Milk in the Appalachian, Florida and Southeast Marketing Areas; Interim Order Amending the Orders, 14153-14171 [08-1038]

Agencies

• Agricultural Marketing Service
• DEPARTMENT OF AGRICULTURE

[Federal Register Volume 73, Number 52 (Monday, March 17, 2008)]
[Rules and Regulations]
[Pages 14153-14171]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 08-1038]


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

DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Parts 1000, 1005, 1006, and 1007

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


Milk in the Appalachian, Florida and Southeast Marketing Areas; 
Interim Order Amending the Orders

AGENCY: Agricultural Marketing Service, USDA

ACTION: Interim final rule.

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

SUMMARY: This order adjusts the Class I pricing surface of the 
Appalachian, Southeast and Florida Federal milk marketing orders on an 
interim basis. In addition, this order amends on an interim basis 
certain features of the diversion limit, touch-base standards and 
transportation credit provisions for the Appalachian and Southeast 
Federal milk marketing orders. More than the required producers 
approved the issuance of the interim order as amended.

DATES: Effective Date: All amendments are effective March 18, 2008, 
except for amendments to Sec. Sec.  1005.51, 1006.51, and 1007.51, 
which are effective on May 1, 2008.

FOR FURTHER INFORMATION CONTACT: Gino M. Tosi, Associate Deputy 
Administrator, USDA/AMS/Dairy Programs, Order Formulation and 
Enforcement Branches, STOP 0231-Room 2971, 1400 Independence Avenue, 
SW., Washington, DC 20250-0231, (202) 690-1366, e-mail address: 
gino.tosi@usda.gov.

SUPPLEMENTARY INFORMATION: This interim final rule adopts provisions 
that will: (1) Adjust the Class I pricing surface in each county within 
the geographical marketing areas of the Appalachian, Florida and 
Southeast marketing orders; (2) Make diversion limit standards 
identical for the Appalachian and Southeast orders: 25 percent of 
deliveries to pool plants during the months of January, February, July, 
August, September, October and November, and 35 percent in the months 
of March, April, May, June and December; (3) Reduce touch-base 
standards to one day each month for the Appalachian and Southeast 
orders; (4) Add January and February as months when transportation 
credits are paid for in the Appalachian and Southeast orders; (5) 
Provide for the payment of transportation credits in the Appalachian 
and Southeast orders for full loads of supplemental milk; (6) Provide 
more flexibility in the qualification requirements for supplemental 
milk producers to receive transportation credits for the Appalachian 
and Southeast orders; and (7) Increase the monthly transportation 
credit assessment from $0.20 per cwt to $0.30 per cwt in the Southeast 
order.
    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, as amended (7 
U.S.C. 601-674) (Act), provides that

[[Page 14154]]

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 (USDA) a petition 
stating that the order, any provision of the order, or any obligation 
imposed in connection with the order is not in accordance with the law. 
A handler is afforded the opportunity for a hearing on the petition. 
After a hearing, 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-
612), the Agricultural Marketing Service (AMS) 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.
    During May 2007, the time of the hearing, there were 2,744 dairy 
farmers pooled on the Appalachian order (Order 5). For the Southeast 
order (Order 7), 2,924 dairy farmers were pooled on the order. For the 
Florida order (Order 6), 283 dairy farmers were pooled on the order. Of 
these, 2,612 dairy farmers in Order 5 (or 95.2 percent), 2,739 dairy 
farmers in Order 7 (or 94 percent) and 153 dairy farmers in Order 6 (or 
54 percent) were considered small businesses.
    During May 2007, there were a total of 36 plants associated with 
the Appalachian order (22 fully regulated plants, 10 partially 
regulated plants, 2 producer-handlers and 2 exempt plants). A total of 
55 plants were associated with the Southeast order (33 fully regulated 
plants, 9 partially regulated plants, 2 producer-handlers and 11 exempt 
plants). A total of 25 plants were associated with the Florida order 
(13 fully regulated plants, 9 partially regulated plants, 1 producer-
handler and 2 exempt plants). The number of plants meeting small 
business criteria under the Appalachian, Southeast and Florida orders 
were 8 (or 22.2 percent), 18 (or 32.7 percent) and 11 (or 44 percent), 
respectively.
    The amendments adopted in this interim rule provide for the 
increase in Class I prices in the Appalachian, Southeast and Florida 
orders. The minimum Class I prices of the three southeastern orders, as 
with all other Federal milk marketing orders, are set by using the 
higher of an advance Class III or Class IV price as determined by the 
Department and adding a location-specific differential, referred to as 
a Class I differential. Minimum Class I prices charged to regulated 
handlers are applied uniformly to both large and small entities. Class 
I price increases would generate higher marketwide pool values in all 
three southeastern orders by approximately $18-19 million for the 
Appalachian order, approximately $17.5 million for the Southeast order 
and approximately $38 million for the Florida order. In estimating the 
impact on minimum prices paid to dairy farmers, blend prices will 
increase by approximately $0.26 per cwt for the Appalachian order, 
approximately $0.64 per cwt higher for the Southeast order, and $1.19 
per cwt to $1.22 per cwt higher for the Florida order.
    The adopted amendments revise the Appalachian and Southeast orders 
by making the diversion limit standards for the orders identical--not 
to exceed 25 percent for the months of January, February, and July 
through November, and 35 percent for the months of March through June 
and for the month of December. Currently, the diversion limit standards 
of the Appalachian order for pool plants and cooperatives acting as 
handlers are not to exceed 25 percent for the months of July through 
November, and January and February; and 40 percent for the months of 
December and March through June. For the Southeast order, the current 
diversion limit standards for pool plants and cooperatives acting as 
handlers are not to exceed 33 percent during the months of July through 
December, and 50 percent in the months of January through June.
    In addition, the amendments adopt identical daily touch-base 
standards of at least one-days' milk production each month of a dairy 
farmer in the Appalachian and Southeast orders. Currently, the 
Appalachian order has a touch-base standard of 6 days' production in 
any month of July through December and not less than 2 days' production 
for the months of January through June. Currently, the Southeast order 
has a touch-base standard of not less than 10 days' production for the 
months of July through December and not less than 4 day's production 
for the months of January through June.
    The adopted changes to the pooling standards serve to revise 
established criteria that determine those producers, producer milk and 
plants that have a reasonable association with and are consistently 
serving the fluid needs of the Appalachian and Southeast marketing 
areas. Criteria for pooling are established on the basis of performance 
levels that are considered adequate to meet the Class I needs and 
determine those producers who are eligible to share in the revenue that 
arises from the classified pricing of milk. The criteria for pooling 
are established without regard to the size of any dairy industry or 
entity. The criteria established are applied in an identical fashion to 
both large and small businesses and do not have any different economic 
impact on small entities as opposed to large entities.
    The adopted amendments add January and February to the months of 
July though December as months when transportation credits may be paid 
for the Appalachian and Southeast orders to those handlers who incur 
the costs of providing supplemental milk. The amendments also expand 
the payment of transportation credits for supplemental milk to include 
the full load of milk rather than the calculated Class I portion and 
provide more flexibility in the qualification requirements for 
supplemental milk producers to receive transportation credits for the 
Appalachian and Southeast orders. In addition, only the monthly 
transportation credit assessment for the Southeast order is increased 
from the current $0.20 per cwt to $0.30 per cwt on all milk assigned to 
Class I use. The transportation credit provisions are applicable only 
to the Appalachian and Southeast orders and are applied in an identical 
fashion to both large and small businesses and will

[[Page 14155]]

not have any different impact on those businesses producing 
manufactured milk products. The changes will not have a significant 
economic impact on a substantial number of small entities.
    The Agricultural Marketing Service (AMS) 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 notice does not require additional information collection that 
needs 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 that 
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 May 3, 2007; published May 8, 2007 (72 FR 
25986).
    Partial Tentative Decision: Issued February 21, 2008; published 
February 25, 2008 (73 FR 11194).

Findings and Determinations

    The findings and determinations hereinafter set forth supplement 
those that were made when the Appalachian, Florida and Southeast 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 
Appalachian and Southeast marketing orders:
    (a) Findings upon the basis of the hearing record.
    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 Appalachian, Florida and Southeast marketing 
areas. The hearing was held pursuant to the provisions of the 
Agricultural Marketing Agreement Act of 1937, as amended (7 U.S.C. 601-
674) (Act), and the applicable rules of practice and procedure (7 CFR 
Part 900).
    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, 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 aforesaid marketing areas. The 
minimum prices specified in the orders as hereby amended on an interim 
basis, are such prices as will reflect the aforesaid factors, insure 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, 
regulates the handling of milk in the same manner as, and is applicable 
only to persons in the respective classes of industrial or commercial 
activity specified in, a marketing agreement 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 Appalachian, Florida and 
Southeast orders effective one day following publication of this rule 
in the Federal Register, except for all Class I pricing adjustments 
which are effective May 1, 2008. This date will assure industry 
participants have appropriate time to be informed of changes and make 
orderly marketing adjustments. 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 this 
order was issued on February 21, 2008.
    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 
amendments effective one day following publication of this rule in the 
Federal Register. It would be contrary to the public interest to delay 
the effective date of these amendments for 30 days after publication in 
the Federal Register. (Sec. 553(d), Administrative Procedures Act, 5 
U.S.C. 551-559.)
    (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 Appalachian, 
Florida and Southeast 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 orders amending the Appalachian, 
Florida and Southeast 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.

Order Relative to Handling

    It is therefore ordered, that on and after the effective date 
hereof, the handling of milk in the Appalachian, Florida and Southeast 
marketing areas shall be in conformity to and in compliance with the 
terms and conditions of the orders, as amended, and as hereby amended, 
as follows:

List of Subjects in 7 CFR Parts 1000, 1005, 1006 and 1007

    Milk marketing orders.

0
Accordingly, the Agricultural Marketing Service amends 7 CFR parts 
1000, 1005, 1006, and 1007 as follows:
0
1. The authority citation for 7 CFR parts 1000, 1005, 1006, and 1007 
continues to read as follows:

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

PART 1000--GENERAL PROVISIONS OF FEDERAL MILK MARKETING ORDERS

0
2. In Sec.  1000.50, paragraphs (b) and (c) are revised to read as 
follows:


Sec.  1000.50  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), Sec.  1006.51(b) and 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 adjustments to Class I prices specified in 
Sec.  1005.51(b), 1006.51(b) and 1007.51(b) divided by 100, plus the 
advanced butterfat price computed in paragraph (q)(3) of this section.
* * * * *

[[Page 14156]]

PART 1005--MILK IN THE APPALACHIAN MARKETING AREA

0
3. In Sec.  1005.13, paragraphs (d)(1) through (4) are revised 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 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 handlers 
described in Sec.  1000.9(c);
* * * * *

0
4. Section 1005.51 is revised 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.  1000.50(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

[[Page 14157]]

 
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
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....................................  MC CREARY.............................            21147             0.50
KY....................................  MC LEAN...............................            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

[[Page 14158]]

 
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
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....................................  MC DOWELL.............................            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

[[Page 14159]]

 
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
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....................................  MC CORMICK............................            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

[[Page 14160]]

 
TN....................................  JEFFERSON.............................            47089             0.40
TN....................................  JOHNSON...............................            47091             0.40
TN....................................  KNOX..................................            47093             0.40
TN....................................  LOUDON................................            47105             0.40
TN....................................  MC MINN...............................            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
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....................................  MC DOWELL.............................            54047             0.10
WV....................................  MERCER................................            54055             0.10
----------------------------------------------------------------------------------------------------------------


[[Page 14161]]


0
5. In Sec.  1005.81, paragraph (a) is revised 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.  1000.90), 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.
* * * * *

0
6. Section 1005.82 is amended by:
0
a. Revising paragraph (a)(1);
0
b. Revising paragraph (b);
0
c. Revising paragraph (c)(1);
0
d. Removing paragraph (c)(2)(i);
0
e. Redesignating paragraph (c)(2)(ii) as (c)(2)(i) and revise;
0
f. Redesignating paragraph (c)(2)(iii) as (c)(2)(ii);
0
g. Redesignating paragraph (c)(2)(iv) as (c)(2)(iii) and revising;
0
h. Revising paragraph (d)(2) (iii); and
0
i. Revising paragraph (d)(3)(v);
    The revisions read as follows:


Sec.  1005.82  Payments from the transportation credit balancing fund.

    (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.
* * * * *
    (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 Deputy Administrator of the Dairy 
Programs 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 at a pool distributing plant from a plant 
regulated under another Federal order, except Federal Order 1007; and
    (2) * * *
    (i) The dairy 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) * * *
    (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) * * *
    (2) * * *
    (iii) Subtract the applicable Class I price specified in Sec.  
1000.50(a) 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.  1000.50(a) 
applicable for the county in which the origination point is located 
from the Class I price applicable at the receiving pool plant's 
location;
* * * * *

PART 1006--MILK IN THE FLORIDA MARKETING AREA

0
7. Section 1006.51 is revised to read as follows:


Sec.  1006.51  Class I differential, adjustments to Class I prices, and 
Class I price.

    (a) The Class I differential shall be the differential established 
for Hillsborough County, Florida, which is reported in Sec.  1000.52. 
The Class I price shall be the price computed pursuant to Sec.  
1006.50(a) for Hillsboro