[Federal Register Volume 70, Number 27 (Thursday, February 10, 2005)]
[Rules and Regulations]
[Pages 7004-7007]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-2544]


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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: Final rule.

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SUMMARY: This final rule adjusts 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 will result in a decrease in Board membership from 108 to 
104, effective with the Department of Agriculture's (USDA) appointments 
for terms beginning early in the year 2006.

EFFECTIVE DATE: February 10, 2005.

FOR FURTHER INFORMATION CONTACT: 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; telephone number 202/720-1115; 
facsimile 202/720-1125, or by e-mail at: [email protected].

SUPPLEMENTARY INFORMATION:

Executive Order 12866

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

Executive Order 12988

    This final 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 final 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,'' USDA'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.
    This final rule imposes no new burden on the industry. It only 
adjusts representation on the Board, established under the Act, to 
reflect changes in domestic cattle inventory and cattle and beef 
imports. The adjustments are required by the Order and will result in a 
decrease in Board membership from 108 to 104.

Background

    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 Secretary 
of Agriculture from nominations submitted by certified producer and 
importer 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

[[Page 7005]]

USDA 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 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 USDA. 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 USDA 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, USDA 
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, USDA'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.

Comments

    On November 12, 2004, AMS published in the Federal Register (69 FR 
65386) for public comment a proposed rule providing for the adjustment 
in Board membership. That comment period ended December 13, 2004. USDA 
received one comment from an interested party in a timely manner. The 
comment has been posted on AMS' Web site at: http://www.ams.usda.gov/lsg/mpb/bfcomments.htm.

Discussion of Comment

    The commenter supported a readjustment of Board membership, but 
suggested that alternating representation including consumers and 
others be included on the Board. However, the Act and Order provide 
that the Board shall be composed of cattle producers and importers 
appointed by the Secretary of Agriculture from nominations submitted by 
certified producer organizations. Consequently, this comment is not 
adopted.
    Therefore, the reapportionment of the Board in this final rule is 
unchanged from the proposed rule. This final rule decreases 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 revised member representation per unit are as follows:

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

    Board representation for the entire 40 units is shown in the 
revised Sec.  1260.141(a) contained herein.
    The 2004, nomination and appointment process was in progress while 
the Board was developing its recommendations. Thus, the Board 
reapportionment as provided for under the rulemaking will be effective 
with 2005, nominations and appointments that will be effective early in 
the year 2006.
    Pursuant to 5 U.S.C. 553, it is found and determined that good 
cause exists for not postponing the effective date of this rule until 
30 days after publication in the Federal Register. This action adjusts 
representation on the Board. By establishing this final rule, as 
provided herein, USDA will be able to make appointments effective early 
in the year 2006 based upon this reapportionment.

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.

0
For reasons set forth in the preamble, 7 CFR part 1260 is amended as 
follows:

PART 1260--BEEF PROMOTION AND RESEARCH

0
1. The authority citation for 7 CFR part 1260 continues to read as 
follows:

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

0
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:

[[Page 7006]]



                          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
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.


[[Page 7007]]

* * * * *

    Dated: February 4, 2005.
Kenneth C. Clayton,
Acting Administrator, Agricultural Marketing Service.
[FR Doc. 05-2544 Filed 2-9-05; 8:45 am]
BILLING CODE 3410-02-P