[Federal Register Volume 61, Number 155 (Friday, August 9, 1996)]
[Rules and Regulations]
[Pages 41488-41496]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-20203]
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DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Parts 1005, 1007, 1011, and 1046
[Docket No. AO-388-A9, et al.; DA-96-08]
Milk in the Carolina and Certain Other Marketing Areas; Interim
Amendment of Orders
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7 CFR part Marketing area Docket No.
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1005............... Carolina................ AO-388-A9.
1007............... Southeast............... AO-366-A38.
1011............... Tennessee Valley........ AO-251-A40.
1046............... Louisville-Lexington- AO-123-A67.
Evansville.
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AGENCY: Agricultural Marketing Service, USDA.
ACTION: Interim amendment of rules.
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SUMMARY: This interim rule amends, on an emergency basis, four Federal
milk orders in the Southeastern United States. The amendments establish
a transportation credit balancing fund from which to reimburse handlers
for the cost of importing bulk milk into these markets for fluid use
when local supplies are insufficient to meet fluid needs. The
amendments also establish a monthly assessment to maintain the solvency
of the fund and a methodology for computation of the transportation
credits. The rules are based upon proposals that were considered at a
public hearing held May 15-16, 1996, in
[[Page 41489]]
Charlotte, North Carolina. More than the required two-thirds of the
producers in each of the affected marketing areas have approved the
issuance of the interim amendments.
EFFECTIVE DATE: August 10, 1996.
FOR FURTHER INFORMATION CONTACT: Nicholas Memoli, Marketing Specialist,
USDA/AMS/Dairy Division, Order Formulation Branch, Room 2971, South
Building, P. O. Box 96456, Washington, DC 20090-6456, (202) 690-1932.
SUPPLEMENTARY INFORMATION: This administrative rule is governed by the
provisions of Sections 556 and 557 of Title 5 of the United States Code
and, therefore, is excluded from the requirements of Executive Order
12866.
The Regulatory Flexibility Act (5 U.S.C. 601-612) requires the
agency to examine the impact of a rule on small entities. Pursuant to 5
U.S.C. 605(b), the Agricultural Marketing Service has determined that
this rule will not have a significant economic impact on a substantial
number of small entities. No new entities will be regulated as a result
of the proposed rules, and any changes experienced by handlers will be
of a minor nature.
The amended orders will promote orderly marketing of milk by
producers and regulated handlers by providing transportation credits to
assist them in bringing supplemental milk to the market for fluid use.
There will be a modest assessment on handlers to provide funds for the
proposed new transportation credits, but this assessment will not
exceed 6 cents per hundredweight of Class I producer milk. The
assessment will be reduced or waived completely once the balance in the
transportation credit balancing fund is sufficient to cover six months'
credits. The 6-cent per hundredweight assessment translates to less
than one-half cent per gallon of milk.
At present, all handlers regulated under the four milk orders
involved in this proceeding file a monthly report of receipts and
utilization with the market administrator. The amendments resulting
from this proceeding will add two lines of information to this report.
However, only those handlers applying for transportation credits on
supplemental milk will have to provide this additional information to
the market administrator. The estimated time to collect, aggregate, and
report this information, which is already compiled by handlers for
other uses, is less than 15 minutes per month.
The net impact of the amendments on dairy farmers should be
insignificant. Some dairy farmers may experience a reduction in their
blend price during the first year that the new rules are in effect.
This reduction, which should amount to less than 5 cents per
hundredweight, will occur if the balance in the transportation credit
balancing fund is insufficient to cover the current month's
transportation credits. Once the fund has been fully endowed, dairy
farmers should experience no reduction in the uniform price as a result
of transportation credits.
This interim amendment has been reviewed under Executive Order
12988, Civil Justice Reform. This rule is not intended to have a
retroactive effect. This rule will not preempt any state or local laws,
regulations, or policies, unless they present an irreconcilable
conflict with the rule.
The Agricultural Marketing Agreement Act of 1937, as amended (7
U.S.C. 601-674), provides that administrative proceedings must be
exhausted before parties may file suit in court. Under section
608c(15)(A) of the Act, any handler subject to an order may file with
the Secretary a petition stating that the order, any provision of the
order, or any obligation imposed in connection with the order is not in
accordance with the law and requesting a modification of an order or to
be exempted from the order. A handler is afforded the opportunity for a
hearing on the petition. After a hearing, the Secretary would rule on
the petition. The Act provides that the District Court of the United
States in any district in which the handler is an inhabitant, or has
its principal place of business, has jurisdiction in equity to review
the Secretary'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.
Prior Documents in This Proceeding
Notice of Hearing: Issued May 1, 1996; published May 3, 1996 (61 FR
19861).
Tentative Partial Final Decision: Issued July 12, 1996; published
July 18, 1996 (61 FR 37628).
Findings and Determinations
The findings and determinations hereinafter set forth supplement
those that were made when the aforesaid orders were first issued and
when they were amended. The previous findings and determinations are
hereby ratified and confirmed, except where they may conflict with
those set forth herein.
The following findings are hereby made with respect to the
aforesaid orders:
(a) Findings upon the basis of the hearing record. Pursuant to the
provisions of the Agricultural Marketing Agreement Act of 1937, as
amended (7 U.S.C. 601-674), and the applicable rules of practice and
procedure governing the formulation of marketing agreements and
marketing orders (7 CFR Part 900), a public hearing was held upon
certain proposed amendments to the tentative marketing agreements and
to the orders regulating the handling of milk in the respective
marketing areas.
Upon the basis of the evidence introduced at such hearing and the
record thereof it is found that:
(1) The said orders, as hereby amended on an interim basis, and all
of the terms and conditions thereof, will tend to effectuate the
declared policy of the Act;
(2) The parity prices of milk, as determined pursuant to section 2
of the Act, are not reasonable in view of the price of feeds, available
supplies of feeds, and other economic conditions which affect market
supply and demand for milk in the marketing areas, and the minimum
prices specified in the orders, as hereby amended, are such prices as
will reflect the aforesaid factors, insure a sufficient quantity of
pure and wholesome milk, and be in the public interest; and
(3) The said orders, as hereby amended on an interim basis,
regulate the handling of milk in the same manner as, and are applicable
only to persons in the respective classes of industrial and commercial
activity specified in, marketing agreements upon which a hearing has
been held.
(b) Additional Findings. It is necessary in the public interest to
make these interim amendments to the Carolina, Southeast, Tennessee
Valley, and Louisville-Lexington-Evansville orders effective one day
after publication of this document in the Federal Register. Any delay
beyond that date would tend to disrupt the orderly marketing of milk in
the aforesaid marketing areas.
The interim amendments to these orders are known to handlers. The
tentative partial decision containing the proposed amendments to these
orders was issued on July 12, 1996.
The changes that result from these interim amendments will not
require extensive preparation or substantial alteration in the method
of operation for handlers. In view of the foregoing, it is hereby found
and determined that good cause exists for making these order amendments
effective one day after publication in the Federal Register. It would
be contrary to the public interest to delay the effective date of these
amendments for 30 days after their publication in the Federal Register.
[[Page 41490]]
(Sec. 553(d), Administrative Procedure Act, 5 U.S.C. 551-559.)
(c) Determinations. It is hereby determined that:
(1) The refusal or failure of handlers (excluding cooperative
associations specified in Sec. 8c(9) of the Act) of more than 50
percent of the milk, which is marketed within each of the specified
marketing areas, to sign a proposed marketing agreement, tends to
prevent the effectuation of the declared policy of the Act;
(2) The issuance of this interim order amending the said orders is
the only practical means pursuant to the declared policy of the Act of
advancing the interests of producers as defined in each of the
respective orders as hereby amended; and
(3) The issuance of the interim order amending the aforesaid orders
is favored by at least two-thirds of the producers who were engaged in
the production of milk for sale in the respective marketing areas.
List of Subjects in 7 CFR Parts 1005, 1007, 1011, and 1046
Milk marketing orders.
Order Relative to Handling
It is therefore ordered, that on and after the effective date
hereof, the handling of milk in the specified marketing areas shall be
in conformity to and in compliance with the terms and conditions of the
orders, as amended, and as hereby further amended on an interim basis,
as follows:
The authority citation for 7 CFR Parts 1005, 1007, 1011, and 1046
reads as follows:
Authority: 7 U.S.C. 601-674.
PART 1005--MILK IN THE CAROLINA MARKETING AREA
1. In Sec. 1005.30, paragraphs (a) and (c) are revised to read as
follows:
Sec. 1005.30 Reports of receipts and utilization.
* * * * *
(a) Each handler, with respect to each of its pool plants, shall
report the quantities of skim milk and butterfat contained in or
represented by:
(1) Receipts of producer milk, including producer milk diverted
from the pool plant to other plants;
(2) Receipts of milk from handlers described in Sec. 1005.9(c);
(3) Receipts of fluid milk products and bulk fluid cream products
from other pool plants;
(4) Receipts of other source milk;
(5) Receipts of bulk milk from a plant regulated under another
Federal order, except Federal Orders 1007, 1011, and 1046, for which a
transportation credit is requested pursuant to Sec. 1005.82;
(6) Receipts of producer milk described in Sec. 1005.82(c)(2),
including the identity of the individual producers whose milk is
eligible for the transportation credit pursuant to that paragraph;
(7) Inventories at the beginning and end of the month of fluid milk
products and products specified in Sec. 1005.40(b)(1); and
(8) The utilization or disposition of all milk, filled milk, and
milk products required to be reported pursuant to this paragraph.
* * * * *
(c) Each handler described in Sec. 1005.9(b) and (c) shall report:
(1) The quantities of all skim milk and butterfat contained in
receipts of milk from producers;
(2) The utilization or disposition of all such receipts; and
(3) With respect to milk for which a cooperative association is
requesting a transportation credit pursuant to Sec. 1005.82, all of the
information required in paragraph (a)(5) and (6) of this section.
* * * * *
2. Section 1005.61 is amended by redesignating paragraphs (a)(4)
and (a)(5) as paragraphs (a)(5) and (a)(6), paragraphs (b)(5) and
(b)(6) as paragraphs (b)(6) and (b)(7), in paragraph (b)(3) by revising
the cross references ``(a)(3)'' to read ``(a)(4)'', and ``(a)(4)(ii)''
to read ``(a)(5)(ii)''; in newly redesignated paragraph (b)(6) by
revising the cross reference ``(b)(4)'' to read ``(b)(5)'', and in
newly redesignated paragraph (b)(7) by revising the cross reference
``(b)(5)'' to read ``(b)(6)'', and adding new paragraphs (a)(4) and
(b)(5) to read as follows:
Sec. 1005.61 Computation of uniform price (including weighted average
price and uniform prices for base and excess milk).
(a) * * *
(4) Deduct the amount by which the amount due from the
transportation credit balancing fund pursuant to Sec. 1005.82 exceeds
the available balance in the transportation credit balancing fund
pursuant to Sec. 1005.80.
* * * * *
(b) * * *
(5) Deduct the amount by which the amount due from the
transportation credit balancing fund pursuant to Sec. 1005.82 exceeds
the available balance in the transportation credit balancing fund
pursuant to Sec. 1005.80.
* * * * *
3. Following Sec. 1005.78, a new undesignated center heading and
Secs. 1005.80, 1005.81, and 1005.82 are added to read as follows:
Marketwide Service Payments
Sec. 1005.80 Transportation credit balancing fund.
The market administrator shall maintain a separate fund known as
the Transportation Credit Balancing Fund into which shall be deposited
the payments made by handlers pursuant to Sec. 1005.81 and out of which
shall be made the payments due handlers pursuant to Sec. 1005.82.
Payments due a handler shall be offset against payments due from the
handler.
Sec. 1005.81 Payments to the transportation credit balancing fund.
(a) On or before the 12th day after the end of the month, each
handler shall pay to the market administrator a transportation credit
balancing fund assessment determined by multiplying the pounds of Class
I milk assigned pursuant to Sec. 1005.44 by $0.06 per hundredweight or
such lesser amount as the market administrator deems necessary to
maintain a balance in the fund equal to the higher of the following
amounts:
(1) The total transportation credits dispensed during the prior
July-December period; or
(2) The total transportation credits dispensed during the
immediately preceding 6-month period.
(b) On or before the 13th day after the end of the month, the
market administrator shall credit the transportation credit balancing
fund, from the producer-settlement fund, any amount deducted pursuant
to Sec. 1005.61 (a)(4) or (b)(5).
(c) This section is effective August 10, 1996. The market
administrator shall announce publicly on or before the 5th day of the
month the assessment pursuant to paragraph (a) of this section for the
following month, except that for the first month that this section is
effective the assessment shall be announced no later than August 9,
1996, and for the first 3 months that this section is effective the
assessment pursuant to paragraph (a) of this section shall be 6 cents
per hundredweight.
Sec. 1005.82 Payments from the transportation credit balancing fund.
(a) On or before the 13th day after the end of each of the months
of July through December and any other month in which transportation
credits are in effect pursuant to paragraph (b) of this section, the
market administrator shall pay to each handler that received, and
reported pursuant to Sec. 1005.30(a)(5), bulk milk transferred from an
other
[[Page 41491]]
order plant as described in paragraph (c)(1) of this section or that
received, and reported pursuant to Sec. 1005.30(a)(6), bulk milk
directly from producers' farms as specified in paragraph (c)(2) of this
section an amount determined pursuant to paragraph (d) of this section.
In the event that a qualified cooperative association is the
responsible party for whose account such milk is received and written
documentation of this fact is provided to the market administrator
pursuant to Sec. 1005.30(c)(3) prior to the date payment is due, the
transportation credits for such milk computed pursuant to this section
shall be made to such cooperative association rather than to the
operator of the pool plant at which the milk was received.
(b) The market administrator may extend the period during which
transportation credits are in effect (i.e., the transportation credit
period) to any of the months of January through June if the market
administrator receives a written request to do so 15 days prior to the
beginning of the month for which the request is made and, after
conducting an independent investigation, finds that such extension is
necessary to assure the market of an adequate supply of milk for fluid
use. Before making such a finding, the market administrator shall
notify the Director of the Dairy Division and all handlers in the
market that an extension is being considered and invite written data,
views, and arguments. Any decision to extend the transportation credit
period must be issued in writing prior to the first day of the month
for which the extension is to be effective.
(c) The transportation credit described in paragraph (a) of this
section shall apply to the following milk:
(1) Bulk milk received from a plant regulated under another Federal
order, except Federal Orders 1007, 1011, and 1046, and allocated to
Class I milk pursuant to Sec. 1005.44; and
(2) Bulk milk classified pro rata as Class I milk pursuant to
Sec. 1005.44 received directly from the farms of dairy farmers at pool
distributing plants under the following conditions:
(i) The dairy farmer was not a ``producer'' under this order during
more than 2 of the immediately preceding months of January through June
and not more than 32 days' production of the dairy farmer was received
as producer milk under this order during that period; and
(ii) The farm on which the milk was produced is not located within
the specified marketing area of this order or the marketing areas of
Federal Orders 1007, 1011, or 1046, and, is not within 85 miles of the
plant to which its milk is delivered.
(d) Transportation credits shall be computed as follows:
(1) For milk described in paragraph (c)(1) of this section, the
market administrator shall:
(i) Determine the shortest hard-surface highway distance between
the transferor plant and the transferee plant;
(ii) Multiply the number of miles computed in paragraph (d)(1)(i)
of this section by 0.37 cents;
(iii) Subtract the other order's Class I price applicable at the
transferor plant's location from the Class I price applicable at the
transferee plant as specified in Sec. 1005.53;
(iv) Subtract any positive difference computed in paragraph
(d)(1)(iii) of this section from the amount computed in paragraph
(d)(1)(ii) of this section; and
(v) Multiply the remainder computed in paragraph (d)(1)(iv) of this
section by the hundredweight of milk described in paragraph (c)(1) of
this section.
(2) For milk described in paragraph (c)(2) of this section:
(i) Each milk hauler that is transporting the milk of producers
described in paragraph (c)(2) of this section may stop at the nearest
independently-operated truck stop with a truck scale and obtain a
weight certificate indicating the weight of the truck and its contents,
the date and time of weighing, and the location of the truck stop. The
location of the truck stop shall be used as a starting point for the
purpose of measuring the distance to the pool plant receiving that load
of milk. If a weight certificate for a supplemental load of milk for
which a transportation credit is requested is not available, the market
administrator shall use the nearest city to the last producer's farm
from which milk was picked up for delivery to the receiving pool plant;
(ii) For each bulk tank load of milk received pursuant to paragraph
(d)(2)(i) of this section, the market administrator shall determine the
shortest hard-surface highway distance between the receiving pool plant
and the truck stop or city, as the case may be;
(iii) Multiply the number of miles computed in paragraph (d)(2)(ii)
of this section by 0.37 cents;
(iv) Subtract this order's Class I price applicable at the
origination point determined pursuant to paragraph (d)(2)(ii) of this
section (as if this point were a plant) from the Class I price
applicable at the distributing plant receiving the milk;
(v) Subtract any positive difference computed in paragraph
(d)(2)(iv) of this section from the amount computed in paragraph
(d)(2)(iii) of this section; and
(vi) Multiply the number computed in paragraph (d)(2)(v) of this
section by the hundredweight of milk described in paragraph (c)(2) of
this section.
PART 1007--MILK IN THE SOUTHEAST MARKETING AREA
4. In Sec. 1007.30, paragraphs (a) and (c) are revised to read as
follows:
Sec. 1007.30 Reports of receipts and utilization.
* * * * *
(a) Each handler, with respect to each of its pool plants, shall
report the quantities of skim milk and butterfat contained in or
represented by:
(1) Receipts of producer milk, including producer milk diverted by
the handler from the pool plant to other plants;
(2) Receipts of milk from handlers described in Sec. 1007.9(c);
(3) Receipts of fluid milk products and bulk fluid cream products
from other pool plants;
(4) Receipts of other source milk;
(5) Receipts of bulk milk from a plant regulated under another
Federal order, except Federal Orders 1005, 1011, and 1046, for which a
transportation credit is requested pursuant to Sec. 1007.82;
(6) Receipts of producer milk described in Sec. 1007.82(c)(2),
including the identity of the individual producers whose milk is
eligible for the transportation credit pursuant to that paragraph;
(7) Inventories at the beginning and end of the month of fluid milk
products and products specified in Sec. 1007.40(b)(1); and
(8) The utilization or disposition of all milk, filled milk, and
milk products required to be reported pursuant to this paragraph.
* * * * *
(c) Each handler described in Sec. 1007.9(b) and (c) shall report:
(1) The quantities of skim milk and butterfat contained in receipts
of milk from producers;
(2) The utilization or disposition of all such receipts; and
(3) With respect to milk for which a cooperative association is
requesting a transportation credit pursuant to Sec. 1007.82, all of the
information required in paragraph (a)(5) and (6) of this section.
* * * * *
5. Section 1007.61 is amended by redesignating paragraphs (a)(4)
and (a)(5) as paragraphs (a)(5) and (a)(6), paragraphs (b)(5) and
(b)(6) as paragraphs (b)(6) and (b)(7), in
[[Page 41492]]
paragraph (b)(3) by revising the cross references ``(a)(3)'' to read
``(a)(4)'', and ``(a)(4)(ii)'' to read ``(a)(5)(ii)''; in newly
redesignated paragraph (b)(6) by revising the cross reference
``(b)(4)'' to read ``(b)(5)'', and in newly redesignated paragraph
(b)(7) by revising the cross reference ``(b)(5)'' to read ``(b)(6)'',
and adding new paragraphs (a)(4) and (b)(5) to read as follows:
Sec. 1007.61 Computation of uniform price (including weighted average
price and uniform prices for base and excess milk).
(a) * * *
(4) Deduct the amount by which the amount due from the
transportation credit balancing fund pursuant to Sec. 1007.82 exceeds
the available balance in the transportation credit balancing fund
pursuant to Sec. 1007.80.
* * * * *
(b) * * *
(5) Deduct the amount by which the amount due from the
transportation credit balancing fund pursuant to Sec. 1007.82 exceeds
the available balance in the transportation credit balancing fund
pursuant to Sec. 1007.80.
* * * * *
6. Following Sec. 1007.78, a new undesignated center heading and
Secs. 1007.80, 1007.81, and 1007.82 are added to read as follows:
Marketwide Service Payments
Sec. 1007.80 Transportation credit balancing fund.
The market administrator shall maintain a separate fund known as
the Transportation Credit Balancing Fund into which shall be deposited
the payments made by handlers pursuant to Sec. 1007.81 and out of which
shall be made the payments due handlers pursuant to Sec. 1007.82.
Payments due a handler shall be offset against payments due from the
handler.
Sec. 1007.81 Payments to the transportation credit balancing fund.
(a) On or before the 12th day after the end of the month, each
handler shall pay to the market administrator a transportation credit
balancing fund assessment determined by multiplying the pounds of Class
I milk assigned pursuant to Sec. 1007.44 by $0.06 per hundredweight or
such lesser amount as the market administrator deems necessary to
maintain a balance in the fund equal to the higher of the following
amounts:
(1) The total transportation credits dispensed during the prior
July-December period; or
(2) The total transportation credits dispensed during the
immediately preceding 6-month period.
(b) On or before the 13th day after the end of the month, the
market administrator shall credit the transportation credit balancing
fund, from the producer-settlement fund, any amount deducted pursuant
to Sec. 1007.61(a)(4) or (b)(5).
(c) This section is effective August 10, 1996. The market
administrator shall announce publicly on or before the 5th day of the
month the assessment pursuant to paragraph (a) of this section for the
following month, except that for the first month that this section is
effective the assessment shall be announced no later than August 9,
1996, and for the first 3 months that this section is effective the
assessment pursuant to paragraph (a) of this section shall be 6 cents
per hundredweight.
Sec. 1007.82 Payments from the transportation credit balancing fund.
(a) On or before the 13th day after the end of each of the months
of July through December and any other month in which transportation
credits are in effect pursuant to paragraph (b) of this section, the
market administrator shall pay to each handler that received, and
reported pursuant to Sec. 1007.30(a)(5), bulk milk transferred from
another order plant as described in paragraph (c)(1) of this section or
that received, and reported pursuant to Sec. 1007.30(a)(6), bulk milk
directly from producers' farms as specified in paragraph (c)(2) of this
section an amount determined pursuant to paragraph (d) of this section.
In the event that a qualified cooperative association is the
responsible party for whose account such milk is received and written
documentation of this fact is provided to the market administrator
pursuant to Sec. 1007.30(c)(3) prior to the date payment is due, the
transportation credits for such milk computed pursuant to this section
shall be made to such cooperative association rather than to the
operator of the pool plant at which the milk was received.
(b) The market administrator may extend the period during which
transportation credits are in effect (i.e., the transportation credit
period) to any of the months of January through June if the market
administrator receives a written request to do so 15 days prior to the
beginning of the month for which the request is made and, after
conducting an independent investigation, finds that such extension is
necessary to assure the market of an adequate supply of milk for fluid
use. Before making such a finding, the market administrator shall
notify the Director of the Dairy Division and all handlers in the
market that an extension is being considered and invite written data,
views, and arguments. Any decision to extend the transportation credit
period must be issued in writing prior to the first day of the month
for which the extension is to be effective.
(c) The transportation credit described in paragraph (a) of this
section shall apply to the following milk:
(1) Bulk milk received from a plant regulated under another Federal
order, except Federal Orders 1005, 1011, and 1046 allocated to Class I
milk pursuant to Sec. 1007.44; and
(2) Bulk milk classified pro rata as Class I milk pursuant to
Sec. 1007.44 received directly from the farms of dairy farmers at pool
distributing plants under the following conditions:
(i) The dairy farmer was not a ``producer'' under this order during
more than 2 of the immediately preceding months of January through June
and not more than 32 days' production of the dairy farmer was received
as producer milk under this order during that period; and
(ii) The farm on which the milk was produced is not located within
the specified marketing area of this order or the marketing areas of
Federal Orders 1005, 1011 or 1046, and, is not within 85 miles of the
plant to which its milk is delivered.
(d) Transportation credits shall be computed as follows:
(1) For milk described in paragraph (c)(1) of this section, the
market administrator shall:
(i) Determine the shortest hard-surface highway distance between
the transferor plant and the transferee plant;
(ii) Multiply the number of miles computed in paragraph (d)(1)(i)
of this section by 0.37 cents;
(iii) Subtract the other order's Class I price applicable at the
transferor plant's location from the Class I price applicable at the
transferee plant as specified in Sec. 1007.52;
(iv) Subtract any positive difference computed in paragraph
(d)(1)(iii) of this section from the amount computed in paragraph
(d)(1)(ii) of this section; and
(v) Multiply the remainder computed in paragraph (d)(1)(iv) of this
section by the hundredweight of milk described in paragraph (c)(1) of
this section.
(2) For milk described in paragraph (c)(2) of this section:
(i) Each milk hauler that is transporting the milk of producers
described in paragraph (c)(2) of this section may stop at the nearest
independently-operated truck stop with a truck scale and obtain a
weight certificate indicating the weight of the truck and its contents,
the date and time of weighing, and the location of the
[[Page 41493]]
truck stop. The location of the truck stop shall be used as a starting
point for the purpose of measuring the distance to the pool plant
receiving that load of milk. If a weight certificate for a supplemental
load of milk for which a transportation credit is requested is not
available, the market administrator shall use the nearest city to the
last producer's farm from which milk was picked up for delivery to the
receiving pool plant.
(ii) For each bulk tank load of milk received pursuant to paragraph
(d)(2)(i) of this section, the market administrator shall determine the
shortest hard-surface highway distance between the receiving pool plant
and the truck stop or city, as the case may be;
(iii) Multiply the number of miles computed in paragraph (d)(2)(ii)
of this section by 0.37 cents;
(iv) Subtract the order's Class I price applicable at the
origination point determined pursuant to paragraph (d)(2)(ii) of this
section (as if this point were a plant) from the Class I price
applicable at the distributing plant receiving the milk;
(v) Subtract any positive difference computed in paragraph
(d)(2)(iv) of this section from the amount computed in paragraph
(d)(2)(iii) of this section; and
(vi) Multiply the number computed in paragraph (d)(2)(v) of this
section by the hundredweight of milk described in paragraph (c)(2) of
this section.
PART 1011--MILK IN THE TENNESSEE VALLEY MARKETING AREA
7. In Sec. 1011.30, paragraphs (a) and (c) are revised to read as
follows:
Sec. 1011.30 Reports of receipts and utilization.
* * * * *
(a) Each handler, with respect to each of his pool plants, shall
report the quantities of skim milk and butterfat contained in or
represented by:
(1) Receipts of producer milk, including producer milk diverted
from the pool plant to other plants;
(2) Receipts of milk from handlers described in Sec. 1011.9(c);
(3) Receipts of milk from handlers described in 1011.9(d);
(4) Receipts of fluid milk products and bulk fluid cream products
from other pool plants;
(5) Receipts of other source milk;
(6) Receipts of bulk milk from a plant regulated under another
Federal order, except Federal Orders 1005, 1007, and 1046, for which a
transportation credit is requested pursuant to Sec. 1011.82;
(7) Receipts of producer milk described in Sec. 1011.82(c)(2),
including the identity of the individual producers whose milk is
eligible for the transportation credit pursuant to that paragraph;
(8) Inventories at the beginning and end of the month of fluid milk
products and products specified in Sec. 1011.40(b)(1); and
(9) The utilization or disposition of all milk, filled milk, and
milk products required to be reported pursuant to this paragraph.
* * * * *
(c) Each handler described in Sec. 1011.9(b), (c) and (d) shall
report:
(1) The quantities of all skim milk and butterfat contained in
receipts of milk from producers;
(2) The utilization or disposition of all such receipts; and
(3) With respect to milk for which a cooperative association is
requesting a transportation credit pursuant to Sec. 1011.82, all of the
information required in paragraph (a)(6) and (7) of this section.
* * * * *
8. Section 1011.61 is amended by redesignating paragraphs (a)(4)
and (a)(5) as paragraphs (a)(5) and (a)(6), paragraphs (b)(5) and
(b)(6) as paragraphs (b)(6) and (b)(7), in paragraph (b)(3) by revising
the cross references ``(3)'' to read ``(a)(4)'', and ``(a)(4)(ii)'' to
read ``(a)(5)(ii)''; in newly redesignated paragraph (b)(6) by revising
the cross reference ``(b)(4)'' to read ``(b)(5)'', and in newly
redesignated paragraph (b)(7) by revising the cross reference
``(b)(5)'' to read ``(b)(6)'', and adding new paragraphs (a)(4) and
(b)(5) to read as follows:
Sec. 1011.61 Computation of uniform price (including weighted average
price and uniform prices for base and excess milk).
(a) * * *
(4) Deduct the amount by which the amount due from the
transportation credit balancing fund pursuant to Sec. 1011.82 exceeds
the available balance in the transportation credit balancing fund
pursuant to Sec. 1011.80.
* * * * *
(b) * * *
(5) Deduct the amount by which the amount due from the
transportation credit balancing fund pursuant to Sec. 1011.82 exceeds
the available balance in the transportation credit balancing fund
pursuant to Sec. 1011.80.
* * * * *
9. Following Sec. 1011.77, a new undesignated center heading and
Secs. 1011.80, 1011.81, and 1011.82 are added to read as follows:
Marketwide Service Payments
Sec. 1011.80 Transportation credit balancing fund.
The market administrator shall maintain a separate fund known as
the Transportation Credit Balancing Fund into which shall be deposited
the payments made by handlers pursuant to Sec. 1011.81 and out of which
shall be made the payments due handlers pursuant to Sec. 1011.82.
Payments due a handler shall be offset against payments due from the
handler.
Sec. 1011.81 Payments to the transportation credit balancing fund.
(a) On or before the 12th day after the end of the month, each
handler shall pay to the market administrator a transportation credit
balancing fund assessment determined by multiplying the pounds of Class
I milk assigned pursuant to Sec. 1011.44 by $0.06 per hundredweight or
such lesser amount as the market administrator deems necessary to
maintain a balance in the fund equal to the higher of the following
amounts:
(1) The total transportation credits dispensed during the prior
July-December period; or
(2) The total transportation credits dispensed during the
immediately preceding 6-month period.
(b) On or before the 13th day after the end of the month, the
market administrator shall credit the transportation credit balancing
fund, from the producer-settlement fund, any amount deducted pursuant
to Sec. 1011.61(a)(4) or (b)(5).
(c) This section is effective August 10, 1996. The market
administrator shall announce publicly on or before the 5th day of the
month the assessment pursuant to paragraph (a) of this section for the
following month, except that for the first month that this section is
effective the assessment shall be announced no later than August 9,
1996, and for the first 3 months that this section is effective the
assessment pursuant to paragraph (a) of this section shall be 6 cents
per hundredweight.
Sec. 1011.82 Payments from the transportation credit balancing fund.
(a) On or before the 13th day after the end of each of the months
of July through December and any other month in which transportation
credits are in effect pursuant to paragraph (b) of this section, the
market administrator shall pay to each handler that received, and
reported pursuant to Sec. 1011.30(a)(6), bulk milk transferred from an
other order plant as described in paragraph (c)(1) of this section or
that received, and reported pursuant to
[[Page 41494]]
Sec. 1011.30(a)(7), bulk milk directly from producers' farms as
specified in paragraph (c)(2) of this section an amount determined
pursuant to paragraph (d) of this section. In the event that a
qualified cooperative association is the responsible party for whose
account such milk is received and written documentation of this fact is
provided to the market administrator pursuant to Sec. 1011.30(c)(3)
prior to the date payment is due, the transportation credits for such
milk computed pursuant to this section shall be made to such
cooperative association rather than to the operator of the pool plant
at which the milk was received.
(b) The market administrator may extend the period during which
transportation credits are in effect (i.e., the transportation credit
period) to any of the months of January through June if the market
administrator receives a written request to do so 15 days prior to the
beginning of the month for which the request is made and, after
conducting an independent investigation, finds that such extension is
necessary to assure the market of an adequate supply of milk for fluid
use. Before making such a finding, the market administrator shall
notify the Director of the Dairy Division and all handlers in the
market that an extension is being considered and invite written data,
views, and arguments. Any decision to extend the transportation credit
period must be issued in writing prior to the first day of the month
for which the extension is to be effective.
(c) The transportation credit described in paragraph (a) of this
section shall apply to the following milk:
(1) Bulk milk received from a plant regulated under another Federal
order, except Federal Orders 1005, 1007, and 1046, and allocated to
Class I milk pursuant to Sec. 1011.44; and
(2) Bulk milk classified pro rata as Class I milk pursuant to
Sec. 1011.44 received directly from the farms of dairy farmers at pool
distributing plants under the following conditions:
(i) The dairy farmer was not a ``producer'' under this order during
more than 2 of the immediately preceding months of January through June
and not more than 32 days' production of the dairy farmer was received
as producer milk under this order during that period; and
(ii) The farm on which the milk was produced is not located within
the specified marketing area of this order or the marketing areas of
Federal Orders 1005, 1007, or 1046, and, is not within 85 miles of the
plant to which its milk is delivered.
(d) Transportation credits shall be computed as follows:
(1) For milk described in paragraph (c)(1) of this section, the
market administrator shall:
(i) Determine the shortest hard-surface highway distance between
the transferor plant and the transferee plant;
(ii) Multiply the number of miles computed in paragraph (d)(1)(i)
of this section by 0.37 cents;
(iii) Subtract the other order's Class I price applicable at the
transferor plant's location from the Class I price applicable at the
transferee plant as specified in Sec. 1011.52;
(iv) Subtract any positive difference computed in paragraph
(d)(1)(iii) of this section from the amount computed in paragraph
(d)(1)(ii) of this section; and
(v) Multiply the remainder computed in paragraph (d)(1)(iv) of this
section by the hundredweight of milk described in paragraph (c)(1) of
this section.
(2) For milk described in paragraph (c)(2) of this section:
(i) Each milk hauler that is transporting the milk of producers
described in paragraph (c)(2) of this section may stop at the nearest
independently-operated truck stop with a truck scale and obtain a
weight certificate indicating the weight of the truck and its contents,
the date and time of weighing, and the location of the truck stop. The
location of the truck stop shall be used as a starting point for the
purpose of measuring the distance to the pool plant receiving that load
of milk. If a weight certificate for a supplemental load of milk for
which a transportation credit is requested is not available, the market
administrator shall use the nearest city to the last producer's farm
from which milk was picked up for delivery to the receiving pool plant.
(ii) For each bulk tank load of milk received pursuant to paragraph
(d)(2)(i) of this section, the market administrator shall determine the
shortest hard-surface highway distance between the receiving pool plant
and the truck stop or city, as the case may be;
(iii) Multiply the number of miles computed in paragraph (d)(2)(ii)
of this section by 0.37 cents;
(iv) Subtract this order's Class I price applicable at the
origination point determined pursuant to paragraph (d)(2)(ii) of this
section (as if this point were a plant) from the Class I price
applicable at the distributing plant receiving the milk;
(v) Subtract any positive difference computed in paragraph
(d)(2)(iv) of this section from the amount computed in paragraph
(d)(2)(iii) of this section; and
(vi) Multiply the number computed in paragraph (d)(2)(iii) of this
section by the hundredweight of milk described in paragraph (c)(2) of
this section.
PART 1046--MILK IN THE LOUISVILLE-LEXINGTON-EVANSVILLE MARKETING
AREA
10. In Sec. 1046.30, paragraphs (a) and (c) are revised to read as
follows:
Sec. 1046.30 Reports of receipts and utilization.
* * * * *
(a) Each handler, with respect to each of his pool plants, shall
report the quantities of skim milk and butterfat contained in or
represented by:
(1) Receipts of producer milk, including producer milk diverted by
the handler from the pool plant to other plants;
(2) Receipts of milk from handlers described in Sec. 1046.9(c);
(3) Receipts of fluid milk products and bulk fluid cream products
from other pool plants;
(4) Receipts of other source milk;
(5) Receipts of bulk milk from a plant regulated under another
Federal order, except Federal Orders 1005, 1007, and 1011, for which a
transportation credit is requested pursuant to Sec. 1046.82;
(6) Receipts of producer milk described in Sec. 1046.82(c)(2),
including the identity of the individual producers whose milk is
eligible for the transportation credit pursuant to that paragraph;
(7) Inventories at the beginning and end of the month of fluid milk
products and products specified in Sec. 1046.40(b)(1); and
(8) The utilization or disposition of all milk, filled milk, and
milk products required to be reported pursuant to this paragraph.
* * * * *
(c) Each handler described in Sec. 1046.9 (b) and (c) shall report:
(1) The quantities of all skim milk and butterfat contained in
receipts of milk from producers;
(2) The utilization or disposition of all such receipts; and
(3) With respect to milk for which a cooperative association is
requesting a transportation credit pursuant to Sec. 1046.82, all of the
information required in paragraph (a) (5) and (6) of this section.
* * * * *
11. Section 1046.61 is amended by redesignating paragraphs (a)(4)
and (a)(5) as paragraphs (a)(5) and (a)(6), paragraphs (b)(5) and
(b)(6) as paragraphs (b)(6) and (b)(7), in paragraph (b)(3) by revising
the cross
[[Page 41495]]
references ``(3)'' to read ``(a)(4)'', and ``(a)(4)(ii)'' to read
``(a)(5)(ii)''; in newly redesignated paragraph (b)(6) by revising the
cross reference ``(b)(4)'' to read ``(b)(5)'', and in newly
redesignated paragraph (b)(7) by revising the cross reference
``(b)(5)'' to read ``(b)(6)'', and adding new paragraphs (a)(4) and
(b)(5) to read as follows:
Sec. 1046.61 Computation of uniform price (including weighted average
price and uniform prices for base and excess milk).
(a) * * *
(4) Deduct the amount by which the amount due from the
transportation credit balancing fund pursuant to Sec. 1046.82 exceeds
the available balance in the transportation credit balancing fund
pursuant to Sec. 1046.80.
* * * * *
(b) * * *
(5) Deduct the amount by which the amount due from the
transportation credit balancing fund pursuant to Sec. 1046.82 exceeds
the available balance in the transportation credit balancing fund
pursuant to Sec. 1046.80.
* * * * *
12. In Sec. 1046.73, paragraph (f)(2) is revised to read as
follows:
Sec. 1046.73 Payments to producers and to cooperative associations.
* * * * *
(f) * * *
(1) * * *
(2) On or before the 10th day after the end of the following month
for milk received during the month an amount computed at not less than
the value of such milk at the minimum prices for milk in each class, as
adjusted by the butterfat differential specified in Sec. 1046.74
applicable at the location of the receiving handler's pool plant and
any transportation credit that is due the cooperative association
pursuant to Sec. 1046.82(a), less the payment made pursuant to
paragraph (f)(1) of this section.
13. Following Sec. 1046.78, a new undesignated center heading and
Secs. 1046.80, 1046.81, and 1046.82 are added to read as follows:
Marketwide Service Payments
Sec. 1046.80 Transportation credit balancing fund.
The market administrator shall maintain a separate fund known as
the Transportation Credit Balancing Fund into which shall be deposited
the payments made by handlers pursuant to Sec. 1046.81 and out of which
shall be made the payments due handlers pursuant to Sec. 1046.82.
Payments due a handler shall be offset against payments due from the
handler.
Sec. 1046.81 Payments to the transportation credit balancing fund.
(a) On or before the 12th day after the end of the month, each
handler shall pay to the market administrator a transportation credit
balancing fund assessment determined by multiplying the pounds of Class
I milk assigned pursuant to Sec. 1046.44 by $0.06 per hundredweight or
such lesser amount as the market administrator deems necessary to
maintain a balance in the fund equal to the higher of the following
amounts:
(1) The total transportation credits dispensed during the prior
July-December period; or
(2) The total transportation credits dispensed during the
immediately preceding 6-month period.
(b) On or before the 13th day after the end of the month, the
market administrator shall credit the transportation credit balancing
fund, from the producer-settlement fund, any amount deducted pursuant
to Sec. 1046.61(a)(4) or (b)(5).
(c) This section is effective August 10, 1996. The market
administrator shall announce publicly on or before the 5th day of the
month the assessment pursuant to paragraph (a) of this section for the
following month, except that for the first month that this section is
effective the assessment shall be announced no later than August 9,
1996, and for the first 3 months that this section is effective the
assessment pursuant to paragraph (a) of this section shall be 6 cents
per hundredweight.
Sec. 1046.82 Payments from the transportation credit balancing fund.
(a) On or before the 13th day after the end of each of the months
of July through December and any other month in which transportation
credits are in effect pursuant to paragraph (b) of this section, the
market administrator shall pay to each handler that received, and
reported pursuant to Sec. 1046.30(a)(5), bulk milk transferred from
another order plant as described in paragraph (c)(1) of this section or
that received, and reported pursuant to Sec. 1046.30(a)(6), bulk milk
directly from producers' farms as specified in paragraph (c)(2) of this
section an amount determined pursuant to paragraph (d) of this section.
In the event that a qualified cooperative association is the
responsible party for whose account such milk is received and written
documentation of this fact is provided to the market administrator
pursuant to Sec. 1046.30(c)(3) prior to the date payment is due, the
transportation credits for such milk computed pursuant to this section
shall be paid to such cooperative association by the pool plant
operator pursuant to Sec. 1046.73(f)(2).
(b) The market administrator may extend the period during which
transportation credits are in effect (i.e., the transportation credit
period) to any of the months of January through June if the market
administrator receives a written request to do so 15 days prior to the
beginning of the month for which the request is made and, after
conducting an independent investigation, finds that such extension is
necessary to assure the market of an adequate supply of milk for fluid
use. Before making such a finding, the market administrator shall
notify the Director of the Dairy Division and all handlers in the
market that an extension is being considered and invite written data,
views, and arguments. Any decision to extend the transportation credit
period must be issued in writing prior to the first day of the month
for which the extension is to be effective.
(c) The transportation credit described in paragraph (a) of this
section shall apply to the following milk:
(1) Bulk milk received from a plant regulated under another Federal
order, except Federal Orders 1005, 1007, and 1011, and allocated to
Class I milk pursuant to Sec. 1046.44; and
(2) Bulk milk classified pro rata as Class I milk pursuant to
Sec. 1046.44 received directly from the farms of dairy farmers at pool
distributing plants under the following conditions:
(i) The dairy farmer was not a ``producer'' under this order during
more than 2 of the immediately preceding months of January through June
and not more than 32 days' production of the dairy farmer was received
as producer milk under this order during that period; and
(ii) The farm on which the milk was produced is not located within
the specified marketing area of this order or the marketing areas of
Federal Orders 1005, 1007, or 1011, and, is not within 85 miles of the
plant to which its milk is delivered.
(d) Transportation credits shall be computed as follows:
(1) For milk described in paragraph (c)(1) of this section, the
market administrator shall:
(i) Determine the shortest hard-surface highway distance between
the transferor plant and the transferee plant;
(ii) Multiply the number of miles computed in paragraph (d)(1)(i)
of this section by 0.37 cents;
(iii) Subtract the other order's Class I price applicable at the
transferor plant's location from the Class I price applicable at the
transferee plant as specified in Sec. 1046.52;
[[Page 41496]]
(iv) Subtract any positive difference computed in paragraph
(d)(1)(iii) of this section from the amount computed in paragraph
(d)(1)(ii) of this section; and
(v) Multiply the remainder computed in paragraph (d)(1)(iv) of this
section by the hundredweight of milk described in paragraph (c)(1) of
this section.
(2) For milk described in paragraph (c)(2) of this section:
(i) Each milk hauler that is transporting the milk of producers
described in paragraph (c)(2) of this section may stop at the nearest
independently-operated truck stop with a truck scale and obtain a
weight certificate indicating the weight of the truck and its contents,
the date and time of weighing, and the location of the truck stop. The
location of the truck stop shall be used as a starting point for the
purpose of measuring the distance to the pool plant receiving that load
of milk. If a weight certificate for a supplemental load of milk for
which a transportation credit is requested is not available, the market
administrator shall use the nearest city to the last producer's farm
from which milk was picked up for delivery to the receiving pool plant.
(ii) For each bulk tank load of milk received pursuant to paragraph
(d)(2)(i) of this section, the market administrator shall determine the
shortest hard-surface highway distance between the receiving pool plant
and the truck stop or city, as the case may be;
(iii) Multiply the number of miles computed in paragraph (d)(2)(ii)
of this section by 0.37 cents;
(iv) Subtract this order's Class I price applicable at the
origination point determined pursuant to paragraph (d)(2)(ii) of this
section (as if this point were a plant) from the Class I price
applicable at the distributing plant receiving the milk;
(v) Subtract any positive difference computed in paragraph
(d)(2)(iv) of this section from the amount computed in paragraph
(d)(2)(iii) of this section; and
(vi) Multiply the number computed in paragraph (d)(2)(v) of this
section by the hundredweight of milk described in paragraph (c)(2) of
this section.
Dated: August 2, 1996.
Michael V. Dunn,
Assistant Secretary, Marketing and Regulatory Programs.
[FR Doc. 96-20203 Filed 8-8-96; 8:45 am]
BILLING CODE 3410-02-P
