[Federal Register Volume 64, Number 74 (Monday, April 19, 1999)]
[Proposed Rules]
[Pages 19084-19089]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-9521]
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NORTHEAST DAIRY COMPACT COMMISSION
7 CFR Parts 1306 and 1309
Over-Order Price Regulation
AGENCY: Northeast Dairy Compact Commission.
ACTION: Proposed rule; notice of hearing.
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SUMMARY: The Northeast Dairy Compact Commission proposes to amend the
over-order price regulation to establish a supply management program.
The proposed program is an assessment/refund plan under which the
Commission would withhold up to the sum of three million dollars per
calendar year, at the rate of $250,000 from each Compact monthly pool.
At the end of the Commission's fiscal (calendar) year, the Commission
would refund the withheld funds to compact eligible producers who had
either reduced their production or only increased production at a rate
of one percent or less, as compared to the prior calendar year's
production. All eligible producers would receive a flat rate refund
amount. In addition to the flat rate refund amount, eligible producers
who decreased production would receive a refund based on the
hundredweight of milk that the current year's production was less than
the prior year's production.
DATES: A public hearing will be held on May 5, 1999 to commence at 9:00
a.m. and to conclude no later than 12:00 p.m. Sworn and notarized
written testimony, comments and exhibits may be submitted until 5:00
p.m. on May 19, 1999.
ADDRESSES: The public hearing will be held at Wayfarer Inn, 121 S.
River Road, U.S. Route 3, Bedford, New Hampshire. Mail, or deliver,
sworn and notarized testimony, comments and exhibits to: Northeast
Dairy Compact Commission, 34 Barre Street, Suite 2, Montpelier, Vermont
05602.
FOR FURTHER INFORMATION CONTACT: Kenneth M. Becker, Executive Director,
Northeast Dairy Compact Commission at the above address or by telephone
at (802) 229-1941, or by facsimile at (802) 229-2028.
SUPPLEMENTARY INFORMATION:
I. Background
The Northeast Dairy Compact Commission (``Commission'') was
established under authority of the Northeast Interstate Dairy Compact
(``Compact''). The Compact was enacted into law by each of the six
participating New England states as follows: Connecticut--Pub. L. 93-
320; Maine--Pub. L. 89-437, as amended, Pub. L. 93-274; Massachusetts--
Pub. L. 93-370; New Hampshire--Pub. L. 93-336; Rhode Island--Pub. L.
93-106; Vermont--Pub. L. 93-57. In accordance with Article I, Section
10 of the United States Constitution, Congress consented to the Compact
in Pub. L. 104-127 (FAIR Act), Section 147, codified at 7 U.S.C. 7256.
Subsequently, the United States Secretary of Agriculture, pursuant to 7
U.S.C. 7256(1), authorized implementation of the Compact.
Pursuant to its rulemaking authority under Article V, Section 11 of
the Compact, the Commission concluded an informal rulemaking process
and voted to adopt a compact over-order price regulation on May 30,
1997. 1 The Commission subsequently amended and extended the
compact over-order price regulation. 2 In 1998, the
Commission further amended specific provisions of the over-order price
regulation. 3 The current compact over-order price
regulation is codified at 7 CFR Chapter XIII.
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\1\ 62 FR 29626 (May 30, 1997)
\2\ 62 FR 62810 (Nov. 25, 1997)
\3\ 63 FR 10104 (Feb. 27, 1998); 63 FR 46385 (Sept. 1, 1998);
and 63 FR 65517 (Nov. 27, 1998).
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On November 27, 1998, the Commission issued a notice of proposed
rulemaking proceedings on several subjects and issues, including
whether additional supply management policies and provisions should be
incorporated into the over-order price regulation. 4 The
Commission held a public hearing to receive testimony on December 11,
1998 in Boxborough, Massachusetts and comments were received until 5:00
p.m. on December 31, 1998.
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\4\ 63 FR 65563 (Nov. 27, 1998).
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On January 13, 1999, the Commission held its deliberative meeting,
pursuant to 7 CFR 1361.8, to consider all oral and written comments
received at the public hearing and the additional comments received by
the Commission's published comment deadline of December 31, 1998, and
to deliberate and act on the proposed subjects and issues rulemaking
regarding whether additional supply management policies and provisions
should be incorporated into the over-order price regulation.
5 At that meeting, the Commission referred the supply
management issue to its Committee on Regulations and Rulemaking for
further study. The Committee was asked to report back to the full
Commission no later than the May 1999 meeting with recommendations for
addressing supply management and the requirement in Article IV, Section
9(f) of the Compact. That provision requires the Commission, when
establishing a compact over-order price, to ``take such action as
necessary and feasible to ensure that the over-order price does not
create an incentive for producers to generate additional supplies of
milk.''
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\5\ 64 FR 533 (Jan. 5, 1999).
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Since promulgation of the Compact Over-order Price Regulation in
1997, the Commission has closely monitored milk production levels in
New England. One of the main goals in initially promulgating the Over-
order Price Regulation was to at least stabilize the dairy industry
supplying the New England consumer milk markets and to increase the
local supply of milk. 6
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\6\ 62 FR 23039-40 (April 28, 1997); 62 FR 29635 (May 30, 1997);
62 FR 62814 (Nov. 25, 1997).
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In the spring of 1998, the Commission recognized that production
levels in New England had increased. The Commission's Committee on
Regulations and Rulemaking held five public meetings around New
England, to receive informal public comment on various supply
management proposals and the Commission's responsibilities under
Section 9(f) of the Compact. The Commission also conducted a
comprehensive rulemaking proceeding beginning in June 1998, held public
hearings in July and September 1998 and promulgated a rule in November
to be effective January 1, 1999 which limits the payment of the Compact
Over-order producer price to milk disposed of within the Compact
regulated area, with a seasonally adjusted allowance for diverted and
transferred milk. 7
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\7\ 63 FR 65517 (Nov. 27, 1998).
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Also in 1998, the Commission paid 1.762 million dollars to the
Commodity Credit Corporation (CCC), as required by condition 5 of the
authorization of the Compact, 7 U.S.C. 7256(5). That provision requires
the Commission to compensate the CCC for the cost of any purchases of
milk and milk products that result from the projected rate of increase
in milk production in the Compact regulated area in excess of the
national average rate of the increase in milk production. 8
The Commission
[[Page 19085]]
began setting aside funds in an escrow account from the monthly
producer pool in March 1998, for February milk, to meet this potential
obligation. After the payment to the CCC was made, the CCC escrow
account had a balance of approximately $400,000, which the Commission
returned to those producers whose production in federal fiscal year
1998 was less than or equal to their production during federal fiscal
year 1997. The CCC refund payments were based on the eligible
producer's total production for the year.
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\8\ During federal fiscal year 1998, the Compact region enjoyed
some of the best milk production conditions in many years, weather
was warm and feed prices were low. Many other milk producing areas
of the country experienced some of the worst weather and, as a
result, the rate of production in New England exceeded that of the
national average. The Commission notes, too, however, that in
promulgating the Over-order Price Regulation it intended to
stabilize or increase milk production in the region. See discussions
at 62 FR 23039-40 (April 28, 1997); 62 FR 29635 (May 30, 1997); and
62 FR 62814 (Nov. 25, 1997)
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Based on the oral testimony and written comments and exhibits
received in the December 1998 subjects and issues rulemaking
proceeding, the informal public comment provided to the Committee on
Regulations in the public meetings in the spring of 1998 and the
Commission's experience with the CCC refund program, the Commission
proposes to implement a supply management program through an assessment
and refund payment to producers who either reduce production or
maintain their milk production within one percent of the prior year's
production level. The proposed program is described in detail below.
II. Proposed Supply Management Program
The proposed supply management program is designed to meet the
Commission's responsibilities under Article IV, Section 9(f) of the
Compact. That provision provides that ``[w]hen establishing a compact
over-order price, the commission shall take such action as necessary
and feasible to ensure that the over-order price does not create an
incentive for producers to generate additional supplies of milk.'' The
proposed supply management program is relatively straightforward to
administer and implement and therefore would be a feasible method of
addressing supply management. The proposed supply management program is
necessary to ensure that the compact over-order price does not create
an incentive for producers to increase milk production, as required by
section 9(f) of the Compact.
The proposed program would require the Commission to reduce the
producer pool by the sum of $250,000 per month, in order to accumulate
a total of three million dollars per calendar year in the supply
management-settlement fund. 9 By taking an equal sum from
each producer pool, the impact on the monthly producer pay price would
be minimized, thereby continuing to ensure a sufficient pay price to
producers to cover their costs of production. These funds would be
accumulated in an escrow account throughout the calendar year in a
supply management-settlement fund.
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\9\ If there is no producer pool in a particular month, the sum
owed to the refund pool would be carried forward and paid from the
next available producer pool.
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At the conclusion of the calendar year, producers would have 45
days to submit an application to the Commission for a refund from the
supply management-settlement fund. There would be two categories of
producers eligible for the refund: (1) producers who reduced their
production as compared to their prior year's production level; and (2)
producers who maintained their production milk level at a rate of
increase not more than 1% compared to the prior year's production. All
eligible producers would receive a refund based on a flat rate per
producer. One-half of the supply management-settlement fund would be
distributed to eligible producers on a per producer basis. The amount
of the flat rate refund would be determined by dividing the total
number of eligible producers into one-half the value of the supply
management-settlement fund.
In addition, producers who reduced their milk production, compared
to the prior year's production, would receive a refund amount based on
a price per hundredweight of reduced production of milk. The
assessment/refund program would provide a reward to those producers who
reduce their milk production and create an incentive for all producers
to maintain a stable, local supply of milk for the New England milk
market.
All producers would share equally in the burden of funding this
program through a reduction in the producer pay price. Only those
producers who reduce or maintain their production level would be
eligible for a refund. However, the program would not otherwise
restrict the milk production of those producers who, for business
reasons unrelated to the compact payments, chose to increase their milk
production at a rate greater than 1% per year.
The Commission would also change the regulation regarding any
balance left in an account established to meet a potential liability to
the Commodity Credit Corporation. The supply management program would
be designed to meet the Commission's responsibilities under section
9(f) of the Compact, and therefore, any balance in a CCC escrow account
would be returned to the producer-settlement fund for distribution to
all producers in the next producer pool.
It is the intention and judgment of the Commission that the
combination of the proposed supply management assessment/refund program
and the recently promulgated rules limiting compact payments on
diverted and transferred milk will operate in coordination to regulate
the supply of milk in New England relative to the consumer demand and
to ensure that the compact payments do not create an incentive to
generate supplies of milk in excess of the tolerance levels prescribed
for diverted and transferred milk.
Tables 1 and 2 show how the proposed supply management program
would be implemented using the actual figures for the May 1998 and July
1998 compact producer pools. As Tables 1 and 2 demonstrate, setting
aside $250,000 from each pool to fund the supply management-settlement
fund, would have reduced the producer price by four cents.
Table 1.--May 1998 Compact Over-Order Producer Price With Proposed Supply Management Assessment
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Compact Over-order Obligation................................ .............. $0.89 .................
Compact Class I.............................................. 43.49% 252,572,087 $2,247,891.58
Less: WIC 3%................................................. .............. .............. 67,436.75
Less: Supply Management Assessment........................... .............. .............. 250,000.00
Total Producer Milk.......................................... 100% 580,786,219 1,930,454.83
Add: \1/2\ Unobligated Balance............................... .............. .............. 257,942.40
Adjusted Pool Value.......................................... .............. 0.376799097 2,188,397.23
Less: Reserve................................................ .............. .046799097 271,802.14
Total Pool Value............................................. .............. .............. 1,916,595.09
[[Page 19086]]
Over-order Producer Price.................................... .............. $0.33 .................
Announced Over-order Producer Price.......................... .............. $0.37 .................
Reduction due to SM Assessment............................... .............. $0.04 .................
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Table 2.--July 1998 Compact Over-Order Producer Price With Proposed Supply Management Assessment
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Compact Over-order Obligation................................ .............. $2.82 .................
Compact Class I.............................................. 43.70% 248,178,437 $6,998,631.91
Less: WIC 3%................................................. .............. .............. 209,958.96
Less: Supply Management Assessment........................... .............. .............. 250,000.00
Total Producer Milk.......................................... 100% 567,929,595 6,538,672.95
Add: \1/2\ Unobligated Balance............................... .............. .............. 229,215.01
Adjusted Pool Value.......................................... .............. 1.191677281 6,767,887.96
Less: Reserve................................................ .............. .041677281 236,697.15
Total Pool Value............................................. .............. .............. 6,531,190.81
Over-order Producer Price.................................... .............. $1.15 .................
Announced Over-order Producer Price.......................... .............. $1.19 .................
Reduction due to SM Assessment............................... .............. $0.04 .................
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The Commission offers the following examples to assist interested
persons in evaluating the proposed supply management program. Table 3
shows the cost per producer of a reduction in the producer pay price of
$.04 per hundredweight on a monthly and annual basis. As discussed
above, the $.04 reduction is the cost of setting aside $250,000 per
month from the producer pool to fund the supply management-settlement
fund.
Table 3.--Cost of Supply Management Assessment to Selected Size Farms
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Reduced rate/
No. cows Pounds cwt Cost per month Cost per year
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40.............................................. 700,000 .$04 $23 $280
57.............................................. 1,000,000 .04 33 400
86.............................................. 1,500,000 .04 50 600
286............................................. 5,000,000 .04 167 2,000
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The examples in Tables 4 and 5 assume that each size farm reduces
production by five percent compared to the prior year's production. The
proposed supply management program would pay one-half of the supply
management-settlement fund on a per producer, flat rate basis, and the
other half on a rate per hundredweight of the producer's reduced milk
production. The values used in the examples are determined by assuming
that 1,000 producers are eligible for the supply management refund, and
eligible producers reduced milk production by 91 million pounds. These
assumptions result in a per producer refund payment of $1,500 and a per
hundredweight rate of $1.64.
Table 4 shows the yearly refund different size farms would receive
under the proposed supply management program.
Table 4.--Yearly Refund From Supply Management Program, Selected Size Farms
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Reduced rate/ Rate/cwt Per farm
No. Cows Pounds Reduced pounds cwt refund refund Total refund
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40...................................................... 700,000 35,000 $1.64 $574 $1,500 $2,074
57...................................................... 1,000,000 50,000 1.64 820 1,500 2,320
86...................................................... 1,500,000 75,000 1.64 1,230 1,500 2,730
286..................................................... 5,000,000 250,000 1.64 4,100 1,500 5,600
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Table 5 shows the yearly financial benefit to different size farms
of the proposed supply management program.
Table 5.--Yearly Benefits From Supply Management Program, Selected Size Farms
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No. Cows Total refund Less cost Net refund
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40.............................................................. $2,074 $280 $1,794
57.............................................................. 2,320 400 1,920
86.............................................................. 2,730 600 2,130
[[Page 19087]]
286............................................................. 5,600 2,000 3,600
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Table 6 shows the increased income a producer would have received
in 1998, on only the volume of milk produced in excess of the prior
year's production, due to the compact producer price. The table uses
the assumption that the rate of increased production was 1.8%. This is
the rate of increased production in the compact region the Commodity
Credit Corporation used to set the amount due from the Compact
Commission in 1998. The table also applies the average compact over-
order producer price for 1998 of $.286. The last column shows the
compact payment to the producer for the increased milk production.
Table 6.--Yearly Increased Income on Average Percentage Increased Production
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No. Cows Pounds % Increase Increase lbs. Av. Price Increase $
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40.............................. 700,000 1.8 12,600 $.286 $36
57.............................. 1,000,000 1.8 18,000 .286 51
86.............................. 1,500,000 1.8 27,000 .286 77
285............................. 5,000,000 1.8 90,000 .286 257
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Table 7 shows the comparison between the income (reduced income) a
producer would not receive due to decreasing production by five (5)
percent, and the financial benefit for that production decrease under
the proposed supply management program. The table applies the average
compact producer price of $.286 for 1998 to compute the value of
reduced income and applies the same assumptions as used in Table 5 to
show the effect of the proposed supply management program (SMP).
Table 7.--Comparison of Reduced Compact Income to Supply Management Benefits for 5% Production Decrease
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Net income
No. Cows Reduced pounds Average price Reduced income Net SMP refund increase
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40.............................. 35,000 $.286 $100 $1794 $1694
57.............................. 50,000 .286 143 1920 1777
86.............................. 75,000 .286 214 2130 1916
285............................. 250,000 .286 715 3600 2885
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The Commission is especially interested in comments regarding the
level of refund payment that would best meet the purposes of the supply
management program.
III. Proposed Technical Amendments to the Over-Order Price
Regulation
The Commission proposes to amend Secs. 1306.3 (c) and (e) and to
add a new Part 1309 to provide the necessary regulations to implement
the proposed supply management assessment/refund program. The
Commission also proposes to make corresponding technical changes
required by the specific amendments and additions to the current
regulations.
The Commission proposes to amend Sec. 1306.3(c) to delete
subsections (1) and (2) and to specify that any surplus remaining in an
escrow account established to meet a potential obligation to the
Commodity Credit Corporation (CCC) would be returned to the producer-
settlement fund for distribution to all producers. These changes
eliminate the current provisions for returning the surplus funds to
only those producers who did not increase production in the federal
fiscal year. The Commission proposes this change because, with the
implementation of the supply management assessment/refund program and
the corresponding reduction of the producer pool, the limitation on the
CCC refund of a surplus to only those producers who did not increase
production would no longer be appropriate.
The Commission proposes to amend Sec. 1306.3, by first
redesignating existing paragraphs (e) through (g) as paragraphs (f)
through (h) and adding a new paragraph (e). The new paragraph will
allow the Commission to withhold $250,000 from the producer pool to
fund the supply management-settlement fund. In months when there either
is no producer pool or the amount of the pool is insufficient, then the
obligation will accrue to the next available pool. This provision will
allow the Commission to fund the supply management-settlement fund at
an amount up to three million dollars per calendar year.
A new Part 1309 is proposed to provide the regulations to implement
the supply management program. Section 1309.1 defines producer
qualifications for the refund program. Section 1309.2 defines the
procedure for computing the refund prices to be paid to qualified
producers. Section 1309.3 would provide the authority for the
establishment of a supply management-settlement fund. Finally,
Sec. 1309.4 would describe the procedure for issuing payments to
producers eligible for a refund under the supply management program.
Official Notice of Technical, Scientific or Other Matters
Pursuant to the Commission regulations, 7 CFR 1361.5(g)(5), the
Commission hereby gives public notice that it may take official notice,
at the public hearing May 5, 1999, or afterward, of relevant facts,
statistics,
[[Page 19088]]
data, conclusions, and other information provided by or through the
United States Department of Agriculture, including, but not limited to,
matters reported by the National Agricultural Statistics Service, the
Market Administrators, the Economic Research Service, the Agricultural
Marketing Service and information, data and statistics developed and
maintained by the Departments of Agriculture of the States or
Commonwealth within the Compact regulated area.
The Commission will also receive into the record of this rulemaking
proceeding the entire record, including the public hearing transcript
and written comments and submissions, of the subjects and issues
rulemaking proceeding regarding whether additional supply management
policies and provisions should be incorporated into the Over-order
Price Regulation.
Public Participation in Rulemaking Proceedings
The Commission seeks and encourages oral and written testimony and
comments from all interested persons regarding these proposed rules.
The Commission continues to benefit from the valuable insights and
active participation of all segments of the affected community
including consumers, processors and producers in the development and
administration of the Over-order Price Regulation.
Date, Time and Location of the Public Hearing
The Northeast Dairy Compact Commission will hold a public hearing
to commence at 9:00 a.m., and to conclude no later than 12:00 p.m., on
May 5, 1999 at the Wayfarer Inn, 121 S. River Road, U.S. Route 3,
Bedford, New Hampshire.
Request for Pre-filed Testimony and Written Comments
Pursuant to the Commission rules, 7 CFR 1361.4, any person may
participate in the rulemaking proceeding independent of the hearing
process by submitting written comments or exhibits to the Commission.
Comments and exhibits may be submitted at any time before 5:00 p.m. on
May 19, 1999.
Please note: Comments and exhibits will be made part of the
record of the rulemaking proceeding only if they identify the
author's name, address and occupation, and if they include a sworn
and notarized statement indicating that the comment and/or exhibit
is presented based upon the author's personal knowledge and belief.
Facsimile copies will be accepted up until the 5:00 p.m. deadline,
but the original must then be sent by ordinary mail.
The Commission is requesting pre-filed testimony from any
interested person. Pre-filed testimony must include the name, address
and occupation of the witness and a sworn notarized statement
indicating that the testimony is presented based upon the author's
personal knowledge and belief. Pre-filed testimony must be received in
the Commission office no later than 5:00 p.m. April 26, 1999 to insure
distribution to Commission members prior to the public hearing.
Pre-filed testimony, comments and exhibits should be sent to:
Northeast Dairy Compact Commission, 34 Barre Street, Suite 2,
Montpelier, Vermont 05602 or by facsimile to (802) 229-2028.
List of Subjects in 7 CFR Parts 1306 and 1309
Milk.
Codification in Code of Federal Regulations
For reasons set forth in the preamble, the Northeast Dairy Compact
Commission proposes to amend 7 CFR part 1306 and to add a new part 1309
as follows:
PART 1306--COMPACT OVER-ORDER PRODUCER PRICE
1. The authority citation for part 1306 continues to read as
follows:
Authority: 7 U.S.C. 7256.
2. In section 1306.3 revise paragraph (c), redesignate paragraphs
(e) through (g) as paragraphs (f) through (h), and add new paragraph
(e) to read as follows:
Sec. 1306.3 Computation of basic over-order producer price.
* * * * *
(c) In any month when the average percentage increase in production
in the regulated area comes within 0.25 of the average percentage
increase in production for the nation, subtract from the total value
computed pursuant to paragraph (a) of this section, for the purpose of
retaining a reserve, an amount estimated by the commission in
consultation with the USDA for anticipated cost to reimburse the
Commodity Credit Corporation (CCC) at the end of its fiscal year for
any surplus milk purchases. Should those funds not be needed because no
surplus purchases were made by the CCC at the end of its fiscal year or
there is a surplus in the fund, it is to be returned to the producer-
settlement fund.
* * * * *
(e) Subtract $250,000 from the total value computed pursuant to
paragraph (a) of this section and deposit that amount in the supply
management-settlement fund, in the event there is no monthly pool
because there is no over-order obligation or there is insufficient
funds available, the obligation under this section will accrue to the
next available pool;
* * * * *
3. A new part 1309 is added to read as follows:
PART 1309--SUPPLY MANAGEMENT REFUND PROGRAM
Sec.
1309.1 Producer qualification for supply management refund program.
1309.2 Computation of supply management refund prices.
1309.3 Supply management-settlement fund.
1309.4 Payment to producers of supply management refund.
Authority: 7 U.S.C. 7256.
Sec. 1309.1 Producer qualification for supply management refund
program.
A dairy farmer who is a qualified producer pursuant to Sec. 1301.11
of this chapter for the entire refund year and the dairy farmer's milk
production during the refund year is less than or the increase is not
more than 1% of the milk production of the preceding calendar year.
Sec. 1309.2 Computation of supply management refund prices.
The compact commission shall compute the supply management refund
prices applicable to all qualified milk as follows:
(a) Combine into one total the values, including all interest
earned, deducted pursuant to Sec. 1306.3(e) of this chapter for the
refund year;
(b) Subtract 50% from the total value computed pursuant to
paragraph (a) of this section to be used for the per farm payments to
producers who submitted documentation pursuant to Sec. 1309.4(a);
(c) Add the unobligated balance of the supply management-settlement
fund;
(d) Divide the resulting amount by the sum of all milk production
reduction reported by producers qualified pursuant to Sec. 1309.1 and
who submitted documentation pursuant to Sec. 1309.4(a); and
(e) Subtract not less than one (1) cent nor more than two (2) cents
for the purpose of retaining a cash balance in the supply management-
settlement fund. The result shall be the supply management refund price
for the year.
Sec. 1309.3 Supply management-settlement fund.
(a) The compact commission shall establish and maintain a separate
fund
[[Page 19089]]
known as the supply management-settlement fund. It shall deposit into
the fund all amounts deducted pursuant to Sec. 1306.3(e) of this
chapter and the amount subtracted under Sec. 1309.2(e). It shall pay
from the fund all amounts due producers pursuant to Sec. 1309.4 and the
amount added pursuant to Sec. 1309.2(c);
(b) All amounts subtracted under Sec. 1309.2(e), including interest
earned thereon, shall remain in the supply management-settlement fund
as an obligated balance until it is withdrawn for the purpose of
effectuating Sec. 1309.2(c);
(c) The compact commission shall place all monies subtracted under
Sec. 1306.3(e) of this chapter and Sec. 1309.2(e) in an interest-
bearing bank account or accounts in a bank or banks duly approved as a
Federal depository for such monies, or invest them in short-term U.S.
Government securities.
Sec. 1309.4 Payment to producers of supply management refund.
(a) All producers who are qualified pursuant to Sec. 1309.1 shall
become eligible to receive payment of the supply management refund
computed pursuant to Sec. 1309.2 by submitting to the compact
commission documentation that the producer milk production during the
refund year is less than or the increase is not more than 1% of the
milk production of the preceding calendar year. Such documentation
shall be filed with the commission not later than 45 days after the end
of the calendar year.
(b) The commission will make payment to all producers qualified
pursuant to Sec. 1309.1 and eligible pursuant to paragraph (a) of this
section in the following manner:
(1) A per farm payment computed by dividing the amount subtracted
pursuant to Sec. 1309.2(b) by the total eligible producers; and
(2) The value determined by multiplying the supply management
refund price computed pursuant to Sec. 1309.2(e) by the producer's
reduced milk pounds.
Date: April 12, 1999.
Kenneth M. Becker,
Executive Director.
[FR Doc. 99-9521 Filed 4-16-99; 8:45 am]
BILLING CODE 1650-01-P
