[Federal Register Volume 82, Number 115 (Friday, June 16, 2017)]
[Rules and Regulations]
[Pages 27611-27613]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-12528]



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 Rules and Regulations
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  Federal Register / Vol. 82, No. 115 / Friday, June 16, 2017 / Rules 
and Regulations  

[[Page 27611]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 1260

[Doc. # AMS-LPS-16-0071]


Beef Promotion and Research; Reapportionment

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Final rule.

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

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 
domestic cattle inventories and changes in levels of imported cattle, 
beef, and beef products that have occurred since the Agricultural 
Marketing Service (AMS) last reapportioned the Board in July 2014. 
These adjustments are required by the Beef Promotion and Research Order 
(Order) and will 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: Effective July 17, 2017.

FOR FURTHER INFORMATION CONTACT: 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; via telephone at (301) 352-7497; 
or by email at [email protected].

SUPPLEMENTARY INFORMATION: 

Executive Orders 12866 and 13771, and Regulatory Flexibility Act

    This rule does not meet the definition of a significant regulatory 
action contained in section 3(f) of Executive Order 12866 and is not 
subject to review by the Office of Management and Budget (OMB). 
Additionally, because this rule does not meet the definition of a 
significant regulatory action, it does not trigger the requirements 
contained in Executive Order 13771. See OMB's Memorandum titled 
``Interim Guidance Implementing Section 2 of the Executive Order of 
January 30, 2017, titled `Reducing Regulation and Controlling 
Regulatory Costs' '' (February 2, 2017). Under the requirements set 
forth in the Regulatory Flexibility Act (RFA) (5 U.S.C. 601-612), AMS 
has considered the economic impact of this action on small entities. 
The purpose of the RFA is to fit regulatory actions to the scale of 
businesses subject to such actions in order that small businesses will 
not be unduly or disproportionately burdened.

Executive Order 12988

    This final rule has been reviewed under Executive Order 12988, 
Civil Justice Reform. This rule is not intended to have a 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 final rule.

Paperwork Reduction Act

    In the February 2013 publication of ``Farms, Land in Farms, and 
Livestock Operations,'' USDA's National Agricultural Statistics Service 
estimated that the number of operations in the U.S. with cattle totaled 
approximately 915,000 in 2012, 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 final 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 will 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

    The Act established a national beef research and promotion 
program--administered by the Board--that is financed through industry 
assessments and subject to oversight by USDA's AMS. This program of 
promotion and research is designed to strengthen the position of beef 
and beef products in the marketplace and to establish, maintain, and 
expand markets for beef and beef products both domestically and 
internationally. Domestic representation on the Board is 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.
    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 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 of Agriculture modifications to the number of cattle 
per unit necessary for representation on the Board.
    Section 1260.141(e)(1) of the Order 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

[[Page 27612]]

500,000 head shall be grouped, to the extent practicable, into 
geographically contiguous units, each of which has 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 shall be 
represented by a single unit, with the number of Board members 
representing such unit based on a conversion of the total volume of 
imported cattle, beef, or beef products into live animal equivalencies.
    Representation of states and units affected by this final rule is 
as follows:

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

    The Board reapportionment will take effect with appointments to 
fill positions early in the year 2018.

Summary of Comments

    AMS published the notice of proposed rulemaking in the Federal 
Register on January 13, 2017. The comment period closed on April 13, 
2017. AMS received four timely comments. Three of the four comments 
were outside the scope of the rule. One commenter suggested that the 
latest statistical survey of cattle in Virginia released in February 
2017 verifies that Virginia does in fact retain the prerequisite 
greater than 1.5 million head of cattle to justify two seats on the 
Board. For the purpose of this final rule, domestic cattle numbers are 
determined by using an average of 3 years to better reflect the 
geographic distribution of cattle production volume in the United 
States. Accordingly, this comment was not adopted.

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, 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. 2901-2911 and 7 U.S.C. 7401.


0
2. In Sec.  1260.141, revise paragraph (a) 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:

                          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

[[Page 27613]]

 
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.

* * * * *

    Dated: June 13, 2017.
Bruce Summers,
Acting Administrator, Agricultural Marketing Service.
[FR Doc. 2017-12528 Filed 6-15-17; 8:45 am]
 BILLING CODE 3410-02-P