in September 2017. The amendments were requested by 
Southeast Milk, Inc.; Dairy Farmers of America, Inc.; Premier Milk, 
Inc.; Maryland and Virginia Milk Producers Cooperative Association, 
Inc.; and Lone Star Milk Producers, Inc. The dairy farmer members of 
these five cooperatives supply the majority of the milk pooled under 
the Florida FMMO. For a 7-month period beginning with July 2018, the 
amendments will implement a temporary assessment on Class I milk pooled 
on the Florida FMMO at a rate not to exceed $0.09 per hundredweight 
(cwt). The amount generated through the temporary assessment will be 
disbursed during the 7-month period starting in July 2018 to qualifying 
handlers who incurred extraordinary losses and expenses as a result of 
the hurricane.
    The amendments will reimburse handlers for marketing expenses and 
losses in four categories: Transportation costs to deliver loads to 
other than their normal receiving plants; lost location value due to 
selling milk in lower location value zones; milk dumped at farms or on 
tankers, and skim milk dumped at plants; and distressed milk sales. 
Reimbursement will be funded through an assessment on Class I milk at a 
maximum rate of $0.09 per cwt. Record evidence indicates that this 
would increase the consumer price of milk by less than $0.01 per gallon 
during the 7-month assessment period.
    The temporary assessment will not place handlers in the Florida 
marketing area at a competitive disadvantage because of the 
assessment's uniform application to Class I milk. Additionally, any 
handler who experienced a qualifying marketing expense or loss will be 
eligible to receive reimbursement, regardless of size. Dairy farmer 
blend prices will not be impacted by the amendments because the 
assessment will not be funded through the marketwide pool. Dairy farmer 
cooperatives who pooled milk on the Florida order, and therefore who 
qualified as the pooling handler, will also be eligible for 
reimbursement. In those instances, producers are receiving relief as 
the money is returned to their dairy farmer-owned cooperative. 
Accordingly, the adoption of the proposed amendments will not 
significantly impact producers or handlers of any size, due to the 
limited implementation period and the minimal impact to the Class I 
milk price.
    A review of reporting requirements was completed in accordance with 
the Paperwork Reduction Act of 1995 (44 U.S.C. Chapter 35). The 
information necessary to qualify for reimbursement, as outlined in this 
rule, has already been submitted through the monthly handler receipts 
and utilization form (FORM 1), or is part of the normal business 
records inspected during routine FMMO audits.
    The primary information sources that will be required for 
applications for reimbursement are documents currently generated in 
customary business transactions. These documents include, but are not 
limited to: Invoices; receiving records; bulk milk manifests; hauling 
bills; and contracts. As these documents are routinely inspected by the 
market administrator during handler audits, the amendments adopted in 
this rule would not result in any new information collection.

[[Page 21845]]

Prior Documents in This Proceeding

    Notification of Hearing: Issued December 6, 2017; published 
December 11, 2017 (82 FR 58135);
    Supplemental Notice of Hearing: Issued December 7, 2017; published 
December 11, 2017 (82 FR 58135);
    Final Decision: Issued March 23, 2018; published March 30, 2018 (83 
FR 13691).

Findings and Determinations

    The findings and determinations hereinafter set forth supplement 
those that were made when the order was first issued and when it was 
amended. The previous findings and determinations are hereby ratified 
and confirmed, except where they may conflict with those set forth 
herein.
    (1) Findings upon the basis of the hearing record.
    The amendments to the order are based on the record of a public 
hearing held in Tampa, Florida, December 12 through 14, 2017, pursuant 
to a notification of hearing issued December 6, 2017, and published 
December 11, 2017 (82 FR 58135). The hearing was held pursuant to the 
provisions of the Agricultural Marketing Agreement Act of 1937, as 
amended (7 U.S.C. 601-674), and the applicable rules of practice and 
procedure (7 CFR part 900). The tentative marketing agreement and the 
order are authorized under 7 U.S.C. 608c.
    Upon the basis of the evidence introduced at the public hearing and 
its record, it is found that:
    (a) The order as hereby amended, and all of the terms and 
conditions thereof, will tend to effectuate the declared policy of the 
AMAA;
    (b) The parity prices of milk, as determined pursuant to section 2 
of the AMAA, are not reasonable in view of the price of feeds, 
available supplies of feeds, and other economic conditions that affect 
market supply and demand for milk in the Florida marketing area. The 
minimum prices specified in the tentative marketing agreement and 
order, as hereby amended, are prices that will reflect the aforesaid 
factors, ensure a sufficient quantity of pure and wholesome milk, and 
be in the public interest; and
    (c) The tentative marketing agreement and order, as hereby amended, 
will regulate the handling of milk in the same manner as, and applies 
only to, persons in the respective classes of industrial and commercial 
activity specified in, marketing agreements upon which a hearing has 
been held.
    (2) Additional Findings.
    The amendment to this order is known to handlers. The final 
decision containing the proposed amendment to this order was issued on 
March 23, 2018, and published in the Federal Register on March 30, 2018 
(83 FR 13691).
    The public hearing regarding amendments to this order was held on 
an emergency basis. The changes that result from these amendments will 
not require extensive preparation or substantial alteration in the 
handlers' method of operation. Therefore, it is determined that good 
cause exists for making this amendment effective July 1, 2018. (Section 
553(d), Administrative Procedure Act, 5 U.S.C. 551-559.)
    (3) Determinations.
    It is hereby determined that:
    (a) The refusal or failure of handlers (excluding cooperative 
associations specified in section 8c(9) of the AMAA) of more than 50 
percent of the milk marketed within the specified marketing areas to 
sign a proposed marketing agreement, tends to prevent the effectuation 
of the declared policy of the AMAA;
    (b) The issuance of this order amending the Florida order is the 
only practical means pursuant to the declared policy of the AMAA of 
advancing the interests of producers as defined in the order as hereby 
amended; and
    (c) The issuance of this order amending the Florida order is 
favored by at least two-thirds of the producers who were engaged in the 
production of milk for sale in the respective marketing areas.

List of Subjects in 7 CFR Part 1006

    Milk marketing orders.

Order Amending the Order Regulating the Handling of Milk in the Florida 
Marketing Area

    It is therefore ordered, that on and after the effective date 
hereof, the handling of milk in the Florida marketing area shall be in 
conformity to and in compliance with the terms and conditions of the 
order as amended, as follows:
    For the reasons set forth in the preamble, 7 CFR part 1006 is 
amended as follows:

PART 1006--MILK IN THE FLORIDA MILK MARKETING AREA

0
1. The authority citation for part 1006 continues to read as follows:

    Authority: 7 U.S.C. 601-674, and 7253.

[Subpart Redesignated as Subpart A]

0
2. Redesignate ``Subpart--Order Regulating Handling'' as ``Subpart A--
Order Regulating Handling''.

0
3. Section 1006.60 is amended by revising paragraphs (a) and (g) and 
adding paragraphs (h) and (i) to read as follows:


Sec.  1006.60  Handler's value of milk.

* * * * *
    (a) Multiply the pounds of skim milk and butterfat in producer milk 
that were classified in each class pursuant to Sec.  1000.44(c) of this 
chapter by the applicable skim milk and butterfat prices, and add the 
resulting amounts; except that for the months of July 2018 through 
January 2019, the Class I skim milk price for this purpose shall be the 
Class I skim milk price as determined in Sec.  1000.50(b) of this 
chapter plus $0.09 per hundredweight, and the Class I butterfat price 
for this purpose shall be the Class I butterfat price as determined in 
Sec.  1000.50(c) of this chapter plus $0.0009 per pound. The 
adjustments to the Class I skim milk and butterfat prices provided 
herein may be reduced by the market administrator for any month if the 
market administrator determines that the payments yet unpaid computed 
pursuant to paragraphs (g)(1) through (g)(6) of this section will be 
less than the amount computed pursuant to paragraph (h) of this 
section. The adjustments to the Class I skim milk and butterfat prices 
provided herein during the months of July 2018 through January 2019 
shall be announced along with the prices announced in Sec.  1000.53(b) 
of this chapter.
* * * * *
    (g) For transactions occurring during the period of September 6, 
2017, through September 15, 2017, for handlers who have submitted proof 
satisfactory to the market administrator no later than August 1, 2018, 
to determine eligibility for reimbursement of hurricane-imposed costs, 
subtract an amount equal to:
    (1) The additional cost of transportation on loads of milk rerouted 
from pool distributing plants to plants outside the state of Florida as 
a result of Hurricane Irma, and the additional cost of transportation 
on loads of milk moved and then dumped. The reimbursement of 
transportation costs pursuant to this section shall be the actual 
demonstrated cost of such transportation of bulk milk or the miles of 
transportation on such loads of bulk milk multiplied by $3.75 per 
loaded mile, whichever is less;
    (2) The lost location value on loads of milk rerouted to plants 
outside the state of Florida as a result of Hurricane Irma. The lost 
location value shall be the difference per hundredweight between the 
value specified in Sec.  1000.52 of this

[[Page 21846]]

chapter, adjusted by Sec.  1006.51(b), at the location of the plant 
where the milk would have normally been received and the value 
specified in Sec.  1000.52, as adjusted by Sec.  1005.51(b) and Sec.  
1007.51(b) of this chapter, at the location of the plant to which the 
milk was rerouted;
    (3) The value per hundredweight at the lowest classified price for 
the month of September 2017 for milk dumped at the farm and classified 
as other use milk pursuant to Sec.  1000.40(e) of this chapter as a 
result of Hurricane Irma;
    (4) The value per hundredweight at the lowest classified price for 
the month of September 2017 for milk dumped from milk tankers after 
being moved off-farm and classified as other use milk pursuant to Sec.  
1000.40(e) of this chapter as a result of Hurricane Irma;
    (5) The value per hundredweight at the lowest classified price for 
the month of September 2017 for skim portion of milk dumped and 
classified as other use milk pursuant to Sec.  1000.40(e) of this 
chapter as a result of Hurricane Irma; and
    (6) The difference between the announced class price applicable to 
the milk as classified by the market administrator for the month of 
September 2017 and the actual price received for milk delivered to 
nonpool plants outside the state of Florida as a result of Hurricane 
Irma.
    (h) The total amount of payment to all handlers under paragraph (g) 
of this section shall be limited for each month to an amount determined 
by multiplying the total Class I producer milk for all handlers 
pursuant to Sec.  1000.44(c) of this chapter times $0.09 per 
hundredweight.
    (i) If the cost of payments computed pursuant to paragraphs (g)(1) 
through (g)(6) of this section exceeds the amount computed pursuant to 
paragraph (h) of this section, the market administrator shall prorate 
such payments to each handler based on each handler's proportion of 
transportation and other use milk costs submitted pursuant to 
paragraphs (g)(1) through (g)(6). Costs submitted pursuant to 
paragraphs (g)(1) through (g)(6) which are not paid as a result of such 
a proration shall be paid in subsequent months until all costs incurred 
and documented through (g)(1) through (g)(6) have been paid.

    Dated: May 8, 2018.
Bruce Summers,
Acting Administrator, Agricultural Marketing Service.
[FR Doc. 2018-10085 Filed 5-10-18; 8:45 am]
 BILLING CODE 3410-02-P



                                                                    Federal Register / Vol. 83, No. 92 / Friday, May 11, 2018 / Rules and Regulations                                               21843

                                              Any questions about the compliance         not signed an amended marketing                                    money from a commercial lending
                                              guide should be sent to Richard Lower      agreement; and                                                     institution for such purposes.
                                              at the previously mentioned address in        2. The issuance of this amendatory                              *     *     *     *    *
                                              the FOR FURTHER INFORMATION CONTACT        Order, amending the aforesaid Order, is
                                                                                                                                                              Dated: May 8, 2018.
                                              section.                                   favored or approved by producers
                                                                                         representing at least two-thirds of the                            Bruce Summers,
                                              Order Amending the Order Regulating        volume of walnuts produced by those                                Acting Administrator, Agricultural Marketing
                                              the Handling of Walnuts Grown in           voting in a referendum on the question                             Service.
                                              California                                 of approval and who, during the period                             [FR Doc. 2018–10106 Filed 5–10–18; 8:45 am]
                                                 (a) Findings and Determinations Upon of September 1, 2015, through August                                  BILLING CODE 3410–02–P
                                              the Basis of the Rulemaking Record.        31, 2016, have been engaged within the
                                                 The findings are supplementary to the production area in the production of
                                              findings and determinations which were such walnuts.                                                          DEPARTMENT OF AGRICULTURE
                                              previously made in connection with the        3. The issuance of this amendatory
                                                                                         Order advances the interests of growers                            Agricultural Marketing Service
                                              issuance of the Order; and all said
                                              previous findings and determinations       of walnuts in the production area
                                                                                         pursuant to the declared policy of the                             7 CFR Part 1006
                                              are hereby ratified and affirmed, except
                                              insofar as such findings and               Act.                                                               [AMS–DA–17–0068; AO–18–0008]
                                              determinations may be in conflict with     Order Relative to Handling
                                              the findings and determinations set                                                                           Milk in the Florida Marketing Area;
                                              forth herein.                                 It is therefore ordered, that on and                            Order Amending the Order
                                                 1. The Order, as amended, and as        after  the effective date hereof, all
                                                                                         handling of walnuts grown in California                            AGENCY:  Agricultural Marketing Service,
                                              hereby further amended, and all of the                                                                        USDA.
                                              terms and conditions thereof, will tend    shall be in conformity to, and in
                                                                                         compliance with, the terms and                                     ACTION: Final rule.
                                              to effectuate the declared policy of the
                                              Act;                                       conditions of the said Order as hereby
                                                                                                                                                            SUMMARY:  This final rule amends the
                                                 2. The Order, as amended, and as        amended as follows:
                                                                                            The provisions of the proposed                                  Florida Federal milk marketing order
                                              hereby further amended, regulates the                                                                         (FMMO) to adopt a temporary
                                                                                         Marketing Order amending the Order
                                              handling of walnuts grown in California                                                                       assessment on Class I milk. Assessment
                                                                                         contained in the proposed rule issued
                                              in the same manner as, and is applicable                                                                      revenue will be disbursed to handlers
                                                                                         by the Associate Administrator on
                                              only to, persons in the respective classes                                                                    and producers who incurred
                                                                                         September 12, 2016, and published in
                                              of commercial and industrial activity                                                                         extraordinary marketing losses and
                                                                                         the Federal Register on September 16,
                                              specified in the Order;                                                                                       expenses due to Hurricane Irma in
                                                                                         2016 (81 FR 63721), shall be and are the
                                                 3. The Order, as amended, and as                                                                           September 2017. More than the required
                                                                                         terms and provisions of this order
                                              hereby further amended, is limited in                                                                         number of producers for the Florida
                                                                                         amending the Order and are set forth in
                                              application to the smallest regional                                                                          marketing area have approved the
                                                                                         full herein.
                                              production area which is practicable,                                                                         issuance of the final order as amended.
                                              consistent with carrying out the           List of Subjects in 7 CFR Part 984                                 DATES: This rule is effective July 1,
                                              declared policy of the Act, and the           Walnuts, Marketing agreements,                                  2018.
                                              issuance of several orders applicable to   Reporting and recordkeeping
                                              subdivisions of the production area                                                                           FOR FURTHER INFORMATION CONTACT:  Erin
                                                                                         requirements.                                                      C. Taylor, Order Formulation and
                                              would not effectively carry out the           For the reasons set forth in the
                                              declared policy of the Act;                                                                                   Enforcement Division, USDA/AMS/
                                                                                         preamble, 7 CFR part 984 is amended as                             Dairy Program, STOP 0231-Room 2963,
                                                 4. The Order, as amended, and as        follows:
                                              hereby further amended, prescribes,                                                                           1400 Independence Ave SW,
                                              insofar as practicable, such different                                                                        Washington, DC 20250–0231, (202) 720–
                                                                                         PART 984—WALNUTS GROWN IN
                                              terms applicable to different parts of the CALIFORNIA                                                         7183, email address: erin.taylor@
                                              production area as are necessary to give                                                                      ams.usda.gov.
                                              due recognition to the differences in the ■ 1. The authority citation for part 984                            SUPPLEMENTARY INFORMATION:        This rule,
                                              production and marketing of walnuts        continues to read as follows:                                      in accordance with 7 CFR 900.14(c), is
                                              produced or packed in the production          Authority: 7 U.S.C. 601–674.                                    the Secretary’s final rule in this
                                              area; and                                  ■ 2. Amend 984.69 by redesignating                                 proceeding and issues a marketing order
                                                 5. All handling of walnuts produced     paragraph (d) as paragraph (e) and                                 as defined in 7 CFR 900.2(j).
                                              in the production area as defined in the   adding a new paragraph (d) to read as                                Accordingly, this final rule adopts
                                              Order is in the current of interstate or   follows:                                                           proposed amendments detailed in the
                                              foreign commerce or directly burdens,                                                                         proposed rule (83 FR 13691).
                                              obstructs, or affects such commerce.       § 984.69 Assessments.                                                This administrative action is governed
                                                 (b) Determinations. It is hereby        *       *     *    *     *                                         by the provisions of Sections 556 and
                                              determined that:                              (d) Advanced assessments and                                    557 of Title 5 of the United States Code
                                                 1. Handlers (excluding cooperative      commercial loans. To provide funds for                             and is therefore excluded from the
                                              associations of producers who are not      the administration of the provisions of                            requirements of Executive Order 12866.
sradovich on DSK3GMQ082PROD with RULES




                                              engaged in processing, distributing, or    this part during the part of a fiscal                                This final rule is not considered an
                                              shipping of walnuts covered under the      period when neither sufficient operating                           Executive Order 13771 regulatory action
                                              Order) who during the period               reserve funds nor sufficient revenue                               because it does not meet the definition
                                              September 1, 2015, through August 31,      from assessments on the current                                    of a ‘‘regulation’’ or ‘‘rule’’ under
                                              2016, handled not less than 50 percent     season’s certifications are available, the                         Executive Order 12866.
                                              of the volume of such walnuts covered      Board may accept payment of                                          The proposed amendments adopted
                                              by said Order, as hereby amended, have assessments in advance or may borrow                                   in this final rule have been reviewed


                                         VerDate Sep<11>2014   22:27 May 10, 2018   Jkt 244001   PO 00000   Frm 00003   Fmt 4700   Sfmt 4700   E:\FR\FM\11MYR1.SGM   11MYR1


                                              21844                 Federal Register / Vol. 83, No. 92 / Friday, May 11, 2018 / Rules and Regulations

                                              under Executive Order 12988, Civil                      businesses will be considered large                      The amendments will reimburse
                                              Justice Reform. This rule is not intended               businesses, even if the local plant has               handlers for marketing expenses and
                                              to have retroactive effect and will not                 fewer employees than the threshold                    losses in four categories: Transportation
                                              preempt any state or local law,                         number.                                               costs to deliver loads to other than their
                                              regulations, or policies, unless they                     AMS estimates that 248 dairy farms                  normal receiving plants; lost location
                                              present an irreconcilable conflict with                 produced milk pooled on the Florida                   value due to selling milk in lower
                                              this rule.                                              FMMO in 2017. One hundred forty-one                   location value zones; milk dumped at
                                                 AMS is committed to complying with                   farms delivered milk to Florida pool                  farms or on tankers, and skim milk
                                              the E-Government Act to promote the                     plants fewer than 100 days during 2017,
                                                                                                                                                            dumped at plants; and distressed milk
                                              use of the internet and other                           and of those, 66 had less than 48,000
                                                                                                                                                            sales. Reimbursement will be funded
                                              information technologies, to provide                    pounds of pooled milk on the order
                                              increased opportunities for citizen                     during the entire year. AMS estimates                 through an assessment on Class I milk
                                              access to Government information and                    107 farms (248 minus 141) were part of                at a maximum rate of $0.09 per cwt.
                                              services, and for other purposes.                       the ‘‘normal’’ Florida milk supply last               Record evidence indicates that this
                                                 The Agricultural Marketing                           year. Nineteen of those farms had less                would increase the consumer price of
                                              Agreement Act of 1937 (AMAA), as                        than $750,000 in gross milk sales, based              milk by less than $0.01 per gallon
                                              amended (7 U.S.C. 601–674 and 7253),                    upon estimated 2017 production and a                  during the 7-month assessment period.
                                              provides that administrative                            weighted average uniform price of                        The temporary assessment will not
                                              proceedings must be exhausted before                    $20.98 per cwt.                                       place handlers in the Florida marketing
                                              parties may file suit in court. Under                     Considering all 248 farms that had                  area at a competitive disadvantage
                                              section 608c(15)(A) of the AMAA, any                    producer milk on the Florida FMMO,                    because of the assessment’s uniform
                                              handler subject to a marketing order                    AMS estimates that 101 farms had less                 application to Class I milk.
                                              may request modification or exemption                   than $750,000 in gross milk sales,
                                                                                                                                                            Additionally, any handler who
                                              from such order by filing with the U.S.                 regardless of where all of their
                                                                                                                                                            experienced a qualifying marketing
                                              Department of Agriculture (USDA) a                      production was pooled, and would be
                                              petition stating that the order, any                    considered small businesses.                          expense or loss will be eligible to
                                              provision of the order, or any obligation                 AMS data indicates that six dairy                   receive reimbursement, regardless of
                                              imposed in connection with the order is                 farmer cooperatives, in their capacity as             size. Dairy farmer blend prices will not
                                              not in accordance with law. A handler                   handlers, pooled producer milk on the                 be impacted by the amendments
                                              is afforded the opportunity for a hearing               Florida FMMO in 2017. AMS estimates                   because the assessment will not be
                                              on the petition. After a hearing, USDA                  that two of those cooperative handlers                funded through the marketwide pool.
                                              would rule on the petition. The AMAA                    have fewer than 500 employees and                     Dairy farmer cooperatives who pooled
                                              provides that the district court of the                 would be considered small businesses.                 milk on the Florida order, and therefore
                                              United States in any district in which                  Thirty-eight processing plants received               who qualified as the pooling handler,
                                              the handler is an inhabitant, or has its                producer milk in 2017, of which AMS                   will also be eligible for reimbursement.
                                              principal place of business, has                        estimates that 13 would be considered                 In those instances, producers are
                                              jurisdiction in equity to review USDA’s                 small businesses. Two of the 13 small                 receiving relief as the money is returned
                                              ruling on the petition, provided a bill in              businesses are fully regulated                        to their dairy farmer-owned cooperative.
                                              equity is filed not later than 20 days                  distributing plants on the Florida                    Accordingly, the adoption of the
                                              after the date of the entry of the ruling.              FMMO. The remaining 11 small                          proposed amendments will not
                                                                                                      businesses are nonpool or exempt                      significantly impact producers or
                                              Regulatory Flexibility Act and                          plants.
                                              Paperwork Reduction Act                                   The proposed amendments adopted                     handlers of any size, due to the limited
                                                In accordance with the Regulatory                     in this final rule will provide temporary             implementation period and the minimal
                                              Flexibility Act (RFA) (5 U.S.C. 601–                    reimbursement to handlers (cooperative                impact to the Class I milk price.
                                              612), AMS has considered the economic                   associations and proprietary handlers)                   A review of reporting requirements
                                              impact of this action on small entities                 who incurred extraordinary losses in                  was completed in accordance with the
                                              and has determined that this rule will                  connection with Hurricane Irma in                     Paperwork Reduction Act of 1995 (44
                                              not have a significant economic impact                  September 2017. The amendments were                   U.S.C. Chapter 35). The information
                                              on a substantial number of small                        requested by Southeast Milk, Inc.; Dairy              necessary to qualify for reimbursement,
                                              entities.                                               Farmers of America, Inc.; Premier Milk,               as outlined in this rule, has already been
                                                For the purpose of the RFA, a dairy                   Inc.; Maryland and Virginia Milk                      submitted through the monthly handler
                                              farm is considered a small business if it               Producers Cooperative Association, Inc.;              receipts and utilization form (FORM 1),
                                              has an annual gross revenue of less than                and Lone Star Milk Producers, Inc. The                or is part of the normal business records
                                              $750,000. Dairy product manufacturers                   dairy farmer members of these five                    inspected during routine FMMO audits.
                                              are considered small businesses based                   cooperatives supply the majority of the
                                              on the number of people they employ.                    milk pooled under the Florida FMMO.                      The primary information sources that
                                              Small fluid milk and ice cream                          For a 7-month period beginning with                   will be required for applications for
                                              manufacturers are defined as having                     July 2018, the amendments will                        reimbursement are documents currently
                                              1,000 or fewer employees. Small butter                  implement a temporary assessment on                   generated in customary business
                                              and dry or condensed dairy product                      Class I milk pooled on the Florida                    transactions. These documents include,
                                              manufacturers are defined as having 750                 FMMO at a rate not to exceed $0.09 per                but are not limited to: Invoices;
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                                              or fewer employees. Small cheese                        hundredweight (cwt). The amount                       receiving records; bulk milk manifests;
                                              manufacturers are defined as having                     generated through the temporary                       hauling bills; and contracts. As these
                                              1,250 or fewer employees.                               assessment will be disbursed during the               documents are routinely inspected by
                                              Manufacturing plants that are part of                   7-month period starting in July 2018 to               the market administrator during handler
                                              larger companies operating multiple                     qualifying handlers who incurred                      audits, the amendments adopted in this
                                              plants with total numbers of employees                  extraordinary losses and expenses as a                rule would not result in any new
                                              that exceed the threshold for small                     result of the hurricane.                              information collection.


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                                                                    Federal Register / Vol. 83, No. 92 / Friday, May 11, 2018 / Rules and Regulations                                              21845

                                              Prior Documents in This Proceeding                      containing the proposed amendment to                  ■ 3. Section 1006.60 is amended by
                                                 Notification of Hearing: Issued                      this order was issued on March 23,                    revising paragraphs (a) and (g) and
                                              December 6, 2017; published December                    2018, and published in the Federal                    adding paragraphs (h) and (i) to read as
                                              11, 2017 (82 FR 58135);                                 Register on March 30, 2018 (83 FR                     follows:
                                                 Supplemental Notice of Hearing:                      13691).
                                                                                                         The public hearing regarding                       § 1006.60   Handler’s value of milk.
                                              Issued December 7, 2017; published
                                                                                                      amendments to this order was held on                  *      *     *    *     *
                                              December 11, 2017 (82 FR 58135);                                                                                 (a) Multiply the pounds of skim milk
                                                 Final Decision: Issued March 23,                     an emergency basis. The changes that
                                                                                                      result from these amendments will not                 and butterfat in producer milk that were
                                              2018; published March 30, 2018 (83 FR
                                                                                                      require extensive preparation or                      classified in each class pursuant to
                                              13691).
                                                                                                      substantial alteration in the handlers’               § 1000.44(c) of this chapter by the
                                              Findings and Determinations                             method of operation. Therefore, it is                 applicable skim milk and butterfat
                                                 The findings and determinations                      determined that good cause exists for                 prices, and add the resulting amounts;
                                              hereinafter set forth supplement those                  making this amendment effective July 1,               except that for the months of July 2018
                                              that were made when the order was first                 2018. (Section 553(d), Administrative                 through January 2019, the Class I skim
                                              issued and when it was amended. The                     Procedure Act, 5 U.S.C. 551–559.)                     milk price for this purpose shall be the
                                              previous findings and determinations                       (3) Determinations.                                Class I skim milk price as determined in
                                              are hereby ratified and confirmed,                         It is hereby determined that:                      § 1000.50(b) of this chapter plus $0.09
                                              except where they may conflict with                        (a) The refusal or failure of handlers             per hundredweight, and the Class I
                                              those set forth herein.                                 (excluding cooperative associations                   butterfat price for this purpose shall be
                                                 (1) Findings upon the basis of the                   specified in section 8c(9) of the AMAA)               the Class I butterfat price as determined
                                              hearing record.                                         of more than 50 percent of the milk                   in § 1000.50(c) of this chapter plus
                                                 The amendments to the order are                      marketed within the specified marketing               $0.0009 per pound. The adjustments to
                                              based on the record of a public hearing                 areas to sign a proposed marketing                    the Class I skim milk and butterfat
                                              held in Tampa, Florida, December 12                     agreement, tends to prevent the                       prices provided herein may be reduced
                                              through 14, 2017, pursuant to a                         effectuation of the declared policy of the            by the market administrator for any
                                              notification of hearing issued December                 AMAA;                                                 month if the market administrator
                                              6, 2017, and published December 11,                        (b) The issuance of this order                     determines that the payments yet
                                              2017 (82 FR 58135). The hearing was                     amending the Florida order is the only                unpaid computed pursuant to
                                              held pursuant to the provisions of the                  practical means pursuant to the                       paragraphs (g)(1) through (g)(6) of this
                                              Agricultural Marketing Agreement Act                    declared policy of the AMAA of                        section will be less than the amount
                                              of 1937, as amended (7 U.S.C. 601–674),                 advancing the interests of producers as               computed pursuant to paragraph (h) of
                                              and the applicable rules of practice and                defined in the order as hereby amended;               this section. The adjustments to the
                                              procedure (7 CFR part 900). The                         and                                                   Class I skim milk and butterfat prices
                                              tentative marketing agreement and the                      (c) The issuance of this order                     provided herein during the months of
                                              order are authorized under 7 U.S.C.                     amending the Florida order is favored                 July 2018 through January 2019 shall be
                                              608c.                                                   by at least two-thirds of the producers               announced along with the prices
                                                 Upon the basis of the evidence                       who were engaged in the production of                 announced in § 1000.53(b) of this
                                              introduced at the public hearing and its                milk for sale in the respective marketing             chapter.
                                              record, it is found that:                               areas.                                                *      *     *    *     *
                                                 (a) The order as hereby amended, and                 List of Subjects in 7 CFR Part 1006                      (g) For transactions occurring during
                                              all of the terms and conditions thereof,                                                                      the period of September 6, 2017,
                                              will tend to effectuate the declared                      Milk marketing orders.                              through September 15, 2017, for
                                              policy of the AMAA;                                     Order Amending the Order Regulating                   handlers who have submitted proof
                                                 (b) The parity prices of milk, as                    the Handling of Milk in the Florida                   satisfactory to the market administrator
                                              determined pursuant to section 2 of the                 Marketing Area                                        no later than August 1, 2018, to
                                              AMAA, are not reasonable in view of                                                                           determine eligibility for reimbursement
                                              the price of feeds, available supplies of                  It is therefore ordered, that on and               of hurricane-imposed costs, subtract an
                                              feeds, and other economic conditions                    after the effective date hereof, the                  amount equal to:
                                              that affect market supply and demand                    handling of milk in the Florida                          (1) The additional cost of
                                              for milk in the Florida marketing area.                 marketing area shall be in conformity to              transportation on loads of milk rerouted
                                              The minimum prices specified in the                     and in compliance with the terms and                  from pool distributing plants to plants
                                              tentative marketing agreement and                       conditions of the order as amended, as                outside the state of Florida as a result of
                                              order, as hereby amended, are prices                    follows:                                              Hurricane Irma, and the additional cost
                                                                                                         For the reasons set forth in the                   of transportation on loads of milk
                                              that will reflect the aforesaid factors,
                                                                                                      preamble, 7 CFR part 1006 is amended                  moved and then dumped. The
                                              ensure a sufficient quantity of pure and
                                                                                                      as follows:                                           reimbursement of transportation costs
                                              wholesome milk, and be in the public
                                              interest; and                                           PART 1006—MILK IN THE FLORIDA                         pursuant to this section shall be the
                                                 (c) The tentative marketing agreement                MILK MARKETING AREA                                   actual demonstrated cost of such
                                              and order, as hereby amended, will                                                                            transportation of bulk milk or the miles
                                              regulate the handling of milk in the                    ■ 1. The authority citation for part 1006             of transportation on such loads of bulk
                                              same manner as, and applies only to,                    continues to read as follows:                         milk multiplied by $3.75 per loaded
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                                              persons in the respective classes of                        Authority: 7 U.S.C. 601–674, and 7253.
                                                                                                                                                            mile, whichever is less;
                                              industrial and commercial activity                                                                               (2) The lost location value on loads of
                                              specified in, marketing agreements upon                 [Subpart Redesignated as Subpart A]                   milk rerouted to plants outside the state
                                              which a hearing has been held.                                                                                of Florida as a result of Hurricane Irma.
                                                 (2) Additional Findings.                             ■ 2. Redesignate ‘‘Subpart—Order                      The lost location value shall be the
                                                 The amendment to this order is                       Regulating Handling’’ as ‘‘Subpart A—                 difference per hundredweight between
                                              known to handlers. The final decision                   Order Regulating Handling’’.                          the value specified in § 1000.52 of this


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                                              21846                 Federal Register / Vol. 83, No. 92 / Friday, May 11, 2018 / Rules and Regulations

                                              chapter, adjusted by § 1006.51(b), at the               DEPARTMENT OF AGRICULTURE                             Farm Security and Rural Investment Act
                                              location of the plant where the milk                                                                          of 2002 (FSRIA); section 7127 of the
                                              would have normally been received and                   National Institute of Food and                        Food, Conservation, and Energy Act of
                                              the value specified in § 1000.52, as                    Agriculture                                           2008; and section 7129 of the
                                              adjusted by § 1005.51(b) and                                                                                  Agricultural Act of 2014. Additionally,
                                              § 1007.51(b) of this chapter, at the                    7 CFR Part 3419                                       NIFA makes these changes to the
                                              location of the plant to which the milk                 RIN 0524–AA68                                         Definitions and Use of Matching Funds
                                              was rerouted;                                                                                                 sections to provide clarity on allowable
                                                 (3) The value per hundredweight at                   Matching Funds Requirements for                       uses of matching funds.
                                              the lowest classified price for the month               Agricultural Research and Extension                   Response to Comments on the Proposed
                                              of September 2017 for milk dumped at                    Capacity Funds at 1890 Land-Grant                     Rule and Revisions Included in Final
                                              the farm and classified as other use milk               Institutions, Including Central State                 Rule
                                              pursuant to § 1000.40(e) of this chapter                University, Tuskegee University, and
                                              as a result of Hurricane Irma;                          West Virginia State University, and at                   On November 13, 2017, NIFA
                                                                                                      1862 Land-Grant Institutions in Insular               published in the Federal Register a
                                                 (4) The value per hundredweight at                                                                         Notice of Proposed Rulemaking entitled
                                              the lowest classified price for the month               Areas
                                                                                                                                                            ‘‘Matching Funds Requirements for
                                              of September 2017 for milk dumped                       AGENCY:  National Institute of Food and               Agricultural Research and Extension
                                              from milk tankers after being moved off-                Agriculture, USDA.                                    Capacity Funds at 1890 Land-Grant
                                              farm and classified as other use milk                   ACTION: Final rule.                                   Institutions and 1862 Land-Grant
                                              pursuant to § 1000.40(e) of this chapter                                                                      Institutions in Insular Areas’’ (82 FR
                                              as a result of Hurricane Irma;                          SUMMARY:    This final rule amends                    52250) with the same purpose as above.
                                                 (5) The value per hundredweight at                   National Institute of Food and                        The public had 60 days to comment,
                                              the lowest classified price for the month               Agriculture (NIFA) regulations for the                with the comment period closing
                                              of September 2017 for skim portion of                   purpose of implementing the statutory                 January 12, 2018. NIFA received only
                                              milk dumped and classified as other use                 amendments applicable to the National                 one comment in response to the Notice
                                              milk pursuant to § 1000.40(e) of this                   Institute of Food and Agriculture’s                   of Proposed Rulemaking and this
                                              chapter as a result of Hurricane Irma;                  (NIFA) matching requirements for                      comment addressed issues that are
                                              and                                                     Federal agricultural research and                     outside the scope of this rule. The
                                                 (6) The difference between the                       extension capacity (formula) funds for                commenter discussed the inhumane
                                              announced class price applicable to the                 1890 land-grant institutions (LGUs),                  treatment of farm animals in general.
                                              milk as classified by the market                        including Central State University,                   Because this comment is outside the
                                              administrator for the month of                          Tuskegee University, and West Virginia                scope of this rule, no change will be
                                              September 2017 and the actual price                     State University, and 1862 land-grant                 made to the language of the revision
                                              received for milk delivered to nonpool                  institutions in insular areas, and to                 based on this comment.
                                              plants outside the state of Florida as a                remove the term ‘‘qualifying educational
                                                                                                      activities.’’ These matching                          Summary of Changes in Final Rule
                                              result of Hurricane Irma.
                                                                                                      requirements were amended by the                      Section 3419.1    Definitions
                                                 (h) The total amount of payment to all               Farm Security and Rural Investment
                                              handlers under paragraph (g) of this                                                                             The definition of an eligible
                                                                                                      Act; the Food, Conservation, and Energy
                                              section shall be limited for each month                                                                       institution is updated to include West
                                                                                                      Act of 2008; and the Agricultural Act of
                                              to an amount determined by                                                                                    Virginia State University (formerly West
                                                                                                      2014.
                                              multiplying the total Class I producer                                                                        Virginia State College) and Central State
                                                                                                      DATES: This final rule is effective May               University. Section 753 of the
                                              milk for all handlers pursuant to
                                              § 1000.44(c) of this chapter times $0.09                11, 2018.                                             Agricultural, Rural Development, Food
                                              per hundredweight.                                      FOR FURTHER INFORMATION CONTACT:                      and Drug Administration, and Related
                                                                                                      Maggie Ewell, Senior Policy Advisor,                  Agencies Appropriations Act, 2002
                                                 (i) If the cost of payments computed
                                                                                                      202–401–0222.                                         (Pub. L. 107–76) restored 1890 land-
                                              pursuant to paragraphs (g)(1) through
                                              (g)(6) of this section exceeds the amount               SUPPLEMENTARY INFORMATION:                            grant institution status to West Virginia
                                              computed pursuant to paragraph (h) of                                                                         State College. In 2004, the West Virginia
                                                                                                      I. Background and Purpose                             Legislature approved West Virginia
                                              this section, the market administrator
                                              shall prorate such payments to each                        The National Institute of Food and                 State College’s transition to University
                                              handler based on each handler’s                         Agriculture (NIFA) amends part 3419 of                status. Central State University was
                                              proportion of transportation and other                  Title 7, subtitle B, chapter XXXIV of the             recognized as an 1890 land-grant
                                              use milk costs submitted pursuant to                    Code of Federal Regulations which                     institution under section 7129 of the
                                              paragraphs (g)(1) through (g)(6). Costs                 implements the matching requirements                  Agricultural Act of 2014.
                                              submitted pursuant to paragraphs (g)(1)                 provided under section 1449 of the                       In 2014, NIFA re-branded its formula
                                              through (g)(6) which are not paid as a                  National Agricultural Research,                       grant programs as ‘‘capacity grants.’’
                                              result of such a proration shall be paid                Extension, and Teaching Policy Act of                 Therefore, the definition of formula
                                              in subsequent months until all costs                    1977 (NARETPA) for agricultural                       funds is changed to reflect this
                                              incurred and documented through (g)(1)                  research and extension capacity                       terminology, capacity funds, and the
                                              through (g)(6) have been paid.                          (formula) funds authorized for the 1890               words ‘‘by formula’’ are inserted to
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                                                                                                      land-grant institutions, including                    clarify that capacity funds are provided
                                                Dated: May 8, 2018.                                   Central State University, Tuskegee                    by formula to eligible institutions.
                                              Bruce Summers,                                          University, and West Virginia State                      The term and definition for qualifying
                                              Acting Administrator, Agricultural Marketing            University and 1862 land-grant                        educational activities is removed due to
                                              Service.                                                institutions in insular areas. This                   the fact that this term has caused
                                              [FR Doc. 2018–10085 Filed 5–10–18; 8:45 am]             revision is required due to the statutory             confusion regarding what constitutes an
                                              BILLING CODE 3410–02–P                                  amendments of sections 7212 of the                    allowable qualifying educational


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Document Created: 2018-11-02 09:50:16
Document Modified: 2018-11-02 09:50:16
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionRules and Regulations
ActionFinal rule.
DatesThis rule is effective July 1, 2018.
ContactErin C. Taylor, Order Formulation and Enforcement Division, USDA/AMS/Dairy Program, STOP 0231-Room 2963, 1400 Independence Ave SW, Washington, DC 20250-0231, (202) 720-7183, email
FR Citation83 FR 21843 

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