[Federal Register Volume 69, Number 218 (Friday, November 12, 2004)]
[Proposed Rules]
[Pages 65386-65388]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-25198]


 ========================================================================
 Proposed Rules
                                                 Federal Register
 ________________________________________________________________________
 
 This section of the FEDERAL REGISTER contains notices to the public of 
 the proposed issuance of rules and regulations. The purpose of these 
 notices is to give interested persons an opportunity to participate in 
 the rule making prior to the adoption of the final rules.
 
 ========================================================================
 

  Federal Register / Vol. 69, No. 218 / Friday, November 12, 2004 / 
Proposed Rules  

[[Page 65386]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 1260

[Docket No. LS-04-09]


Beef Promotion and Research; Reapportionment

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Proposed rule.

-----------------------------------------------------------------------

SUMMARY: This proposed rule would adjust representation on the 
Cattlemen's Beef Promotion and Research Board (Board), established 
under the Beef Promotion and Research Act of 1985 (Act), to reflect 
changes in cattle inventories and cattle and beef imports that have 
occurred since the most recent Board reapportionment rule became 
effective in 2002. These adjustments are required by the Beef Promotion 
and Research Order (Order) and would result in a decrease in Board 
membership from 108 to 104, effective with the Department of 
Agriculture's (Department) appointments for terms beginning early in 
the year 2006.

DATES: Written comments must be received by December 13, 2004.

ADDRESSES: Send any written comments to Kenneth R. Payne, Chief, 
Marketing Programs Branch, Room 2638-S, Livestock and Seed Program, 
Agricultural Marketing Service (AMS), USDA, STOP 0251, 1400 
Independence Avenue, SW., Washington, DC 20250-0251.
    Comments may be sent by facsimile to (202) 720-1125 and by 
electronic mail to [email protected] or http://www.regulations.gov. 
Comments received may be inspected between 8 a.m. and 4:30 p.m., Monday 
through Friday, except holidays, at the above office. State that your 
comments refer to Docket No. LS-04-09. Additionally, the comments and 
the proposed rule may be found at http://www.ams.usda.gov/lsg/mpb/rp-beef.htm.

FOR FURTHER INFORMATION CONTACT: Kenneth R. Payne, Chief, Marketing 
Programs Branch on (202) 720-1115, fax (202) 720-1125, or by e-mail at 
[email protected].

SUPPLEMENTARY INFORMATION:

Executive Order 12866

    The Office of Management and Budget (OMB) has waived the review 
process required by Executive Order 12866 for this action.

Executive Order 12988

    This proposed rule has been reviewed under Executive Order 12988, 
Civil Justice Reform. It is not intended to have retroactive effect.
    Section 11 of the Act provides that nothing in the Act may be 
construed to preempt or supersede any other program relating to beef 
promotion organized and operated under the laws of the United States or 
any State. There are no administrative proceedings that must be 
exhausted prior to any judicial challenge to the provisions of this 
rule.

The Regulatory Flexibility Act and the Paperwork Reduction Act

    Pursuant to the requirements set forth in the Regulatory 
Flexibility Act (RFA) (5 United States Code (U.S.C.) 601 et seq.). The 
Administrator of AMS has considered the economic effect of this action 
on small entities and has determined that this proposed rule will not 
have a significant economic impact on a substantial number of small 
entities. The purpose of RFA is to fit regulatory actions to the scale 
of businesses subject to such actions in order that small businesses 
will not be unduly burdened.
    In the January 30, 2004, issue of ``Cattle,'' the Department's 
National Agricultural Statistics Service (NASS) estimates that in 2004 
the number of cattle operations in the United States totaled about 1.1 
million. The majority of these operations subject to the Order, 7 CFR 
1260.101 et seq., are considered small businesses under the criteria 
established by the Small Business Administration.
    The proposed rule imposes no new burden on the industry. It only 
adjusts representation on the Board to reflect changes in domestic 
cattle inventory and cattle and beef imports. This action would adjust 
representation on the Board, established under the Act. The adjustments 
are required by the Order and would result in a decrease in Board 
membership from 108 to 104.

Background and Proposed Action

    The Board was initially appointed August 4, 1986, pursuant to the 
provisions of the Act (7 U.S.C. 2901 et seq.) and the Order issued 
thereunder. Domestic representation on the Board is based on cattle 
inventory numbers, and importer representation is based on the 
conversion of the volume of imported cattle, beef, or beef products 
into live animal equivalencies.
    Section 1260.141(b) of the Order provides that the Board shall be 
composed of cattle producers and importers appointed by the Department 
from nominations submitted by certified producer organizations. A 
producer may only be nominated to represent the unit in which that 
producer is a resident.
    Section 1260.141(c) of the Order provides that at least every 3 
years and not more than every 2 years, the Board shall review the 
geographic distribution of cattle inventories throughout the United 
States and the volume of imported cattle, beef, and beef products and, 
if warranted, shall reapportion units and/or modify the number of Board 
members from units in order to reflect the geographic distribution of 
cattle production volume in the United States and the volume of cattle, 
beef, or beef products imported into the United States.
    Section 1260.141(d) of the Order authorizes the Board to recommend 
to the Department modifications in the number of cattle per unit 
necessary for representation on the Board.
    Section 1260.141(e)(1) provides that each geographic unit or State 
that includes a total cattle inventory equal to or greater than 500,000 
head of cattle shall be entitled to one representative on the Board. 
Section 1260.141(e)(2) provides that States that do not have total 
cattle inventories equal to or greater than 500,000 head shall be 
grouped, to the extent practicable, into geographically-contiguous 
units, each of which have a combined total inventory of not less than 
500,000 head. Such grouped units are entitled to at least one 
representative on the Board. Each unit that has an additional one 
million head of cattle within a unit qualifies for additional 
representation on the Board as provided in Sec.  1260.141(e)(4). As 
provided in Sec.  1260.141(e)(3), importers

[[Page 65387]]

are represented by a single unit, with the number of Board members 
based on a conversion of the total volume of imported cattle, beef, or 
beef products into live animal equivalencies.
    The initial Board appointed in 1986 was composed of 113 members. 
Reapportionment based on a 3-year average of cattle inventory numbers 
and import data, reduced the Board to 111 members in 1990 and 107 
members in 1993 before the Board was increased to 111 members in 1996. 
The Board was decreased to 110 members in 1999, 108 members in 2001, 
and will be decreased to 104 members with appointments for terms 
effective early in 2006.
    The current Board representation by States or units has been based 
on an average of the January 1, 1999, 2000, and 2001 inventory of 
cattle in the various States as reported by NASS of the Department. 
Current importer representation has been based on a combined total 
average of the 1998, 1999, and 2000 live cattle imports as published by 
the Foreign Agricultural Service of the Department and the average of 
the 1998, 1999, and 2000 live animal equivalents for imported beef 
products.
    Recommendations concerning Board reapportionment were approved by 
the Board at its June 24, 2004, meeting. In considering 
reapportionment, the Board reviewed cattle inventories as well as 
cattle, beef, and beef product import data for the period January 1, 
2002, to January 1, 2004. The Board recommended that a 3-year average 
of cattle inventories and import numbers should be continued. The Board 
determined that an average of the January 1, 2002, 2003, and 2004 
Department cattle inventory numbers would best reflect the number of 
cattle in each State or unit since publication of the 2001 
reapportionment rule.
    The Board reviewed the February 24, 2004, Department's Economic 
Research Service circular, ``Livestock, Dairy, and Poultry Outlook,'' 
to determine proper importer representation. The Board recommended the 
use of a combined total of the average of the 2001, 2002, and 2003 
cattle import data and the average of the 2001, 2002, and 2003 live 
animal equivalents for imported beef products. The method used to 
calculate the total number of live cattle equivalents was the same as 
that used in the previous reapportionment of the Board. The 
recommendation for importer representation is based on the most recent 
3-year average of data available to the Board at its June 24, 2004, 
meeting to be consistent with the procedures used for domestic 
representation.
    The Board's recommended reapportionment plan would decrease the 
number of representatives on the Board from 108 to 104. Four States--
Minnesota, Montana, Nebraska, and Wyoming--lose one member each. The 
States and units affected by the reapportionment plan and the current 
and proposed member representation per unit are as follows: (Units are 
listed with the State makeup recommended by the Board.)

------------------------------------------------------------------------
                                              Current        Proposed
                 States                   representation  representation
------------------------------------------------------------------------
1. Minnesota............................              3               2
2. Montana..............................              3               2
3. Nebraska.............................              7               6
4. Wyoming..............................              2               1
------------------------------------------------------------------------

    The 2004 nomination and appointment process was in progress while 
the Board was developing its recommendations. Thus, the Board 
reapportionment as proposed by this rulemaking would be effective, if 
adopted, with 2005 nominations and appointments that will be effective 
early in the year 2006.

List of Subjects in 7 CFR Part 1260

    Administrative practice and procedure, Advertising, Agricultural 
research, Imports, Marketing agreement, Meat and meat products, 
Reporting and recordkeeping requirements.

    For reasons set forth in the preamble, it is proposed that 7 CFR 
part 1260 be amended as follows:

PART 1260--BEEF PROMOTION AND RESEARCH

    1. The authority citation for 7 CFR part 1260 continues to read as 
follows:

    Authority: 7 U.S.C. 2901 et seq.

    2. In Sec.  1260.141, paragraph (a) and the table immediately 
following it, are revised to read as follows:


Sec.  1260.141  Membership of Board.

    (a) Beginning with the 2005 Board nominations and the associated 
appointments effective early in the year 2006, the United States shall 
be divided into 39 geographical units and 1 unit representing 
importers, and the number of Board members from each unit shall be as 
follows:

                          Cattle and Calves \1\
------------------------------------------------------------------------
               State/unit                  (1,000 Head)      Directors
------------------------------------------------------------------------
1. Alabama..............................           1,390               1
2. Arizona..............................             843               1
3. Arkansas.............................           1,857               2
4. California...........................           5,217               5
5. Colorado.............................           2,700               3
6. Florida..............................           1,757               2
7. Idaho................................           2,000               2
8. Illinois.............................           1,367               1
9. Indiana..............................             857               1
10. Iowa................................           3,517               4
11. Kansas..............................           6,533               7
12. Kentucky............................           2,350               2
13. Louisiana...........................             853               1
14. Michigan............................           1,003               1
15. Minnesota...........................           2,467               2
16. Mississippi.........................           1,063               1
17. Missouri............................           4,400               4
18. Montana.............................           2,433               2
19. Nebraska............................           6,283               6
20. Nevada..............................             507               1
21. New Mexico..........................           1,547               2

[[Page 65388]]

 
22. New York............................           1,420               1
23. North Carolina......................             910               1
24. North Dakota........................           1,867               2
25. Ohio................................           1,233               1
26. Oklahoma............................           5,233               5
27. Oregon..............................           1,400               1
28. Pennsylvania........................           1,637               2
29. South Dakota........................           3,767               4
30. Tennessee...........................           2,227               2
31. Texas...............................          13,833              14
32. Utah................................             887               1
33. Virginia............................           1,607               2
34. Wisconsin...........................           3,333               3
35. Wyoming.............................           1,387               1
36. Northwest...........................  ..............               1
    Alaska..............................              12  ..............
    Hawaii..............................             153  ..............
    Washington..........................           1,117  ..............
                                         -----------------
        Total...........................           1,408  ..............
37. Northeast...........................  ..............               1
    Connecticut.........................              57  ..............
    Delaware............................              24  ..............
    Maine...............................              94  ..............
    Massachusetts.......................              50  ..............
    New Hampshire.......................              40  ..............
    New Jersey..........................              45  ..............
    Rhode Island........................               6  ..............
    Vermont.............................             285  ..............
                                         -----------------
        Total...........................             600  ..............
38. Mid-Atlantic........................  ..............               1
    District of Columbia................               0  ..............
    Maryland............................             240  ..............
    West Virginia.......................             400  ..............
                                         -----------------
        Total...........................             640  ..............
39. Southeast...........................  ..............               2
    Georgia.............................           1,260  ..............
    South Carolina......................             430  ..............
                                         -----------------
        Total...........................           1,690  ..............
40. Importer \2\........................           8,378              8
------------------------------------------------------------------------
\1\ 2002, 2003, and 2004 average of January 1 cattle inventory data.
\2\ 2001, 2002, and 2003 average of annual import data.

* * * * *

    Dated: November 5, 2004.
A.J. Yates,
Administrator, Agricultural Marketing Service.
[FR Doc. 04-25198 Filed 11-10-04; 8:45 am]
BILLING CODE 3410-02-P