[Federal Register Volume 72, Number 163 (Thursday, August 23, 2007)]
[Rules and Regulations]
[Pages 48229-48231]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-16713]


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DEPARTMENT OF AGRICULTURE

Commodity Credit Corporation

7 CFR Part 1430

RIN 0560-AH73


Milk Income Loss Contract Program

AGENCY: Commodity Credit Corporation, USDA.

ACTION: Final rule.

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SUMMARY: This rule amends the regulations for the Milk Income Loss 
Contract (MILC) Program as authorized by the U.S. Troop Readiness, 
Veterans' Care, Katrina Recovery, and Iraq Accountability 
Appropriations Act, 2007, to extend the payment calculation at 34 
percent for the month of September 2007.

DATES: Effective Date: August 22, 2007.

FOR FURTHER INFORMATION CONTACT: Danielle Cooke, Special Programs 
Manager, Price Support Division, FSA/USDA, STOP 0512, 1400 Independence 
Ave., SW., Washington, DC 20250-0512; telephone (202) 720-1919; 
facsimile (202) 690-1536; e-mail: [email protected]. Persons 
with disabilities who require alternative means for communication 
(Braille, large print, audio tape, etc.) should contact the USDA Target 
Center at (202) 720-2600 (voice and TDD).

SUPPLEMENTARY INFORMATION:

Background

    The Milk Income Loss Contract (MILC) Program is administered by the 
Commodity Credit Corporation (CCC). The MILC Program compensates dairy 
producers when domestic milk prices fall below a specified level. In 
general, eligible dairy producers are those who commercially produce 
and market cow milk in the United States or produce milk in the United 
States and commercially market the milk outside the United States.
    The program began on December 1, 2001 and was extended to September 
30, 2007. In 2006, applicable to the program extension, the signup and 
contract periods were both set to end on September 30, 2007. The 2006 
amendment lowered the payment calculation percentage from 45 to 34; 
however, it only extended the payment

[[Page 48230]]

calculation of 34 percent through August 31, 2007. It further specified 
that beginning on September 1, 2007, the payment calculation would be 
zero percent (0%).
    Recently, section 9006 of the U.S. Troop Readiness, Veterans' Care, 
Katrina Recovery, and Iraq Accountability Appropriations Act, 2007 
(2007 Emergency Supplemental) amended the authority for the MILC 
Program to extend the current payment calculation percentage of 34 
percent to September 30, 2007.
    The MILC Program supports the dairy industry by providing direct 
counter-cyclical payments to milk producers when the Boston Milk 
Marketing Order Class I price for fluid milk falls below $16.94 per 
hundredweight (cwt). Each fiscal year, eligible dairy operations can 
receive a monthly payment based on the quantity of milk sold in that 
month, up to a maximum of 2.4 million pounds per dairy operation for 
the fiscal year. We determine the per hundredweight payment rate for 
the applicable month by subtracting the Boston Class I price for that 
month from the $16.94 baseline, and multiplying the difference by 34 
percent. For example:
     Boston Class I price announced in February 2006 = $16.63.
     $16.94 - $16.63 = $0.31.
     $0.31 x 34 percent = $0.1054000.
     Therefore, the payment rate for February 2006 was $0.1054 
per hundredweight.
    This rule amends 7 CFR part 1430 to increase the payment rate 
percentage during the month of September 2007. This makes the 
calculation percentage consistent for all months in fiscal years 2006 
and 2007.
    MILC payments are based on the commercially-marketed milk 
production from the MILC production start month selected by the dairy 
operation, and continue with each subsequent month's commercial milk 
production until the earlier of the following: the dairy operation 
reaches the maximum payment quantity of 2.4 million pounds or the 
applicable fiscal year ends.
    If there is a payment rate in effect during the month of September 
2007 and the dairy operation has received MILC payments on less than 
2.4 million pounds of production for the 2007 fiscal year, payments 
will continue through September 2007. The dairy operation can change 
its production start month selection, with some limitations, to 
September 2007, as specified in 7 CFR 1430.205, Selection of Starting 
Month. New MILC producers entering into a MILC will be allowed to 
select, with some limitations, September 2007 as the production start 
month for their dairy operation. Those selections must be made in 
advance of the announcement of the Boston Class I milk price and 
establishment of the MILC payment rate for that month. Dairy operations 
that have exceeded their 2.4 million pound production limitation for 
the 2007 fiscal year will not receive a MILC payment for September 
2007.

Notice and Comment

    Section 1601(c) of the Farm Security and Rural Investment Act of 
2002 (Pub. L. 107-171), also referred to as the 2002 Farm Bill, 
requires that the regulations necessary to implement Title I of the 
2002 Act, including the MILC Program, are to be promulgated and 
administered without regard to the notice and comment provisions of 5 
U.S.C. 553 or the Statement of Policy of the Secretary of Agriculture 
effective July 24, 1971, (36 FR 13804) relating to notices of proposed 
rulemaking and public participation in rulemaking. This regulatory 
change of the MILC Program is therefore issued as final.

Executive Order 12866

    This final rule is not significant according to Executive Order 
12866 and has not been reviewed by the Office of Management and Budget 
(OMB).

Regulatory Flexibility Act

    The Regulatory Flexibility Act is not applicable to this rule 
because CCC is not required to publish a notice of proposed rulemaking 
with respect to the subject matter of this rule.

Environmental Review

    In accordance with the National Environmental Policy Act (42 U.S.C. 
4321-4347) and the regulations in 40 CFR 1502.4 (Major Federal actions 
requiring the preparation of Environmental Impact Statements), 7 CFR 
part 799 (Environmental Quality and Related Environmental Concerns--
Compliance with NEPA implementing the regulations of the Council on 
Environmental Quality), and 40 CFR parts 1500-1508, FSA has determined 
that this final rule will have no significant impacts upon the human 
environment. Therefore no environmental assessment or environmental 
impact statement will be prepared.

Executive Order 12988

    The final rule has been reviewed under Executive Order 12988. This 
rule preempts State laws that are inconsistent with its provisions. 
Before any judicial action may be brought regarding this rule, all 
administrative remedies must be exhausted.

Executive Order 12372

    This program is not subject to Executive Order 12372, which 
requires consultation with State and local officials. See the notice 
related to 7 CFR part 3015, subpart V, published in the Federal 
Register on June 24, 1983 (48 FR 29115).

Unfunded Mandates

    Title II of the Unfunded Mandates Reform Act of 1995 (UMRA) does 
not apply to this rule because CCC is not required to publish a notice 
of proposed rulemaking about the subject matter of this rule. Further, 
this rule imposes no unfunded mandates, as define in UMRA, on any 
local, state, or tribal government or the private sector.

Paperwork Reduction Act

    Section 1601(c) of the 2002 Farm Bill provides that the 
promulgation of regulations and the administration of Title I of the 
2002 Farm Bill, including the MILC Program, be made without regard to 
chapter 5 of title 44 of the United States Code (the Paperwork 
Reduction Act). Accordingly, these regulations, the forms, and other 
information collection activities needed to administer the program 
authorized by these regulations are not subject to review by the Office 
of Management and Budget under the Paperwork Reduction Act.

E-Government Act Compliance

    FSA is committed to complying with the E-Government Act, to promote 
the use of the Internet and other information technologies to provide 
increased opportunities for citizen access to Government information 
and services, and for other purposes.

Federal Assistance Programs

    The title and number of the Federal assistance program in the 
Catalog of Federal Domestic Assistance to which this final rule applies 
is 10.051--Commodity Loans and Loan Deficiency Payments.

List of Subjects in 7 CFR Part 1430

    Dairy products, Fraud, Loan programs--agriculture, Penalties, Price 
support programs, Reporting and recordkeeping requirements.

0
For the reasons explained above, 7 CFR part 1430 is amended as set 
forth below.

PART 1430--DAIRY PRODUCTS

0
1. Revise the authority citation for part 1430 to read as follows:

    Authority: 7 U.S.C. 7981 and 7982; 15 U.S.C. 714b and 714c; Pub. 
L. 108-324, 118

[[Page 48231]]

Stat. 1235; 16 U.S.C. 3801 note (Pub. L. 109-234, 120 Stat. 474); 
and Pub. L. 110-28, section 9006.

Subpart B--Milk Income Loss Contract Program


Sec.  1430.208  [Amended]

0
2. Amend Sec.  1430.208 as follows:
0
a. In paragraph (b)(2), remove the words ``August 31'' and add, in 
their place, the words ``September 30''; remove the words ``; and'' and 
add in their place a period; and
0
b. Remove paragraph (b)(3).

    Signed in Washington, DC, on August 9, 2007.
Glen L. Keppy,
Executive Vice President, Commodity Credit Corporation.
[FR Doc. E7-16713 Filed 8-22-07; 8:45 am]
BILLING CODE 3410-05-P