83 FR 26547 - Milk in California; Federal Milk Marketing Order Promulgation
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service Federal Register Volume 83, Issue 111 (June 8, 2018)
Agricultural Marketing Service
Federal Register Volume 83, Issue 111 (June 8, 2018)
| Page Range | 26547-26556 | |
| FR Document | 2018-12245 |
[Federal Register Volume 83, Number 111 (Friday, June 8, 2018)] [Rules and Regulations] [Pages 26547-26556] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2018-12245] ======================================================================== Rules and Regulations Federal Register ________________________________________________________________________ This section of the FEDERAL REGISTER contains regulatory documents having general applicability and legal effect, most of which are keyed to and codified in the Code of Federal Regulations, which is published under 50 titles pursuant to 44 U.S.C. 1510. The Code of Federal Regulations is sold by the Superintendent of Documents. ======================================================================== Federal Register / Vol. 83, No. 111 / Friday, June 8, 2018 / Rules and Regulations [[Page 26547]] DEPARTMENT OF AGRICULTURE Agricultural Marketing Service 7 CFR Part 1051 [Doc. No. AO-15-0071; AMS-DA-14-0095] Milk in California; Federal Milk Marketing Order Promulgation AGENCY: Agricultural Marketing Service, USDA. ACTION: Final rule. ----------------------------------------------------------------------- SUMMARY: This final rule establishes a Federal Milk Marketing Order (FMMO) regulating the handling of milk in California. This final rule issues a marketing order incorporating the entire state of California and adopts the same dairy product classification and pricing provisions used throughout the current FMMO system. The California FMMO provides for the recognition of producer quota as administered by the California Department of Food and Agriculture. More than the required number of producers for the California marketing area have approved the issuance of the order. This final rule also announces AMS's intention to merge the information collection forms used to conduct the producer referendum with the reporting forms used in the other dairy marketing orders. DATES: Effective Date: This rule is effective October 17, 2018. Applicability Date: All provisions of this rule apply to affected parties as of November 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 amendments detailed in the proposed rule (83 FR 14110), with one minor technical correction to paragraph numbering in Sec. 1051.73(c)(2). The proposed rule designated two consecutive paragraphs in that section as paragraph (c)(2)(vii). This final rule corrects the proposed rule by redesignating the second paragraph as paragraph (c)(2)(viii). This rule is effective with publication of the Announcement of Advanced Prices and Pricing Factors on October 17, 2018 (see Sec. 1051.53). Affected parties must comply with all provisions of this rule beginning November 1, 2018. 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 amendments adopted in this final rule have been reviewed 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 Pursuant to the requirements set forth in the Regulatory Flexibility Act (RFA) (5 U.S.C. 601-612), the Agricultural Marketing Service (AMS) considered the economic impact of this action on small entities. Accordingly, AMS prepared this final regulatory flexibility analysis. The purpose of the RFA is to fit regulatory actions to the scale of businesses subject to such actions so that small businesses will not be unduly or disproportionately burdened. Small dairy farm businesses have been defined by the Small Business Administration (SBA) (13 CFR 121.601) as those businesses having annual gross receipts of less than $750,000. The SBA's definition of small agricultural service firms, which includes handlers that will be regulated under this marketing order, varies depending on the product manufactured. 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. For the purpose of determining which California dairy farms are ``small businesses,'' the $750,000 per year criterion was used to establish a production guideline that equates to approximately 315,000 pounds of milk per month. Although this guideline does not factor in additional monies that may be received by dairy farmers, it is a standard encompassing most small dairy farms. For the purpose of determining a handler's size, if the plant is part of a larger company operating multiple plants that collectively exceed the employee limit for that type of manufacturing, the plant is considered a large business even if the local plant has fewer than the defined number of employees. Interested persons were invited to present evidence at the hearing on the [[Page 26548]] probable regulatory and informational impact of the California FMMO on small businesses. Specific evidence on the number of large and small dairy farms in California (above and below the threshold of $750,000 in annual sales) was not presented at the hearing. However, data compiled by CDFA\1\ suggests that between 5 and 15 percent of California dairy farms would be considered small business entities. No comparable data for dairy product manufacturers was available. --------------------------------------------------------------------------- \1\ Official Notice is taken of: CDFA, California Dairy Review, Volume 19, Issue 9, September 2015. https://www.cdfa.ca.gov/dairy/pdf/CDR/2015/CDR_SEPT_15.pdf. --------------------------------------------------------------------------- Record evidence indicates that implementing the California FMMO would not impose a disproportionate burden on small businesses. Currently, the California dairy industry is regulated by a California State Order (CSO) that is administered and enforced by CDFA. While the CSO and FMMOs have differences, they both maintain similar classified pricing and marketwide pooling functions. Therefore, it is not expected that the regulatory change will have a significant impact on California small businesses. The record evidence indicates that while the program is likely to impose some costs on the regulated parties, those costs would be outweighed by the benefits expected to accrue to the California dairy industry. In conjunction with the publication of the final decision (83 FR 14110), AMS released a Regulatory Economic Impact Analysis (REIA) to study the possible impacts of the California FMMO. The analysis reflects the provisions of this FMMO and may be viewed at www.ams.usda.gov/caorder. In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. Chapter 35), this final rule also announces AMS's intention to merge the OMB Report Forms under a California Federal Milk Marketing Order (from Milk Handlers and Milk Marketing Cooperatives, 0581-0298), and the forms used to conduct the producer referendum (Referendum Ballots, 0581-0300) with the reporting forms used in the rest of the dairy marketing orders (Report Forms Under the Federal Milk Marketing Order Program, 0581-0032). Any additional information collection and recordkeeping requirements that may be imposed under the order would be submitted to OMB for public comment and approval. Prior Documents in This Proceeding Notice of Hearing: Issued July 27, 2015; published August 6, 2015 (80 FR 47210); Notice to Reconvene Hearing: Issued September 25, 2015; published September 30, 2015 (80 FR 58636); Recommended Decision and Opportunity To File Written Exceptions: Issued February 6, 2017; published February 14, 2017 (82 FR 10634); Documents for Official Notice: Issued August 8, 2017; published August 14, 2017 (82 FR 37827); Information Collection--Producer Ballots: Issued September 27, 2017; published October 2, 2017 (82 FR 45795); Delay of Rulemaking: Issued February 1, 2018; published February 6, 2018 (83 FR 5215); Ratification of Record: Issued March 14, 2018; published March 19, 2018 (83 FR 11903); and Final Decision: Issued March 23, 2018; published April 2, 2018 (83 FR 14110). Findings and Determinations The findings and determinations hereinafter set forth 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 promulgation of the marketing agreement and order is based on the record of a public hearing held September 22 through November 18, 2015 in Clovis, California. The hearing was held to receive evidence on four proposals submitted by dairy farmers, handlers, and other interested parties. Notice of this hearing was published in the Federal Register on August 6, 2015 (80 FR 47210), pursuant to the provisions of the Agricultural Marketing Agreement Act of 1937, as amended (7 U.S.C. 601-674), and the applicable rules of practice and procedure (7 CFR part 900). Upon the basis of the evidence introduced at the public hearing and its record, it is found that: (a) The order as hereby promulgated, 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 California. The minimum prices specified in the tentative marketing agreement and order, as hereby established, 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 established, 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) 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 establishing the California 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 promulgated; and (c) The issuance of this order establishing the California 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 1051 Milk marketing orders. Order Establishing the Order Regulating the Handling of Milk in the California Marketing Area It is therefore ordered, that on and after the effective date hereof, the handling of milk in the California marketing area shall be in conformity to and in compliance with the terms and conditions of the order. 0 For the reasons stated in the preamble, the Agricultural Marketing Service adds 7 CFR part 1051 to read as follows: PART 1051--MILK IN THE CALIFORNIA MILK MARKETING AREA Subpart A--Order Regulating Handling General Provisions Sec. 1051.1 General provisions. Definitions 1051.2 California marketing area. 1051.3 Route disposition. 1051.4 Plant. 1051.5 Distributing plant. 1051.6 Supply plant. 1051.7 Pool plant. 1051.8 Nonpool plant. 1051.9 Handler. [[Page 26549]] 1051.10 Producer-handler. 1051.11 California quota program. 1051.12 Producer. 1051.13 Producer milk. 1051.14 Other source milk. 1051.15 Fluid milk product. 1051.16 Fluid cream product. 1051.17 [Reserved]. 1051.18 Cooperative association. 1051.19 Commercial food processing establishment. Market Administrator, Continuing Obligations, and Handler Responsibilities 1051.25 Market administrator. 1051.26 Continuity and separability of provisions. 1051.27 Handler responsibility for records and facilities. 1051.28 Termination of obligations. Handler Reports 1051.30 Reports of receipts and utilization. 1051.31 Payroll reports. 1051.32 Other reports. Subpart B--Milk Pricing Classification of Milk 1051.40 Classes of utilization. 1051.41 [Reserved]. 1051.42 Classification of transfers and diversions. 1051.43 General classification rules. 1051.44 Classification of producer milk. 1051.45 Market administrator's reports and announcements concerning classification. Class Prices 1051.50 Class prices, component prices, and advanced pricing factors. 1051.51 Class I differential and price. 1051.52 Adjusted Class I differentials. 1051.53 Announcement of class prices, component prices, and advanced pricing factors. 1051.54 Equivalent price. Producer Price Differential 1051.60 Handler's value of milk. 1051.61 Computation of producer price differential. 1051.62 Announcement of producer prices. Subpart C--Payments for Milk Producer Payments 1051.70 Producer-settlement fund. 1051.71 Payments to the producer-settlement fund. 1051.72 Payments from the producer-settlement fund. 1051.73 Payments to producers and to cooperative associations. 1051.74 [Reserved]. 1051.75 Plant location adjustments for producer milk and nonpool milk. 1051.76 Payments by a handler operating a partially regulated distributing plant. 1051.77 Adjustment of accounts. 1051.78 Charges on overdue accounts. Administrative Assessment and Marketing Service Deduction 1051.85 Assessment for order administration. 1051.86 Deduction for marketing services. Subpart D--Miscellaneous Provisions 1051.90 Dates. Authority: 7 U.S.C. 601-674, and 7253. Subpart A--Order Regulating Handling General Provisions Sec. 1051.1 General provisions. The terms, definitions, and provisions in part 1000 of this chapter apply to this part unless otherwise specified. In this part, all references to sections in part 1000 refer to part 1000 of this chapter. Definitions Sec. 1051.2 California marketing area. The marketing area means all territory within the bounds of the following states and political subdivisions, including all piers, docks, and wharves connected therewith and all craft moored thereat, and all territory occupied by government (municipal, State, or Federal) reservations, installations, institutions, or other similar establishments if any part thereof is within any of the listed states or political subdivisions: California All of the State of California. Sec. 1051.3 Route disposition. See Sec. 1000.3. Sec. 1051.4 Plant. See Sec. 1000.4. Sec. 1051.5 Distributing plant. See Sec. 1000.5. Sec. 1051.6 Supply plant. See Sec. 1000.6. Sec. 1051.7 Pool plant. Pool plant means a plant, unit of plants, or system of plants as specified in paragraphs (a) through (f) of this section, but excluding a plant specified in paragraph (h) of this section. The pooling standards described in paragraphs (c) and (f) of this section are subject to modification pursuant to paragraph (g) of this section: (a) A distributing plant, other than a plant qualified as a pool plant pursuant to paragraph (b) of this section or Sec. _____.7(b) of any other Federal milk order, from which during the month 25 percent or more of the total quantity of fluid milk products physically received at the plant (excluding concentrated milk received from another plant by agreement for other than Class I use) are disposed of as route disposition or are transferred in the form of packaged fluid milk products to other distributing plants. At least 25 percent of such route disposition and transfers must be to outlets in the marketing area. (b) Any distributing plant located in the marketing area which during the month processed at least 25 percent of the total quantity of fluid milk products physically received at the plant (excluding concentrated milk received from another plant by agreement for other than Class I use) into ultra-pasteurized or aseptically-processed fluid milk products. (c) A supply plant from which the quantity of bulk fluid milk products shipped to (and physically unloaded into) plants described in paragraph (c)(1) of this section is not less than 10 percent of the Grade A milk received from dairy farmers (except dairy farmers described in Sec. 1051.12(b)) and handlers described in Sec. 1000.9(c), including milk diverted pursuant to Sec. 1051.13, subject to the following conditions: (1) Qualifying shipments may be made to plants described in paragraphs (c)(1)(i) through (iv) of this section, except that whenever shipping requirements are increased pursuant to paragraph (g) of this section, only shipments to pool plants described in paragraphs (a), (b), and (d) of this section shall count as qualifying shipments for the purpose of meeting the increased shipments: (i) Pool plants described in paragraphs (a), (b), and (d) of this section; (ii) Plants of producer-handlers; (iii) Partially regulated distributing plants, except that credit for such shipments shall be limited to the amount of such milk classified as Class I at the transferee plant; and (iv) Distributing plants fully regulated under other Federal orders, except that credit for shipments to such plants shall be limited to the quantity shipped to (and physically unloaded into) pool distributing plants during the month and credits for shipments to other order plants shall not include any such shipments made on the basis of agreed-upon Class II, Class III, or Class IV utilization. (2) Concentrated milk transferred from the supply plant to a distributing plant for an agreed-upon use other than Class I shall be excluded from the supply plant's shipments in computing the supply plant's shipping percentage. (d) Two or more plants operated by the same handler and located in the marketing area may qualify for pool status as a unit by meeting the total and in-area route disposition requirements of a pool distributing plant specified in paragraph (a) of this section and subject to the following additional requirements: [[Page 26550]] (1) At least one of the plants in the unit must qualify as a pool plant pursuant to paragraph (a) of this section; (2) Other plants in the unit must process Class I or Class II products, using 50 percent or more of the total Grade A fluid milk products received in bulk form at such plant or diverted therefrom by the plant operator in Class I or Class II products; and (3) The operator of the unit has filed a written request with the market administrator prior to the first day of the month for which such status is desired to be effective. The unit shall continue from month- to-month thereafter without further notification. The handler shall notify the market administrator in writing prior to the first day of any month for which termination or any change of the unit is desired. (e) A system of two or more supply plants operated by one or more handlers may qualify for pooling by meeting the shipping requirements of paragraph (c) of this section in the same manner as a single plant subject to the following additional requirements: (1) Each plant in the system is located within the marketing area. Cooperative associations or other handlers may not use shipments pursuant to Sec. 1000.9(c) to qualify supply plants located outside the marketing area; (2) The handler(s) establishing the system submits a written request to the market administrator on or before July 15 requesting that such plants qualify as a system for the period of August through July of the following year. Such request will contain a list of the plants participating in the system in the order, beginning with the last plant, in which the plants will be dropped from the system if the system fails to qualify. Each plant that qualifies as a pool plant within a system shall continue each month as a plant in the system through the following July unless the handler(s) establishing the system submits a written request to the market administrator that the plant be deleted from the system or that the system be discontinued. Any plant that has been so deleted from a system, or that has failed to qualify in any month, will not be part of any system for the remaining months through July. The handler(s) that have established a system may add a plant operated by such handler(s) to a system if such plant has been a pool plant each of the 6 prior months and would otherwise be eligible to be in a system, upon written request to the market administrator no later than the 15th day of the prior month. In the event of an ownership change or the business failure of a handler who is a participant in a system, the system may be reorganized to reflect such changes if a written request to file a new marketing agreement is submitted to the market administrator; and (3) If a system fails to qualify under the requirements of this paragraph (e), the handler responsible for qualifying the system shall notify the market administrator which plant or plants will be deleted from the system so that the remaining plants may be pooled as a system. If the handler fails to do so, the market administrator shall exclude one or more plants, beginning at the bottom of the list of plants in the system and continuing up the list as necessary until the deliveries are sufficient to qualify the remaining plants in the system. (f) Any distributing plant, located within the marketing area as described in Sec. 1051.2: (1) From which there is route disposition and/or transfers of packaged fluid milk products in any non-federally regulated marketing area(s) located within one or more States that require handlers to pay minimum prices for raw milk, provided that 25 percent or more of the total quantity of fluid milk products physically received at such plant (excluding concentrated milk received from another plant by agreement for other than Class I use) is disposed of as route disposition and/or is transferred in the form of packaged fluid milk products to other plants. At least 25 percent of such route disposition and/or transfers, in aggregate, are in any non-federally regulated marketing area(s) located within one or more States that require handlers to pay minimum prices for raw milk. Subject to the following exclusions: (i) The plant is described in paragraph (a), (b), or (e) of this section; (ii) The plant is subject to the pricing provisions of a State- operated milk pricing plan which provides for the payment of minimum class prices for raw milk; (iii) The plant is described in Sec. 1000.8(a) or (e); or (iv) A producer-handler described in Sec. 1051.10 with less than three million pounds during the month of route disposition and/or transfers of packaged fluid milk products to other plants. (2) [Reserved] (g) The applicable shipping percentages of paragraphs (c) and (e) of this section and Sec. 1051.13(d)(2) and (3) may be increased or decreased, for all or part of the marketing area, by the market administrator if the market administrator finds that such adjustment is necessary to encourage needed shipments or to prevent uneconomic shipments. Before making such a finding, the market administrator shall investigate the need for adjustment either on the market administrator's own initiative or at the request of interested parties if the request is made in writing at least 15 days prior to the month for which the requested revision is desired effective. If the investigation shows that an adjustment of the shipping percentages might be appropriate, the market administrator shall issue a notice stating that an adjustment is being considered and invite data, views, and arguments. Any decision to revise an applicable shipping or diversion percentage must be issued in writing at least one day before the effective date. (h) The term pool plant shall not apply to the following plants: (1) A producer-handler as defined under any Federal order; (2) An exempt plant as defined in Sec. 1000.8(e); (3) A plant located within the marketing area and qualified pursuant to paragraph (a) of this section which meets the pooling requirements of another Federal order, and from which more than 50 percent of its route disposition has been in the other Federal order marketing area for 3 consecutive months; (4) A plant located outside any Federal order marketing area and qualified pursuant to paragraph (a) of this section that meets the pooling requirements of another Federal order and has had greater route disposition in such other Federal order's marketing area for 3 consecutive months; (5) A plant located in another Federal order marketing area and qualified pursuant to paragraph (a) of this section that meets the pooling requirements of such other Federal order and does not have a majority of its route disposition in this marketing area for 3 consecutive months, or if the plant is required to be regulated under such other Federal order without regard to its route disposition in any other Federal order marketing area; (6) A plant qualified pursuant to paragraph (c) of this section which also meets the pooling requirements of another Federal order and from which greater qualifying shipments are made to plants regulated under the other Federal order than are made to plants regulated under the order in this part, or the plant has automatic pooling status under the other Federal order; and (7) That portion of a regulated plant designated as a nonpool plant that is physically separate and operated separately from the pool portion of such plant. The designation of a portion of a regulated plant as a nonpool plant must [[Page 26551]] be requested in advance and in writing by the handler and must be approved by the market administrator. (i) Any plant that qualifies as a pool plant in each of the immediately preceding 3 months pursuant to paragraph (a) of this section or the shipping percentages in paragraph (c) of this section that is unable to meet such performance standards for the current month because of unavoidable circumstances determined by the market administrator to be beyond the control of the handler operating the plant, such as a natural disaster (ice storm, wind storm, flood, fire, earthquake, breakdown of equipment, or work stoppage, shall be considered to have met the minimum performance standards during the period of such unavoidable circumstances, but such relief shall not be granted for more than 2 consecutive months. Sec. 1051.8 Nonpool plant. See Sec. 1000.8. Sec. 1051.9 Handler. See Sec. 1000.9. Sec. 1051.10 Producer-handler. Producer-handler means a person who operates a dairy farm and a distributing plant from which there is route disposition in the marketing area, from which total route disposition and packaged sales of fluid milk products to other plants during the month does not exceed 3 million pounds, and who the market administrator has designated a producer-handler after determining that all of the requirements of this section have been met. (a) Requirements for designation. Designation of any person as a producer-handler by the market administrator shall be contingent upon meeting the conditions set forth in paragraphs (a)(1) through (5) of this section. Following the cancellation of a previous producer-handler designation, a person seeking to have their producer-handler designation reinstated must demonstrate that these conditions have been met for the preceding month: (1) The care and management of the dairy animals and the other resources and facilities designated in paragraph (b)(1) of this section necessary to produce all Class I milk handled (excluding receipts from handlers fully regulated under any Federal order) are under the complete and exclusive control, ownership, and management of the producer-handler and are operated as the producer-handler's own enterprise and at its sole risk. (2) The plant operation designated in paragraph (b)(2) of this section at which the producer-handler processes and packages, and from which it distributes, its own milk production is under the complete and exclusive control, ownership, and management of the producer-handler and is operated as the producer-handler's own enterprise and at its sole risk. (3) The producer-handler neither receives at its designated milk production resources and facilities nor receives, handles, processes, or distributes at or through any of its designated milk handling, processing, or distributing resources and facilities other source milk products for reconstitution into fluid milk products or fluid milk products derived from any source other than: (i) Its designated milk production resources and facilities (own farm production); (ii) Pool handlers and plants regulated under any Federal order within the limitation specified in paragraph (c)(2) of this section; or (iii) Nonfat milk solids which are used to fortify fluid milk products. (4) The producer-handler is neither directly nor indirectly associated with the business control or management of, nor has a financial interest in, another handler's operation; nor is any other handler so associated with the producer-handler's operation. (5) No milk produced by the herd(s) or on the farm(s) that supplies milk to the producer-handler's plant operation is: (i) Subject to inclusion and participation in a marketwide equalization pool under a milk classification and pricing program under the authority of a State government maintaining marketwide pooling of returns; or (ii) Marketed in any part as Class I milk to the non-pool distributing plant of any other handler. (b) Designation of resources and facilities. Designation of a person as a producer-handler shall include the determination of what shall constitute milk production, handling, processing, and distribution resources and facilities, all of which shall be considered an integrated operation, under the sole and exclusive ownership of the producer-handler. (1) Milk production resources and facilities shall include all resources and facilities (milking herd(s), buildings housing such herd(s), and the land on which such buildings are located) used for the production of milk which are solely owned, operated, and which the producer-handler has designated as a source of milk supply for the producer-handler's plant operation. However, for purposes of this paragraph (b)(1), any such milk production resources and facilities which do not constitute an actual or potential source of milk supply for the producer-handler's operation shall not be considered a part of the producer-handler's milk production resources and facilities. (2) Milk handling, processing, and distribution resources and facilities shall include all resources and facilities (including store outlets) used for handling, processing, and distributing fluid milk products which are solely owned by, and directly operated or controlled by the producer-handler or in which the producer-handler in any way has an interest, including any contractual arrangement, or over which the producer-handler directly or indirectly exercises any degree of management control. (3) All designations shall remain in effect until canceled pursuant to paragraph (c) of this section. (c) Cancellation. The designation as a producer-handler shall be canceled upon determination by the market administrator that any of the requirements of paragraphs (a)(1) through (5) of this section are not continuing to be met, or under any of the conditions described in paragraph (c)(1), (2), or (3) of this section. Cancellation of a producer-handler's status pursuant to this paragraph (c) shall be effective on the first day of the month following the month in which the requirements were not met or the conditions for cancellation occurred. (1) Milk from the milk production resources and facilities of the producer-handler, designated in paragraph (b)(1) of this section, is delivered in the name of another person as producer milk to another handler. (2) The producer-handler handles fluid milk products derived from sources other than the milk production facilities and resources designated in paragraph (b)(1) of this section, except that it may receive at its plant, or acquire for route disposition, fluid milk products from fully regulated plants and handlers under any Federal order if such receipts do not exceed 150,000 pounds monthly. This limitation shall not apply if the producer-handler's own-farm production is less than 150,000 pounds during the month. (3) Milk from the milk production resources and facilities of the producer-handler is subject to inclusion and participation in a marketwide equalization pool under a milk classification and pricing plan operating under the authority of a State government. [[Page 26552]] (d) Public announcement. The market administrator shall publicly announce: (1) The name, plant location(s), and farm location(s) of persons designated as producer-handlers; (2) The names of those persons whose designations have been cancelled; and (3) The effective dates of producer-handler status or loss of producer-handler status for each. Such announcements shall be controlling with respect to the accounting at plants of other handlers for fluid milk products received from any producer-handler. (e) Burden of establishing and maintaining producer-handler status. The burden rests upon the handler who is designated as a producer- handler to establish through records required pursuant to Sec. 1000.27 that the requirements set forth in paragraph (a) of this section have been and are continuing to be met, and that the conditions set forth in paragraph (c) of this section for cancellation of the designation do not exist. (f) Payments subject to Order 1131. Any producer-handler with Class I route dispositions and/or transfers of packaged fluid milk products in the marketing area described in Sec. 1131.2 of this chapter shall be subject to payments into the Order 1131 producer settlement fund on such dispositions pursuant to Sec. 1000.76(a) and payments into the Order 1131 administrative fund, provided such dispositions are less than three million pounds in the current month and such producer- handler had total Class I route dispositions and/or transfers of packaged fluid milk products from own farm production of three million pounds or more the previous month. If the producer-handler has Class I route dispositions and/or transfers of packaged fluid milk products into the marketing area described in Sec. 1131.2 of this chapter of three million pounds or more during the current month, such producer- handler shall be subject to the provisions described in Sec. 1131.7 of this chapter or Sec. 1000.76(a). Sec. 1051.11 California quota program. California Quota Program means the applicable provisions of the California Food and Agriculture Code, and related provisions of the pooling plan administered by the California Department of Food and Agriculture (CDFA). Sec. 1051.12 Producer. (a) Except as provided in paragraph (b) of this section, producer means any person who produces milk approved by a duly constituted regulatory agency for fluid consumption as Grade A milk and whose milk is: (1) Received at a pool plant directly from the producer or diverted by the plant operator in accordance with Sec. 1051.13; or (2) Received by a handler described in Sec. 1000.9(c). (b) Producer shall not include: (1) A producer-handler as defined in any Federal order; (2) A dairy farmer whose milk is received at an exempt plant, excluding producer milk diverted to the exempt plant pursuant to Sec. 1051.13(d); (3) A dairy farmer whose milk is received by diversion at a pool plant from a handler regulated under another Federal order if the other Federal order designates the dairy farmer as a producer under that order and that milk is allocated by request to a utilization other than Class I; and (4) A dairy farmer whose milk is reported as diverted to a plant fully regulated under another Federal order with respect to that portion of the milk so diverted that is assigned to Class I under the provisions of such other order. Sec. 1051.13 Producer milk. Except as provided for in paragraph (e) of this section, producer milk means the skim milk (or the skim equivalent of components of skim milk), including nonfat components, and butterfat in milk of a producer that is: (a) Received by the operator of a pool plant directly from a producer or a handler described in Sec. 1000.9(c). All milk received pursuant to this paragraph (a) shall be priced at the location of the plant where it is first physically received; (b) Received by a handler described in Sec. 1000.9(c) in excess of the quantity delivered to pool plants; (c) Diverted by a pool plant operator to another pool plant. Milk so diverted shall be priced at the location of the plant to which diverted; or (d) Diverted by the operator of a pool plant or a cooperative association described in Sec. 1000.9(c) to a nonpool plant located in the States of California, Arizona, Nevada, or Oregon, subject to the following conditions: (1) Milk of a dairy farmer shall not be eligible for diversion unless at least one day's production of such dairy farmer is physically received as producer milk at a pool plant during the first month the dairy farmer is a producer. If a dairy farmer loses producer status under the order in this part (except as a result of a temporary loss of Grade A approval or as a result of the handler of the dairy farmer's milk failing to pool the milk under any order), the dairy farmer's milk shall not be eligible for diversion unless at least one day's production of the dairy farmer has been physically received as producer milk at a pool plant during the first month the dairy farmer is re- associated with the market; (2) The quantity of milk diverted by a handler described in Sec. 1000.9(c) may not exceed 90 percent of the producer milk receipts reported by the handler pursuant to Sec. 1051.30(c) provided that not less than 10 percent of such receipts are delivered to plants described in Sec. 1051.7(c)(1)(i) through (iii). These percentages are subject to any adjustments that may be made pursuant to Sec. 1051.7(g); and (3) The quantity of milk diverted to nonpool plants by the operator of a pool plant described in Sec. 1051.7(a), (b) or (d) may not exceed 90 percent of the Grade A milk received from dairy farmers (except dairy farmers described in Sec. 1051.12(b)) including milk diverted pursuant to this section. These percentages are subject to any adjustments that may be made pursuant to Sec. 1051.7(g). (4) Diverted milk shall be priced at the location of the plant to which diverted. (e) Producer milk shall not include milk of a producer that is subject to inclusion and participation in a marketwide equalization pool under a milk classification and pricing program imposed under the authority of a State government maintaining marketwide pooling of returns. (f) The quantity of milk reported by a handler pursuant to either Sec. 1051.30(a)(1) or (c)(1) for April through February may not exceed 125 percent, and for March may not exceed 135 percent, of the producer milk receipts pooled by the handler during the prior month. Milk diverted to nonpool plants reported in excess of this limit shall be removed from the pool. Milk in excess of this limit received at pool plants, other than pool distributing plants, shall be classified pursuant to Sec. 1000.44(a)(3)(v) and (b). The handler must designate, by producer pick-up, which milk is to be removed from the pool. If the handler fails to provide this information, the market administrator will make the determination. The following provisions apply: (1) Milk shipped to and physically received at pool distributing plants in excess of the previous month's pooled volume shall not be subject to the 125 or 135 percent limitation; (2) Producer milk qualified pursuant to Sec. _____.13 of any other Federal Order and continuously pooled in any [[Page 26553]] Federal Order for the previous six months shall not be included in the computation of the 125 or 135 percent limitation; (3) The market administrator may waive the 125 or 135 percent limitation: (i) For a new handler on the order, subject to the provisions of paragraph (f)(4) of this section; or (ii) For an existing handler with significantly changed milk supply conditions due to unusual circumstances; and (4) A bloc of milk may be considered ineligible for pooling if the market administrator determines that handlers altered the reporting of such milk for the purpose of evading the provisions of this paragraph (f). Sec. 1051.14 Other source milk. See Sec. 1000.14. Sec. 1051.15 Fluid milk product. See Sec. 1000.15. Sec. 1051.16 Fluid cream product. See Sec. 1000.16. Sec. 1051.17 [Reserved] Sec. 1051.18 Cooperative association. See Sec. 1000.18. Sec. 1051.19 Commercial food processing establishment. See Sec. 1000.19. Market Administrator, Continuing Obligations, and Handler Responsibilities Sec. 1051.25 Market administrator. See Sec. 1000.25. Sec. 1051.26 Continuity and separability of provisions. See Sec. 1000.26. Sec. 1051.27 Handler responsibility for records and facilities. See Sec. 1000.27. Sec. 1051.28 Termination of obligations. See Sec. 1000.28. Handler Reports Sec. 1051.30 Reports of receipts and utilization. Each handler shall report monthly so that the market administrator's office receives the report on or before the 9th day after the end of the month, in the detail and on the prescribed forms, as follows: (a) Each handler that operates a pool plant shall report for each of its operations the following information: (1) Product pounds, pounds of butterfat, pounds of protein, and pounds of solids-not-fat other than protein (other solids) contained in or represented by: (i) Receipts of producer milk, including producer milk diverted by the reporting handler, from sources other than handlers described in Sec. 1000.9(c); and (ii) Receipts of milk from handlers described in Sec. 1000.9(c); (2) Product pounds and pounds of butterfat contained in: (i) Receipts of fluid milk products and bulk fluid cream products from other pool plants; (ii) Receipts of other source milk; and (iii) Inventories at the beginning and end of the month of fluid milk products and bulk fluid cream products; (3) The utilization or disposition of all milk and milk products required to be reported pursuant to this paragraph (a); and (4) Such other information with respect to the receipts and utilization of skim milk, butterfat, milk protein, and other nonfat solids as the market administrator may prescribe. (b) Each handler operating a partially regulated distributing plant shall report with respect to such plant in the same manner as prescribed for reports required by paragraph (a) of this section. Receipts of milk that would have been producer milk if the plant had been fully regulated shall be reported in lieu of producer milk. The report shall show also the quantity of any reconstituted skim milk in route disposition in the marketing area. (c) Each handler described in Sec. 1000.9(c) shall report: (1) The product pounds, pounds of butterfat, pounds of protein, pounds of solids-not-fat other than protein (other solids) contained in receipts of milk from producers; and (2) The utilization or disposition of such receipts. (d) Each handler not specified in paragraphs (a) through (c) of this section shall report with respect to its receipts and utilization of milk and milk products in such manner as the market administrator may prescribe. Sec. 1051.31 Payroll reports. (a) On or before the 20th day after the end of each month, each handler that operates a pool plant pursuant to Sec. 1051.7 and each handler described in Sec. 1000.9(c) shall report to the market administrator its producer payroll for the month, in the detail prescribed by the market administrator, showing for each producer the information described in Sec. 1051.73(f). (b) Each handler operating a partially regulated distributing plant who elects to make payment pursuant to Sec. 1000.76(b) shall report for each dairy farmer who would have been a producer if the plant had been fully regulated in the same manner as prescribed for reports required by paragraph (a) of this section. Sec. 1051.32 Other reports. In addition to the reports required pursuant to Sec. Sec. 1051.30 and 1051.31, each handler shall report any information the market administrator deems necessary to verify or establish each handler's obligation under the order. Subpart B--Milk Pricing Classification of Milk Sec. 1051.40 Classes of utilization. See Sec. 1000.40. Sec. 1051.41 [Reserved] Sec. 1051.42 Classification of transfers and diversions. See Sec. 1000.42. Sec. 1051.43 General classification rules. See Sec. 1000.43. Sec. 1051.44 Classification of producer milk. See Sec. 1000.44. Sec. 1051.45 Market administrator's reports and announcements concerning classification. See Sec. 1000.45. Class Prices Sec. 1051.50 Class prices, component prices, and advanced pricing factors. See Sec. 1000.50. Sec. 1051.51 Class I differential and price. The Class I differential shall be the differential established for Los Angeles County, California, which is reported in Sec. 1000.52. The Class I price shall be the price computed pursuant to Sec. 1000.50(a) for Los Angeles County, California. Sec. 1051.52 Adjusted Class I differentials. See Sec. 1000.52. Sec. 1051.53 Announcement of class prices, component prices, and advanced pricing factors. See Sec. 1000.53. Sec. 1051.54 Equivalent price. See Sec. 1000.54. Producer Price Differential Sec. 1051.60 Handler's value of milk. For the purpose of computing a handler's obligation for producer milk, the market administrator shall determine for each month the value of milk of each handler with respect to each of the handler's pool plants and of [[Page 26554]] each handler described in Sec. 1000.9(c) with respect to milk that was not received at a pool plant by adding the amounts computed in paragraphs (a) through (h) of this section and subtracting from that total amount the values computed in paragraphs (i) and (j) of this section. Unless otherwise specified, the skim milk, butterfat, and the combined pounds of skim milk and butterfat referred to in this section shall result from the steps set forth in Sec. 1000.44(a), (b), and (c), respectively, and the nonfat components of producer milk in each class shall be based upon the proportion of such components in producer skim milk. Receipts of nonfluid milk products that are distributed as labeled reconstituted milk for which payments are made to the producer- settlement fund of another Federal order under Sec. 1000.76(a)(4) or (d) shall be excluded from pricing under this section. (a) Class I value. (1) Multiply the hundredweight of skim milk in Class I by the Class I skim milk price; and (2) Add an amount obtained by multiplying the pounds of butterfat in Class I by the Class I butterfat price; and (b) Class II value. (1) Multiply the pounds of nonfat solids in Class II skim milk by the Class II nonfat solids price; and (2) Add an amount obtained by multiplying the pounds of butterfat in Class II times the Class II butterfat price. (c) Class III value. (1) Multiply the pounds of protein in Class III skim milk by the protein price; (2) Add an amount obtained by multiplying the pounds of other solids in Class III skim milk by the other solids price; and (3) Add an amount obtained by multiplying the pounds of butterfat in Class III by the butterfat price. (d) Class IV value. (1) Multiply the pounds of nonfat solids in Class IV skim milk by the nonfat solids price; and (2) Add an amount obtained by multiplying the pounds of butterfat in Class IV by the butterfat price. (e) Classification of overage. Multiply the pounds of skim milk and butterfat overage assigned to each class pursuant to Sec. 1000.44(a)(11) and the corresponding step of Sec. 1000.44(b) by the skim milk prices and butterfat prices applicable to each class. (f) Reclassification of inventory. Multiply the difference between the current month's Class I, II, or III price, as the case may be, and the Class IV price for the preceding month and by the hundredweight of skim milk and butterfat subtracted from Class I, II, or III, respectively, pursuant to Sec. 1000.44(a)(7) and the corresponding step of Sec. 1000.44(b). (g) Class I calculation applicable to unregulated milk. Multiply the difference between the Class I price applicable at the location of the pool plant and the Class IV price by the hundredweight of skim milk and butterfat assigned to Class I pursuant to Sec. 1000.43(d) and the hundredweight of skim milk and butterfat subtracted from Class I pursuant to Sec. 1000.44(a)(3)(i) through (vi) and the corresponding step of Sec. 1000.44(b), excluding receipts of bulk fluid cream products from plants regulated under other Federal orders and bulk concentrated fluid milk products from pool plants, plants regulated under other Federal orders, and unregulated supply plants. (h) Class I calculation applicable to unregulated supply plant milk. Multiply the difference between the Class I price applicable at the location of the nearest unregulated supply plants from which an equivalent volume was received and the Class III price by the pounds of skim milk and butterfat in receipts of concentrated fluid milk products assigned to Class I pursuant to Sec. Sec. 1000.43(d) and 1000.44(a)(3)(i) and the corresponding step of Sec. 1000.44(b) and the pounds of skim milk and butterfat subtracted from Class I pursuant to Sec. 1000.44(a)(8) and the corresponding step of Sec. 1000.44(b), excluding such skim milk and butterfat in receipts of fluid milk products from an unregulated supply plant to the extent that an equivalent amount of skim milk or butterfat disposed of to such plant by handlers fully regulated under any Federal milk order is classified and priced as Class I milk and is not used as an offset for any other payment obligation under any order. (i) Calculation of nonfluid milk receipts for reconstitution. For reconstituted milk made from receipts of nonfluid milk products, multiply $1.00 (but not more than the difference between the Class I price applicable at the location of the pool plant and the Class IV price) by the hundredweight of skim milk and butterfat contained in receipts of nonfluid milk products that are allocated to Class I use pursuant to Sec. 1000.43(d). Sec. 1051.61 Computation of producer price differential. For each month the market administrator shall compute a producer price differential per hundredweight. The report of any handler who has not made payments required pursuant to Sec. 1051.71 for the preceding month shall not be included in the computation of the producer price differential, and such handler's report shall not be included in the computation for succeeding months until the handler has made full payment of outstanding monthly obligations. Subject to the conditions of this introductory text, the market administrator shall compute the producer price differential in the following manner: (a) Combine into one total the values computed pursuant to Sec. 1051.60 for all handlers required to file reports prescribed in Sec. 1051.30; (b) Subtract the total 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. 1051.60 by the protein price, other solids price, and the butterfat price, respectively; (c) Add an amount equal to the minus location adjustments and subtract an amount equal to the plus location adjustments computed pursuant to Sec. 1051.75; (d) Add an amount equal to not less than one-half of the unobligated balance in the producer-settlement fund; (e) Divide the resulting amount by the sum of the following for all handlers included in these computations: (1) The total hundredweight of producer milk; and (2) The total hundredweight for which a value is computed pursuant to Sec. 1051.60(i); and (f) Subtract not less than 4 cents nor more than 5 cents from the price computed pursuant to paragraph (e) of this section. The result shall be known as the producer price differential for the month. Sec. 1051.62 Announcement of producer prices. On or before the 14th day after the end of each month, the market administrator shall announce publicly the following prices and information: (a) The producer price differential; (b) The protein price; (c) The nonfat solids price; (d) The other solids price; (e) The butterfat price; (f) The average butterfat, nonfat solids, protein 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. Subpart C--Payments for Milk Producer Payments Sec. 1051.70 Producer-settlement fund. See Sec. 1000.70. [[Page 26555]] Sec. 1051.71 Payments to the producer-settlement fund. Each handler shall make payment to the producer-settlement fund in a manner that provides receipt of the funds by the market administrator no later than the 16th day after the end of the month (except as provided in Sec. 1000.90). Payment shall be the amount, if any, by which the amount specified in paragraph (a) of this section exceeds the amount specified in paragraph (b) of this section: (a) The total value of milk to the handler for the month as determined pursuant to Sec. 1051.60. (b) The sum of: (1) An amount obtained by multiplying the total hundredweight of producer milk as determined pursuant to Sec. 1000.44(c) by the producer price differential as adjusted pursuant to Sec. 1051.75; (2) An amount obtained by multiplying the total pounds of protein, other solids, and butterfat contained in producer milk by the protein, other solids, and butterfat prices respectively; and (3) An amount obtained by multiplying the pounds of skim milk and butterfat for which a value was computed pursuant to Sec. 1051.60(i) by the producer price differential as adjusted pursuant to Sec. 1051.75 for the location of the plant from which received. Sec. 1051.72 Payments from the producer-settlement fund. No later than the 18th day after the end of each month (except as provided in Sec. 1000.90), the market administrator shall pay to each handler the amount, if any, by which the amount computed pursuant to Sec. 1051.71(b) exceeds the amount computed pursuant to Sec. 1051.71(a). If, at such time, the balance in the producer-settlement fund is insufficient to make all payments pursuant to this section, the market administrator shall reduce uniformly such payments and shall complete the payments as soon as the funds are available. Sec. 1051.73 Payments to producers and to cooperative associations. (a) Handler payment responsibility. Each handler shall pay each producer for producer milk for which payment is not made to a cooperative association pursuant to paragraph (b) of this section, as follows: (1) Partial payment. For each producer who has not discontinued shipments as of the date of this partial payment, payment shall be made so that it is received by each producer on or before the last day of the month (except as provided in Sec. 1000.90) for milk received during the first 15 days of the month from the producer at not less than the lowest announced class price for the preceding month, less proper deductions authorized in writing by the producer. (2) Final payment. For milk received during the month, payment shall be made so that it is received by each producer no later than the 19th day after the end of the month (except as provided in Sec. 1000.90) in an amount not less than the sum of: (i) The hundredweight of producer milk received times the producer price differential for the month as adjusted pursuant to Sec. 1051.75; (ii) The pounds of butterfat received times the butterfat price for the month; (iii) The pounds of protein received times the protein price for the month; (iv) The pounds of other solids received times the other solids price for the month; (v) Less any payment made pursuant to paragraph (a)(1) of this section; (vi) Less proper deductions authorized in writing by such producer, and plus or minus adjustments for errors in previous payments to such producer subject to approval by the market administrator; (vii) Less deductions for marketing services pursuant to Sec. 1000.86; and (viii) Less deductions authorized by CDFA for the California Quota Program pursuant to Sec. 1051.11. (b) Payments for milk received from cooperative association members. On or before the day prior to the dates specified in paragraphs (a)(1) and (2) of this section (except as provided in Sec. 1000.90), each handler shall pay to a cooperative association for milk from producers who market their milk through the cooperative association and who have authorized the cooperative to collect such payments on their behalf an amount equal to the sum of the individual payments otherwise payable for such producer milk pursuant to paragraphs (a)(1) and (2) of this section. (c) Payment for milk received from cooperative association pool plants or from cooperatives as handlers pursuant to Sec. 1000.9(c). On or before the day prior to the dates specified in paragraphs (a)(1) and (2) of this section (except as provided in Sec. 1000.90), each handler who receives fluid milk products at its plant from a cooperative association in its capacity as the operator of a pool plant or who receives milk from a cooperative association in its capacity as a handler pursuant to Sec. 1000.9(c), including the milk of producers who are not members of such association and who the market administrator determines have authorized the cooperative association to collect payment for their milk, shall pay the cooperative for such milk as follows: (1) For bulk fluid milk products and bulk fluid cream products received from a cooperative association in its capacity as the operator of a pool plant and for milk received from a cooperative association in its capacity as a handler pursuant to Sec. 1000.9(c) during the first 15 days of the month, at not less than the lowest announced class prices per hundredweight for the preceding month; (2) For the total quantity of bulk fluid milk products and bulk fluid cream products received from a cooperative association in its capacity as the operator of a pool plant, at not less than the total value of such products received from the association's pool plants, as determined by multiplying the respective quantities assigned to each class under Sec. 1000.44, as follows: (i) The hundredweight of Class I skim milk times the Class I skim milk price for the month plus the pounds of Class I butterfat times the Class I butterfat price for the month. The Class I price to be used shall be that price effective at the location of the receiving plant; (ii) The pounds of nonfat solids in Class II skim milk by the Class II nonfat solids price; (iii) The pounds of butterfat in Class II times the Class II butterfat price; (iv) The pounds of nonfat solids in Class IV times the nonfat solids price; (v) The pounds of butterfat in Class III and Class IV milk times the butterfat price; (vi) The pounds of protein in Class III milk times the protein price; (vii) The pounds of other solids in Class III milk times the other solids price; and (viii) Add together the amounts computed in paragraphs (c)(2)(i) through (vii) of this section and from that sum deduct any payment made pursuant to paragraph (c)(1) of this section; and (3) For the total quantity of milk received during the month from a cooperative association in its capacity as a handler under Sec. 1000.9(c) as follows: (i) The hundredweight of producer milk received times the producer price differential as adjusted pursuant to Sec. 1051.75; (ii) The pounds of butterfat received times the butterfat price for the month; (iii) The pounds of protein received times the protein price for the month; (iv) The pounds of other solids received times the other solids price for the month; and [[Page 26556]] (v) Add together the amounts computed in paragraphs (c)(3)(i) through (v) of this section and from that sum deduct any payment made pursuant to paragraph (c)(1) of this section. (d) Handler underpayment proration. If a handler has not received full payment from the market administrator pursuant to Sec. 1051.72 by the payment date specified in paragraph (a), (b), or (c) of this section, the handler may reduce pro rata its payments to producers or to the cooperative association (with respect to receipts described in paragraph (b) of this section, prorating the underpayment to the volume of milk received from the cooperative association in proportion to the total milk received from producers by the handler), but not by more than the amount of the underpayment. The payments shall be completed on the next scheduled payment date after receipt of the balance due from the market administrator. (e) Payments to missing or deceased producers. 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 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. (f) Producer payment record. In making payments to producers pursuant to this section, each handler shall furnish each producer, except a producer whose milk was received from a cooperative association handler described in Sec. 1000.9(a) or (c), a supporting statement in a form that may be retained by the recipient which shall show: (1) The name, address, Grade A identifier assigned by a duly constituted regulatory agency, and payroll number of the producer; (2) The daily and total pounds, and the month and dates such milk was received from that producer; (3) The total pounds of butterfat, protein, and other solids contained in the producer's milk; (4) The minimum rate or rates at which payment to the producer is required pursuant to the order in this part; (5) The rate used in making payment if the rate is other than the applicable minimum rate; (6) The amount, or rate per hundredweight, or rate per pound of component, and the nature of each deduction claimed by the handler; and (7) The net amount of payment to the producer or cooperative association. Sec. 1051.74 [Reserved] Sec. 1051.75 Plant location adjustments for producer milk and nonpool milk. For purposes of making payments for producer milk and nonpool milk, a plant location adjustment shall be determined by subtracting the Class I price specified in Sec. 1051.51 from the Class I price at the plant's location. The difference, plus or minus as the case may be, shall be used to adjust the payments required pursuant to Sec. Sec. 1051.73 and 1000.76. Sec. 1051.76 Payments by a handler operating a partially regulated distributing plant. See Sec. 1000.76. Sec. 1051.77 Adjustment of accounts. See Sec. 1000.77. Sec. 1051.78 Charges on overdue accounts. See Sec. 1000.78. Administrative Assessment and Marketing Service Deduction Sec. 1051.85 Assessment for order administration. On or before the payment receipt date specified under Sec. 1051.71, each handler shall pay to the market administrator its pro rata share of the expense of administration of the order at a rate specified by the market administrator that is no more than 8 cents per hundredweight with respect to: (a) Receipts of producer milk (including the handler's own production) other than such receipts by a handler described in Sec. 1000.9(c) that were delivered to pool plants of other handlers; (b) Receipts from a handler described in Sec. 1000.9(c); (c) Receipts of concentrated fluid milk products from unregulated supply plants and receipts of nonfluid milk products assigned to Class I use pursuant to Sec. 1000.43(d) and other source milk allocated to Class I pursuant to Sec. 1000.44(a)(3) and (8) and the corresponding steps of Sec. 1000.44(b), except other source milk that is excluded from the computations pursuant to Sec. 1051.60(h) and (i); and (d) Route disposition in the marketing area from a partially regulated distributing plant that exceeds the skim milk and butterfat subtracted pursuant to Sec. 1000.76(a)(1)(i) and (ii). Sec. 1051.86 Deduction for marketing services. See Sec. 1000.86. Subpart D--Miscellaneous Provisions Sec. 1051.90 Dates. See Sec. 1000.90. Dated: June 4, 2018. Bruce Summers, Administrator, Agricultural Marketing Service. [FR Doc. 2018-12245 Filed 6-7-18; 8:45 am] BILLING CODE 3410-02-P
![26547
Rules and Regulations Federal Register
Vol. 83, No. 111
Friday, June 8, 2018
This section of the FEDERAL REGISTER proceeding and issues a marketing order on the petition. After a hearing, USDA
contains regulatory documents having general as defined in 7 CFR 900.2(j). would rule on the petition. The AMAA
applicability and legal effect, most of which Accordingly, this final rule adopts provides that the district court of the
are keyed to and codified in the Code of amendments detailed in the proposed United States in any district in which
Federal Regulations, which is published under rule (83 FR 14110), with one minor the handler is an inhabitant, or has its
50 titles pursuant to 44 U.S.C. 1510.
technical correction to paragraph principal place of business, has
The Code of Federal Regulations is sold by numbering in § 1051.73(c)(2). The jurisdiction in equity to review USDA’s
the Superintendent of Documents. proposed rule designated two ruling on the petition, provided a bill in
consecutive paragraphs in that section equity is filed not later than 20 days
as paragraph (c)(2)(vii). This final rule after the date of the entry of the ruling.
DEPARTMENT OF AGRICULTURE corrects the proposed rule by Regulatory Flexibility Act and
redesignating the second paragraph as Paperwork Reduction Act
Agricultural Marketing Service paragraph (c)(2)(viii).
This rule is effective with publication Pursuant to the requirements set forth
7 CFR Part 1051 of the Announcement of Advanced in the Regulatory Flexibility Act (RFA)
[Doc. No. AO–15–0071; AMS–DA–14–0095] Prices and Pricing Factors on October (5 U.S.C. 601–612), the Agricultural
17, 2018 (see § 1051.53). Affected Marketing Service (AMS) considered the
Milk in California; Federal Milk parties must comply with all provisions economic impact of this action on small
Marketing Order Promulgation of this rule beginning November 1, entities. Accordingly, AMS prepared
2018. this final regulatory flexibility analysis.
AGENCY: Agricultural Marketing Service, The purpose of the RFA is to fit
USDA. This administrative action is governed
regulatory actions to the scale of
by the provisions of Sections 556 and
ACTION: Final rule. businesses subject to such actions so
557 of Title 5 of the United States Code
that small businesses will not be unduly
SUMMARY: This final rule establishes a and is therefore excluded from the
or disproportionately burdened. Small
Federal Milk Marketing Order (FMMO) requirements of Executive Order 12866.
dairy farm businesses have been defined
regulating the handling of milk in This final rule is not considered an
by the Small Business Administration
California. This final rule issues a Executive Order 13771 regulatory action
(SBA) (13 CFR 121.601) as those
marketing order incorporating the entire because it does not meet the definition
businesses having annual gross receipts
state of California and adopts the same of a ‘‘regulation’’ or ‘‘rule’’ under
of less than $750,000. The SBA’s
dairy product classification and pricing Executive Order 12866.
definition of small agricultural service
provisions used throughout the current The amendments adopted in this final firms, which includes handlers that will
FMMO system. The California FMMO rule have been reviewed under be regulated under this marketing order,
provides for the recognition of producer Executive Order 12988, Civil Justice varies depending on the product
quota as administered by the California Reform. This rule is not intended to manufactured. Small fluid milk and ice
Department of Food and Agriculture. have retroactive effect and will not cream manufacturers are defined as
More than the required number of preempt any state or local law, having 1,000 or fewer employees. Small
producers for the California marketing regulations, or policies, unless they butter and dry or condensed dairy
area have approved the issuance of the present an irreconcilable conflict with product manufacturers are defined as
order. This final rule also announces this rule. having 750 or fewer employees. Small
AMS’s intention to merge the AMS is committed to complying with cheese manufacturers are defined as
information collection forms used to the E-Government Act to promote the having 1,250 or fewer employees.
conduct the producer referendum with use of the internet and other For the purpose of determining which
the reporting forms used in the other information technologies, to provide California dairy farms are ‘‘small
dairy marketing orders. increased opportunities for citizen businesses,’’ the $750,000 per year
access to Government information and criterion was used to establish a
DATES:
services, and for other purposes. production guideline that equates to
Effective Date: This rule is effective
The Agricultural Marketing approximately 315,000 pounds of milk
October 17, 2018.
Applicability Date: All provisions of Agreement Act of 1937 (AMAA), as per month. Although this guideline does
this rule apply to affected parties as of amended (7 U.S.C. 601–674 and 7253), not factor in additional monies that may
November 1, 2018. provides that administrative be received by dairy farmers, it is a
proceedings must be exhausted before standard encompassing most small
FOR FURTHER INFORMATION CONTACT: Erin
parties may file suit in court. Under dairy farms. For the purpose of
C. Taylor, Order Formulation and section 608c(15)(A) of the AMAA, any determining a handler’s size, if the plant
Enforcement Division, USDA/AMS/ handler subject to a marketing order is part of a larger company operating
Dairy Program, STOP 0231–Room 2963, may request modification or exemption multiple plants that collectively exceed
1400 Independence Ave. SW, from such order by filing with the U.S. the employee limit for that type of
amozie on DSK3GDR082PROD with RULES
Washington, DC 20250–0231, (202) 720– Department of Agriculture (USDA) a manufacturing, the plant is considered a
7183, email address: erin.taylor@ petition stating that the order, any large business even if the local plant has
ams.usda.gov. provision of the order, or any obligation fewer than the defined number of
SUPPLEMENTARY INFORMATION: This rule, imposed in connection with the order is employees.
in accordance with 7 CFR 900.14(c), is not in accordance with law. A handler Interested persons were invited to
the Secretary’s final rule in this is afforded the opportunity for a hearing present evidence at the hearing on the
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1051.10 Producer-handler. Subpart D—Miscellaneous Provisions disposition and transfers must be to
1051.11 California quota program. 1051.90 Dates. outlets in the marketing area.
1051.12 Producer. (b) Any distributing plant located in
1051.13 Producer milk. Authority: 7 U.S.C. 601–674, and 7253.
the marketing area which during the
1051.14 Other source milk.
Subpart A—Order Regulating Handling month processed at least 25 percent of
1051.15 Fluid milk product.
1051.16 Fluid cream product. the total quantity of fluid milk products
1051.17 [Reserved]. General Provisions physically received at the plant
1051.18 Cooperative association. (excluding concentrated milk received
§ 1051.1 General provisions.
1051.19 Commercial food processing from another plant by agreement for
establishment. The terms, definitions, and provisions other than Class I use) into ultra-
in part 1000 of this chapter apply to this pasteurized or aseptically-processed
Market Administrator, Continuing part unless otherwise specified. In this
Obligations, and Handler Responsibilities fluid milk products.
part, all references to sections in part (c) A supply plant from which the
1051.25 Market administrator. 1000 refer to part 1000 of this chapter.
1051.26 Continuity and separability of
quantity of bulk fluid milk products
provisions. Definitions shipped to (and physically unloaded
1051.27 Handler responsibility for records into) plants described in paragraph
and facilities. § 1051.2 California marketing area. (c)(1) of this section is not less than 10
1051.28 Termination of obligations. The marketing area means all territory percent of the Grade A milk received
Handler Reports within the bounds of the following from dairy farmers (except dairy farmers
states and political subdivisions, described in § 1051.12(b)) and handlers
1051.30 Reports of receipts and utilization.
1051.31 Payroll reports.
including all piers, docks, and wharves described in § 1000.9(c), including milk
1051.32 Other reports. connected therewith and all craft diverted pursuant to § 1051.13, subject
moored thereat, and all territory to the following conditions:
Subpart B—Milk Pricing occupied by government (municipal, (1) Qualifying shipments may be
Classification of Milk State, or Federal) reservations, made to plants described in paragraphs
1051.40 Classes of utilization. installations, institutions, or other (c)(1)(i) through (iv) of this section,
1051.41 [Reserved]. similar establishments if any part except that whenever shipping
1051.42 Classification of transfers and thereof is within any of the listed states requirements are increased pursuant to
diversions. or political subdivisions: paragraph (g) of this section, only
1051.43 General classification rules. shipments to pool plants described in
1051.44 Classification of producer milk. California paragraphs (a), (b), and (d) of this
1051.45 Market administrator’s reports All of the State of California. section shall count as qualifying
and announcements concerning shipments for the purpose of meeting
classification. § 1051.3 Route disposition.
the increased shipments:
Class Prices See § 1000.3. (i) Pool plants described in
1051.50 Class prices, component prices, § 1051.4 Plant. paragraphs (a), (b), and (d) of this
and advanced pricing factors. section;
See § 1000.4.
1051.51 Class I differential and price. (ii) Plants of producer-handlers;
1051.52 Adjusted Class I differentials. § 1051.5 Distributing plant. (iii) Partially regulated distributing
1051.53 Announcement of class prices, plants, except that credit for such
component prices, and advanced pricing
See § 1000.5.
shipments shall be limited to the
factors. § 1051.6 Supply plant. amount of such milk classified as Class
1051.54 Equivalent price.
See § 1000.6. I at the transferee plant; and
Producer Price Differential (iv) Distributing plants fully regulated
§ 1051.7 Pool plant. under other Federal orders, except that
1051.60 Handler’s value of milk.
1051.61 Computation of producer price Pool plant means a plant, unit of credit for shipments to such plants shall
differential. plants, or system of plants as specified be limited to the quantity shipped to
1051.62 Announcement of producer prices. in paragraphs (a) through (f) of this (and physically unloaded into) pool
Subpart C—Payments for Milk section, but excluding a plant specified distributing plants during the month
in paragraph (h) of this section. The and credits for shipments to other order
Producer Payments pooling standards described in plants shall not include any such
1051.70 Producer-settlement fund. paragraphs (c) and (f) of this section are shipments made on the basis of agreed-
1051.71 Payments to the producer- subject to modification pursuant to upon Class II, Class III, or Class IV
settlement fund. paragraph (g) of this section: utilization.
1051.72 Payments from the producer- (a) A distributing plant, other than a (2) Concentrated milk transferred
settlement fund.
plant qualified as a pool plant pursuant from the supply plant to a distributing
1051.73 Payments to producers and to
cooperative associations. to paragraph (b) of this section or plant for an agreed-upon use other than
1051.74 [Reserved]. § lllll.7(b) of any other Federal Class I shall be excluded from the
1051.75 Plant location adjustments for milk order, from which during the supply plant’s shipments in computing
producer milk and nonpool milk. month 25 percent or more of the total the supply plant’s shipping percentage.
1051.76 Payments by a handler operating a quantity of fluid milk products (d) Two or more plants operated by
partially regulated distributing plant. physically received at the plant the same handler and located in the
1051.77 Adjustment of accounts. (excluding concentrated milk received marketing area may qualify for pool
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1051.78 Charges on overdue accounts. from another plant by agreement for status as a unit by meeting the total and
Administrative Assessment and Marketing other than Class I use) are disposed of in-area route disposition requirements
Service Deduction as route disposition or are transferred in of a pool distributing plant specified in
1051.85 Assessment for order the form of packaged fluid milk paragraph (a) of this section and subject
administration. products to other distributing plants. At to the following additional
1051.86 Deduction for marketing services. least 25 percent of such route requirements:
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(1) At least one of the plants in the be reorganized to reflect such changes if such a finding, the market administrator
unit must qualify as a pool plant a written request to file a new marketing shall investigate the need for adjustment
pursuant to paragraph (a) of this section; agreement is submitted to the market either on the market administrator’s
(2) Other plants in the unit must administrator; and own initiative or at the request of
process Class I or Class II products, (3) If a system fails to qualify under interested parties if the request is made
using 50 percent or more of the total the requirements of this paragraph (e), in writing at least 15 days prior to the
Grade A fluid milk products received in the handler responsible for qualifying month for which the requested revision
bulk form at such plant or diverted the system shall notify the market is desired effective. If the investigation
therefrom by the plant operator in Class administrator which plant or plants will shows that an adjustment of the
I or Class II products; and be deleted from the system so that the shipping percentages might be
(3) The operator of the unit has filed remaining plants may be pooled as a appropriate, the market administrator
a written request with the market system. If the handler fails to do so, the shall issue a notice stating that an
administrator prior to the first day of the market administrator shall exclude one adjustment is being considered and
month for which such status is desired or more plants, beginning at the bottom invite data, views, and arguments. Any
to be effective. The unit shall continue of the list of plants in the system and decision to revise an applicable
from month-to-month thereafter without continuing up the list as necessary until shipping or diversion percentage must
further notification. The handler shall the deliveries are sufficient to qualify be issued in writing at least one day
notify the market administrator in the remaining plants in the system. before the effective date.
writing prior to the first day of any (f) Any distributing plant, located (h) The term pool plant shall not
month for which termination or any within the marketing area as described apply to the following plants:
change of the unit is desired. in § 1051.2: (1) A producer-handler as defined
(e) A system of two or more supply (1) From which there is route under any Federal order;
plants operated by one or more handlers disposition and/or transfers of packaged (2) An exempt plant as defined in
may qualify for pooling by meeting the fluid milk products in any non-federally § 1000.8(e);
shipping requirements of paragraph (c) regulated marketing area(s) located (3) A plant located within the
of this section in the same manner as a within one or more States that require marketing area and qualified pursuant
single plant subject to the following handlers to pay minimum prices for raw to paragraph (a) of this section which
additional requirements: milk, provided that 25 percent or more meets the pooling requirements of
(1) Each plant in the system is located of the total quantity of fluid milk another Federal order, and from which
within the marketing area. Cooperative products physically received at such more than 50 percent of its route
associations or other handlers may not plant (excluding concentrated milk disposition has been in the other
use shipments pursuant to § 1000.9(c) to received from another plant by Federal order marketing area for 3
qualify supply plants located outside agreement for other than Class I use) is consecutive months;
the marketing area; disposed of as route disposition and/or (4) A plant located outside any
(2) The handler(s) establishing the is transferred in the form of packaged Federal order marketing area and
system submits a written request to the fluid milk products to other plants. At qualified pursuant to paragraph (a) of
market administrator on or before July least 25 percent of such route this section that meets the pooling
15 requesting that such plants qualify as disposition and/or transfers, in requirements of another Federal order
a system for the period of August aggregate, are in any non-federally and has had greater route disposition in
through July of the following year. Such regulated marketing area(s) located such other Federal order’s marketing
request will contain a list of the plants within one or more States that require area for 3 consecutive months;
participating in the system in the order, handlers to pay minimum prices for raw (5) A plant located in another Federal
beginning with the last plant, in which milk. Subject to the following order marketing area and qualified
the plants will be dropped from the pursuant to paragraph (a) of this section
exclusions:
system if the system fails to qualify. (i) The plant is described in paragraph that meets the pooling requirements of
Each plant that qualifies as a pool plant (a), (b), or (e) of this section; such other Federal order and does not
within a system shall continue each (ii) The plant is subject to the pricing have a majority of its route disposition
month as a plant in the system through provisions of a State-operated milk in this marketing area for 3 consecutive
the following July unless the handler(s) pricing plan which provides for the months, or if the plant is required to be
establishing the system submits a payment of minimum class prices for regulated under such other Federal
written request to the market raw milk; order without regard to its route
administrator that the plant be deleted (iii) The plant is described in disposition in any other Federal order
from the system or that the system be § 1000.8(a) or (e); or marketing area;
discontinued. Any plant that has been (iv) A producer-handler described in (6) A plant qualified pursuant to
so deleted from a system, or that has § 1051.10 with less than three million paragraph (c) of this section which also
failed to qualify in any month, will not pounds during the month of route meets the pooling requirements of
be part of any system for the remaining disposition and/or transfers of packaged another Federal order and from which
months through July. The handler(s) fluid milk products to other plants. greater qualifying shipments are made
that have established a system may add (2) [Reserved] to plants regulated under the other
a plant operated by such handler(s) to (g) The applicable shipping Federal order than are made to plants
a system if such plant has been a pool percentages of paragraphs (c) and (e) of regulated under the order in this part, or
plant each of the 6 prior months and this section and § 1051.13(d)(2) and (3) the plant has automatic pooling status
would otherwise be eligible to be in a may be increased or decreased, for all or under the other Federal order; and
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system, upon written request to the part of the marketing area, by the market (7) That portion of a regulated plant
market administrator no later than the administrator if the market designated as a nonpool plant that is
15th day of the prior month. In the administrator finds that such physically separate and operated
event of an ownership change or the adjustment is necessary to encourage separately from the pool portion of such
business failure of a handler who is a needed shipments or to prevent plant. The designation of a portion of a
participant in a system, the system may uneconomic shipments. Before making regulated plant as a nonpool plant must
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Federal Order for the previous six (other solids) contained in or § 1000.76(b) shall report for each dairy
months shall not be included in the represented by: farmer who would have been a producer
computation of the 125 or 135 percent (i) Receipts of producer milk, if the plant had been fully regulated in
limitation; including producer milk diverted by the the same manner as prescribed for
(3) The market administrator may reporting handler, from sources other reports required by paragraph (a) of this
waive the 125 or 135 percent limitation: than handlers described in § 1000.9(c); section.
(i) For a new handler on the order, and
subject to the provisions of paragraph (ii) Receipts of milk from handlers § 1051.32 Other reports.
(f)(4) of this section; or described in § 1000.9(c); In addition to the reports required
(ii) For an existing handler with (2) Product pounds and pounds of pursuant to §§ 1051.30 and 1051.31,
significantly changed milk supply butterfat contained in: each handler shall report any
conditions due to unusual (i) Receipts of fluid milk products and information the market administrator
circumstances; and bulk fluid cream products from other deems necessary to verify or establish
(4) A bloc of milk may be considered pool plants; each handler’s obligation under the
ineligible for pooling if the market (ii) Receipts of other source milk; and order.
administrator determines that handlers (iii) Inventories at the beginning and
end of the month of fluid milk products Subpart B—Milk Pricing
altered the reporting of such milk for the
purpose of evading the provisions of and bulk fluid cream products; Classification of Milk
this paragraph (f). (3) The utilization or disposition of all
milk and milk products required to be § 1051.40 Classes of utilization.
§ 1051.14 Other source milk. reported pursuant to this paragraph (a); See § 1000.40.
See § 1000.14. and
(4) Such other information with § 1051.41 [Reserved]
§ 1051.15 Fluid milk product. respect to the receipts and utilization of § 1051.42 Classification of transfers and
See § 1000.15. skim milk, butterfat, milk protein, and diversions.
other nonfat solids as the market See § 1000.42.
§ 1051.16 Fluid cream product.
administrator may prescribe.
See § 1000.16. (b) Each handler operating a partially § 1051.43 General classification rules.
§ 1051.17 [Reserved] regulated distributing plant shall report See § 1000.43.
with respect to such plant in the same
§ 1051.18 Cooperative association. manner as prescribed for reports § 1051.44 Classification of producer milk.
See § 1000.18. required by paragraph (a) of this section. See § 1000.44.
Receipts of milk that would have been
§ 1051.19 Commercial food processing § 1051.45 Market administrator’s reports
producer milk if the plant had been and announcements concerning
establishment. fully regulated shall be reported in lieu classification.
See § 1000.19. of producer milk. The report shall show See § 1000.45.
Market Administrator, Continuing also the quantity of any reconstituted
Obligations, and Handler skim milk in route disposition in the Class Prices
Responsibilities marketing area.
§ 1051.50 Class prices, component prices,
(c) Each handler described in
and advanced pricing factors.
§ 1051.25 Market administrator. § 1000.9(c) shall report:
(1) The product pounds, pounds of See § 1000.50.
See § 1000.25.
butterfat, pounds of protein, pounds of § 1051.51 Class I differential and price.
§ 1051.26 Continuity and separability of solids-not-fat other than protein (other
provisions. The Class I differential shall be the
solids) contained in receipts of milk differential established for Los Angeles
See § 1000.26. from producers; and County, California, which is reported in
(2) The utilization or disposition of § 1000.52. The Class I price shall be the
§ 1051.27 Handler responsibility for
such receipts. price computed pursuant to § 1000.50(a)
records and facilities.
(d) Each handler not specified in
See § 1000.27. for Los Angeles County, California.
paragraphs (a) through (c) of this section
§ 1051.28 Termination of obligations. shall report with respect to its receipts § 1051.52 Adjusted Class I differentials.
and utilization of milk and milk See § 1000.52.
See § 1000.28.
products in such manner as the market
Handler Reports administrator may prescribe. § 1051.53 Announcement of class prices,
component prices, and advanced pricing
§ 1051.30 Reports of receipts and § 1051.31 Payroll reports. factors.
utilization. (a) On or before the 20th day after the See § 1000.53.
Each handler shall report monthly so end of each month, each handler that
that the market administrator’s office § 1051.54 Equivalent price.
operates a pool plant pursuant to
receives the report on or before the 9th § 1051.7 and each handler described in See § 1000.54.
day after the end of the month, in the § 1000.9(c) shall report to the market Producer Price Differential
detail and on the prescribed forms, as administrator its producer payroll for
follows: the month, in the detail prescribed by § 1051.60 Handler’s value of milk.
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(a) Each handler that operates a pool the market administrator, showing for For the purpose of computing a
plant shall report for each of its each producer the information handler’s obligation for producer milk,
operations the following information: described in § 1051.73(f). the market administrator shall
(1) Product pounds, pounds of (b) Each handler operating a partially determine for each month the value of
butterfat, pounds of protein, and pounds regulated distributing plant who elects milk of each handler with respect to
of solids-not-fat other than protein to make payment pursuant to each of the handler’s pool plants and of
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![26556 Federal Register / Vol. 83, No. 111 / Friday, June 8, 2018 / Rules and Regulations
(v) Add together the amounts (5) The rate used in making payment milk and butterfat subtracted pursuant
computed in paragraphs (c)(3)(i) if the rate is other than the applicable to § 1000.76(a)(1)(i) and (ii).
through (v) of this section and from that minimum rate;
sum deduct any payment made (6) The amount, or rate per § 1051.86 Deduction for marketing
services.
pursuant to paragraph (c)(1) of this hundredweight, or rate per pound of
section. component, and the nature of each See § 1000.86.
(d) Handler underpayment proration. deduction claimed by the handler; and
(7) The net amount of payment to the Subpart D—Miscellaneous Provisions
If a handler has not received full
payment from the market administrator producer or cooperative association. § 1051.90 Dates.
pursuant to § 1051.72 by the payment See § 1000.90.
§ 1051.74 [Reserved]
date specified in paragraph (a), (b), or (c)
Dated: June 4, 2018.
of this section, the handler may reduce § 1051.75 Plant location adjustments for
pro rata its payments to producers or to producer milk and nonpool milk. Bruce Summers,
the cooperative association (with For purposes of making payments for Administrator, Agricultural Marketing
respect to receipts described in Service.
producer milk and nonpool milk, a
paragraph (b) of this section, prorating plant location adjustment shall be [FR Doc. 2018–12245 Filed 6–7–18; 8:45 am]
the underpayment to the volume of milk determined by subtracting the Class I BILLING CODE 3410–02–P
received from the cooperative price specified in § 1051.51 from the
association in proportion to the total Class I price at the plant’s location. The
milk received from producers by the difference, plus or minus as the case DEPARTMENT OF TRANSPORTATION
handler), but not by more than the may be, shall be used to adjust the
amount of the underpayment. The payments required pursuant to Federal Aviation Administration
payments shall be completed on the §§ 1051.73 and 1000.76.
next scheduled payment date after 14 CFR Part 39
receipt of the balance due from the § 1051.76 Payments by a handler
[Docket No. FAA–2018–0074; Product
market administrator. operating a partially regulated distributing
Identifier 2017–NM–148–AD; Amendment
plant.
(e) Payments to missing or deceased 39–19309; AD 2018–12–05]
producers. If a handler claims that a See § 1000.76.
RIN 2120–AA64
required payment to a producer cannot § 1051.77 Adjustment of accounts.
be made because the producer is See § 1000.77. Airworthiness Directives; the Boeing
deceased or cannot be located, or Company Airplanes
because the cooperative association or § 1051.78 Charges on overdue accounts.
its lawful successor or assignee is no See § 1000.78. AGENCY: Federal Aviation
longer in existence, the payment shall Administration (FAA), DOT.
be made to the producer-settlement Administrative Assessment and ACTION: Final rule.
fund, and in the event that the handler Marketing Service Deduction
subsequently locates and pays the SUMMARY: We are adopting a new
§ 1051.85 Assessment for order
producer or a lawful claimant, or in the administration.
airworthiness directive (AD) for all The
event that the handler no longer exists Boeing Company Model 737–100, –200,
On or before the payment receipt date –200C, –300, –400, and –500 series
and a lawful claim is later established, specified under § 1051.71, each handler
the market administrator shall make the airplanes. This AD was prompted by
shall pay to the market administrator its reports of cracks found in the rear spar
required payment from the producer- pro rata share of the expense of
settlement fund to the handler or to the web and lower chord on the left and
administration of the order at a rate right wings. This AD requires repetitive
lawful claimant, as the case may be. specified by the market administrator
(f) Producer payment record. In detailed inspections for cracking of the
that is no more than 8 cents per rear spar web and lower chord, and
making payments to producers pursuant hundredweight with respect to:
to this section, each handler shall applicable on-condition actions. We are
(a) Receipts of producer milk
furnish each producer, except a issuing this AD to address the unsafe
(including the handler’s own
producer whose milk was received from condition on these products.
production) other than such receipts by
a cooperative association handler a handler described in § 1000.9(c) that DATES: This AD is effective July 13,
described in § 1000.9(a) or (c), a were delivered to pool plants of other 2018.
supporting statement in a form that may handlers; The Director of the Federal Register
be retained by the recipient which shall (b) Receipts from a handler described approved the incorporation by reference
show: in § 1000.9(c); of a certain publication listed in this AD
(1) The name, address, Grade A (c) Receipts of concentrated fluid milk as of July 13, 2018.
identifier assigned by a duly constituted products from unregulated supply ADDRESSES: For service information
regulatory agency, and payroll number plants and receipts of nonfluid milk identified in this final rule, contact
of the producer; products assigned to Class I use Boeing Commercial Airplanes,
(2) The daily and total pounds, and pursuant to § 1000.43(d) and other Attention: Contractual & Data Services
the month and dates such milk was source milk allocated to Class I pursuant (C&DS), 2600 Westminster Blvd., MC
received from that producer; to § 1000.44(a)(3) and (8) and the 110–SK57, Seal Beach, CA 90740–5600;
(3) The total pounds of butterfat, corresponding steps of § 1000.44(b), telephone 562–797–1717; internet
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protein, and other solids contained in except other source milk that is https://www.myboeingfleet.com. You
the producer’s milk; excluded from the computations may view this service information at the
(4) The minimum rate or rates at pursuant to § 1051.60(h) and (i); and FAA, Transport Standards Branch, 2200
which payment to the producer is (d) Route disposition in the marketing South 216th St., Des Moines, WA. For
required pursuant to the order in this area from a partially regulated information on the availability of this
part; distributing plant that exceeds the skim material at the FAA, call 206–231–3195.
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Document Created: 2018-06-08 01:22:58
Document Modified: 2018-06-08 01:22:58
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
| Publisher | Office of the Federal Register, National Archives and Records Administration | |
| Section | Rules and Regulations | |
| Action | Final rule. | |
| Dates | Effective Date: This rule is effective October 17, 2018. | |
| 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 | |
| FR Citation | 83 FR 26547 |
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