Milk in the Northeast and Other Marketing Areas; Interim Order Amending the Orders, 78333-78335 [06-9943]
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78333
Rules and Regulations
Federal Register
Vol. 71, No. 250
Friday, December 29, 2006
This section of the FEDERAL REGISTER
contains regulatory documents having general
applicability and legal effect, most of which
are keyed to and codified in the Code of
Federal Regulations, which is published under
50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by
the Superintendent of Documents. Prices of
new books are listed in the first FEDERAL
REGISTER issue of each week.
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Parts 1000, 1001, 1005, 1006,
1007, 1030, 1032, 1033, 1124, 1126 and
1131
[Docket No. AO–14–A74, et al.; DA–06–01]
Milk in the Northeast and Other
Marketing Areas; Interim Order
Amending the Orders
7 CFR
part
1001
1005
1006
1007
1030
1032
1033
1124
1126
1131
.....
.....
.....
.....
.....
.....
.....
.....
.....
.....
Marketing area
AO Nos.
Northeast ...........
Appalachian .......
Florida ................
Southeast ...........
Upper Midwest ...
Central ...............
Mideast ..............
Pacific Northwest
Southwest ..........
Arizona ...............
AO–14–A74.
AO–388–A18.
AO–356–A39.
AO–366–A47.
AO–361–A40.
AO–313–A49.
AO–166–A73.
AO–368–A35.
AO–231–A68.
AO–271–A40.
Agricultural Marketing Service,
USDA.
ACTION: Interim final rule.
rmajette on PROD1PC72 with RULES
AGENCY:
SUMMARY: This order amends the
manufacturing (make) allowances
contained in the Class III and Class IV
product price formulas applicable to all
Federal milk marketing orders.
Specifically, this decision adopts the
following make allowances: cheese—
$0.1682 per pound; butter—$0.1202 per
pound; nonfat dry milk (NFDM)—
$0.1570 per pound; and dry whey—
$0.1956 per pound. More than the
required number of producers have
approved the issuance of the interim
orders as amended.
DATES: Effective Date: February 1, 2007.
FOR FURTHER INFORMATION CONTACT: Jack
Rower, Marketing Specialist, USDA/
AMS/Dairy Programs, Order
Formulation and Enforcement Branch,
STOP 0231—Room 2971, 1400
Independence Ave., SW., Washington,
VerDate Aug<31>2005
13:55 Dec 28, 2006
Jkt 211001
DC 20250–0231, (202) 720–2357, e-mail
address: jack.rower@usda.gov.
SUPPLEMENTARY INFORMATION: This
administrative rule is governed by the
provisions of Sections 556 and 557 of
Title 5 of the United States Code and,
therefore, is excluded from the
requirements of Executive Order 12866.
This interim rule has been reviewed
under Executive Order 12988, Civil
Justice Reform. This rule is not intended
to have a retroactive effect. This rule
will not preempt any State or local laws,
regulations, or policies, unless they
present an irreconcilable conflict with
this rule.
The Agricultural Marketing
Agreement Act of 1937 (the Act), as
amended (7 U.S.C. 601–674), provides
that administrative proceedings must be
exhausted before parties may file suit in
court. Under Section 608c(15)(a) of the
Act, any handler subject to an order may
request modification or exemption from
such order by filing with the
Department of Agriculture (Department)
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, the Department 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 in equity to
review the Department’s ruling on the
petition, provided a bill in equity is
filed not later than 20 days after the date
of the entry of the ruling.
Regulatory Flexibility Act and
Paperwork Reduction Act
In accordance with the Regulatory
Flexibility Act (5 U.S.C. 601 et seq.), the
Agricultural Marketing Service has
considered the economic impact of this
action on small entities and has certified
that this interim rule will not have a
significant economic impact on a
substantial number of small entities. For
the purpose of the Regulatory Flexibility
Act, a dairy farm is considered 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.
For the purposes of determining
which dairy farms are ‘‘small
PO 00000
Frm 00001
Fmt 4700
Sfmt 4700
businesses,’’ the $750,000 per year
criterion was used to establish a
marketing guideline of 500,000 pounds
per month. Although this guideline does
not factor in additional monies that may
be received by dairy producers, it
should be an inclusive standard for
most ‘‘small’’ dairy farmers. For
purposes of determining a handler’s
size, if the plant is part of a larger
company operating multiple plants that
collectively exceed the 500-employee
limit, the plant will be considered a
large business even if the local plant has
fewer than 500 employees.
For the month of January 2006, the
month the initial public hearing was
held, the milk of 52,570 dairy farmers
was pooled on the Federal order system.
Of the total, 49,153 dairy farmers, or 94
percent, were considered small
businesses. During the same month, 536
plants were regulated by or reported
their milk receipts to be pooled and
priced on a Federal order. Of the total,
286 plants, or 53 percent, were
considered small businesses.
This decision provides that all orders
be amended by changing the make
allowances contained in the formulas
used to compute component prices and
the minimum class prices in all Federal
milk orders. Specifically, the make
allowance for butter would increase
from $0.1150 to $0.1202 per pound; the
make allowance for cheese would
increase from $0.1650 to $0.1682 per
pound; the make allowance for NFDM
would increase from $0.1400 to $0.1570
per pound; and the make allowance for
dry whey would increase from $0.1590
to $0.1956 per pound.
The adoption of these new make
allowances serves to approximate the
average cost of producing cheese, butter,
NFDM and dry whey for manufacturing
plants located in Federal milk marketing
areas.
The established criteria for the make
allowance changes are applied in an
identical fashion to both large and small
businesses and will not have any
different impact on those businesses
producing manufactured milk products.
The Department’s economic analysis 1
discusses impacts of the order
amendments on order participants
1 The Economic Analysis, Class III and Class IV
Make Allowances, Tentative Final Decision is
available on the Internet at https://
www.ams.usda.gov/dairy/proposals/
classIII_IV_make_all.htm.
E:\FR\FM\29DER1.SGM
29DER1
78334
Federal Register / Vol. 71, No. 250 / Friday, December 29, 2006 / Rules and Regulations
including producers and manufacturers.
Based on the economic analysis, we
have concluded that the proposed
amendments will not have a significant
economic impact on a substantial
number of small entities.
The Agricultural Marketing Service is
committed to complying with the EGovernment 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.
This action does not require
additional information collection that
requires clearance by the Office of
Management and Budget (OMB) beyond
currently approved information
collection. The primary sources of data
used to complete the forms are routinely
used in most business transactions.
Forms require only a minimal amount of
information which can be supplied
without data processing equipment or a
trained statistical staff. Thus, the
information collection and reporting
burden is relatively small. Requiring the
same reports for all handlers does not
significantly disadvantage any handler
that is smaller than the industry
average.
rmajette on PROD1PC72 with RULES
Prior Documents in This Proceeding
Notice of Hearing: Issued December
30, 2005; published January 5, 2006 (71
FR 545).
Notice of Intent To Reconvene
Hearing: Issued June 28, 2006;
published June 23, 2006 (71 FR 36715).
Notice To Reconvene Hearing: Issued
August 31, 2006; published September
6, 2006 (71 FR 52502).
Tentative Final Decision: Issued
November 17, 2006; published
November 22, 2006 (71 FR 67467).
Findings and Determinations
The findings and determinations
hereinafter set forth supplement those
that were made when the Northeast and
other marketing orders were first issued
and when they were amended. The
previous findings and determinations
are hereby ratified and confirmed,
except where they may conflict with
those set forth herein.
The following findings are hereby
made with respect to the Northeast and
other aforesaid marketing orders:
(a) Findings upon the basis of the
hearing record. Pursuant to the
provisions of the Agricultural Marketing
Agreement Act of 1937, as amended (7
U.S.C. 601–674), and the applicable
rules of practice and procedure
governing the formulation of marketing
agreements and marketing orders (7 CFR
part 900), a public hearing was held
VerDate Aug<31>2005
13:55 Dec 28, 2006
Jkt 211001
upon certain proposed amendments to
the tentative marketing agreements and
to the orders regulating the handling of
milk in the Northeast and other
marketing areas.
Upon the basis of the evidence
introduced at such hearing and the
record thereof, it is found that:
(1) The said orders, as hereby
amended on an interim basis, and all of
the terms and conditions thereof, will
tend to effectuate the declared policy of
the Act;
(2) The parity prices of milk, as
determined pursuant to Section 2 of the
Act, are not reasonable in view of the
price of feeds, available supplies of
feeds, and other economic conditions
which affect market supply and demand
for milk in the marketing areas, and the
minimum prices specified in the orders,
as hereby amended on an interim basis,
are such prices as will reflect the
aforesaid factors, ensure a sufficient
quantity of pure and wholesome milk,
and be in the public interest; and
(3) The said orders, as hereby
amended on an interim basis, regulate
the handling of milk in the same
manner as, and are applicable only to
persons in the respective classes of
industrial and commercial activity
specified in, the marketing agreements
upon which a hearing has been held.
(b) Additional Findings. It is
necessary and in the public interest to
make these interim amendments to the
Northeast and other marketing orders
effective February 1, 2007. Any delay
beyond that date would tend to disrupt
the orderly marketing of milk in the
aforesaid marketing areas.
The interim amendments to this order
are known to handlers. The tentative
partial decision containing the proposed
amendments to the orders was issued on
November 17, 2006.
The changes that result from these
interim amendments will not require
extensive preparation or substantial
alteration in the method of operation for
handlers. In view of the foregoing, it is
hereby found and determined that good
cause exists for making these interim
order amendments effective on February
1, 2007.
(c) Determinations. It is hereby
determined that:
(1) The refusal or failure of handlers
(excluding cooperative associations
specified in Section 8c(9) of the Act) of
more than 50 percent of the milk, which
is marketed within the specified
marketing areas, to sign a proposed
marketing agreement, tends to prevent
the effectuation of the declared policy of
the Act;
(2) The issuance of this interim order
amending the Northeast and other
PO 00000
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Fmt 4700
Sfmt 4700
marketing orders is the only practical
means pursuant to the declared policy
of the Act of advancing the interests of
producers as defined in the orders as
hereby amended;
(3) The issuance of the interim order
amending the Northeast and other
marketing orders is favored by at least
two-thirds of the producers who were
engaged in the production of milk for
sale in the respective marketing areas.
List of Subjects in 7 CFR Parts 1000,
1001, 1005, 1006, 1007, 1030, 1032,
1033, 1124, 1126, and 1131
Milk marketing orders.
Orders Relative to Handling
It is therefore ordered, that on and
after the effective date hereof, the
handling of milk in the Northeast and
other marketing areas shall be in
conformity and in compliance with the
terms and conditions of the orders, as
amended, and as hereby further
amended on an interim basis, as
follows:
I 1. The authority citation for 7 CFR
parts 1000, 1001, 1005, 1006, 1007,
1030, 1032, 1033, 1124, 1126, and 1131
is revised to read as follows:
I
Authority: 7 U.S.C. 601–674, and 7253.
PART 1000—GENERAL PROVISIONS
OF FEDERAL MILK MARKETING
ORDERS
I
I
I
I
I
I
I
2. Section 1000.50 is amended by:
a. Revising paragraph (l);
b. Revising paragraph (m);
c. Revising paragraph (n)(2);
d. Revising paragraph (n)(3)(i);
e. Revising paragraph (o); and
f. Revising paragraph (q)(3).
The revisions read as follows:
§ 1000.50 Class prices, component prices,
and advanced pricing factors.
*
*
*
*
*
(l) Butterfat price. The butterfat price
per pound, rounded to the nearest onehundredth cent, shall be the U.S.
average NASS AA Butter survey price
reported by the Department for the
month, less 12.02 cents, with the result
multiplied by 1.20.
(m) Nonfat solids price. The nonfat
solids price per pound, rounded to the
nearest one-hundredth cent, shall be the
U.S. average NASS nonfat dry milk
survey price reported by the Department
for the month, less 15.70 and
multiplying the result by 0.99.
(n) * * *
(1) * * *
(2) Subtract 16.82 cents from the price
computed pursuant to paragraph (n)(1)
of this section and multiply the result
by 1.383;
E:\FR\FM\29DER1.SGM
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Federal Register / Vol. 71, No. 250 / Friday, December 29, 2006 / Rules and Regulations
RIN 1557–AD00
Act (CRA) regulations in August 2005.
This change is technical only and does
not make any substantive revisions. The
agencies are also amending their CRA
regulations to increase the asset-size
threshold to be used to define ‘‘small
bank’’ and ‘‘intermediate small bank.’’
The regulation is amended to state the
increase in the threshold amount based
on the annual percentage change in the
Consumer Price Index.
DATES: Effective January 1, 2007.
FOR FURTHER INFORMATION CONTACT:
OCC: Margaret Hesse, Special
Counsel, Community and Consumer
Law Division, (202) 874–5750; or Karen
Tucker, National Bank Examiner,
Compliance Division, (202) 874–4428,
Office of the Comptroller of the
Currency, 250 E Street, SW.,
Washington, DC 20219.
Board: Anjanette M. Kichline, Senior
Supervisory Consumer Financial
Services Analyst, (202) 785–6054; or
Elizabeth A. Eurgubian, Attorney, (202)
452–3667, Division of Consumer and
Community Affairs, Board of Governors
of the Federal Reserve System, 20th
Street and Constitution Avenue, NW.,
Washington, DC 20551.
FDIC: Faye Murphy, Fair Lending
Specialist, (202) 898–6613, CRA and
Fair Lending Policy Section, Division of
Supervision and Consumer Protection;
or Susan van den Toorn, Counsel, Legal
Division, (202) 898–8707, Federal
Deposit Insurance Corporation, 550 17th
Street, NW., Washington, DC 20429.
SUPPLEMENTARY INFORMATION:
FEDERAL RESERVE SYSTEM
Background
(3) * * *
(i) Subtract 16.82 cents from the price
computed pursuant to paragraph (n)(1)
of this section and multiply the result
by 1.572; and * * *
(o) Other solids price. The other solids
price per pound, rounded to the nearest
one-hundredth cent, shall be the U.S.
average NASS dry whey survey price
reported by the Department for the
month minus 19.56 cents, with the
result multiplied by 1.03. * * *
(q) * * *
(3) An advanced butterfat price per
pound, rounded to the nearest onehundredth cent, shall be calculated by
computing a weighted average of the 2
most recent U.S. average NASS AA
Butter survey prices announced before
the 24th day of the month, subtracting
12.02 cents from this average, and
multiplying the result by 1.20.
Dated: December 26, 2006.
Lloyd C. Day,
Administrator, Agricultural Marketing
Service.
[FR Doc. 06–9943 Filed 12–27–06; 9:53 am]
BILLING CODE 3410–02–P
DEPARTMENT OF THE TREASURY
Office of the Comptroller of the
Currency
12 CFR Part 25
[Docket No. 06–18]
12 CFR Part 228
[Regulation BB; Docket No. R–1273]
FEDERAL DEPOSIT INSURANCE
CORPORATION
12 CFR Part 345
RIN 3064–AD11
Community Reinvestment Act
Regulations
Office of the Comptroller of
the Currency, Treasury (OCC); Board of
Governors of the Federal Reserve
System (Board); Federal Deposit
Insurance Corporation (FDIC).
ACTION: Joint final rule; technical
correction.
rmajette on PROD1PC72 with RULES
AGENCIES:
SUMMARY: The OCC, the Board, and the
FDIC (collectively, the ‘‘agencies’’) are
publishing this joint final rule to
reinsert a provision that was
inadvertently deleted when the agencies
revised their Community Reinvestment
VerDate Aug<31>2005
13:55 Dec 28, 2006
Jkt 211001
The agencies jointly are amending
their regulations at 12 CFR parts 25,
228, and 345 implementing the CRA (12
U.S.C. 2901 et seq.) to make a technical
correction related to regulatory changes
that became effective on September 1,
2005 (70 FR 44256) and to publish an
increase in the asset-size threshold for
small and intermediate small banks as
required by the regulations. The
agencies will publish current and
historical asset-size thresholds on the
Web site of the Federal Financial
Institutions Examination Council at
https://www.ffiec.gov/cra/.
Description of the Joint Final Rule
The technical correction published
today adds as paragraph (d) to §§ 25.26,
228.26, and 345.26 a provision stating,
‘‘The [agency] rates the performance of
a bank evaluated under this section as
provided in appendix A of this part.’’
No change in the evaluation or rating of
small banks will result from reinserting
the provision as new paragraph (d). The
agencies find it important to make this
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78335
technical correction in order to provide
clarification and consistency with other
similar provisions in parts 25, 228, and
345.
The agencies’ CRA regulations, as
revised on September 1, 2005, provide
that banks that, as of December 31 of
either of the prior two calendar years,
had assets of less than $1 billion are
‘‘small banks.’’ Small banks with assets
of at least $250 million as of
December 31 of both of the prior two
calendar years and less than $1 billion
as of December 31 of either of the prior
two calendar years are ‘‘intermediate
small banks.’’ 12 CFR 25.12(u)(1),
228.12(u)(1), and 345.12(u)(1). The
regulations further provide that the
agencies will publish annual
adjustments to these dollar figures based
on the year-to-year change in the
average of the Consumer Price Index for
Urban Wage Earners and Clerical
Workers (CPIW), not seasonally
adjusted, for each twelve-month period
ending in November, with rounding to
the nearest million. 12 CFR 25.12(u)(2),
228.12(u)(2), and 345.12(u)(2).
During the period ending
November 2006, the CPIW increased by
3.32 percent. As a result, the agencies
are revising §§ 25.12(u)(1), 228.12(u)(1),
and 345.12(u)(1) to make this annual
adjustment. Beginning January 1, 2007,
banks that, as of December 31 of either
of the prior two calendar years, had
assets of less than $1.033 billion are
‘‘small banks.’’ Small banks with assets
of at least $258 million as of
December 31 of both of the prior two
calendar years and less than $1.033
billion as of December 31 of either of the
prior two calendar years are
‘‘intermediate small banks.’’
Administrative Procedure Act and
Effective Date
Under 5 U.S.C. 553(b)(B) of the
Administrative Procedure Act (APA), an
agency may, for good cause, find (and
incorporate the finding and a brief
statement of reasons therefor in the
rules issued) that notice and public
procedure thereon are impracticable,
unnecessary, or contrary to the public
interest.
With regard to the revision adding
back the paragraph referring to
appendix A: Appendix A to the
agencies’ regulations describes the CRA
ratings system for each performance test
under the regulations and provides
specific information on what
institutions must demonstrate in order
to achieve a particular rating. Prior to
the regulatory changes adopted in 2005,
each provision in the agencies’
regulations describing a performance
test included a paragraph stating that
E:\FR\FM\29DER1.SGM
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]]>Agencies
[Federal Register Volume 71, Number 250 (Friday, December 29, 2006)]
[Rules and Regulations]
[Pages 78333-78335]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 06-9943]
========================================================================
Rules and Regulations
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains regulatory documents
having general applicability and legal effect, most of which are keyed
to and codified in the Code of Federal Regulations, which is published
under 50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by the Superintendent of Documents.
Prices of new books are listed in the first FEDERAL REGISTER issue of each
week.
========================================================================
Federal Register / Vol. 71, No. 250 / Friday, December 29, 2006 /
Rules and Regulations
[[Page 78333]]
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Parts 1000, 1001, 1005, 1006, 1007, 1030, 1032, 1033, 1124,
1126 and 1131
[Docket No. AO-14-A74, et al.; DA-06-01]
Milk in the Northeast and Other Marketing Areas; Interim Order
Amending the Orders
------------------------------------------------------------------------
7 CFR part Marketing area AO Nos.
------------------------------------------------------------------------
1001........................... Northeast........ AO-14-A74.
1005........................... Appalachian...... AO-388-A18.
1006........................... Florida.......... AO-356-A39.
1007........................... Southeast........ AO-366-A47.
1030........................... Upper Midwest.... AO-361-A40.
1032........................... Central.......... AO-313-A49.
1033........................... Mideast.......... AO-166-A73.
1124........................... Pacific Northwest AO-368-A35.
1126........................... Southwest........ AO-231-A68.
1131........................... Arizona.......... AO-271-A40.
------------------------------------------------------------------------
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Interim final rule.
-----------------------------------------------------------------------
SUMMARY: This order amends the manufacturing (make) allowances
contained in the Class III and Class IV product price formulas
applicable to all Federal milk marketing orders. Specifically, this
decision adopts the following make allowances: cheese--$0.1682 per
pound; butter--$0.1202 per pound; nonfat dry milk (NFDM)--$0.1570 per
pound; and dry whey--$0.1956 per pound. More than the required number
of producers have approved the issuance of the interim orders as
amended.
DATES: Effective Date: February 1, 2007.
FOR FURTHER INFORMATION CONTACT: Jack Rower, Marketing Specialist,
USDA/AMS/Dairy Programs, Order Formulation and Enforcement Branch, STOP
0231--Room 2971, 1400 Independence Ave., SW., Washington, DC 20250-
0231, (202) 720-2357, e-mail address: jack.rower@usda.gov.
SUPPLEMENTARY INFORMATION: This administrative rule is governed by the
provisions of Sections 556 and 557 of Title 5 of the United States Code
and, therefore, is excluded from the requirements of Executive Order
12866.
This interim rule has been reviewed under Executive Order 12988,
Civil Justice Reform. This rule is not intended to have a retroactive
effect. This rule will not preempt any State or local laws,
regulations, or policies, unless they present an irreconcilable
conflict with this rule.
The Agricultural Marketing Agreement Act of 1937 (the Act), as
amended (7 U.S.C. 601-674), provides that administrative proceedings
must be exhausted before parties may file suit in court. Under Section
608c(15)(a) of the Act, any handler subject to an order may request
modification or exemption from such order by filing with the Department
of Agriculture (Department) 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, the
Department 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 in equity to review the Department's ruling on the
petition, provided a bill in equity is filed not later than 20 days
after the date of the entry of the ruling.
Regulatory Flexibility Act and Paperwork Reduction Act
In accordance with the Regulatory Flexibility Act (5 U.S.C. 601 et
seq.), the Agricultural Marketing Service has considered the economic
impact of this action on small entities and has certified that this
interim rule will not have a significant economic impact on a
substantial number of small entities. For the purpose of the Regulatory
Flexibility Act, a dairy farm is considered 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.
For the purposes of determining which dairy farms are ``small
businesses,'' the $750,000 per year criterion was used to establish a
marketing guideline of 500,000 pounds per month. Although this
guideline does not factor in additional monies that may be received by
dairy producers, it should be an inclusive standard for most ``small''
dairy farmers. For purposes of determining a handler's size, if the
plant is part of a larger company operating multiple plants that
collectively exceed the 500-employee limit, the plant will be
considered a large business even if the local plant has fewer than 500
employees.
For the month of January 2006, the month the initial public hearing
was held, the milk of 52,570 dairy farmers was pooled on the Federal
order system. Of the total, 49,153 dairy farmers, or 94 percent, were
considered small businesses. During the same month, 536 plants were
regulated by or reported their milk receipts to be pooled and priced on
a Federal order. Of the total, 286 plants, or 53 percent, were
considered small businesses.
This decision provides that all orders be amended by changing the
make allowances contained in the formulas used to compute component
prices and the minimum class prices in all Federal milk orders.
Specifically, the make allowance for butter would increase from $0.1150
to $0.1202 per pound; the make allowance for cheese would increase from
$0.1650 to $0.1682 per pound; the make allowance for NFDM would
increase from $0.1400 to $0.1570 per pound; and the make allowance for
dry whey would increase from $0.1590 to $0.1956 per pound.
The adoption of these new make allowances serves to approximate the
average cost of producing cheese, butter, NFDM and dry whey for
manufacturing plants located in Federal milk marketing areas.
The established criteria for the make allowance changes are applied
in an identical fashion to both large and small businesses and will not
have any different impact on those businesses producing manufactured
milk products. The Department's economic analysis \1\ discusses impacts
of the order amendments on order participants
[[Page 78334]]
including producers and manufacturers. Based on the economic analysis,
we have concluded that the proposed amendments will not have a
significant economic impact on a substantial number of small entities.
---------------------------------------------------------------------------
\1\ The Economic Analysis, Class III and Class IV Make
Allowances, Tentative Final Decision is available on the Internet at
https://www.ams.usda.gov/dairy/proposals/classIII_IV_make_all.htm.
---------------------------------------------------------------------------
The Agricultural Marketing Service 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.
This action does not require additional information collection that
requires clearance by the Office of Management and Budget (OMB) beyond
currently approved information collection. The primary sources of data
used to complete the forms are routinely used in most business
transactions. Forms require only a minimal amount of information which
can be supplied without data processing equipment or a trained
statistical staff. Thus, the information collection and reporting
burden is relatively small. Requiring the same reports for all handlers
does not significantly disadvantage any handler that is smaller than
the industry average.
Prior Documents in This Proceeding
Notice of Hearing: Issued December 30, 2005; published January 5,
2006 (71 FR 545).
Notice of Intent To Reconvene Hearing: Issued June 28, 2006;
published June 23, 2006 (71 FR 36715).
Notice To Reconvene Hearing: Issued August 31, 2006; published
September 6, 2006 (71 FR 52502).
Tentative Final Decision: Issued November 17, 2006; published
November 22, 2006 (71 FR 67467).
Findings and Determinations
The findings and determinations hereinafter set forth supplement
those that were made when the Northeast and other marketing orders were
first issued and when they were amended. The previous findings and
determinations are hereby ratified and confirmed, except where they may
conflict with those set forth herein.
The following findings are hereby made with respect to the
Northeast and other aforesaid marketing orders:
(a) Findings upon the basis of the hearing record. Pursuant to the
provisions of the Agricultural Marketing Agreement Act of 1937, as
amended (7 U.S.C. 601-674), and the applicable rules of practice and
procedure governing the formulation of marketing agreements and
marketing orders (7 CFR part 900), a public hearing was held upon
certain proposed amendments to the tentative marketing agreements and
to the orders regulating the handling of milk in the Northeast and
other marketing areas.
Upon the basis of the evidence introduced at such hearing and the
record thereof, it is found that:
(1) The said orders, as hereby amended on an interim basis, and all
of the terms and conditions thereof, will tend to effectuate the
declared policy of the Act;
(2) The parity prices of milk, as determined pursuant to Section 2
of the Act, are not reasonable in view of the price of feeds, available
supplies of feeds, and other economic conditions which affect market
supply and demand for milk in the marketing areas, and the minimum
prices specified in the orders, as hereby amended on an interim basis,
are such prices as will reflect the aforesaid factors, ensure a
sufficient quantity of pure and wholesome milk, and be in the public
interest; and
(3) The said orders, as hereby amended on an interim basis,
regulate the handling of milk in the same manner as, and are applicable
only to persons in the respective classes of industrial and commercial
activity specified in, the marketing agreements upon which a hearing
has been held.
(b) Additional Findings. It is necessary and in the public interest
to make these interim amendments to the Northeast and other marketing
orders effective February 1, 2007. Any delay beyond that date would
tend to disrupt the orderly marketing of milk in the aforesaid
marketing areas.
The interim amendments to this order are known to handlers. The
tentative partial decision containing the proposed amendments to the
orders was issued on November 17, 2006.
The changes that result from these interim amendments will not
require extensive preparation or substantial alteration in the method
of operation for handlers. In view of the foregoing, it is hereby found
and determined that good cause exists for making these interim order
amendments effective on February 1, 2007.
(c) Determinations. It is hereby determined that:
(1) The refusal or failure of handlers (excluding cooperative
associations specified in Section 8c(9) of the Act) of more than 50
percent of the milk, which is marketed within the specified marketing
areas, to sign a proposed marketing agreement, tends to prevent the
effectuation of the declared policy of the Act;
(2) The issuance of this interim order amending the Northeast and
other marketing orders is the only practical means pursuant to the
declared policy of the Act of advancing the interests of producers as
defined in the orders as hereby amended;
(3) The issuance of the interim order amending the Northeast and
other marketing orders is favored by at least two-thirds of the
producers who were engaged in the production of milk for sale in the
respective marketing areas.
List of Subjects in 7 CFR Parts 1000, 1001, 1005, 1006, 1007, 1030,
1032, 1033, 1124, 1126, and 1131
Milk marketing orders.
Orders Relative to Handling
0
It is therefore ordered, that on and after the effective date hereof,
the handling of milk in the Northeast and other marketing areas shall
be in conformity and in compliance with the terms and conditions of the
orders, as amended, and as hereby further amended on an interim basis,
as follows:
0
1. The authority citation for 7 CFR parts 1000, 1001, 1005, 1006, 1007,
1030, 1032, 1033, 1124, 1126, and 1131 is revised to read as follows:
Authority: 7 U.S.C. 601-674, and 7253.
PART 1000--GENERAL PROVISIONS OF FEDERAL MILK MARKETING ORDERS
0
2. Section 1000.50 is amended by:
0
a. Revising paragraph (l);
0
b. Revising paragraph (m);
0
c. Revising paragraph (n)(2);
0
d. Revising paragraph (n)(3)(i);
0
e. Revising paragraph (o); and
0
f. Revising paragraph (q)(3).
The revisions read as follows:
Sec. 1000.50 Class prices, component prices, and advanced pricing
factors.
* * * * *
(l) Butterfat price. The butterfat price per pound, rounded to the
nearest one-hundredth cent, shall be the U.S. average NASS AA Butter
survey price reported by the Department for the month, less 12.02
cents, with the result multiplied by 1.20.
(m) Nonfat solids price. The nonfat solids price per pound, rounded
to the nearest one-hundredth cent, shall be the U.S. average NASS
nonfat dry milk survey price reported by the Department for the month,
less 15.70 and multiplying the result by 0.99.
(n) * * *
(1) * * *
(2) Subtract 16.82 cents from the price computed pursuant to
paragraph (n)(1) of this section and multiply the result by 1.383;
[[Page 78335]]
(3) * * *
(i) Subtract 16.82 cents from the price computed pursuant to
paragraph (n)(1) of this section and multiply the result by 1.572; and
* * *
(o) Other solids price. The other solids price per pound, rounded
to the nearest one-hundredth cent, shall be the U.S. average NASS dry
whey survey price reported by the Department for the month minus 19.56
cents, with the result multiplied by 1.03. * * *
(q) * * *
(3) An advanced butterfat price per pound, rounded to the nearest
one-hundredth cent, shall be calculated by computing a weighted average
of the 2 most recent U.S. average NASS AA Butter survey prices
announced before the 24th day of the month, subtracting 12.02 cents
from this average, and multiplying the result by 1.20.
Dated: December 26, 2006.
Lloyd C. Day,
Administrator, Agricultural Marketing Service.
[FR Doc. 06-9943 Filed 12-27-06; 9:53 am]
BILLING CODE 3410-02-P
