98-29110. Dairy Promotion and Research Order; Amendment to the Order  

  • [Federal Register Volume 63, Number 209 (Thursday, October 29, 1998)]
    [Rules and Regulations]
    [Pages 57893-57895]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 98-29110]
    
    
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    DEPARTMENT OF AGRICULTURE
    
    Agricultural Marketing Service
    
    7 CFR Part 1150
    
    [DA-98-05]
    
    
    Dairy Promotion and Research Order; Amendment to the Order
    
    AGENCY: Agricultural Marketing Service, USDA.
    
    ACTION: Final rule.
    
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    SUMMARY: This final rule amends a provision of the Dairy Promotion and 
    Research Order (Order). The amendment, requested by the National Dairy 
    Promotion and Research Board (Board), which administers the Order, 
    modifies the number of members from geographic regions in accordance 
    with the provisions of the Order in order to best reflect the 
    geographic distribution of milk production volume in the United States.
    
    EFFECTIVE DATE: October 30, 1998.
    
    FOR FURTHER INFORMATION CONTACT: David R. Jamison, Chief, USDA/AMS/
    Dairy Programs, Promotion and Research Branch, 1400 Independence 
    Avenue, SW, Stop 0233, Room 2734 South Building, Washington, DC 20250-
    0233, (202) 720-6909, E-Mail address: David__Jamison@usda.gov.
    
    SUPPLEMENTARY INFORMATION: The Regulatory Flexibility Act (5 U.S.C. 
    601-612) requires the Agency to examine the impact of a proposed rule 
    on small entities. Small businesses in the dairy industry have been 
    defined by the Small Business Administration as those employing less 
    than 500 employees. There are approximately 99,413 dairy farmers 
    subject to the provisions of the Order. Most of the parties subject to 
    the Order are considered small entities.
        The Order (7 CFR Part 1150) is authorized under the Dairy and 
    Tobacco Adjustment Act of 1983 (Act), as amended (7 U.S.C. 4501-4513). 
    This rule will modify a provision of the Order by adjusting the number 
    of members representing four geographic regions on the Board to reflect 
    the volume of milk produced within the specified regions. This 
    amendment was requested by the Board to fulfill certain requirements of 
    the Order.
        Currently, the Order provides for a 36-member board with members 
    representing 13 geographic regions. Section 1150.131(c) states that the 
    Board is required at least every five years, and not more than every 
    three years, to review the geographic distribution of milk production 
    volume throughout the United States and if necessary recommend 
    modification of regional representation. The last modification was made 
    in 1994. Section 1150.131(d) of the Order specifies the formula to be 
    used to determine the number of Board seats to represent each of the 13 
    geographic regions of the country designated in the Order. Under the 
    formula, total milk production for the 48 States for the previous 
    calendar year is divided by 36 to determine a factor of pounds of milk 
    represented by each Board member. The resulting factor is then divided 
    into the pounds of milk produced in each region to determine the number 
    of Board members for each region. The initial Board that was 
    established in 1984 was based on 1983 milk production. The Board was 
    last modified in 1994 based on the 1992 milk production. In 1983, each 
    Board member represented about 3,875 million pounds of the 139,509 
    million pounds of milk produced in the 48 States. During 1997, total 
    milk production increased to 156,464 million pounds which indicated 
    that each of the Board members would represent 4,346 million pounds of 
    milk.
        Based on a review of the 1997 geographic distribution of milk 
    production, the Board has concluded that the number of Board members 
    for four of the 13 geographic regions should be changed. Milk 
    production in Region 2 (California) increased to 27,628 million pounds 
    in 1997 up from 22,084 million pounds in 1992, indicating 6.36 Board 
    members based on 1997 production (27,628 divided by 4,346 = 6.36) 
    compared to 5.24 Board members based on 1992 production (22,084 divided 
    by 4,211 = 5.24). Also, milk production in Region 3 (Arizona, Colorado, 
    Idaho, Montana, Nevada, Utah, and Wyoming) increased to 11,929 million 
    pounds in 1997 up from 8,470 in 1992, indicating 2.74 Board members 
    based on 1997 production (11,929 divided by 4,346 = 2.74) compared to 
    2.01 Board members based on 1992 production (8,470 divided by 4,211 = 
    2.01). Milk production in Region 6 (Wisconsin) decreased to 22,368 
    million pounds in 1997 from 24,103 million pounds in 1992, indicating 
    5.15 Board members based on 1997 production (22,368 divided by 4,346 = 
    5.15) compared to 5.72 Board members based on 1992 production (24,103 
    divided by 4,211 = 5.72). Also, milk production in Region 7 (Illinois, 
    Iowa, Missouri, and Nebraska) decreased to 9,699 million pounds from 
    11,168 million pounds in 1992, indicating 2.23 Board members based on 
    1997 production (9,699 divided by
    
    [[Page 57894]]
    
    4,346 = 2.23) compared to 2.65 Board members based on 1992 production 
    (11,168 divided by 4,211 = 2.65). Thus, the Board proposed that the 
    number of Board members from Region 2 be increased from five to six, 
    that the number of Board members from Region 3 be increased from two to 
    three, that the number of Board members from Region 6 be decreased from 
    six to five, and that the number of Board members from Region 7 be 
    decreased from three to two so that the Board will best reflect the 
    geographic distribution of milk production volume throughout the United 
    States.
        This amendment to the Order will not add any burden to regulated 
    parties because they relate to provisions concerning membership of the 
    Board. The amendment will not impose additional reporting or collecting 
    requirements. No relevant Federal rules have been identified that 
    duplicate, overlap, or conflict with the rule.
        Accordingly, pursuant to 5 U.S.C. 605(b), the Agricultural 
    Marketing Service has certified that this rule would not have a 
    significant economic impact on a substantial number of small entities.
        Prior document in this proceeding:
        Invitation to Submit Comments on Proposed Amendment to the Order: 
    Issued September 16, 1998; published September 21, 1998 (63 FR 50172).
    
    Executive Order 12866 and the Paperwork Reduction Act
    
        The Department of Agriculture (Department) is issuing this rule in 
    conformance with Executive Order 12866.
        This final rule 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 this rule.
        The Act authorizes the Order. The Act provides that administrative 
    proceedings must be exhausted before parties may file suit in court. 
    Under section 118 of the Act, any person subject to the 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 request a modification of the Order 
    or to be exempted from the Order. A person subject to an order 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 person is an inhabitant, or has his principal place of business, 
    has jurisdiction to review the Secretary's ruling on the petition, 
    provided a complaint is filed not later than 20 days after the date of 
    the entry of the ruling.
        In accordance with the Paperwork Reduction Act (44 U.S.C. Chapter 
    35), the forms and reporting and recordkeeping requirements that are 
    included in the Order have been approved previously by the Office of 
    Management and Budget (OMB) and were assigned OMB No. 0581-0093, except 
    for Board members' nominee background information sheets that were 
    assigned OMB No. 0505-0001.
    
    Statement of Consideration
    
        This final rule amends a provision of the Order by adjusting the 
    number of members representing four regions on the Board to best 
    reflect the geographic distribution of milk production volume 
    throughout the United States. Specifically, the number of Board members 
    from Region 2 (California) will increase from five to six; the number 
    of Board members from Region 3 (Arizona, Colorado, Idaho, Montana, 
    Nevada, Utah, and Wyoming) will increase from two to three; the number 
    of Board members from Region 6 (Wisconsin) will decrease from six to 
    five; and the number of Board members from Region 7 (Illinois, Iowa, 
    Missouri, and Nebraska) will decrease from three to two. With the 
    adjustments in regional representation, the Board continues to have 36 
    members representing 13 geographic regions, as is provided in Section 
    1150.131(a) of the Order.
        Notice of proposed rulemaking was given to interested parties and 
    they were afforded an opportunity to file written data, views, or 
    arguments concerning this proposed rule. Two comments were received, 
    representing a dairy management organization and a producer 
    organization. Both comments favored the proposed change.
        Dairy Management Inc. (DMI) supported a timely modification to the 
    number of members in four geographical regions to better reflect actual 
    milk production in those specified regions. The Idaho Dairy Products 
    Commission also supported the proposed change.
        Section 1150.131 (c) of the Order requires the Board to review the 
    geographic distribution of milk production volume throughout the United 
    States and, if warranted, to recommend to the Secretary a 
    reapportionment of the regions and/or modification of the number of 
    members from regions in order to best reflect the geographic 
    distribution of milk production volume in the United States.
        Section 1150.131(d) of the Order specifies the formula to be used 
    to determine the number of Board seats to represent each of the 13 
    geographic regions of the country designated in the Order. Under the 
    formula, total milk production for the 48 States for the previous 
    calendar year is divided by 36 to determine a factor of pounds of milk 
    represented by each Board member. The resulting factor is then divided 
    into the pounds of milk produced in each region to determine the number 
    of Board members for each region.
        The initial Board that was established in 1984 was based on 1983 
    milk production. The Board was last modified in 1994 based on the 1992 
    milk production. In 1983, each Board member represented about 3,875 
    million pounds of the 139,509 million pounds of milk produced in the 48 
    States. During 1997, total milk production increased to 156,464 million 
    pounds which indicated that each of the Board members would represent 
    4,346 million pounds of milk.
        Based on a review of the 1997 geographic distribution of milk 
    production, the Board concluded that the number of Board members for 
    four of the 13 geographic regions should be changed. Milk production in 
    Region 2 (California) increased to 27,628 million pounds in 1997 up 
    from 22,084 million pounds in 1992, indicating 6.36 Board members based 
    on 1997 production (27,628 divided by 4,346 = 6.36) compared to 5.24 
    Board members based on 1992 production (22,084 divided by 4,211 = 
    5.24). Also, milk production in Region 3 (Arizona, Colorado, Idaho, 
    Montana, Nevada, Utah, and Wyoming) increased to 11,929 million pounds 
    in 1997 up from 8,470 in 1992, indicating 2.74 Board members based on 
    1997 production (11,929 divided by 4,346 = 2.74) compared to 2.01 Board 
    members based on 1992 production (8,470 divided by 4,211 = 2.01). Milk 
    production in Region 6 (Wisconsin) decreased to 22,368 million pounds 
    in 1997 from 24,103 million pounds in 1992, indicating 5.15 Board 
    members based on 1997 production (22,368 divided by 4,346 = 5.15) 
    compared to 5.72 Board members based on 1992 production (24,103 divided 
    by 4,211 = 5.72). Also, milk production in Region 7 (Illinois, Iowa, 
    Missouri, and Nebraska) decreased to 9,699 million pounds from 11,168 
    million pounds in 1992, indicating 2.23 Board members based on 1997 
    production (9,699 divided by 4,346 = 2.23) compared to 2.65 Board 
    members based on 1992
    
    [[Page 57895]]
    
    production (11,168 divided by 4,211 = 2.65).
        Accordingly, it is appropriate to adjust the number of Board 
    members for four of the 13 regions: increasing Region 2 from five to 
    six members; increasing Region 3 from two to three; decreasing Region 6 
    from six to five; and decreasing Region 7 from three to two members. 
    With the member adjustments, the Board will best reflect the most 
    recently available geographic distribution of milk production volume 
    throughout the United States.
        It is appropriate to make this final rule effective one day after 
    the date of publication in the Federal Register. To allow the 
    appointment of new Board members based on the redistribution, this 
    amendment should be effective before the Secretary of the United States 
    Department of Agriculture makes appointments to fill positions on the 
    Board. Because terms of the existing Board members expire October 31, 
    1998, these positions should be appointed as soon as possible.
        Therefore, good cause exists for making this rule effective less 
    than 30 days from the date of publication in the Federal Register. The 
    proposed amendment to the order is made final in this action.
    
    List of Subjects in 7 CFR Part 1150
    
        Dairy products, reporting and recordkeeping requirements, rsearch.
    
        For the reasons set forth in the preamble, 7 CFR part 1150 is 
    amended as follows:
    
    PART 1150--NATIONAL DAIRY PROMOTION AND RESEARCH PROGRAM
    
        1. The authority citation for 7 CFR Part 1150 continues to read as 
    follows:
    
        Authority: 7 U.S.C. 4501-4513.
    
        2. In Sec. 1150.131, paragraphs (a)(2), (a)(3), (a)(6), and (a)(7) 
    are revised to read as follows:
    
    
    Sec. 1150.131  Establishment and membership.
    
        (a) * * *
    
    National Dairy Promotion and Research Order--Final Rule
    
        (2) Six members from region number two comprised of the following 
    State: California.
        (3) Three members from region number three comprised of the 
    following States: Arizona, Colorado, Idaho, Montana, Nevada, Utah, and 
    Wyoming.
    * * * * *
        (6) Five members from region number six comprised of the following 
    State: Wisconsin.
        (7) Two members from region number seven comprised of the following 
    States: Illinois, Iowa, Missouri, and Nebraska.
    * * * * *
        Dated: October 26, 1998.
    Isi A. Siddiqui,
    Deputy Assistant Secretary, Marketing and Regulatory Programs.
    [FR Doc. 98-29110 Filed 10-28-98; 8:45 am]
    BILLING CODE 3410-02-P
    
    
    

Document Information

Effective Date:
10/30/1998
Published:
10/29/1998
Department:
Agricultural Marketing Service
Entry Type:
Rule
Action:
Final rule.
Document Number:
98-29110
Dates:
October 30, 1998.
Pages:
57893-57895 (3 pages)
Docket Numbers:
DA-98-05
PDF File:
98-29110.pdf
CFR: (1)
7 CFR 1150.131