[Federal Register Volume 73, Number 171 (Wednesday, September 3, 2008)]
[Rules and Regulations]
[Pages 51352-51353]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-20391]


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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 1000

[Docket No. AMS-DA-07-0026; AO-14-A77]


Milk in the Northeast and Other Marketing Areas; Delay of 
Effective Date

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Interim final rule; delay of effective date.

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SUMMARY: An interim final rule published July 31, 2008 amending the 
manufacturing cost allowances and the butterfat yield factor used in 
Class III and Class IV product-price formulas applicable in all Federal 
milk marketing orders had an effective date of September 1, 2008. The 
effective date of the Interim Rule will now be October 1, 2008. The 
rule's effective date is delayed because a complaint to enjoin the 
implementation of the revised manufacturing allowances and butterfat 
yield factor was filed in the United States District Court for the 
District of Columbia. Delaying implementation allows sufficient time 
for a preliminary injunction hearing.

DATES: The effective date for the interim final rule published July 31, 
2008 (73 FR 44617), is delayed from September 1, 2008, until October 1, 
2008.

FOR FURTHER INFORMATION CONTACT: Jack Rower, Marketing Specialist, 
USDA/AMS/Dairy Programs, Order Formulation and Enforcement, Stop 0231--
Room 2971-S, 1400 Independence Avenue, SW., Washington, DC 20250-0231, 
(202) 720-7183.

SUPPLEMENTARY INFORMATION:

Background

    The regulations in 7 CFR part 1000 provide for, among other things, 
formulas that establish minimum Class III and Class IV milk prices in 
all Federal milk marketing orders. The Class III and Class IV formulas 
also set minimum Federal order prices for Class I and Class II nonfat 
solids and skim milk prices and pricing factors that are announced in 
advance of the month for which such prices will be effective. Minimum 
Class III and Class IV prices for any given month are announced for all 
Federal orders on or before the 5th day of the following month.
    The Class III and Class IV product-price formulas use finished 
product prices for cheese, butter, nonfat dry milk and dry whey 
together with manufacturing allowances (commonly referred to as ``make 
allowances'') and yield factors to determine the minimum value of milk 
used to make the finished dairy products. Currently, the make 
allowances being used to compute all Federal order minimum class prices 
are those published in the Federal Register on December 29, 2006 (71 FR 
78333). The current butterfat yield factor used in the Class III and 
Class IV product-pricing formulas is that published in the Federal 
Register on February 12, 2003 (65 FR 76832).

Delay in Effective Date

    On July 31, 2008, an Interim Final Rule was published in the 
Federal Register (73 FR 44617) amending the make allowances and 
butterfat yield

[[Page 51353]]

factor used in the Class III and Class IV product-pricing formulas.
    On Friday, August 15, 2008, a lawsuit was filed in the District 
Court for the District of Columbia requesting that a temporary 
restraining order be issued by the court until a preliminary injunction 
hearing could be held as part of the pre-hearing process. USDA 
determined that it was in the best interest of the dairy industry to 
delay implementation of the Final Rule one month until October 1, 2008. 
Delaying implementation allows sufficient time for a preliminary 
injunction hearing to be held.
    The revised manufacturing allowances and butterfat yield factor 
will be used in computing the October 2008 Federal order minimum 
advance Class I and Class II prices and pricing factors to be announced 
on September 19, 2008 unless a court order directs otherwise. The 
revised manufacturing allowances and butterfat yield factor of the 
Interim Final Rule will be used to compute minimum Federal order Class 
III and Class IV prices for October 2008 and in the announcement of 
advanced prices and pricing factors thereafter.

    Authority: 7 U.S.C. 601-674, and 7253.

    Dated: August 28, 2008.
Lloyd C. Day,
Administrator, Agricultural Marketing Service.
[FR Doc. E8-20391 Filed 8-28-08; 4:15 pm]
BILLING CODE 3410-02-P