[Federal Register Volume 82, Number 9 (Friday, January 13, 2017)]
[Proposed Rules]
[Pages 4203-4206]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-00587]


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

DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 1260

[No. AMS-LPS-16-0071]


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 domestic cattle inventories since January 1, 2013, as well 
as changes in levels of imported cattle, beef, and beef products that 
have occurred since December 31, 2012, which were the cut-off dates for 
data used by the Agricultural Marketing Service (AMS) when the Board 
was last reapportioned in July 2014. These adjustments are required by 
the Beef Promotion and Research Order (Order) and, if adopted, would 
result in a decrease in Board membership from 100 to 99, effective with 
the U.S. Department of Agriculture's (USDA) appointments for terms 
beginning early in the year 2018.

DATES: Submit comments on or before March 14, 2017.

ADDRESSES: Comments should be posted online at www.regulations.gov. 
Comments received will be posted without change, including any personal 
information provided. All comments should reference the docket number 
AMS-LPS-16-0071, the date of submission, and the page number of this 
issue of the Federal Register. Comments may also be sent to Mike 
Dinkel, Agricultural Marketing Specialist; Research and Promotion 
Division; Livestock, Poultry, and Seed Program, AMS, USDA; Room 2610-S, 
STOP 0249, 1400 Independence Avenue SW., Washington, DC 20250-0249; or 
via fax to (202) 720-1125. Comments will be made available for public 
inspection at the above address during regular business hours or via 
the Internet at www.regulations.gov.

FOR FURTHER INFORMATION CONTACT: Mike Dinkel, Research and Promotion 
Division, at (301) 352-7497; fax (202) 720-1125; or by email at 
[email protected].

SUPPLEMENTARY INFORMATION:

Executive Orders 12866 and 13563

    Executive Orders 12866 and 13563 direct agencies to assess all 
costs and benefits of available regulatory alternatives and, if 
regulation is necessary, to select regulatory approaches that maximize 
net benefits (including potential economic, environmental, public 
health and safety effects, distributive impacts, and equity). Executive 
Order 13563 emphasizes the importance of quantifying both costs and 
benefits, reducing costs, harmonizing rules, and promoting flexibility. 
This rule has been determined not to be significant for purposes of 
Executive Order 12866 or Executive Order 13563. Accordingly, the Office 
of Management and Budget (OMB) has waived the review process.

Executive Order 12988

    This proposed rule has been reviewed under Executive Order 12988, 
Civil Justice Reform. It is not intended to have retroactive effect. 
The Act prohibits states or political subdivisions of a state to impose 
any requirement that is in addition to, or inconsistent with, any 
requirement of the Act. There are no civil justice implications 
associated with this proposed rule.

Regulatory Flexibility Act and Paperwork Reduction Act

    Pursuant to the requirements set forth in the Regulatory 
Flexibility Act (RFA) [5 U.S.C. 601-612], the Administrator of AMS has 
considered the economic effect of this action on small entities and has 
determined that this proposed rule would 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 February 2013 publication of ``Farms, Land in Farms, and 
Livestock Operations,'' USDA's National Agricultural Statistics Service 
(NASS) estimated that the number of operations in the United States 
with cattle in 2012 totaled approximately 915,000, down from 950,000 in 
2009. There are approximately 270 importers who import beef or edible 
beef products into the United States and 198 importers who import live 
cattle into the United States. It is estimated that the majority of 
those operations subject to the Order are considered small businesses 
under the criteria established by the Small Business Administration 
(SBA) [13 CFR 121.201]. SBA generally defines small agricultural 
service firms as those having annual receipts of $7.5 million or less, 
and small agricultural producers are generally defined as those having 
annual receipts of less than $750,000.
    The proposed rule imposes no new burden on the industry. It only 
adjusts representation on the Board to reflect changes in domestic 
cattle inventory, as well as in cattle and beef imports. The 
adjustments are required by the Order and would result in a decrease in 
Board membership from 100 to 99.
    AMS is committed to complying with the E-Government Act of 2002 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.
    USDA has not identified any relevant federal rules that duplicate, 
overlap, or conflict with this rule.

Background and Proposed Action

    The Board was initially appointed on August 4, 1986, pursuant to 
the provisions of the Act [7 U.S.C. 2901-2911] and the Order issued 
thereunder. Domestic representation on the Board is

[[Page 4204]]

based on cattle inventory numbers, while importer representation is 
based on the conversion of the volume of imported cattle, beef, and 
beef products into live animal equivalencies.

Reapportionment

    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 State or unit in which that producer is a resident.
    Section 1260.141(c) of the Order provides that at least every 3 
years, but 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 Secretary modifications to 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 is entitled to an additional 
Board member for each additional 1 million head of cattle within the 
unit, as provided in Sec.  1260.141(e)(4). Further, as provided in 
Sec.  1260.141(e)(3), importers are represented by a single unit, with 
their 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 to 107 
members in 1993 before the Board was increased back to 111 members in 
1996. The Board decreased to 110 members in 1999, 108 members in 2001, 
and 104 members in 2005; increased to 106 members in 2009; decreased to 
103 members in 2011; and decreased to 100 members in 2013. This 
proposal would amend Sec.  1260.141(a) by increasing the importers from 
6 to 7 members, decreasing the State of Virginia from 2 members to 1 
member and decreasing the State of Texas from 13 to 12 members. 
Overall, if adopted, it would decrease the number of Board members from 
100 to 99, with appointments for terms effective early in 2018.
    The currently proposed, updated Board representation by States or 
geographic units is based on an average of the January 1, 2011, 2012, 
and 2013 inventory of cattle in the various States as reported by NASS. 
The proposed importer representation would be based on a combined total 
average of the 2011, 2012, and 2013 live cattle imports as published by 
USDA's Foreign Agricultural Service and the average of the 2011, 2012, 
and 2013 live animal equivalents for imported beef and beef products.
    In considering reapportionment, the Board reviewed cattle 
inventories on the date January 1 in 2014, 2015, and 2016, as well as 
cattle, beef, and beef product import data for the period of January 1, 
2013, to December 31, 2015. 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, 2014, 2015, and 2016 
cattle inventory numbers would best reflect the number of cattle in 
each state or unit since publication of the last reapportionment rule 
published in 2014 [79 FR 46961]. The Board reviewed data published by 
the USDA's Economic Research Service to determine proper importer 
representation. The Board recommended the use of the average of a 
combined total of the 2013, 2014, and 2015 cattle import data and the 
average of the 2013, 2014, and 2015 live animal equivalents for 
imported beef products. The method used to calculate the total number 
of live animal equivalents was the same as that used in the previous 
reapportionment of the Board. The live animal equivalent weight was 
changed in 2006 from 509 pounds to 592 pounds [71 FR 47074].
    The Board's recommended reapportionment plan, if adopted, would 
decrease the number of representatives on the Board from 100 to 99. 
From the Board's analysis of USDA cattle inventories and import 
equivalencies, Virginia would lose one Board seat and Texas would lose 
one Board seat. The importers would gain one Board seat.
    The States and units affected by the reapportionment plan and the 
current and proposed member representation per unit are as follows:

------------------------------------------------------------------------
                                              Current         Revised
               State/unit                 representation  representation
------------------------------------------------------------------------
Virginia................................              2               1
Texas...................................             13              12
Importers...............................              6               7
------------------------------------------------------------------------

    The Board reapportionment as proposed by this rulemaking would take 
effect, if adopted, with appointments to fill positions early in the 
year 2018.
    A 60-day comment period is provided to allow interested persons to 
respond to this proposal. Thirty days is deemed appropriate to 
facilitate the adjustment of the representation on the Board, which is 
required by the Order at least every 3 years but not more than every 2 
years, and to allow for the annual nomination and appointment process 
for Board appointments that will be effective early in 2018.

List of Subjects in 7 CFR Part 1260

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

    For the reasons set forth in the preamble, AMS proposes to amend 7 
CFR part 1260 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. 2901-2911 and 7 U.S.C. 7401.

0
2. Revise Sec.  1260.141 paragraph (a) and the table immediately 
following to read as follows:


Sec.  1260.141   Membership of Board.

    (a) Beginning with the 2017 Board nominations and the associated 
appointments effective early in the year 2018, the United States shall 
be divided into 37 geographical units and 1 unit representing 
importers, for a total of 38 units. The number of Board members from 
each unit shall be as follows:

[[Page 4205]]



                          Cattle and Calves \1\
------------------------------------------------------------------------
               State/unit                  (1,000 head)      Directors
------------------------------------------------------------------------
1. Arizona..............................             900               1
2. Arkansas.............................           1,660               2
3. Colorado.............................           2,600               3
4. Florida..............................           1,680               2
5. Idaho................................           2,307               2
6. Illinois.............................           1,143               1
7. Indiana..............................             873               1
8. Iowa.................................           3,867               4
9. Kansas...............................           5,983               6
10. Kentucky............................           2,110               2
11. Louisiana...........................             787               1
12. Michigan............................           1,133               1
13. Minnesota...........................           2,347               2
14. Mississippi.........................             923               1
15. Missouri............................           3,983               4
16. Montana.............................           2,567               3
17. Nebraska............................           6,317               6
18. New Mexico..........................           1,340               1
19. New York............................           1,450               1
20. North Carolina......................             803               1
21. North Dakota........................           1,697               2
22. Ohio................................           1,243               1
23. Oklahoma............................           4,567               5
24. Oregon..............................           1,300               1
25. Pennsylvania........................           1,580               2
26. South Dakota........................           3,783               4
27. Tennessee...........................           1,770               2
28. Texas...............................          11,500              12
29. Utah................................             807               1
30. Virginia............................           1,487               1
31. Wisconsin...........................           3,467               3
32. Wyoming.............................           1,293               1
33. Northwest...........................  ..............               1
    Alaska..............................              10  ..............
    Hawaii..............................             135  ..............
    Washington..........................           1,137  ..............
                                         ----------------
        Total...........................           1,282  ..............
34. Northeast...........................  ..............               1
    Connecticut.........................              48  ..............
    Delaware............................              16  ..............
    Maine...............................              84  ..............
    Massachusetts.......................              38  ..............
    New Hampshire.......................              32  ..............
    New Jersey..........................              28  ..............
    Rhode Island........................               5  ..............
    Vermont.............................             260  ..............
                                         ----------------
        Total...........................             511  ..............
35. Mid-Atlantic........................  ..............               1
    Maryland............................             186  ..............
    West Virginia.......................             382  ..............
                                         ----------------
        Total...........................             567  ..............
36. Southeast...........................  ..............               3
    Alabama.............................           1,240  ..............
    Georgia.............................           1,057  ..............
    South Carolina......................             337  ..............
                                         ----------------
        Total...........................           2,633  ..............
37. Southwest...........................  ..............               6
    California..........................           5,183  ..............
    Nevada..............................             442  ..............
                                         ----------------
        Total...........................           5,625  ..............
38. Importers \2\.......................           6,949               7
------------------------------------------------------------------------
\1\ 2014, 2015, and 2016 average of January 1 cattle inventory data.
\2\ 2013, 2014, and 2015 average of annual import data.


[[Page 4206]]

* * * * *

    Dated: January 9, 2017.
Elanor Starmer,
Administrator, Agricultural Marketing Service.
[FR Doc. 2017-00587 Filed 1-12-17; 8:45 am]
BILLING CODE 3410-02-P