[Federal Register: February 12, 2003 (Volume 68, Number 29)]
[Rules and Regulations]
[Page 7063-7070]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr12fe03-1]
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Rules and Regulations
Federal Register
________________________________________________________________________
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having general applicability and legal effect, most of which are keyed
to and codified in the Code of Federal Regulations, which is published
under 50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by the Superintendent of Documents.
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[[Page 7063]]
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Parts 1000, 1001, 1005, 1006, 1007, 1030, 1032, 1033, 1124,
1126, 1131, and 1135
[Docket No. AO-14-A69, et al.: DA-00-03]
Milk in the Northeast and Other Marketing Areas: Order Amending
the Orders
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Final rule.
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------------------------------------------------------------------------
7 CFR Part Marketing area AO nos.
------------------------------------------------------------------------
1001.............. Northeast................ AO-14-A69
1005.............. Appalachian.............. AO-388-A11
1006.............. Florida.................. AO-356-A34
1007.............. Southeast................ AO-366-A40
1030.............. Upper Midwest............ AO-361-A34
1032.............. Central.................. AO-313-A43
1033.............. Mideast.................. AO-166-A67
1124.............. Pacific Northwest........ AO-368-A27
1126.............. Southwest................ AO-231-A65
1131.............. Arizona-Las Vegas........ AO-271-A35
1135.............. Western.................. AO-380-A17
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SUMMARY: This final rule implements revised product-price formulas for
establishing Class III and Class IV milk prices. The formulas are
applicable to all Federal milk marketing orders. Each of the amended
orders was approved by producers who were eligible to have their milk
pooled during the representative month for voting purposes. Referenda
were conducted in two markets, and dairy farmer cooperatives were
polled in the other nine markets to determine whether dairy farmers
approve the issuance of the orders as amended.
EFFECTIVE DATE: April 1, 2003.
FOR FURTHER INFORMATION CONTACT: Clifford M. Carman, Associate Deputy
Administrator, Order Formulation and Enforcement, USDA/AMS/Dairy
Programs, Stop 0231-Room 2968, 1400 Independence Avenue, SW.,
Washington, DC 20250-0231, (202) 720-6274, e-mail:
clifford.carman@usda.gov.
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.
This final rule has been reviewed under Executive Order 12988,
Civil Justice Reform. This rule is not intended to have 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 request
modification or exemption from such order by filing 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. A handler is afforded the opportunity for a hearing on
the petition. After a hearing, the Department 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
Department'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.
Small Business Consideration
In accordance with the Regulatory Flexibility Act (5 U.S.C. 601 et
seq.), the Agricultural Marketing Service (AMS) has considered the
economic impact of this action on small entities and has certified that
this rule will not have a significant economic impact on a substantial
number of small entities. For the purpose of the Regulatory Flexibility
Act, a dairy farm is considered a ``small business'' if it has an
annual gross revenue of less than $750,000, and a dairy products
manufacturer is a ``small business'' if it has fewer than 500
employees.
For the purposes of determining which dairy farms are ``small
businesses,'' the $750,000 per year criterion was used to establish a
production guideline of 500,000 pounds per month. Although this
guideline does not factor in additional monies that may be received by
dairy producers, it should be an inclusive standard for most ``small''
dairy farmers. For purposes of determining a handler's size, if the
plant is part of a larger company operating multiple plants that
collectively exceed the 500 employee limit, the plant will be
considered a large business even if the local plant has fewer than 500
employees.
In consideration of the economic impact of changes to the Federal
milk marketing order program implemented by this final rule on small
entities, AMS prepared a regulatory flexibility analysis that was
included in the final decision (67 FR 67906). The analysis indicates
that the Department minimized the significant economic impact of the
regulations on small entities to the fullest extent reasonably possible
while adhering to the stated objectives. The Department reviewed the
regulatory and financial burdens resulting from the regulations and
determined, to the fullest extent possible, the impact on small
businesses' abilities to compete in the market place. The Department
reviewed the regulations from both the small producer and small
processor perspectives, attempting to maintain a balance between these
competing interests. Neither small producers nor small handlers should
experience any particular disadvantage as a result of the order
amendments.
No additional information collection or reporting requirements will
be necessitated by the amendments.
An analysis of the economic effects of the alternatives selected
was done and summarized in the final decision. A complete economic
analysis is available upon request from Howard McDowell, Senior
Economist, Office of the Chief Economist, USDA/AMS/Dairy Programs, Stop
0229-Room 2753, 1400 Independence Avenue, SW., Washington, DC 20250-
0229, (202) 720-7091, e-mail: howard.mcdowell@usda.gov.
Civil Rights Impact Statement
Pursuant to Departmental Regulation (DR) 4300-4, a comprehensive
Civil Rights Impact Analysis (CRIA) was
[[Page 7064]]
conducted and published with the final decision on Federal milk order
consolidation and reform. The conclusion of that analysis disclosed no
potential for affecting dairy farmers in protected groups differently
than the general population of dairy farmers. This issue was
reconsidered in the Final Decision (67 FR 67906) with regard to the
order amendments, and the conclusion has not changed.
Copies of the Civil Rights Impact Analysis done for the Final
Decision on Federal milk order consolidation and reform can be obtained
from AMS Dairy Programs at (202) 720-4392; any Milk Market
Administrator office; or via the Internet at: http://www.ams.usda.gov/dairy/
.
Prior documents in this proceeding:
Notice of Hearing: Issued April 6, 2000; published April 14, 2000
(65 FR 20094).
Tentative Final Decision: Issued November 29, 2000; published
December 7, 2000 (65 FR 76832).
Interim Final Rule: Issued December 21, 2000; published December
28, 2000 (65 FR 82832).
Recommended Decision: Issued October 19, 2001; published November
29, 2001 (66 FR 59546).
Extension of Time: Issued November 26, 2001; published November 29,
2001 (66 FR 59546).
Final Decision: Issued October 25, 2002; published November 7, 2002
(67 FR 67906).
Findings and Determinations
The findings and determinations hereinafter set forth supplement
those that were made when the Northeast and other 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 each of 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 agreement 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, for each of the aforesaid orders, it is found that:
(1) The said orders, as hereby amended, 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, 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 amendments to the Northeast and other orders effective for
milk marketed on or after April 1, 2003. Any delay beyond that date
would tend to disrupt the orderly marketing of milk in the aforesaid
marketing areas.
The amendments to these orders are known to handlers. The final
decision containing the proposed amendments to these orders was issued
on October 25, 2002.
The changes that result from these 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 for milk marketed on or after April 1, 2003.
(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 order amending the Northeast and other
orders is the only practical means pursuant to the declared policy of
the Act of advancing the interests of producers as defined in the
orders as hereby amended;
(3) The issuance of the order amending the Northeast and other
orders is favored by at least two-thirds of the producers who were
engaged in the production of milk for sale in each marketing area.
List of Subjects in 7 CFR Parts 1000, 1001, 1005, 1006, 1007, 1030,
1032, 1033, 1124, 1126, 1131, and 1135
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 Northeast and other 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, as
follows:
The authority citation for 7 CFR parts 1000, 1001, 1005, 1006,
1007, 1030, 1032, 1033, 1124, 1126, 1131, and 1135 reads as follows:
Authority: 7 U.S.C. 601-674.
PART 1000--GENERAL PROVISIONS OF FEDERAL MILK MARKETING ORDERS
1. Section 1000.40 is amended by adding paragraph (c)(1)(ii) and
revising paragraph (d)(1)(i) to read as follows:
Sec. 1000.40 Classes of utilization.
* * * * *
(c) * * *
(1) * * *
(ii) Plastic cream, anhydrous milkfat, and butteroil; and
* * * * *
(d) * * *
(1) * * *
(i) Butter; and
* * * * *
2. Section 1000.50 is amended by revising the last sentence of the
introductory text; by revising paragraphs (a), (b), (c), (g), (h), (j),
(l), (m), (n), (o), (p)(1), and (q)(3); and by removing paragraph
(q)(4) to read as follows:
Sec. 1000.50 Class prices, component prices, and advanced pricing
factors.
* * * The price described in paragraph (d) of this section shall be
derived from the Class II skim milk price announced on or before the
23rd day of the month preceding the month to which it applies and the
butterfat price announced on or before the 5th day of the month
following the month to which it applies.
(a) Class I price. The Class I price per hundredweight, rounded to
the nearest cent, shall be 0.965 times the Class I skim milk price plus
3.5 times the Class I butterfat price.
(b) Class I skim milk price. The Class I skim milk price per
hundredweight shall be the adjusted Class I differential
[[Page 7065]]
specified in Sec. 1000.52 plus the higher of the advanced pricing
factors computed in paragraph (q)(1) or (2) of this section.
(c) Class I butterfat price. The Class I butterfat price per pound
shall be the adjusted Class I differential specified in Sec. 1000.52
divided by 100, plus the advanced butterfat price computed in paragraph
(q)(3) of this section.
* * * * *
(g) Class II butterfat price. The Class II butterfat price per
pound shall be the butterfat price plus $0.007.
(h) Class III price. The Class III price per hundredweight, rounded
to the nearest cent, shall be 0.965 times the Class III skim milk price
plus 3.5 times the butterfat price.
* * * * *
(j) Class IV price. The Class IV price per hundredweight, rounded
to the nearest cent, shall be 0.965 times the Class IV skim milk price
plus 3.5 times the butterfat price.
* * * * *
(l) Butterfat price. The butterfat price per pound, rounded to the
nearest one-hundredth cent, shall be the U.S. average NASS AA Butter
survey price reported by the Department for the month less 11.5 cents,
with the result multiplied by 1.20.
(m) Nonfat solids price. The nonfat solids price per pound, rounded
to the nearest one-hundredth cent, shall be the U.S. average NASS
nonfat dry milk survey price reported by the Department for the month
less 14 cents and multiplying the result by 0.99.
(n) Protein price. The protein price per pound, rounded to the
nearest one-hundredth cent, shall be computed as follows:
(1) Compute a weighted average of the amounts described in
paragraphs (n)(1)(i) and (ii) of this section:
(i) The U.S. average NASS survey price for 40-lb. block cheese
reported by the Department for the month; and
(ii) The U.S. average NASS survey price for 500-pound barrel
cheddar cheese (38 percent moisture) reported by the Department for the
month plus 3 cents;
(2) Subtract 16.5 cents from the price computed pursuant to
paragraph (n)(1) of this section and multiply the result by 1.383;
(3) Add to the amount computed pursuant to paragraph (n)(2) of this
section an amount computed as follows:
(i) Subtract 16.5 cents from the price computed pursuant to
paragraph (n)(1) of this section and multiply the result by 1.572; and
(ii) Subtract 0.9 times the butterfat price computed pursuant to
paragraph (l) of this section from the amount computed pursuant to
paragraph (n)(3)(i) of this section; and
(iii) Multiply the amount computed pursuant to paragraph (n)(3)(ii)
of this section by 1.17.
(o) Other solids price. The other solids price per pound, rounded
to the nearest one-hundredth cent, shall be the U.S. average NASS dry
whey survey price reported by the Department for the month minus 15.9
cents, with the result multiplied by 1.03.
(p) * * *
(1) Multiply 0.0005 by the weighted average price computed pursuant
to paragraph (n)(1) of this section and round to the 5th decimal place;
* * * * *
(q) * * *
(3) An advanced butterfat price per pound, rounded to the nearest
one-hundredth cent, shall be calculated by computing a weighted average
of the 2 most recent U.S. average NASS AA Butter survey prices
announced before the 24th day of the month, subtracting 11.5 cents from
this average, and multiplying the result by 1.20.
PART 1001--MILK IN THE NORTHEAST MARKETING AREA
1. Section 1001.60 is amended by revising paragraphs (c)(3),
(d)(2), and (h) to read as follows:
Sec. 1001.60 Handler's value of milk.
* * * * *
(c) * * *
(3) Add an amount obtained by multiplying the pounds of butterfat
in Class III by the butterfat price.
(d) * * *
(2) Add an amount obtained by multiplying the pounds of butterfat
in Class IV by the butterfat price.
* * * * *
(h) Multiply the difference between the Class I price applicable at
the location of the nearest unregulated supply plants from which an
equivalent volume was received and the Class III price by the pounds of
skim milk and butterfat in receipts of concentrated fluid milk products
assigned to Class I pursuant to Sec. 1000.43(d) and Sec.
1000.44(a)(3)(i) and the corresponding step of Sec. 1000.44(b) and the
pounds of skim milk and butterfat subtracted from Class I pursuant to
Sec. 1000.44(a)(8) and the corresponding step of Sec. 1000.44(b),
excluding such skim milk and butterfat in receipts of fluid milk
products from an unregulated supply plant to the extent that an
equivalent amount of skim milk or butterfat disposed of to such plant
by handlers fully regulated under any Federal milk order is classified
and priced as Class I milk and is not used as an offset for any other
payment obligation under any order.
* * * * *
2. Section 1001.61 is revised to read as follows:
Sec. 1001.61 Computation of producer price differential.
For each month, the market administrator shall compute a producer
price differential per hundredweight. The report of any handler who has
not made payments required pursuant to Sec. 1001.71 for the preceding
month shall not be included in the computation of the producer price
differential, and such handler's report shall not be included in the
computation for succeeding months until the handler has made full
payment of outstanding monthly obligations. Subject to the conditions
in this paragraph, the market administrator shall compute the producer
price differential in the following manner:
(a) Combine into one total the values computed pursuant to Sec.
1001.60 for all handlers required to file reports prescribed in Sec.
1001.30;
(b) Subtract the total of the values obtained by multiplying each
handler's total pounds of protein, other solids, and butterfat
contained in the milk for which an obligation was computed pursuant to
Sec. 1001.60 by the protein price, other solids price, and the
butterfat price, respectively;
(c) Add an amount equal to the minus location adjustments and
subtract an amount equal to the plus location adjustments computed
pursuant to Sec. 1001.75;
(d) Add an amount equal to not less than one-half of the
unobligated balance in the producer-settlement fund;
(e) Divide the resulting amount by the sum of the following for all
handlers included in these computations:
(1) The total hundredweight of producer milk; and
(2) The total hundredweight for which a value is computed pursuant
to Sec. 1001.60(h); and
(f) Subtract not less than 4 cents nor more than 5 cents from the
price computed pursuant to paragraph (e) of this section. The result,
rounded to the nearest cent, shall be known as the producer price
differential for the month.
3. Section 1001.62 is amended by revising paragraphs (e) and (g) to
read as follows:
Sec. 1001.62 Announcement of producer prices.
* * * * *
(e) The butterfat price;
* * * * *
[[Page 7066]]
(g) The statistical uniform price for milk containing 3.5 percent
butterfat computed by combining the Class III price and the producer
price differential.
4. Section 1001.71 is amended by revising paragraphs (b)(2) and
(b)(3) to read as follows:
Sec. 1001.71 Payments to the producer-settlement fund.
* * * * *
(b) * * *
(2) An amount obtained by multiplying the total pounds of protein,
other solids, and butterfat contained in producer milk by the protein,
other solids, and butterfat prices respectively; and
(3) An amount obtained by multiplying the pounds of skim milk and
butterfat for which a value was computed pursuant to Sec. 1001.60(h)
by the producer price differential as adjusted pursuant to Sec.
1001.75 for the location of the plant from which received.
5. Section 1001.73 is amended by revising paragraphs (a)(2)(ii) and
(b)(3)(vi) to read as follows:
Sec. 1001.73 Payments to producers and to cooperative associations.
(a) * * *
(2) * * *
(ii) Multiply the pounds of butterfat received by the butterfat
price for the month;
* * * * *
(b) * * *
(3) * * *
(vi) Multiply the pounds of butterfat in Class III and Class IV
milk by the butterfat price for the month;
* * * * *
PART 1030--MILK IN THE UPPER MIDWEST MARKETING AREA
1. Section 1030.60 is amended by revising paragraphs (c)(3),
(d)(2), and (i) to read as follows:
Sec. 1030.60 Handler's value of milk.
* * * * *
(c) * * *
(3) Add an amount obtained by multiplying the pounds of butterfat
in Class III by the butterfat price.
(d) * * *
(2) Add an amount obtained by multiplying the pounds of butterfat
in Class IV by the butterfat price.
* * * * *
(i) Multiply the difference between the Class I price applicable at
the location of the nearest unregulated supply plants from which an
equivalent volume was received and the Class III price by the pounds of
skim milk and butterfat in receipts of concentrated fluid milk products
assigned to Class I pursuant to Sec. 1000.43(d) and Sec.
1000.44(a)(3)(i) and the corresponding step of Sec. 1000.44(b) and the
pounds of skim milk and butterfat subtracted from Class I pursuant to
Sec. 1000.44(a)(8) and the corresponding step of Sec. 1000.44(b),
excluding such skim milk and butterfat in receipts of fluid milk
products from an unregulated supply plant to the extent that an
equivalent amount of skim milk or butterfat disposed of to such plant
by handlers fully regulated under any Federal milk order is classified
and priced as Class I milk and is not used as an offset for any other
payment obligation under any order.
* * * * *
2. Section 1030.61 is revised to read as follows:
Sec. 1030.61 Computation of producer price differential.
For each month the market administrator shall compute a producer
price differential per hundredweight. The report of any handler who has
not made payments required pursuant to Sec. 1030.71 for the preceding
month shall not be included in the computation of the producer price
differential, and such handler's report shall not be included in the
computation for succeeding months until the handler has made full
payment of outstanding monthly obligations. Subject to the conditions
of this paragraph, the market administrator shall compute the producer
price differential in the following manner:
(a) Combine into one total the values computed pursuant to Sec.
1030.60 for all handlers required to file reports prescribed in Sec.
1030.30;
(b) Subtract the total values obtained by multiplying each
handler's total pounds of protein, other solids, and butterfat
contained in the milk for which an obligation was computed pursuant to
Sec. 1030.60 by the protein price, other solids price, and the
butterfat price, respectively, and the total value of the somatic cell
adjustment pursuant to Sec. 1030.30(a)(1) and (c)(1);
(c) Add an amount equal to the minus location adjustments and
subtract an amount equal to the plus location adjustments computed
pursuant to Sec. 1030.75;
(d) Add an amount equal to not less than one-half of the
unobligated balance in the producer-settlement fund;
(e) Divide the resulting amount by the sum of the following for all
handlers included in these computations:
(1) The total hundredweight of producer milk; and
(2) The total hundredweight for which a value is computed pursuant
to Sec. 1030.60(i); and
(f) Subtract not less than 4 cents nor more than 5 cents from the
price computed pursuant to paragraph (e) of this section. The result
shall be known as the producer price differential for the month.
3. Section 1030.62 is amended by revising paragraphs (e) and (h) to
read as follows:
Sec. 1030.62 Announcement of producer prices.
* * * * *
(e) The butterfat price;
* * * * *
(h) The statistical uniform price for milk containing 3.5 percent
butterfat, computed by combining the Class III price and the producer
butterfat price differential.
4. Section 1030.71 is amended by revising paragraphs (b)(2) and
(b)(4) to read as follows:
Sec. 1030.71 Payments to the producer-settlement fund.
* * * * *
(b) * * *
(2) An amount obtained by multiplying the total pounds of protein,
other solids, and butterfat contained in producer milk by the protein,
other solids, and butterfat prices respectively;
* * * * *
(4) An amount obtained by multiplying the pounds of skim milk and
butterfat for which a value was computed pursuant to Sec. 1030.60(i)
by the producer price differential as adjusted pursuant to Sec.
1030.75 for the location of the plant from which received.
5. Section 1030.73 is amended by revising paragraphs (a)(2)(ii),
(c)(2)(v), and (c)(3)(ii) to read as follows:
Sec. 1030.73 Payments to producers and to cooperative associations.
(a) * * *
(2) * * *
(ii) The pounds of butterfat received times the butterfat price for
the month;
* * * * *
(c) * * *
(2) * * *
(v) The pounds of butterfat in Class III and Class IV milk times
the butterfat price;
* * * * *
(3) * * *
(ii) The pounds of butterfat received times the butterfat price for
the month;
* * * * *
[[Page 7067]]
PART 1032--MILK IN THE CENTRAL MARKETING AREA
1. Section 1032.60 is amended by revising paragraphs (c)(3),
(d)(2), and (i) to read as follows:
Sec. 1032.60 Handler's value of milk.
* * * * *
(c) * * *
(3) Add an amount obtained by multiplying the pounds of butterfat
in Class III by the butterfat price.
(d) * * *
(2) Add an amount obtained by multiplying the pounds of butterfat
in Class IV by the butterfat price.
* * * * *
(i) Multiply the difference between the Class I price applicable at
the location of the nearest unregulated supply plants from which an
equivalent volume was received and the Class III price by the pounds of
skim milk and butterfat in receipts of concentrated fluid milk products
assigned to Class I pursuant to Sec. 1000.43(d) and Sec.
1000.44(a)(3)(i) and the corresponding step of Sec. 1000.44(b) and the
pounds of skim milk and butterfat subtracted from Class I pursuant to
Sec. 1000.44(a)(8) and the corresponding step of Sec. 1000.44(b),
excluding such skim milk and butterfat in receipts of fluid milk
products from an unregulated supply plant to the extent that an
equivalent amount of skim milk or butterfat disposed of to such plant
by handlers fully regulated under any Federal milk order is classified
and priced as Class I milk and is not used as an offset for any other
payment obligation under any order.
* * * * *
2. Section 1032.61 is revised to read as follows:
Sec. 1032.61 Computation of producer price differential.
For each month the market administrator shall compute a producer
price differential per hundredweight. The report of any handler who has
not made payments required pursuant to Sec. 1032.71 for the preceding
month shall not be included in the computation of the producer price
differential, and such handler's report shall not be included in the
computation for succeeding months until the handler has made full
payment of outstanding monthly obligations. Subject to the conditions
of this paragraph, the market administrator shall compute the producer
price differential in the following manner:
(a) Combine into one total the values computed pursuant to Sec.
1032.60 for all handlers required to file reports prescribed in Sec.
1032.30;
(b) Subtract the total values obtained by multiplying each
handler's total pounds of protein, other solids, and butterfat
contained in the milk for which an obligation was computed pursuant to
Sec. 1032.60 by the protein price, the other solids price, and the
butterfat price, respectively, and the total value of the somatic cell
adjustment pursuant to Sec. 1032.30(a)(1) and (c)(1);
(c) Add an amount equal to the minus location adjustments and
subtract an amount equal to the plus location adjustments computed
pursuant to Sec. 1032.75;
(d) Add an amount equal to not less than one-half of the
unobligated balance in the producer-settlement fund;
(e) Divide the resulting amount by the sum of the following for all
handlers included in these computations:
(1) The total hundredweight of producer milk; and
(2) The total hundredweight for which a value is computed pursuant
to Sec. 1032.60(i); and
(f) Subtract not less than 4 cents nor more than 5 cents from the
price computed pursuant to paragraph (e) of this section. The result
shall be known as the producer price differential for the month.
3. Section 1032.62 is amended by revising paragraphs (e) and (h) to
read as follows:
Sec. 1032.62 Announcement of producer prices.
* * * * *
(e) The butterfat price;
* * * * *
(h) The statistical uniform price for milk containing 3.5 percent
butterfat, computed by combining the Class III price and the producer
price differential.
4. Section 1032.71 is amended by revising paragraphs (b)(2) and
(b)(4) to read as follows:
Sec. 1032.71 Payments to the producer-settlement fund.
* * * * *
(b) * * *
(2) An amount obtained by multiplying the total pounds of protein,
other solids, and butterfat contained in producer milk by the protein,
other solids, and butterfat prices respectively;
* * * * *
(4) An amount obtained by multiplying the pounds of skim milk and
butterfat for which a value was computed pursuant to Sec. 1032.60(i)
by the producer price differential as adjusted pursuant to Sec.
1032.75 for the location of the plant from which received.
5. Section 1032.73 is amended by revising paragraphs (a)(2)(ii),
(c)(2)(v), and (c)(3)(ii) to read as follows:
Sec. 1032.73 Payments to producers and to cooperative associations.
(a) * * *
(2) * * *
(ii) The pounds of butterfat received times the butterfat price for
the month;
* * * * *
(c) * * *
(2) * * *
(v) The pounds of butterfat in Class III and Class IV milk times
the butterfat price;
* * * * *
(3) * * *
(ii) The pounds of butterfat received times the butterfat price for
the month;
* * * * *
PART 1033--MILK IN THE MIDEAST MARKETING AREA
1. Section 1033.60 is amended by revising paragraphs (c)(3),
(d)(2), and (i) to read as follows:
Sec. 1033.60 Handler's value of milk.
* * * * *
(c) * * *
(3) Add an amount obtained by multiplying the pounds of butterfat
in Class III by the butterfat price.
(d) * * *
(2) Add an amount obtained by multiplying the pounds of butterfat
in Class IV by the butterfat price.
* * * * *
(i) Multiply the difference between the Class I price applicable at
the location of the nearest unregulated supply plants from which an
equivalent volume was received and the Class III price by the pounds of
skim milk and butterfat in receipts of concentrated fluid milk products
assigned to Class I pursuant to Sec. 1000.43(d) and Sec.
1000.44(a)(3)(i) and the corresponding step of Sec. 1000.44(b) and the
pounds of skim milk and butterfat subtracted from Class I pursuant to
Sec. 1000.44(a)(8) and the corresponding step of Sec. 1000.44(b),
excluding such skim milk and butterfat in receipts of fluid milk
products from an unregulated supply plant to the extent that an
equivalent amount of skim milk or butterfat disposed of to such plant
by handlers fully regulated under any Federal milk order is classified
and priced as Class I milk and is not used as an offset for any other
payment obligation under any order.
* * * * *
2. Section 1033.61 is revised to read as follows:
[[Page 7068]]
Sec. 1033.61 Computation of producer price differential.
For each month the market administrator shall compute a producer
price differential per hundredweight. The report of any handler who has
not made payments required pursuant to Sec. 1033.71 for the preceding
month shall not be included in the computation of the producer price
differential, and such handler's report shall not be included in the
computation for succeeding months until the handler has made full
payment of outstanding monthly obligations. Subject to the conditions
of this paragraph, the market administrator shall compute the producer
price differential in the following manner:
(a) Combine into one total the values computed pursuant to Sec.
1033.60 for all handlers required to file reports prescribed in Sec.
1033.30;
(b) Subtract the total values obtained by multiplying each
handler's total pounds of protein, other solids, and butterfat
contained in the milk for which an obligation was computed pursuant to
Sec. 1033.60 by the protein price, the other solids price, and the
butterfat price, respectively, and the total value of the somatic cell
adjustment pursuant to Sec. 1033.30(a)(1) and (c)(1);
(c) Add an amount equal to the minus location adjustments and
subtract an amount equal to the plus location adjustments computed
pursuant to Sec. 1033.75;
(d) Add an amount equal to not less than one-half of the
unobligated balance in the producer-settlement fund;
(e) Divide the resulting amount by the sum of the following for all
handlers included in these computations:
(1) The total hundredweight of producer milk; and
(2) The total hundredweight for which a value is computed pursuant
to Sec. 1033.60(i); and
(f) Subtract not less than 4 cents nor more than 5 cents from the
price computed pursuant to paragraph (e) of this section. The result
shall be known as the producer price differential for the month.
3. Section 1033.62 is amended by revising paragraphs (e) and (h) to
read as follows:
Sec. 1033.62 Announcement of producer prices.
* * * * *
(e) The butterfat price;
* * * * *
(h) The statistical uniform price for milk containing 3.5 percent
butterfat, computed by combining the Class III price and the producer
price differential.
4. Section 1033.71 is amended by revising paragraphs (b)(2) and
(b)(4) to read as follows:
Sec. 1033.71 Payments to the producer-settlement fund.
* * * * *
(b) * * *
(2) An amount obtained by multiplying the total pounds of protein,
other solids, and butterfat contained in producer milk by the protein,
other solids, and butterfat prices, respectively;
* * * * *
(4) An amount obtained by multiplying the pounds of skim milk and
butterfat for which a value was computed pursuant to Sec. 1033.60(i)
by the producer price differential as adjusted pursuant to Sec.
1033.75 for the location of the plant from which received.
5. Section 1033.73 is amended by revising paragraphs (a)(2)(ii) and
(b)(3)(v) to read as follows:
Sec. 1033.73 Payments to producers and to cooperative associations.
(a) * * *
(2) * * *
(ii) The pounds of butterfat received times the butterfat price for
the month;
* * * * *
(b) * * *
(3) * * *
(v) The pounds of butterfat in Class III and Class IV milk times
the butterfat price;
* * * * *
PART 1124--MILK IN THE PACIFIC NORTHWEST MARKETING AREA
1. Section 1124.60 is amended by revising paragraphs (c)(3),
(d)(2), and (h) to read as follows:
Sec. 1124.60 Handler's value of milk.
* * * * *
(c) * * *
(3) Add an amount obtained by multiplying the pounds of butterfat
in Class III by the butterfat price.
(d) * * *
(2) Add an amount obtained by multiplying the pounds of butterfat
in Class IV by the butterfat price.
* * * * *
(h) Multiply the difference between the Class I price applicable at
the location of the nearest unregulated supply plants from which an
equivalent volume was received and the Class III price by the pounds of
skim milk and butterfat in receipts of concentrated fluid milk products
assigned to Class I pursuant to Sec. 1000.43(d) and Sec.
1000.44(a)(3)(i) and the corresponding step of Sec. 1000.44(b) and the
pounds of skim milk and butterfat subtracted from Class I pursuant to
Sec. 1000.44(a)(8) and the corresponding step of Sec. 1000.44(b),
excluding such skim milk and butterfat in receipts of fluid milk
products from an unregulated supply plant to the extent that an
equivalent amount of skim milk or butterfat disposed of to such plant
by handlers fully regulated under any Federal milk order is classified
and priced as Class I milk and is not used as an offset for any other
payment obligation under any order.
* * * * *
2. Section 1124.61 is revised to read as follows:
Sec. 1124.61 Computation of producer price differential.
For each month the market administrator shall compute a producer
price differential per hundredweight. The report of any handler who has
not made payments required pursuant to Sec. 1124.71 for the preceding
month shall not be included in the computation of the producer price
differential, and such handler's report shall not be included in the
computation for succeeding months until the handler has made full
payment of outstanding monthly obligations. Subject to the conditions
of this paragraph, the market administrator shall compute the producer
price differential in the following manner:
(a) Combine into one total the values computed pursuant to Sec.
1124.60 for all handlers required to file reports prescribed in Sec.
1124.30;
(b) Subtract the total values obtained by multiplying each
handler's total pounds of protein, other solids, and butterfat
contained in the milk for which an obligation was computed pursuant to
Sec. 1124.60 by the protein price, the other solids price, and the
butterfat price, respectively;
(c) Add an amount equal to the minus location adjustments and
subtract an amount equal to the plus location adjustments computed
pursuant to Sec. 1124.75;
(d) Add an amount equal to not less than one-half of the
unobligated balance in the producer-settlement fund;
(e) Divide the resulting amount by the sum of the following for all
handlers included in these computations:
(1) The total hundredweight of producer milk; and
(2) The total hundredweight for which a value is computed pursuant
to Sec. 1124.60(h); and
(f) Subtract not less than 4 cents nor more than 5 cents from the
price computed pursuant to paragraph (e) of this section. The result
shall be known as the producer price differential for the month.
[[Page 7069]]
3. Section 1124.62 is amended by revising paragraphs (e) and (g) to
read as follows:
Sec. 1124.62 Announcement of producer prices.
* * * * *
(e) The butterfat price;
* * * * *
(g) The statistical uniform price for milk containing 3.5 percent
butterfat, computed by combining the Class III price and the producer
price differential.
4. Section 1124.71 is amended by revising paragraphs (b)(2) and
(b)(3) to read as follows:
Sec. 1124.71 Payments to the producer-settlement fund.
* * * * *
(b) * * *
(2) An amount obtained by multiplying the total pounds of protein,
other solids, and butterfat contained in producer milk by the protein,
other solids, and butterfat prices respectively; and
(3) An amount obtained by multiplying the pounds of skim milk and
butterfat for which a value was computed pursuant to Sec. 1124.60(h)
by the producer price differential as adjusted pursuant to Sec.
1124.75 for the location of the plant from which received.
5. Section 1124.73 is amended by revising paragraphs (a)(2)(ii),
(c)(2)(v), and (c)(3)(ii) to read as follows:
Sec. 1124.73 Payments to producers and to cooperative associations.
(a) * * *
(2) * * *
(ii) The pounds of butterfat received times the butterfat price for
the month;
* * * * *
(c) * * *
(2) * * *
(v) The pounds of butterfat in Class III and Class IV milk times
the butterfat price;
* * * * *
(3) * * *
(ii) The pounds of butterfat received times the butterfat price for
the month;
* * * * *
PART 1126--MILK IN THE SOUTHWEST MARKETING AREA
1. Section 1126.60 is amended by revising paragraphs (c)(3),
(d)(2), and (i) to read as follows:
Sec. 1126.60 Handler's value of milk.
* * * * *
(c) * * *
(3) Add an amount obtained by multiplying the pounds of butterfat
in Class III by the butterfat price.
(d) * * *
(2) Add an amount obtained by multiplying the pounds of butterfat
in Class IV by the butterfat price.
* * * * *
(i) Multiply the difference between the Class I price applicable at
the location of the nearest unregulated supply plants from which an
equivalent volume was received and the Class III price by the pounds of
skim milk and butterfat in receipts of concentrated fluid milk products
assigned to Class I pursuant to Sec. 1000.43(d) and Sec.
1000.44(a)(3)(i) and the corresponding step of Sec. 1000.44(b) and the
pounds of skim milk and butterfat subtracted from Class I pursuant to
Sec. 1000.44(a)(8) and the corresponding step of Sec. 1000.44(b),
excluding such skim milk and butterfat in receipts of fluid milk
products from an unregulated supply plant to the extent that an
equivalent amount of skim milk or butterfat disposed of to such plant
by handlers fully regulated under any Federal milk order is classified
and priced as Class I milk and is not used as an offset for any other
payment obligation under any order.
* * * * *
2. Section 1126.61 is revised to read as follows:
Sec. 1126.61 Computation of producer price differential.
For each month the market administrator shall compute a producer
price differential per hundredweight. The report of any handler who has
not made payments required pursuant to Sec. 1126.71 for the preceding
month shall not be included in the computation of the producer price
differential, and such handler's report shall not be included in the
computation for succeeding months until the handler has made full
payment of outstanding monthly obligations. Subject to the conditions
of this paragraph, the market administrator shall compute the producer
price differential in the following manner:
(a) Combine into one total the values computed pursuant to Sec.
1126.60 for all handlers required to file reports prescribed in Sec.
1126.30;
(b) Subtract the total of the values obtained by multiplying each
handler's total pounds of protein, other solids, and butterfat
contained in the milk for which an obligation was computed pursuant to
Sec. 1126.60 by the protein price, other solids price, and the
butterfat price, respectively, and the total value of the somatic cell
adjustment pursuant to Sec. 1126.30(a)(1) and (c)(1);
(c) Add an amount equal to the minus location adjustments and
subtract an amount equal to the plus location adjustments computed
pursuant to Sec. 1126.75;
(d) Add an amount equal to not less than one-half of the
unobligated balance in the producer-settlement fund;
(e) Divide the resulting amount by the sum of the following for all
handlers included in these computations:
(1) The total hundredweight of producer milk; and
(2) The total hundredweight for which a value is computed pursuant
to Sec. 1126.60(i); and
(f) Subtract not less than 4 cents nor more than 5 cents from the
price computed pursuant to paragraph (e) of this section. The result
shall be known as the producer price differential for the month.
3. Section 1126.62 is amended by revising paragraphs (e) and (h) to
read as follows:
Sec. 1126.62 Announcement of producer prices.
* * * * *
(e) The butterfat price;
* * * * *
(h) The statistical uniform price for milk containing 3.5 percent
butterfat, computed by combining the Class III price and the producer
price differential.
4. Section 1126.71 is amended by revising paragraphs (b)(2) and
(b)(4) to read as follows:
Sec. 1126.71 Payments to the producer-settlement fund.
* * * * *
(b) * * *
(2) An amount obtained by multiplying the total pounds of protein,
other solids, and butterfat contained in producer milk by the protein,
other solids, and butterfat prices respectively;
* * * * *
(4) An amount obtained by multiplying the pounds of skim milk and
butterfat for which a value was computed pursuant to Sec. 1126.60(i)
by the producer price differential as adjusted pursuant to Sec.
1126.75 for the location of the plant from which received.
5. Section 1126.73 is amended by revising paragraphs (a)(2)(ii) and
(b)(3)(v) to read as follows:
Sec. 1126.73 Payments to producers and to cooperative associations.
(a) * * *
(2) * * *
[[Page 7070]]
(ii) Multiply the pounds of butterfat received times the butterfat
price for the month;
* * * * *
(b) * * *
(3) * * *
(v) The pounds of butterfat in Class III and Class IV milk times
the butterfat price;
* * * * *
PART 1135--MILK IN THE WESTERN MARKETING AREA
1. Section 1135.60 is amended by revising paragraphs (c)(3), (d)(2)
and (h) to read as follows:
Sec. 1135.60 Handler's value of milk.
* * * * *
(c) * * *
(3) Add an amount obtained by multiplying the pounds of butterfat
in Class III by the butterfat price.
(d) * * *
(2) Add an amount obtained by multiplying the pounds of butterfat
in Class IV by the butterfat price.
* * * * *
(h) Multiply the difference between the Class I price applicable at
the location of the nearest unregulated supply plants from which an
equivalent volume was received and the Class III price by the pounds of
skim milk and butterfat in receipts of concentrated fluid milk products
assigned to Class I pursuant to Sec. 1000.43(d) and Sec.
1000.44(a)(3)(i) and the corresponding step of Sec. 1000.44(b) and the
pounds of skim milk and butterfat subtracted from Class I pursuant to
Sec. 1000.44(a)(8) and the corresponding step of Sec. 1000.44(b),
excluding such skim milk and butterfat in receipts of fluid milk
products from an unregulated supply plant to the extent that an
equivalent amount of skim milk or butterfat disposed of to such plant
by handlers fully regulated under any Federal milk order is classified
and priced as Class I milk and is not used as an offset for any other
payment obligation under any order.
* * * * *
2. Section 1135.61 is revised to read as follows:
Sec. 1135.61 Computation of producer price differential.
For each month the market administrator shall compute a producer
price differential per hundredweight. The report of any handler who has
not made payments required pursuant to Sec. 1135.71 for the preceding
month shall not be included in the computation of the producer price
differential, and such handler's report shall not be included in the
computation for succeeding months until the handler has made full
payment of outstanding monthly obligations. Subject to the conditions
of this paragraph, the market administrator shall compute the producer
price differential in the following manner:
(a) Combine into one total the values computed pursuant to Sec.
1135.60 for all handlers required to file reports prescribed in Sec.
1135.30;
(b) Subtract the total values obtained by multiplying each
handler's total pounds of protein, other solids, and butterfat
contained in the milk for which an obligation was computed pursuant to
Sec. 1135.60 by the protein price, the other solids price, and the
butterfat price, respectively;
(c) Add an amount equal to the minus location adjustments and
subtract an amount equal to the plus location adjustments computed
pursuant to Sec. 1135.75;
(d) Add an amount equal to not less than one-half of the
unobligated balance in the producer-settlement fund;
(e) Divide the resulting amount by the sum of the following for all
handlers included in these computations:
(1) The total hundredweight of producer milk; and
(2) The total hundredweight for which a value is computed pursuant
to Sec. 1135.60(h); and
(f) Subtract not less than 4 cents nor more than 5 cents from the
price computed pursuant to paragraph (e) of this section. The result
shall be known as the producer price differential for the month.
3. Section 1135.62 is amended by revising paragraphs (e) and (g) to
read as follows:
Sec. 1135.62 Announcement of producer prices.
* * * * *
(e) The butterfat price;
* * * * *
(g) The statistical uniform price for milk containing 3.5 percent
butterfat computed by combining the Class III price and the producer
price differential.
* * * * *
4. Section 1135.71 is amended by revising paragraph (b)(2) and
removing and reserving paragraph (b)(3) to read as follows:
Sec. 1135.71 Payments to the producer-settlement fund.
* * * * *
(b) * * *
(2) An amount obtained by multiplying the total pounds of protein,
other solids, and butterfat contained in producer milk by the protein,
other solids, and butterfat prices respectively; and
(3) [Reserved]
* * * * *
5. Section 1135.73 is amended by revising paragraphs (a)(2)(ii) and
(b)(3)(v) to read as follows:
Sec. 1135.73 Payments to producers and to cooperative associations.
(a) * * *
(2) * * *
(ii) The pounds of butterfat received times the butterfat price for
the month;
* * * * *
(b) * * *
(3) * * *
(v) The pounds of butterfat in Class III and Class IV milk times
the butterfat price;
* * * * *
Dated: February 6, 2003.
A.J. Yates,
Administrator, Agricultural Marketing Service.
[FR Doc. 03-3442 Filed 2-11-03; 8:45 am]
BILLING CODE 3410-02-P