[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__J[email protected].

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