Milk in the Appalachian, Florida and Southeast Marketing Areas; Notice of Hearing on Proposed Amendments to Tentative Marketing Agreements and Orders, 25986-26005 [E7-8802]

Agencies

• Agricultural Marketing Service
• DEPARTMENT OF AGRICULTURE

[Federal Register Volume 72, Number 88 (Tuesday, May 8, 2007)]
[Proposed Rules]
[Pages 25986-26005]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-8802]


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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Parts 1005, 1006 and 1007

[AMS-DA-07-0059; AO-388-A22, AO-356-A43 and AO-366-A51; Docket No. DA-
07-03]


Milk in the Appalachian, Florida and Southeast Marketing Areas; 
Notice of Hearing on Proposed Amendments to Tentative Marketing 
Agreements and Orders

------------------------------------------------------------------------
            7 CFR Part                  Marketing area         AO Nos.
------------------------------------------------------------------------
1005.............................  Appalachian............    AO-388-A22
1006.............................  Florida................    AO-356-A43
1007.............................  Southeast..............    AO-366-A51
------------------------------------------------------------------------

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Proposed rule; Notice of public hearing on proposed rulemaking.

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

SUMMARY: A public hearing is being held to consider proposals seeking 
to amend certain pooling and related provisions of the Appalachian, 
Florida and Southeast orders. Proposals include temporarily adjusting 
the Class I pricing surface for each county within each of the three 
milk marketing orders until such time that the Department is able to 
comprehensively address the Class I pricing surface on a national 
scale. Proposals also include changing the diversion percentage limits, 
the producer delivery days and the transportation credit provisions of 
the Appalachian and Southeast orders. Other proposals would change the 
maximum rates for each of the three orders the market administrator may 
charge for the expense of administration of the order from 5 cents per 
hundredweight (cwt) up to 8 cents per cwt. Testimony will be taken to 
determine if any of the proposals should be handled on an emergency 
basis.

DATES: The hearing will convene at 1 p.m. on Monday, May, 21, 2007.

ADDRESSES: The hearing will be held at the Sheraton Suites Tampa 
Airport, 4400 W. Cypress Street, Tampa, FL 33607, (813) 873-8675.

FOR FURTHER INFORMATION CONTACT: Gino M. Tosi, Associate Deputy 
Administrator, Order Formulation and Enforcement Branch, USDA/AMS/Dairy 
Programs, STOP 0231--Room 2971-A, 1400 Independence Avenue, SW., 
Washington, DC 20250-0231. Gino.Tosi@usda.gov.
    Persons requiring a sign language interpreter or other special 
accommodations should contact Sue L. Mosley, Market Administrator, at 
(770) 682-2501; e-mail smosley@fmmatlanta.com before the hearing 
begins.

SUPPLEMENTARY INFORMATION: This administrative action 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.

[[Page 25987]]

    Notice is hereby given of a public hearing to be held at the 
Sheraton Suites Tampa Airport, 4400 W. Cypress Street, Tampa, FL 33607, 
(813) 873-8675, beginning at 1 p.m. on Monday, May, 21, 2007, with 
respect to proposed amendments to the tentative marketing agreements 
and to the orders regulating the handling of milk in the Appalachian, 
Florida, and Southeast marketing areas.
    The hearing is called 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).
    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 orders.
    Evidence also will be taken 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.
    Actions under the Federal milk order program are subject to the 
Regulatory Flexibility Act (5 U.S.C. 601 et seq.). This Act 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 Act, 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 as a small business. 
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 suggest modifications of these 
proposals for the purpose of tailoring their applicability to small 
businesses.
    The amendments to the rules 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 Agricultural Marketing Agreement 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 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, has its principle 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.
    This public hearing is being conducted to collect evidence for the 
record concerning the effect on the orderly marketing of fluid milk by 
adjusting Class I differentials on a temporary basis for the 
Appalachian, Florida and Southeast marketing areas. Evidence will be 
taken to determine whether tighter pooling provisions and changes to 
the transportation credit provisions in the Appalachian and Southeast 
orders are warranted. Evidence will also be collected to consider 
increasing the maximum administrative assessment rates for the 
Appalachian, Florida and Southeast market administrators to 8 cents per 
hundredweight.
    Interested parties who wish to introduce exhibits should provide 
the Presiding Officer at the hearing with (4) copies of such exhibits 
for the Official Record. Also, it would be helpful if additional copies 
are available for the use of other participants at the hearing.

List of Subjects in 7 CFR Parts 1005, 1006 and 1007

    Milk marketing orders.

    The authority citation for 7 CFR parts 1005, 1006 and 1007 read as 
follows:

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

    The proposed amendments, as set forth below, have not received the 
approval of the Department.

Proposed by Dairy Cooperative Marketing Association, Inc

Proposal No. 1

    This proposal would temporarily adjust the Class I pricing surface 
in each county within the geographical marketing area of the 
Appalachian milk marketing order. Specifically, this proposal, on a 
temporary basis, would modify section 1005.51 of the Appalachian order 
by including a new provision, a ``Class I price adjustment,'' which 
would be added to the Class I price ``mover,'' and to the section 
1000.52 Class I differential, to obtain the minimum Order Class I 
price. The proposed changes to the Class I prices for plant locations 
in the Appalachian milk marketing area would range from an increase of 
$0.10 per cwt to an increase in $1.00 per cwt.
    Proposal 1 would also reduce the volume of milk which may be pooled 
by diversion on the Appalachian order. Specifically, the proposal would 
decrease the diversion percentages by 5 percent, from 40% to 35%, for 
the months of March through June and for the month of December. In 
addition, this proposal proposes that the producer delivery day 
requirements be amended in the Appalachian order. The current 
provisions in the Appalachian order require delivery to a pool plant of 
not less than 2 days' production in the months of January through June, 
and not less than 6 days' production in the months of July through 
December, in order for the producer's milk to be eligible for diversion 
to a nonpool plant. This proposal would allow a producer's milk to be 
diverted to a nonpool plant if that dairy farmer's milk is delivered to 
a pool plant one day per month, year around.
    Proposal 1 would also amend the current transportation credit 
balancing fund provisions in the Appalachian order. Specifically, this 
proposal would: (1) Add the months of January and February to the 
months when transportation credits are paid, and retain June as an 
optional payment month based on industry request and market 
administrator determination of need, (2) pay transportation credits on 
the entire load of supplemental milk, rather than the current 
calculated Class I portion of the load, and (3) simplify the process 
for determination of which producers' milk is eligible for 
transportation credits as supplemental milk.
    1. Amend Sec.  1005.50 by revising paragraph (b) and (c) to read as 
follows:


Sec.  1005.50  Class prices, component prices, and advanced pricing 
factors.

* * * * *
    (b) Class I skim milk price. The Class I skim milk price per 
hundredweight shall be the adjusted Class I differential specified in 
Sec.  1000.52 plus the adjustment to Class I prices specified in Sec.  
1005.51(b) plus the higher of the

[[Page 25988]]

advanced pricing factors computed in paragraph (q)(1) or (2) of this 
section.
    (c) Class I butterfat price. The Class I butterfat price per pound 
shall be the adjusted Class I differential specified in Sec.  1000.52 
divided by 100, plus the adjustment to Class I prices specified in 
Sec.  1005.51(b) divided by 100, plus the advanced butterfat price 
computed in paragraph (q)(3) of this section.
* * * * *
    2. Amend Sec.  1005.51 by renaming the section, designating the 
first subsection as (a), amending the language, and adding a new 
subsection (b) to read as follows:


Sec.  1005.51  Class I differential, adjustments to Class I prices, and 
Class I price.

    (a) The Class I differential shall be the differential established 
for Mecklenburg County, North Carolina, which is reported in Sec.  
1000.52. The Class I price shall be the price computed pursuant to 
Sec.  1005.50(a) for Mecklenburg County, North Carolina.
    (b) Adjustment to Class I prices. Class I prices shall be 
established pursuant to Sec.  1005.50(a), (b) and (c) using the 
following adjustments:

----------------------------------------------------------------------------------------------------------------
                                                                                                   Class I price
                    State                                County/parish                 FIPS         adjustment
----------------------------------------------------------------------------------------------------------------
GA..........................................  CATOOSA...........................           13047            0.60
GA..........................................  CHATTOOGA.........................           13055            0.60
GA..........................................  DADE..............................           13083            0.60
GA..........................................  FANNIN............................           13111            0.60
GA..........................................  MURRAY............................           13213            0.60
GA..........................................  WALKER............................           13295            0.60
GA..........................................  WHITFIELD.........................           13313            0.60
IN..........................................  CLARK.............................           18019            0.10
IN..........................................  CRAWFORD..........................           18025            0.10
IN..........................................  DAVIESS...........................           18027            0.10
IN..........................................  DUBOIS............................           18037            0.10
IN..........................................  FLOYD.............................           18043            0.10
IN..........................................  GIBSON............................           18051            0.10
IN..........................................  GREENE............................           18055            0.10
IN..........................................  HARRISON..........................           18061            0.10
IN..........................................  KNOX..............................           18083            0.10
IN..........................................  MARTIN............................           18101            0.10
IN..........................................  ORANGE............................           18117            0.10
IN..........................................  PERRY.............................           18123            0.10
IN..........................................  PIKE..............................           18125            0.10
IN..........................................  POSEY.............................           18129            0.10
IN..........................................  SCOTT.............................           18143            0.10
IN..........................................  SPENCER...........................           18147            0.10
IN..........................................  SULLIVAN..........................           18153            0.10
IN..........................................  VANDERBURGH.......................           18163            0.10
IN..........................................  WARRICK...........................           18173            0.10
IN..........................................  WASHINGTON........................           18175            0.10
KY..........................................  ADAIR.............................           21001            0.20
KY..........................................  ANDERSON..........................           21005            0.40
KY..........................................  BATH..............................           21011            0.40
KY..........................................  BELL..............................           21013            0.50
KY..........................................  BOURBON...........................           21017            0.40
KY..........................................  BOYLE.............................           21021            0.40
KY..........................................  BREATHITT.........................           21025            0.70
KY..........................................  BRECKINRIDGE......................           21027            0.10
KY..........................................  BULLITT...........................           21029            0.10
KY..........................................  BUTLER............................           21031            0.20
KY..........................................  CARROLL...........................           21041            0.10
KY..........................................  CARTER............................           21043            0.40
KY..........................................  CASEY.............................           21045            0.20
KY..........................................  CLARK.............................           21049            0.40
KY..........................................  CLAY..............................           21051            0.50
KY..........................................  CLINTON...........................           21053            0.50
KY..........................................  CUMBERLAND........................           21057            0.50
KY..........................................  DAVIESS...........................           21059            0.10
KY..........................................  EDMONSON..........................           21061            0.20
KY..........................................  ELLIOTT...........................           21063            0.40
KY..........................................  ESTILL............................           21065            0.40
KY..........................................  FAYETTE...........................           21067            0.40
KY..........................................  FLEMING...........................           21069            0.40
KY..........................................  FRANKLIN..........................           21073            0.10
KY..........................................  GALLATIN..........................           21077            0.10
KY..........................................  GARRARD...........................           21079            0.40
KY..........................................  GRAYSON...........................           21085            0.20
KY..........................................  GREEN.............................           21087            0.20
KY..........................................  HANCOCK...........................           21091            0.10
KY..........................................  HARDIN............................           21093            0.10
KY..........................................  HARLAN............................           21095            0.50
KY..........................................  HART..............................           21099            0.20
KY..........................................  HENDERSON.........................           21101            0.10

[[Page 25989]]

 
KY..........................................  HENRY.............................           21103            0.10
KY..........................................  HOPKINS...........................           21107            0.20
KY..........................................  JACKSON...........................           21109            0.70
KY..........................................  JEFFERSON.........................           21111            0.10
KY..........................................  JESSAMINE.........................           21113            0.40
KY..........................................  KNOTT.............................           21119            0.50
KY..........................................  KNOX..............................           21121            0.50
KY..........................................  LARUE.............................           21123            0.40
KY..........................................  LAUREL............................           21125            0.50
KY..........................................  LEE...............................           21129            0.40
KY..........................................  LESLIE............................           21131            0.50
KY..........................................  LETCHER...........................           21133            0.50
KY..........................................  LINCOLN...........................           21137            0.40
KY..........................................  MCCREARY..........................           21147            0.50
KY..........................................  MCLEAN............................           21149            0.40
KY..........................................  MADISON...........................           21151            0.40
KY..........................................  MARION............................           21155            0.40
KY..........................................  MEADE.............................           21163            0.10
KY..........................................  MENIFEE...........................           21165            0.40
KY..........................................  MERCER............................           21167            0.40
KY..........................................  MONTGOMERY........................           21173            0.40
KY..........................................  MORGAN............................           21175            0.40
KY..........................................  MUHLENBURG........................           21177            0.20
KY..........................................  NELSON............................           21179            0.10
KY..........................................  NICHOLAS..........................           21181            0.40
KY..........................................  OHIO..............................           21183            0.20
KY..........................................  OLDHAM............................           21185            0.10
KY..........................................  OWEN..............................           21187            0.10
KY..........................................  OWSLEY............................           21189            0.70
KY..........................................  PERRY.............................           21193            0.50
KY..........................................  POWELL............................           21197            0.40
KY..........................................  PULASKI...........................           21199            0.50
KY..........................................  ROCKCASTLE........................           21203            0.70
KY..........................................  ROWAN.............................           21205            0.40
KY..........................................  RUSSELL...........................           21207            0.50
KY..........................................  SCOTT.............................           21209            0.10
KY..........................................  SHELBY............................           21211            0.10
KY..........................................  SPENCER...........................           21215            0.10
KY..........................................  TAYLOR............................           21217            0.20
KY..........................................  TRIMBLE...........................           21223            0.10
KY..........................................  UNION.............................           21225            0.10
KY..........................................  WASHINGTON........................           21229            0.40
KY..........................................  WAYNE.............................           21231            0.50
KY..........................................  WEBSTER...........................           21233            0.20
KY..........................................  WHITLEY...........................           21235            0.50
KY..........................................  WOLFE.............................           21237            0.40
KY..........................................  WOODFORD..........................           21239            0.40
NC..........................................  ALAMANCE..........................           37001            0.30
NC..........................................  ALEXANDER.........................           37003            0.45
NC..........................................  ALLEGHANY.........................           37005            0.45
NC..........................................  ANSON.............................           37007            0.50
NC..........................................  ASHE..............................           37009            0.45
NC..........................................  AVERY.............................           37011            0.45
NC..........................................  BEAUFORT..........................           37013            0.40
NC..........................................  BERTIE............................           37015            0.20
NC..........................................  BLADEN............................           37017            0.70
NC..........................................  BRUNSWICK.........................           37019            0.70
NC..........................................  BUNCOMBE..........................           37021            0.45
NC..........................................  BURKE.............................           37023            0.45
NC..........................................  CABARRUS..........................           37025            0.30
NC..........................................  CALDWELL..........................           37027            0.45
NC..........................................  CAMDEN............................           37029            0.20
NC..........................................  CARTERET..........................           37031            0.40
NC..........................................  CASWELL...........................           37033            0.30
NC..........................................  CATAWBA...........................           37035            0.30
NC..........................................  CHATHAM...........................           37037            0.30
NC..........................................  CHEROKEE..........................           37039            0.45
NC..........................................  CHOWAN............................           37041            0.20
NC..........................................  CLAY..............................           37043            0.45
NC..........................................  CLEVELAND.........................           37045            0.30
NC..........................................  COLUMBUS..........................           37047            0.70
NC..........................................  CRAVEN............................           37049            0.40
NC..........................................  CUMBERLAND........................           37051            0.30

[[Page 25990]]

 
NC..........................................  CURRITUCK.........................           37053            0.20
NC..........................................  DARE..............................           37055            0.40
NC..........................................  DAVIDSON..........................           37057            0.30
NC..........................................  DAVIE.............................           37059            0.30
NC..........................................  DUPLIN............................           37061            0.30
NC..........................................  DURHAM............................           37063            0.30
NC..........................................  EDGECOMBE.........................           37065            0.20
NC..........................................  FORSYTH...........................           37067            0.30
NC..........................................  FRANKLIN..........................           37069            0.30
NC..........................................  GASTON............................           37071            0.30
NC..........................................  GATES.............................           37073            0.20
NC..........................................  GRAHAM............................           37075            0.45
NC..........................................  GRANVILLE.........................           37077            0.30
NC..........................................  GREENE............................           37079            0.40
NC..........................................  GUILFORD..........................           37081            0.30
NC..........................................  HALIFAX...........................           37083            0.30
NC..........................................  HARNETT...........................           37085            0.10
NC..........................................  HAYWOOD...........................           37087            0.45
NC..........................................  HENDERSON.........................           37089            0.45
NC..........................................  HERTFORD..........................           37091            0.20
NC..........................................  HOKE..............................           37093            0.30
NC..........................................  HYDE..............................           37095            0.40
NC..........................................  IREDELL...........................           37097            0.30
NC..........................................  JACKSON...........................           37099            0.45
NC..........................................  JOHNSTON..........................           37101            0.20
NC..........................................  JONES.............................           37103            0.40
NC..........................................  LEE...............................           37105            0.30
NC..........................................  LENOIR............................           37107            0.40
NC..........................................  LINCOLN...........................           37109            0.30
NC..........................................  MCDOWELL..........................           37111            0.45
NC..........................................  MACON.............................           37113            0.45
NC..........................................  MADISON...........................           37115            0.45
NC..........................................  MARTIN............................           37117            0.40
NC..........................................  MECKLENBURG.......................           37119            0.30
NC..........................................  MITCHELL..........................           37121            0.45
NC..........................................  MONTGOMERY........................           37123            0.30
NC..........................................  MOORE.............................           37125            0.30
NC..........................................  NASH..............................           37127            0.30
NC..........................................  NEW HANOVER.......................           37129            0.70
NC..........................................  NORTHAMPTON.......................           37131            0.30
NC..........................................  ONSLOW............................           37133            0.30
NC..........................................  ORANGE............................           37135            0.30
NC..........................................  PAMLICO...........................           37137            0.40
NC..........................................  PASQUOTANK........................           37139            0.20
NC..........................................  PENDER............................           37141            0.70
NC..........................................  PERQUIMANS........................           37143            0.20
NC..........................................  PERSON............................           37145            0.30
NC..........................................  PITT..............................           37147            0.40
NC..........................................  POLK..............................           37149            0.30
NC..........................................  RANDOLPH..........................           37151            0.30
NC..........................................  RICHMOND..........................           37153            0.50
NC..........................................  ROBESON...........................           37155            0.70
NC..........................................  ROCKINGHAM........................           37157            0.45
NC..........................................  ROWAN.............................           37159            0.30
NC..........................................  RUTHERFORD........................           37161            0.30
NC..........................................  SAMPSON...........................           37163            0.30
NC..........................................  SCOTLAND..........................           37165            0.30
NC..........................................  STANLY............................           37167            0.30
NC..........................................  STOKES............................           37169            0.45
NC..........................................  SURRY.............................           37171            0.45
NC..........................................  SWAIN.............................           37173            0.45
NC..........................................  TRANSYLVANIA......................           37175            0.45
NC..........................................  TYRRELL...........................           37177            0.40
NC..........................................  UNION.............................           37179            0.50
NC..........................................  VANCE.............................           37181            0.30
NC..........................................  WAKE..............................           37183            0.30
NC..........................................  WARREN............................           37185            0.30
NC..........................................  WASHINGTON........................           37187            0.40
NC..........................................  WATAUGA...........................           37189            0.45
NC..........................................  WAYNE.............................           37191            0.40
NC..........................................  WILKES............................           37193            0.45
NC..........................................  WILSON............................           37195            0.20
NC..........................................  YADKIN............................           37197            0.30

[[Page 25991]]

 
NC..........................................  YANCEY............................           37199            0.45
SC..........................................  ABBEVILLE.........................           45001            0.50
SC..........................................  AIKEN.............................           45003            0.70
SC..........................................  ALLENDALE.........................           45005            1.00
SC..........................................  ANDERSON..........................           45007            0.50
SC..........................................  BAMBERG...........................           45009            0.70
SC..........................................  BARNWELL..........................           45011            0.70
SC..........................................  BEAUFORT..........................           45013            1.00
SC..........................................  BERKELEY..........................           45015            1.00
SC..........................................  CALHOUN...........................           45017            0.70
SC..........................................  CHARLESTON........................           45019            1.00
SC..........................................  CHEROKEE..........................           45021            0.50
SC..........................................  CHESTER...........................           45023            0.50
SC..........................................  CHESTERFIELD......................           45025            0.30
SC..........................................  CLARENDON.........................           45027            0.70
SC..........................................  COLLETON..........................           45029            1.00
SC..........................................  DARLINGTON........................           45031            0.70
SC..........................................  DILLON............................           45033            0.70
SC..........................................  DORCHESTER........................           45035            1.00
SC..........................................  EDGEFIELD.........................           45037            0.30
SC..........................................  FAIRFIELD.........................           45039            0.30
SC..........................................  FLORENCE..........................           45041            0.70
SC..........................................  GEORGETOWN........................           45043            0.70
SC..........................................  GREENVILLE........................           45045            0.50
SC..........................................  GREENWOOD.........................           45047            0.50
SC..........................................  HAMPTON...........................           45049            1.00
SC..........................................  HORRY.............................           45051            0.70
SC..........................................  JASPER............................           45053            1.00
SC..........................................  KERSHAW...........................           45055            0.30
SC..........................................  LANCASTER.........................           45057            0.50
SC..........................................  LAURENS...........................           45059            0.50
SC..........................................  LEE...............................           45061            0.70
SC..........................................  LEXINGTON.........................           45063            0.70
SC..........................................  MCCORMICK.........................           45065            0.50
SC..........................................  MARION............................           45067            0.70
SC..........................................  MARLBORO..........................           45069            0.70
SC..........................................  NEWBERRY..........................           45071            0.30
SC..........................................  OCONEE............................           45073            0.50
SC..........................................  ORANGEBURG........................           45075            0.70
SC..........................................  PICKENS...........................           45077            0.50
SC..........................................  RICHLAND..........................           45079            0.70
SC..........................................  SALUDA............................           45081            0.30
SC..........................................  SPARTANBURG.......................           45083            0.50
SC..........................................  SUMTER............................           45085            0.70
SC..........................................  UNION.............................           45087            0.50
SC..........................................  WILLIAMSBURG......................           45089            0.70
SC..........................................  YORK..............................           45091            0.50
TN..........................................  ANDERSON..........................           47001            0.40
TN..........................................  BLOUNT............................           47009            0.40
TN..........................................  BRADLEY...........................           47011            0.60
TN..........................................  CAMPBELL..........................           47013            0.40
TN..........................................  CARTER............................           47019            0.40
TN..........................................  CLAIBORNE.........................           47025            0.40
TN..........................................  COCKE.............................           47029            0.40
TN..........................................  CUMBERLAND........................           47035            0.40
TN..........................................  GRAINGER..........................           47057            0.40
TN..........................................  GREENE............................           47059            0.40
TN..........................................  HAMBLEN...........................           47063            0.40
TN..........................................  HAMILTON..........................           47065            0.60
TN..........................................  HANCOCK...........................           47067            0.40
TN..........................................  HAWKINS...........................           47073            0.40
TN..........................................  JEFFERSON.........................           47089            0.40
TN..........................................  JOHNSON...........................           47091            0.40
TN..........................................  KNOX..............................           47093            0.40
TN..........................................  LOUDON............................           47105            0.40
TN..........................................  MCMINN............................           47107            0.60
TN..........................................  MARION............................           47115            0.60
TN..........................................  MEIGS.............................           47121            0.60
TN..........................................  MONROE............................           47123            0.60
TN..........................................  MORGAN............................           47129            0.40
TN..........................................  POLK..............................           47139            0.60
TN..........................................  RHEA..............................           47143            0.40
TN..........................................  ROANE.............................           47145            0.40

[[Page 25992]]

 
TN..........................................  SCOTT.............................           47151            0.10
TN..........................................  SEQUATCHIE........................           47153            0.40
TN..........................................  SEVIER............................           47155            0.40
TN..........................................  SULLIVAN..........................           47163            0.40
TN..........................................  UNICOI............................           47171            0.40
TN..........................................  UNION.............................           47173            0.40
TN..........................................  WASHINGTON........................           47179            0.40
VA..........................................  ALLEGHANY.........................           51005            0.10
VA..........................................  AMHERST...........................           51009            0.40
VA..........................................  AUGUSTA...........................           51015            0.10
VA..........................................  BATH..............................           51017            0.10
VA..........................................  BEDFORD...........................           51019            0.40
VA..........................................  BLAND.............................           51021            0.40
VA..........................................  BOTETOURT.........................           51023            0.10
VA..........................................  BUCHANAN..........................           51027            0.10
VA..........................................  CAMPBELL..........................           51031            0.40
VA..........................................  CARROLL...........................           51035            0.40
VA..........................................  CRAIG.............................           51045            0.10
VA..........................................  DICKENSON.........................           51051            0.40
VA..........................................  FLOYD.............................           51063            0.40
VA..........................................  FRANKLIN..........................           51067            0.40
VA..........................................  GILES.............................           51071            0.10
VA..........................................  GRAYSON...........................           51077            0.40
VA..........................................  HENRY.............................           51089            0.40
VA..........................................  HIGHLAND..........................           51091            0.10
VA..........................................  LEE...............................           51105            0.40
VA..........................................  MONTGOMERY........................           51121            0.40
VA..........................................  PATRICK...........................           51141            0.40
VA..........................................  PITTSYLVANIA......................           51143            0.40
VA..........................................  PULASKI...........................           51155            0.40
VA..........................................  ROANOKE...........................           51161            0.40
VA..........................................  ROCKBRIDGE........................           51163            0.10
VA..........................................  ROCKINGHAM........................           51165            0.10
VA..........................................  RUSSELL...........................           51167            0.40
VA..........................................  SCOTT.............................           51169            0.40
VA..........................................  SMYTH.............................           51173            0.40
VA..........................................  TAZEWELL..........................           51185            0.40
VA..........................................  WASHINGTON........................           51191            0.40
VA..........................................  WISE..............................           51195            0.40
VA..........................................  WYTHE.............................           51197            0.40
VA..........................................  BEDFORD CITY......................           51515            0.40
VA..........................................  BRISTOL CITY......................           51520            0.40
VA..........................................  BUENA VISTA CITY..................           51530            0.10
VA..........................................  CLIFTON FORGE CITY................           51560            0.10
VA..........................................  COVINGTON CITY....................           51580            0.10
VA..........................................  DANVILLE CITY.....................           51590            0.40
VA..........................................  GALAX CITY........................           51640            0.40
VA..........................................  HARRISONBURG CITY.................           51660            0.10
VA..........................................  LEXINGTON CITY....................           51678            0.10
VA..........................................  LYNCHBURG CITY....................           51680            0.40
VA..........................................  MARTINSVILLE CITY.................           51690            0.40
VA..........................................  NORTON CITY.......................           51720            0.40
VA..........................................  RADFORD CITY......................           51750            0.40
VA..........................................  ROANOKE CITY......................           51770            0.40
VA..........................................  SALEM CITY........................           51775            0.40
VA..........................................  STAUNTON CITY.....................           51790            0.10
VA..........................................  WAYNESBORO CITY...................           51820            0.10
WV..........................................  MCDOWELL..........................           54047            0.10
WV..........................................  MERCER............................           54055            0.10
----------------------------------------------------------------------------------------------------------------

    3. Amend Sec.  1005.13 by revising paragraph (d)(1) through (4) to 
read as follows:


Sec.  1005.13  Producer milk.

* * * * *
    (d) * * *
    (1) In any month of July through December, not less than 1 days' 
production of the producer whose milk is diverted is physically 
received at a pool plant during the month;
    (2) In any month of January through June, not less than 1 days' 
production of the producer whose milk is diverted is physically 
received at a pool plant during the month;
    (3) The total quantity of milk so diverted during the month by a 
cooperative association shall not exceed 25 percent during the months 
of July through November, January, and February, and 35 percent during 
the months of December and March through June, of the producer milk 
that the cooperative association caused to be delivered to, and 
physically received at, pool plants during the month;
    (4) The operator of a pool plant that is not a cooperative 
association may

[[Page 25993]]

divert any milk that is not under the control of a cooperative 
association that diverts milk during the month pursuant to paragraph 
(d) of this section. The total quantity of milk so diverted during the 
month shall not exceed 25 percent during the months of July through 
November, January, and February, and 35 percent during the months of 
December and March through June, of the producer milk physically 
received at such plant (or such unit of plants in the case of plants 
that pool as a unit pursuant to Sec.  1005.7(d)) during the month, 
excluding the quantity of producer milk received from handler described 
in Sec.  1000.9(c);
* * * * *
    4. Amend Sec.  1005.81 by revising (a) to read as follows:


Sec.  1005.81  Payments to the transportation credit balancing fund.

    (a) On or before the 12th day after the end of the month (except) 
as provided in Sec.  1009.90), each handler operating a pool plant and 
each handler specified in Sec.  1000.9(c) shall pay to the Market 
Administrator a transportation credit balancing fund assessment 
determined by multiplying the pounds of Class I producer milk assigned 
pursuant to Sec.  1005.44 by $0.15 per hundredweight or such lesser 
amount as the Market Administrator deems necessary to maintain a 
balance in the fund equal to the total transportation credits disbursed 
during the prior June-February period. In the event that during any 
month of the June-February period the fund balance is insufficient to 
cover the amount of credits that are due, the assessment should be 
based upon the amount of credits that would have been disbursed had the 
fund balance been sufficient.
* * * * *
    5. Amend Sec.  1005.82 by revising paragraphs (a)(1), (b), (c)(1), 
(d)(2) (iii), (d)(3)(v), and redesignating paragraphs (c)(2)(ii), 
(c)(2)(iii), (c)(2)(iv) to read as (c)(2)(i), (c)(2)(ii) and 
(c)(2)(iii) to read as follows:
* * * * *
    (a) * * *
    (1) On or before the 13th day (except as provided in Sec.  1000.90) 
after the end of each of the months of January, February and July 
through December and any other month in which transportation credits 
are in effect pursuant to paragraph (b) of this section, the Market 
Administrator shall pay to each handler that received, and reported 
pursuant to Sec.  1005.30(a)(5), bulk milk transferred from a plant 
fully regulated under another Federal order as described in paragraph 
(c)(1) of this section or that received, and reported pursuant to Sec.  
1005.30(a)(6), milk directly from producers' farms as specified in 
paragraph (c)(2) of this section, a preliminary amount determined 
pursuant to paragraph (d) of this section to the extent that funds are 
available in the transportation credit balancing fund. If an 
insufficient balance exists to pay all of the credits computed pursuant 
to this section, the market administrator shall distribute the balance 
available in the transportation credit balancing fund by reducing 
payments prorata using the percentage derived by dividing the balance 
in the fund by the total credits that are due for the month. The amount 
of credits resulting from this initial proration shall be subject to 
audit adjustment pursuant to paragraph (a)(2) of this section.
* * * * *
    (4) * * *
    (b) The Market Administrator may extend the period during which 
transportation credits are in effect (i.e., the transportation credit 
period) to the month of June if a written request to do so is received 
15 days prior to the beginning of the month for which the request is 
made and, after conducting an independent investigation, finds that 
such extension is necessary to assure the market of an adequate supply 
of milk for fluid use. Before making such a finding, the Market 
Administrator shall notify the Director of the Dairy Division and all 
handlers in the market that an extension is being considered and invite 
written data, views, and arguments. Any decision to extend the 
transportation credit period must be issued in writing prior to the 
first day of the month for which the extension is to be effective.
    (c) * * *
    (1) Bulk milk received from a plant regulated under another Federal 
order, except Federal Order 1007; and
    (2) Bulk milk received directly from the farms of dairy farmers at 
pool distributing plants subject to the following conditions:
    (i) The farmer was not a ``producer'' under this order for more 
than 45 days during the immediately preceding months of March through 
May, or not more than 50 percent of the production of the dairy farmer 
during those 3 months, in aggregate, was received as producer milk 
under this order during those 3 months; and
    (ii) The farm on which the milk was produced is not located within 
the specified marketing area of the order in this part or the marketing 
area of Federal Order 1007 (7 CFR part 1007).
    (iii) The market administrator may increase or decrease the milk 
production standard specified in paragraph (c)(2)(i) of this section if 
the market administrator finds that such revision is necessary to 
assure orderly marketing and efficient handling of milk in the 
marketing area. Before making such a finding, the market administrator 
shall investigate the need for the revision either on the market 
administrator's own initiative or at the request of interested persons. 
If the investigation shows that a revision might be appropriate, the 
market administrator shall issue a notice stating that the revision is 
being considered and inviting written data, views, and arguments. Any 
decision to revise an applicable percentage must be issued in writing 
at least one day before the effective date.
    (d) * * *
    (iii) Subtract the applicable Class I price specified in Sec.  
1005.51 for the county in which the shipping plant is located from the 
Class I price applicable for the county in which the receiving plant is 
located;
    (3) * * *
    (v) Subtract the Class I price specified in Sec.  1005.51 
applicable for the county in which the origination point is located 
from the Class I price applicable at the receiving pool plant's 
location;
* * * * *

Proposed by Dairy Cooperative Marketing Association, Inc

Proposal No. 2

    This proposal would temporarily adjust the Class I pricing surface 
in each county within the geographical marketing area of the Southeast 
milk marketing order. Specifically, this proposal would, on a temporary 
basis, modify section 1007.51 of the Southeast order by including a new 
provision, a ``Class I price adjustment,'' which would be added to the 
Class I price ``mover,'' and to the section 1000.52 Class I 
differential, to obtain the minimum Order Class I price. The proposed 
changes to the Class I prices for plant locations in the Southeast milk 
marketing area would range from an increase of $0.10 per cwt to an 
increase of $1.15 per cwt.
    Proposal 2 would also reduce the volume of milk which may be pooled 
by diversion on the Southeast order. Specifically, the proposal would 
decrease the current diversion percentages for each month, from 50% for 
the months of January through June and 33% for the months of July 
through December, to 25% for the months of January, February, and July 
through November, and to 35% for the months of March through June and 
the month of

[[Page 25994]]

December. In addition, this proposal proposes that the producer 
delivery day requirements be amended in the Southeast order. The 
current provisions in the Southeast order require delivery to a pool 
plant of not less than 4 days' production in the months of January 
through June, and not less than 10 days' production in the months of 
July through December, in order for the producer's milk to be eligible 
for diversion to a nonpool plant. This proposal would allow a 
producer's milk to be diverted to a nonpool plant if that dairy 
farmer's milk is delivered to a pool plant one day per month, year 
around.
    Proposal 2 would also amend the current transportation credit 
balancing fund provisions in the Southeast order. Specifically, this 
proposal would: (1) Add the months of January and February to the 
months when transportation credits are paid, and retain June as an 
optional payment month based on industry request and market 
administrator determination of need, (2) pay transportation credits on 
the entire load of supplemental milk, rather than the current 
calculated Class I portion of the load, (3) simplify the process for 
determination of which producers' milk is eligible for transportation 
credits as supplemental milk, and (4) increase the maximum 
transportation credit assessment in the Southeast order from the 
current $0.20 per cwt to $0.30 per cwt of Class I producer milk.
    1. Amend Sec.  1007.50 by revising paragraph (b) and (c) to read as 
follows:


Sec.  1007.50  Class prices, component prices, and advanced pricing 
factors.

* * * * *
    (b) Class I skim milk price. The Class I skim milk price per 
hundredweight shall be the adjusted Class I differential specified in 
Sec.  1000.52 plus the adjustment to Class I prices specified in Sec.  
1007.51(b) plus the higher of the advanced pricing factors computed in 
paragraph (q)(1) or (2) of this section.
    (c) Class I butterfat price. The Class I butterfat price per pound 
shall be the adjusted Class I differential specified in Sec.  1000.52 
divided by 100, plus the adjustment to Class I prices specified in 
Sec.  1007.51(b) divided by 100, plus the advanced butterfat price 
computed in paragraph (q)(3) of this section.
* * * * *
    2. Amend Sec.  1007.51 by renaming the section, designating the 
first subsection as (a), amending the language, and adding a new 
subsection (b) to read as follows:


Sec.  1007.51  Class I differential, adjustments to Class I prices, and 
Class I price.

    (a) The Class I differential shall be the differential established 
for Fulton County, Georgia, which is reported in Sec.  1000.52. The 
Class I price shall be the price computed pursuant to Sec.  1007.50(a) 
for Fulton County, Georgia.
    (b) Adjustment to Class I prices. Class I prices shall be 
established pursuant to Sec.  1007.50(a), (b) and (c) using the 
following adjustments:

----------------------------------------------------------------------------------------------------------------
                                                                                                   Class I price
                    State                                County/Parish                 FIPS         adjustment
----------------------------------------------------------------------------------------------------------------
AL..........................................  AUTAUGA...........................           01001            0.50
AL..........................................  BALDWIN...........................           01003            0.50
AL..........................................  BARBOUR...........................           01005            0.55
AL..........................................  BIBB..............................           01007            0.30
AL..........................................  BLOUNT............................           01009            0.20
AL..........................................  BULLOCK...........................           01011            0.70
AL..........................................  BUTLER............................           01013            0.55
AL..........................................  CALHOUN...........................           01015            0.30
AL..........................................  CHAMBERS..........................           01017            0.70
AL..........................................  CHEROKEE..........................           01019            0.30
AL..........................................  CHILTON...........................           01021            0.70
AL..........................................  CHOCTAW...........................           01023            0.50
AL..........................................  CLARKE............................           01025            0.35
AL..........................................  CLAY..............................           01027            0.70
AL..........................................  CLEBURNE..........................           01029            0.70
AL..........................................  COFFEE............................           01031            0.85
AL..........................................  COLBERT...........................           01033            0.30
AL..........................................  CONECUH...........................           01035            0.55
AL..........................................  COOSA.............................           01037            0.70
AL..........................................  COVINGTON.........................           01039            0.55
AL..........................................  CRENSHAW..........................           01041            0.55
AL..........................................  CULLMAN...........................           01043            0.20
AL..........................................  DALE..............................           01045            0.85
AL..........................................  DALLAS............................           01047            0.50
AL..........................................  DE KALB...........................           01049            0.40
AL..........................................  ELMORE............................           01051            0.50
AL..........................................  ESCAMBIA..........................           01053            0.55
AL..........................................  ETOWAH............................           01055            0.30
AL..........................................  FAYETTE..