[Federal Register Volume 82, Number 236 (Monday, December 11, 2017)]
[Proposed Rules]
[Pages 58135-58137]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-26632]


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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 1006

[AMS-DA-17-0068; AO-18-0008]


Milk in the Florida Marketing Area; Notification of Hearing

AGENCY: Agricultural Marketing Service, USDA.

[[Page 58136]]


ACTION: Proposed rule: notification of public hearing.

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SUMMARY: A public hearing is being held, on an emergency basis, to 
consider a proposal submitted by Southeast Milk, Inc., Dairy Farmers of 
America, Inc., Premier Milk, Inc., Maryland and Virginia Milk Producers 
Cooperative Association, Inc., and Lone Star Milk Producers, L.C. The 
proposal seeks a temporary supplemental charge on Class I milk to 
provide emergency reimbursement to handlers and producers for costs 
incurred as a result of market disruptions stemming from Hurricane Irma 
in September 2017 which caused extensive damage in the United States.

DATES: The hearing will convene at 9:00 a.m. on December 12, 2017.

ADDRESSES: The hearing will be held at the Embassy Suites by Hilton 
Tampa Downtown Convention Center, 513 South Florida Avenue, Tampa, 
Florida 33602; telephone (813) 769-8326.

FOR FURTHER INFORMATION CONTACT: Erin Taylor, Acting Director, Order 
Formulation and Enforcement Division, USDA/AMS/Dairy Program, Stop 
0231-Room 2963, 1400 Independence Avenue SW., Washington, DC 20250-
0231; (202) 720-7311; email address: [email protected].
    Persons requiring a sign language interpreter or other special 
accommodations should contact Sherry Swanson, AMS Dairy Program, at 
(470) 767-5084, email: [email protected], at least 3 days before 
the hearing begins.

SUPPLEMENTARY INFORMATION: This proposed rule is governed by the 
provisions of Sections 556 and 557 of Title 5 of the United States Code 
and, therefore, is not subject to the requirements of Executive Order 
12866.
    This proposed rule is not expected to be an Executive Order 13771 
regulatory action because this proposed rule is exempt from the 
definition of ``regulation'' or ``rule'' in Executive Order 12866 and, 
thus, is not a regulatory action.
    The hearing is called pursuant to the provisions of the 
Agricultural Marketing Agreement Act of 1937, as amended (7 U.S.C. 601-
674) (Act), and the applicable rules of practice and procedure 
governing the formulation of marketing agreements and marketing orders 
(7 CFR part 900).
    Notice is hereby given of a public hearing to be held at the 
Embassy Suites by Hilton Tampa Downtown Convention Center, 513 South 
Florida Avenue, Tampa, Florida 33602, beginning at 9:00 a.m. on 
December 12, 2017, with respect to proposed amendments to the tentative 
marketing agreements and order regulating the handling of milk in the 
Florida milk marketing area.
    The purpose of the hearing is to receive evidence with respect to 
the economic and marketing conditions which relate to the proposed 
amendments, hereinafter set forth, and any appropriate modifications 
thereof, to the tentative marketing agreements and to the order.
    Actions under the Federal milk order program are subject to the 
Regulatory Flexibility Act (5 U.S.C. 601-612) (RFA). The RFA seeks to 
ensure that, within the statutory authority of a program, the 
regulatory and information collection requirements are tailored to the 
size and nature of small businesses. For the purpose of the RFA, a 
dairy farm is a ``small business'' if it has an annual gross revenue of 
less than $750,000, and a dairy products manufacturer is a ``small 
business'' if it has fewer than 500 employees (13 CFR 121.201). Most 
parties subject to a milk order are considered small businesses. 
Accordingly, interested parties are invited to present evidence on the 
probable regulatory and informational impact of the hearing proposals 
on small businesses. Also, parties may offer modifications of these 
proposals for the purpose of tailoring their applicability to small 
businesses.
    The amendments proposed herein have been reviewed under Executive 
Order 12988, Civil Justice Reform. They are not intended to have a 
retroactive effect. If adopted, the proposed amendments would not 
preempt any State or local laws, regulations, or policies, unless they 
present an irreconcilable conflict with this rule.
    The Act provides that administrative proceedings must be exhausted 
before parties may file suit in court. Under Section 8c(15)(A) of the 
Act, any handler subject to an order may request modification or 
exemption from such order by filing with the United States Department 
of Agriculture (USDA) a petition stating that the order, any provision 
of the order, or any obligation imposed in connection with the order is 
not in accordance with the law. A handler is afforded the opportunity 
for a hearing on the petition. After a hearing, USDA would rule on the 
petition. The Act provides that the district court of the United States 
in any district in which the handler is an inhabitant, or has its 
principal place of business, has jurisdiction to review USDA's decision 
on the petition, provided a complaint is filed not later than 20 days 
after the date of the entry of the ruling.
    The public hearing is being conducted to collect evidence for the 
record concerning the potential need for emergency payments to 
reimburse handlers and producers for costs they incurred as a result of 
disruptions stemming from Hurricane Irma. The payments as proposed 
would be through a temporary $0.09 per hundredweight increase in the 
Class I price under the order. The increase would only be applicable 
for the number of months necessary to cover the documented costs.
    Evidence also will be taken at the hearing to determine whether 
emergency marketing conditions exist that would warrant omission of a 
recommended decision under the rules of practice and procedure (7 CFR 
900.12(d)) with respect to any proposed amendments.
    Interested parties who wish to introduce exhibits should provide 
the Administrative Law Judge at the hearing with four (4) copies of 
such exhibits for the official record. Additional copies should be made 
available for the use of other hearing participants. Any party that has 
submitted a proposal noticed herein, when participating as a witness, 
is required to make their testimony--if prepared as an exhibit--and any 
other exhibits, available to USDA officials prior to the start of the 
hearing on the day of their appearance. Individual dairy farmers are 
not subject to this requirement.
    Copies of this notification of hearing may be obtained online at, 
http://www.ams.usda.gov/dairy, or from the Hearing Clerk, United States 
Department of Agriculture, STOP 9200--Room 1031, 1400 Independence 
Avenue SW., Washington, DC 20250-9200.
    Copies of the transcript of testimony and exhibits taken at the 
hearing will be made available for viewing at http://www.ams.usda.gov/dairy after the hearing adjourns. If you wish to purchase a copy, 
arrangements may be made with the reporter at the hearing.
    From the time that a hearing notice is issued and until the 
issuance of a final decision in a proceeding, Department employees 
involved in the decision making process are prohibited from discussing 
the merits of the hearing issues on an ex parte basis with any person 
having an interest in the proceeding. For this particular proceeding, 
the prohibition applies to employees in the following organizational 
units: Office of the Secretary of Agriculture; Office of the 
Administrator, AMS; Office of the

[[Page 58137]]

General Counsel; and the AMS Dairy Program (Washington, DC office), and 
the offices of all Market Administrators. Procedural matters are not 
subject to the above prohibition and may be discussed at any time.
    Testimony is invited on the following proposal or appropriate 
modifications to such proposal. The proposed amendment, as set forth 
below, has not received the approval of the Department.

Proposal Number 1

    Proposed by Southeast Milk, Inc., Dairy Farmers of America, Inc., 
Premier Milk, Inc., Maryland and Virginia Milk Producers Cooperative 
Association, Inc., and Lone Star Milk Producers, L.C.
    The proposal details substantial and extraordinary losses to the 
Florida dairy industry as a result of physical damages; heat stress to 
animals; market losses; and additional transportation costs stemming 
from Hurricane Irma. The proposal would provide for emergency relief 
for Florida handlers and producers for costs incurred September 6 
through September 15, 2017. The categories of recovery costs requested 
include: (1) The minimum class price value of whole and skim milk 
dumped due to market unavailability during plant shutdowns; (2) 
additional transportation costs associated with milk movements 
resulting from the hurricane; (3) lost minimum location price value on 
milk movements out of market; and (4) price losses on distress sales of 
milk. Proposed amendments to the Florida Federal Milk Marketing Order 
are set out in the regulatory text below.

Proposal Number 2

    Proposed by Dairy Program, Agricultural Marketing Service.
    Make such changes as may be necessary to make the entire marketing 
agreement and the order conform with any amendments thereto that may 
result from this hearing.

List of Subjects in 7 CFR Part 1006

    Milk marketing orders.

    For the reasons discussed in the preamble, AMS proposes to amend 7 
CFR part 1006 as follow:

PART 1006--MILK IN THE FLORIDA MILK MARKETING AREA

0
1. The authority citation for 7 CFR part 1006 continues to read as 
follows:

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

0
2. Section 1006.60 is amended by revising paragraphs (a) and (g) and 
adding paragraphs (h) and (i) to read as follows:


Sec.  1006.60  Handler's value of milk.

* * * * *
    (a) Multiply the pounds of skim milk and butterfat in producer milk 
that were classified in each class pursuant to Sec.  1000.44(c) by the 
applicable skim milk and butterfat prices, and add the resulting 
amounts; except that for the months of __2018 through __2018, the Class 
I skim milk price for this purpose shall be the Class I skim milk price 
as determined in Sec.  1000.50(b) plus $0.09 per hundredweight, and the 
Class I butterfat price for this purpose shall be the Class I butterfat 
price as determined in Sec.  1000.50(c) plus $0. _____per pound. The 
adjustments to the Class I skim milk and butterfat prices provided 
herein may be reduced by the market administrator for any month if the 
market administrator determines that the payments yet unpaid computed 
pursuant to paragraphs (g)(1) through paragraph (g)(6) of this section 
will be less than the amount computed pursuant to paragraph (g)(6) of 
this section. The adjustments to the Class I skim milk and butterfat 
prices provided herein during the months of _____shall be announced 
along with the prices announced in Sec.  1000.53(b).
* * * * *
    (g) For transactions occurring during the period of September 6, 
2017 through September 15, 2017, for handlers who have submitted proof 
satisfactory to the market administrator to determine eligibility for 
reimbursement of hurricane-imposed costs, subtract an amount equal to:
    (1) The cost of transportation on loads of producer milk rerouted 
from pool distributing plants to plants outside the state of Florida 
which were rerouted as a result of Hurricane Irma. The reimbursement of 
transportation costs pursuant to this section shall be the actual 
demonstrated cost of such transportation of bulk milk or the miles of 
transportation on such loads of bulk milk multiplied by $3.75 per 
loaded mile, whichever is less.
    (2) The lost location value on loads of producer milk rerouted to 
plants outside the state of Florida as a result of Hurricane Irma. The 
lost location value shall be the difference per hundredweight between 
the value stated in part 1000.52 at the plant to which the milk would 
have gone and the value in part 1000.52 at the plant to which the milk 
was rerouted;
    (3) The value per hundredweight at the lowest classified price for 
the month of September 2017 for milk dumped at the farm and classified 
as other use milk pursuant to section 1000.40(e) as a result of 
Hurricane Irma;
    (4) The value per hundredweight at the lowest classified price for 
the month of September 2017 for milk dumped from milk tankers after 
being moved off-farm and classified as other use milk pursuant to 
section 1000.40(e) as a result of Hurricane Irma;
    (5) The value per hundredweight at the lowest classified price for 
the month of September 2017 for skim milk dumped and classified as 
other use milk pursuant to Section 1000.40(e) as a result of Hurricane 
Irma; and
    (6) The difference between the lowest class price for the month of 
September 2017 and the actual price received for distress milk moved to 
nonpool plants as a result of Hurricane Irma;
    (h) The total amount of payment to all handlers under this section 
shall be limited for each month to an amount determined by multiplying 
the total Class I producer milk for all handlers pursuant to Sec.  
1000.44(c) times $0.09 per hundredweight;
    (i) If the cost of payments computed pursuant to paragraphs (g)(1) 
through (6) of this section exceeds the amount computed pursuant to 
paragraph (h) of this section, the market administrator shall prorate 
such payments to each handler based on each handler's proportion of 
transportation and other use milk costs submitted pursuant to 
paragraphs (g)(1) through (6). Costs submitted pursuant to paragraphs 
(g)(1) through (6) which are not paid as a result of such a proration 
shall be paid in subsequent months until all costs incurred and 
documented through (g)(1) through (6) have been paid.

    Dated: December 6, 2017.
Bruce Summers,
Acting Administrator, Agricultural Marketing Service.
[FR Doc. 2017-26632 Filed 12-6-17; 4:15 pm]
 BILLING CODE 3410-02-P