Milk Income Loss Contract Program and Price Support Program for Milk, 73764-73768 [E8-28710]
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73764
Federal Register / Vol. 73, No. 234 / Thursday, December 4, 2008 / Rules and Regulations
provides a 60-day comment period, and
all comments timely received will be
considered prior to finalization of this
rule.
List of Subjects in 7 CFR Part 984
Walnuts, Marketing agreements, Nuts,
Reporting and recordkeeping
requirements.
For the reasons set forth in the
preamble, 7 CFR part 984 is amended as
follows:
■
PART 984—WALNUTS GROWN IN
CALIFORNIA
1. The authority citation for 7 CFR
part 984 continues to read as follows:
■
Authority: 7 U.S.C. 601–674.
2. Section 984.347 is revised to read
as follows:
■
§ 984.347
Assessment rate.
Background
On and after September 1, 2008, an
assessment rate of $0.0131 per
kernelweight pound is established for
California merchantable walnuts.
Dated: November 26, 2008.
James E. Link,
Administrator, Agricultural Marketing
Service.
[FR Doc. E8–28766 Filed 12–2–08; 11:15 am]
BILLING CODE 3410–02–P
DEPARTMENT OF AGRICULTURE
Commodity Credit Corporation
7 CFR Part 1430
RIN 0560–AH83
Milk Income Loss Contract Program
and Price Support Program for Milk
Commodity Credit Corporation,
USDA.
ACTION: Final rule.
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AGENCY:
SUMMARY: This rule amends the
regulations for the Milk Income Loss
Contract (MILC) Program, as authorized
by the Food, Conservation, and Energy
Act of 2008 (the 2008 Farm Bill), to
extend the program from October 1,
2007, through September 30, 2012. This
rule also increases the percentage rate
for the payment calculation after fiscal
year (FY) 2008 and increases the
payment quantity limitation of eligible
pounds of milk per operation beginning
in FY 2009. This rule also provides for
an adjustment to the MILC payment rate
if feed costs increase above a specified
level. This rule is needed to extend the
MILC program, which is designed to
stabilize and generally enhance milk
producer revenue, through FY 2012 and
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to make changes to that program
authorized by the 2008 Farm Bill. This
rule also adjusts the milk price support
program regulations to specify that
support purchases will only be made
from manufacturers and not from third
parties such as brokers.
DATES: Effective Date: December 1, 2008.
FOR FURTHER INFORMATION CONTACT:
Danielle Cooke, Special Programs
Manager, Price Support Division, FSA,
USDA, STOP 0512, 1400 Independence
Ave., SW., Washington, DC 20250–0512;
telephone: (202) 720–1919; fax: (202)
690–1536; e-mail:
Danielle.Cooke@wdc.usda.gov. Persons
with disabilities who require alternative
means for communication (Braille, large
print, audio tape, etc.) should contact
the USDA Target Center at (202) 720–
2600 (voice and TDD).
SUPPLEMENTARY INFORMATION:
This final rule implements changes in
the MILC program enacted in section
1506 in Title I of the 2008 Farm Bill
(Pub. L. 110–246, 7 U.S.C. 8773). It, in
effect, permits new contracts to extend
the old MILC program first provided for
in Section 1502 of the Food Security
and Rural Investment Act of 2002 (Pub.
L. 107–171, 7 U.S.C. 7982). That
program, as amended by subsequent
enactments, ended its coverage with
milk marketed in September of 2007.
The 2008 Farm Bill permits coverage
starting with October 2007 marketings
carrying through September 2012
marketings. The ‘‘old’’ program,
regulations were codified in 7 CFR part
1430. This rule, to provide for the
‘‘new’’ program, modifies 7 CFR part
1430 to:
• Cover marketings during the new
period and make changes to the
payment rate formula used to calculate
payments;
• Change the production limits for
payments during specific periods;
• Add applicability of Adjusted Gross
Income (AGI) provisions to eligibility
requirements; and
• Add provisions to adjust the
payment rate if feed costs exceed a
specified level.
With certain per year per operation
eligibility pound limits, the MILC
program provides payments to dairy
operations when milk prices fall below
a set benchmark. What constitutes an
‘‘operation’’ for purposes of the ‘‘new’’
program, including poundage limits,
will be determined as before. All prior
participants in the ‘‘old’’ program must
sign new contracts. New participants
(those not in the ‘‘old’’ program) cannot
be affiliated with prior participants.
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Also, the rule, as required by the 2008
Farm Bill, beginning in FY 2009, sets
new eligibility limits tied to the AGI of
persons or entities seeking payment.
Payees for the relevant year cannot have
nonfarm income in excess of $500,000.
AGI rules will cover multi-program
regulations to be issued separately.
As indicated, there is a per-operation
per year pound limit to the MILC
payment eligibility of operations. For
FY 2009 (October 1, 2008, through
September 30, 2009), FY 2010 (October
1, 2009, through September 30, 2010),
FY 2011 (October 1, 2010, through
September 30, 2011), and FY 2012
(October 1, 2011, through September 30,
2012), the limit for each fiscal year is
2.985 million pounds. Further, no
payments will be made for September
2012 marketings, as specified in the
2008 Farm Bill, if the operation’s
cumulative total for FY 2012 is over 2.4
million pounds and if the operation is
under that amount the payable
marketings for September will be
limited to those that will not bring the
total over 2.4 million pounds. Payments
are computed, however, on a monthly
basis. They are made only when the
official Federal class I milk marketing
order milk price per cwt. for Boston,
Massachusetts is less than $16.94. When
the Boston price is under the target, the
payment for eligible production will be,
for FYs 2009 through 2012, 45 percent
of the difference. Otherwise, for
September 2012 marketings the
percentage will be 34 percent. The pay
rate can be raised, by command of the
2008 Farm Bill; however, if the National
Average Feed Dairy Feed Ration Cost as
officially computed exceeds $7.35 per
cwt. ($9.50 per cwt. for September 2012
marketings). If the triggering feed ration
amount is exceeded, the benchmark
$16.94 figure for the MILC payment rate
calculation will be increased by the
percentage amount which is 45 percent
of the percentage amount by which the
Feed Ration Cost exceeded its own
benchmark ($7.35 or $9.50, depending
on the month involved). Feed Ration
Cost is calculated using the same
procedures used to calculate the feed
components of the estimated price of 16
percent Mixed Dairy Feed per pound as
reported in the USDA Agricultural
Prices publication. Entire month prices
used to calculate feed price ratios for
each month will be used. As to the
calculation, if for example, the May
2009 Feed Ration Cost exceed by 14
percent the $7.35 per cwt. benchmark,
then the MILC payment benchmark for
May 2009 marketings would be
increased by 6.3 percent (45% of 14%)
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and upped by $1.07 to $18.01 for May
2009 marketings only.
For purposes of applying the yearly
pay limits on pounds per operation, the
rule will continue to use a start month
concept for each year. The operation
must, with limitations set out in the
rules, pick a start month for each fiscal
year. Once the start month is picked,
any marketing in the month and
subsequent months of the fiscal year
that generate a payment will count
against the operation’s fiscal year limit.
(The special rule for September 2012
has been noted and will not be repeated
here.) Generally under the rule, once
signup is opened after October 1, 2008,
an operation can pick any start month
for FY 2008. However, this point is
moot because no payments were
generated from that fiscal year.
Provisions regarding FY 2008 are
included in the rule for the sake of
completeness. Likewise, under the rule,
if the operation signs its new MILC
contract within 30 days of the beginning
of the application period for this new
FY 2008 though 2012 program it can
pick any preceding FY 2009 month as
its start month for that period. Also,
whenever the operation submits its FY
2008 through 2012 contract, it can pick
the month of the submission as the start
month for the current fiscal year.
Otherwise, for the fiscal year in which
the contract is submitted, or for later
fiscal years if the operation wants a
different start month for a subsequent
fiscal year, the rule will be that the
month chosen or the start month must
be chosen by the 14th of the month
preceding the month chosen. Once a
month is chosen for a fiscal year, the
corresponding month will be the start
month for subsequent fiscal years unless
affirmatively changed by the operation.
No payment will be made for any fiscal
year that has ended before the FY 2008
through 2012 program contract is
submitted.
Producers to be paid must:
(1) Sign the contract,
(2) Provide verifiable data,
(3) Be actively engaged in milk
production for the relevant period,
(4) Meet the AGI test for payment, and
(5) Pick the start month for each fiscal
year (as indicated, the original start
month will be the same for subsequent
fiscal years unless changed by the
operation).
Dairy operations can apply at FSA
county offices, via fax, or at https://
www.fsa.usda.gov/dafp/psd/.
This final rule includes changes in the
dates marketed production must be
submitted. Editorial changes to the
previous regulations are made as well.
While the statute in some places
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suggests that the program may carry
beyond FY 2012, the statute and these
regulations limit the covered marketings
to those made no later than September,
2012. Also, as before in the program
contract, the regulations specify that the
payment rules are subject to change,
even after the contract is signed, to
reflect statutory changes. Also, as
indicated, payments are subject to the
AGI limits being implemented through
a separate rulemaking.
on milk prices will reduce benefits to
dairy farmers, which will result in
consumers being able to buy dairy
products at lower prices than if the
program was not operating.
Dairy Product Price Support Program
This rule amends § 1430.2, ‘‘Price
Support Levels and Purchase
Conditions,’’ to ensure that the Dairy
Product Price Support Program supports
dairy producers by ensuring that
manufacturers have sufficient incentive
to pay the support rate to producers.
CCC will only purchase dairy products
from the manufacturer of the product.
CCC will no longer purchase eligible
dairy products from nonmanufacturers,
as the program is not intended to
provide a speculative market for third
parties.
The environmental impacts of this
rule were considered in a manner
consistent with the provisions of the
National Environmental Policy Act
(NEPA), 42 U.S.C. 4321–4347, the
regulations of the Council on
Environmental Quality (40 CFR parts
1500–1508), and FSA regulations for
compliance with NEPA (7 CFR part
799). The substantive changes to the
MILC program, required by the 2008
Farm Bill that are identified in this final
rule are non-discretionary. Therefore,
FSA has determined that NEPA does not
apply to this final rule and no
environmental assessment or
environmental impact statement will be
prepared.
Notice and Comment
These regulations are exempt from the
notice and comment requirements of the
Administrative Procedure Act (5 U.S.C.
553), as specified in section 1601(c) of
the 2008 Farm Bill, which requires that
the regulations be promulgated and
administered without regard to those
provisions, the Statement of Policy of
the Secretary of Agriculture effective
July 24, 1971 (36 FR 13804) relating to
notices of proposed rulemaking and
public participation in rulemaking.
Therefore, these regulations are issued
as final.
Executive Order 12866
The Office of Management and Budget
(OMB) designated this final rule as
significant under Executive Order 12866
and, therefore, OMB reviewed this rule.
A cost benefit assessment of this rule is
summarized below and is available from
the contact information listed above.
Summary of Economic Impacts
The MILC program has paid about
$2.5 billion to dairy operations over the
five initial years of operation. Annual
expenditures during the last two years
of the program have totaled over $350
million in FY 2006 and $160 million in
FY 2007. Expenditures during the
period authorized by the 2008 Farm
Bill, are expected to be between $300
and $400 million based on estimated
milk prices during the period. Dairy
farm direct payments and Government
expenditures will increase
commensurately. MILC program impact
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Regulatory Flexibility Act
The Regulatory Flexibility Act is not
applicable to this rule because CCC is
not required to publish a notice of
proposed rulemaking for this rule.
Environmental Review
Executive Order 12988
The final rule has been reviewed
under Executive Order 12988. This rule
preempts State laws that are
inconsistent with its provisions. This
rule is not retroactive as such, but does
apply to marketings in a period that
precedes this rule. Before any judicial
action may be brought regarding this
rule, all administrative remedies must
be exhausted.
Executive Order 12372
This program is not subject to
Executive Order 12372, which requires
consultation with State and local
officials. See the notice related to 7 CFR
part 3015, subpart V, published at 48 FR
29115 (June 24, 1983).
Executive Order 13132
The policies contained in this rule do
not have any substantial direct effect on
States, on the relationship between the
national government and the States, or
on the distribution of power and
responsibilities among the various
levels of government. Nor does this rule
impose substantial direct compliance
costs on State and local governments.
Therefore, consultation with the States
is not required.
Unfunded Mandates
Title II of the Unfunded Mandates
Reform Act of 1995 (UMRA) does not
apply to this rule because CCC is not
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required to publish a notice of proposed
rulemaking for this rule. Further, this
rule imposes no unfunded mandates, as
defined in UMRA, on any local, State,
or tribal government or on the private
sector.
‘‘Transition Period,’’ revising the
definitions of ‘‘Dairy operation,’’
‘‘Eligible production,’’ ‘‘Participating
State,’’ and ‘‘United States,’’ and adding
the definition for ‘‘Fiscal Year or FY’’ to
read as follows:
Federal Assistance Programs
§ 1430.202
The title and number of the Federal
assistance program in the Catalog of
Federal Domestic Assistance to which
this final rule applies is 10.051—
Commodity Loans and Loan Deficiency
Payments.
*
Paperwork Reduction Act
The regulations in this rule are
exempt from requirements of the
Paperwork Reduction Act (44 U.S.C.
Chapter 35), as specified in section 1601
of the 2008 Farm Bill, which provides
that these regulations be promulgated
and administered without regard to the
Paperwork Reduction Act.
E-Government Act Compliance
CCC 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.
List of Subjects in 7 CFR Part 1430
Dairy products, Price support
programs.
■ For the reasons discussed above, 7
CFR part 1430 is amended as set forth
below.
PART 1430—DAIRY PRODUCTS
1. Revise the authority citation to read
as follows:
■
Authority: 7 U.S.C. 7981, 7982, and 8773;
and 15 U.S.C. 714b and 714c.
Subpart A—Price Support Program for
Milk
2. Amend § 1430.2, paragraph (a)(2),
by adding a sentence at the end to read
as follows:
■
§ 1430.2 Price support levels and
purchase conditions.
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(a) * * *
(2) * * * Purchases may only be
made from eligible offerers which must
be the manufacturer of the product
offered and must meet all other
conditions set by CCC.
*
*
*
*
*
Subpart B—Milk Income Loss Contract
Program
3. Amend § 1430.202 by removing the
definitions for ‘‘Fiscal Year,’’ and
■
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Definitions.
*
*
*
*
Dairy operation means any person or
group of persons who as a single unit as
determined by CCC, produce and
market milk commercially produced
from cows, and whose production
facilities are located in the United
States. In administering this program,
for purposes of determining what is a
‘‘dairy operation’’ and its eligibility
under this program, those
determinations will be made in the
same manner as was done for the Dairy
Market Loss Assistance (DMLA)
contracts in the State in which the dairy
is located. New MILC operations, which
is to say those operations that did not
participate in the MILC program for
marketings prior to FY 2008, must be
unaffiliated with any other DMLA or
MILC operations.
*
*
*
*
*
Eligible production means milk that
was produced at a time relevant to this
program by cows in the United States
and marketed commercially by a
producer in a participating State.
*
*
*
*
*
Fiscal Year or FY means the year
beginning October 1 and ending the
following September 30. Fiscal years
will be designated for this part by year
by reference to the calendar year in
which it ends. For example, FY 2009 is
from October 1, 2008, through
September 30, 2009 (inclusive).
*
*
*
*
*
Participating State means each of the
50 States in the United States of
America, the District of Columbia, and
the Commonwealth of Puerto Rico, or
any other territory or possession of the
United States.
*
*
*
*
*
United States means the 50 States of
the United Sates of America, the District
of Columbia, and the Commonwealth of
Puerto Rico, or any other territory or
possession of the United States.
*
*
*
*
*
■ 4. Amend § 1430.203 as follows:
■ a. In paragraphs (a) and (f) remove the
words ‘‘December 1, 2001, through
September 30, 2007’’ and add, in their
place, the words ‘‘October 1, 2007,
through September 30, 2012;’’
■ b. Amend paragraph (f) by removing
the period at the end and adding a
semicolon in its place; and
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c. Revise paragraph (g) and add
paragraphs (h) and (i) to read as follows:
■
§ 1430.203
Eligibility.
*
*
*
*
*
(g) Meet all adjusted gross income
eligibility requirements of part 1400 of
this chapter as regards any person or
entity seeking to receive payment under
this part. No person or entity may,
generally, receive any payment for FY
2009 marketings and subsequent
marketings if their nonfarm yearly
income for the relevant base period for
the relevant marketings as determined
under the adjusted gross income rules
(as in effect when the payment is
sought) is over $500,000 as determined
under this subpart. Further, for entities
an otherwise due payment will be
reduced commensurately to the extent
that any person with an interest in the
entity, as determined under the adjusted
gross income rules had such income
over that limit for the relevant period;
(h) Have submitted a contract during
the applicable contract period for FYs
2008 through 2012:
(1) Except for 2009, and subject to the
start month provision of § 1430.205,
must have for any fiscal year or month
for which payment is sought to be paid
submitted the FY 2008 through 2012
contract before the end of that fiscal
year or month or
(2) For FY 2008 payments, if
payments are generated under this part
for that fiscal year, must have submitted
a contract for the FY 2008 through 2012
program by October 1, 2009 and for FY
2009 the contract must have been
submitted by the month for which
payment is first sought except to the
extent that § 1430.205 explicitly permits
the operation to pick a start month in
advance of the month in which the
contract is submitted; and
(i) Must not, if it did not participate
in the preceding MILC program for
fiscal years prior to FY 2008, be
affiliated with any other dairy
operation.
■ 5. In § 1430.205 revise paragraphs (a)
through (d) and (g) to read as follows:
§ 1430.205
Selection of starting month.
(a) A dairy operation that enters into
a MILC contract with CCC must
designate the starting month for each
fiscal year for the calculation of
payments and pound limits for the
operation. Once a start month is chosen
for a fiscal year the corresponding
month will be the start month for each
subsequent fiscal year unless changed
by an affirmative request in writing on
a form approved by CCC. The
production start month must be selected
on or before the 14th of the month
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before the month for which payment is
sought. If such date falls on a weekend,
the start month selection must be made
on the last business day preceding the
weekend. A dairy operation cannot
select as the start month for payment a
month which:
(1) Has already begun, except as
provided in paragraph (c)(1) of this
section;
(2) Has already passed; or
(3) During which no milk production
was produced by the dairy operation.
(b) For FY 2009, if the operation signs
its FY 2008 through 2012 MILC contract
within 30 days of the beginning of the
application period it can pick any
preceding FY 2009 month as its start
month for that period or can use the
normal rule of paragraph (c) of this
section to pick the start month.
(c) Except as provided in paragraph
(b) of this section, the start month for a
fiscal year may only be
(1) For the fiscal year in which the
contract is submitted, the month the
contract is submitted or
(2) For a fiscal year that has not yet
begun, any month, provided that a
month may not be selected after the
14th of the preceding month.
(d) Dairy operations may change the
production start month on or before the
14th day of the month previously
selected.
*
*
*
*
*
(g)(1) MILC production start month
selections made during the signup
period designated by CCC may be made
as provided in paragraph (b) of this
section, otherwise MILC production
start month selections must be made in
accordance with paragraph (c) of this
section. If a payment rate is not in effect
during the production start month
selected by the dairy operation,
payments to the dairy operation will be
issued based on the next consecutive
month with a payment rate in effect
following the MILC production start
month selected by the dairy operation.
Production in months in which the pay
formula does not produce a payment
will not count against the fiscal year’s
poundage limit for the operation.
(2) Dairy operations with MILC
production start months that begin with
the month a MILC contract is submitted
to FSA or that begin with the first
month of the fiscal year with an
effective payment rate will receive
payments made by CCC consecutively
on a monthly basis, if otherwise
provided for in this part, until the
earlier of the following:
(i) The maximum payment quantity
for the fiscal year or month is reached
as determined in accordance with
§ 1430.207 or
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(ii) The end of the applicable fiscal
year.
*
*
*
*
*
■ 6. Amend § 1430.207 by revising
paragraph (b) and by adding paragraph
(c) to read as follows:
§ 1430.207
quantity.
Dairy operation payment
*
*
*
*
*
(b) The maximum quantity of eligible
production for which dairy operations,
per separate and distinct operation, are
eligible for payment per fiscal year
under this subpart will be:
(1) 2,400,000 pounds (24,000 cwt.) for
FY 2008 (October 1, 2007, through
September 30, 2008);
(2) 2,985,000 pounds (29,850 cwt.) for
FY 2009 (October 1, 2008 through
September 30, 2009), FY 2010 (October
1, 2009, through September 30, 2010),
FY 2011 (October 1, 2010, through
September 30, 2011) and FY 2012
(October 1, 2011, through September 30,
2012), provided further an operation
may receive payment for September,
2012, marketings only if its preSeptember FY 2012 marketings did not
exceed 2,400,000 pounds in which case
new marketings that would not put the
operation’s FY 2012 marketings over
2,400,000 pounds will be eligible for
payments otherwise permitted in this
rule.
(c) In accordance with these
regulations, the Deputy Administrator
will determine what is a separate and
distinct operation. That decision will be
final.
■ 7. In § 1430.208 revise paragraphs (b)
through (e) and add paragraph (f) to read
as follows:
§ 1430.208 Payment rate and dairy
operation payment.
*
*
*
*
*
(b) A per-hundredweight payment
rate will be determined for the
applicable month by:
(1) Subtracting from $16.94 the Class
I milk price per cwt. in Boston;
(2) Multiplying the difference by 34
percent for marketings during the period
beginning on October 1, 2007, and
ending on September 30, 2008;
(3) Multiplying the difference by 45
percent for marketings during the period
beginning on October 1, 2008, and
ending on August 31, 2012; and
(4) Multiplying the difference by 34
percent for marketings in September
2012.
(c) The payment rate as calculated as
specified in paragraph (b) of this
section, will be adjusted to compensate
for feed prices when the National
Average Dairy Feed Ration Cost for a
month is greater than the levels set in
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73767
paragraphs (c)(1) and (c)(2) of this
section. The National Average Dairy
Feed Ration Cost per cwt. for each
month will be calculated using the same
procedures used to calculate the feed
components of the estimated price of 16
percent Mixed Dairy Feed per pound
noted on page 33 of the USDA monthly
Agricultural Prices publication
(including the data and factors noted in
footnote 4). The payment rate
adjustment for Entire Month feed prices
will be determined by increasing $16.94
by the percentage that is 45 percent of
the percentage by which the National
Average Dairy Feed Ration Cost exceeds
$7.35 per cwt. (except that $7.35 will be
$9.50 for September 2012 marketings.)
(d) Each eligible dairy operation
payment will be calculated, as
determined by the Secretary, by:
(1) Converting whole pounds of milk
to hundredweight and
(2) Multiplying the payment rate
determined in paragraphs (b) and (c) of
this section by the quantity of eligible
production marketed by the operation
during the applicable month as
determined according to § 1430.205 and
other provisions of this subpart.
(3) Payments to dairy operations will
be based on calculated payment rates
rounded seven places to the right of the
decimal.
(e) Payments under this subpart may
be made to a dairy operation only up to
the maximum production limitations set
in § 1430.207(b) of eligible production
per applicable fiscal year.
(f) Dairy operations receiving benefits
under this subpart, will receive earned
payments on a monthly basis according
to the MILC contract, to the extent
practicable, not later than 60 days after
the later of production evidence and all
supporting documents for the applicable
month are received by CCC or the entire
month National Average Dairy Feed
Ration Cost is made available by USDA,
as applicable. Payments issued by CCC
more than 60 days after the later of all
production evidence and supporting
documentation are received by CCC or
the entire month National Average Dairy
Feed Ration Cost is made available by
USDA, whichever is later, will be
subject to prompt payment interest as
allowed by law. However, CCC will
endeavor where possible to make
payments within 60 days of the end of
the marketing month.
§ 1430.209
[Amended]
8. Amend § 1430.209 in paragraph (a)
by removing the words ‘‘October 1,
2005, and ending September 30, 2007’’
and adding in their place the words
‘‘October 1, 2007, and ending September
30, 2012.’’
■
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73768
§ 1430.211
Federal Register / Vol. 73, No. 234 / Thursday, December 4, 2008 / Rules and Regulations
[Amended]
9. Amend § 1430.211 in paragraph (a)
by removing the words ‘‘September 30,
2007’’ and adding, in their place, the
words ‘‘September 30, 2012.’’
■ 10. Amend § 1430.212 by revising the
section heading and adding paragraph
(c) to read as follows:
■
§ 1430.212 Contract Modifications and
Statutory Changes in Program.
*
*
*
*
*
(c) Payments otherwise due under this
subpart or the program will be adjusted
or denied to the extent provided for by
a statutory change in program
eligibilities or requirements of any kind
irrespective of whether the program
contract preceded the statutory change.
Operations will be given the option of
accepting the changes or terminating the
contract.
■ 11. Amend § 1430.213 by revising
paragraph (a) to read as follows:
§ 1430.213
Reconstitutions.
(a) A dairy operation receiving MILC
benefits may reorganize or restructure
such that the constitution or makeup of
its operation is reconstituted in another
organizational framework. However, any
operation that reorganizes or
restructures after October 1, 2007, is
subject to a review by FSA to determine
if the operation was reorganized or
restructured for the sole purpose of
receiving multiple or additional MILC
payments.
*
*
*
*
*
Signed in Washington, DC, on December 1,
2008.
Teresa C. Lasseter,
Executive Vice President, Commodity Credit
Corporation.
[FR Doc. E8–28710 Filed 12–1–08; 4:15 pm]
BILLING CODE 3410–05–P
DEPARTMENT OF TRANSPORTATION
Federal Aviation Administration
14 CFR Parts 1, 101, 400, 401, and 420
[Docket No. FAA–2007–27390; Amendment
Nos. 1–62, 101–8, 400–2, 401–6, and 420–
4]
RIN 2120–2120–AI88
Requirements for Amateur Rocket
Activities
Federal Aviation
Administration (FAA), DOT.
ACTION: Final rule.
erowe on PROD1PC64 with RULES
AGENCY:
SUMMARY: This final rule amends
amateur rocket regulations to preserve
VerDate Aug<31>2005
15:50 Dec 03, 2008
Jkt 217001
the level of safety associated with
amateur rocketry and to reflect current
industry practice. The new regulations
update and align FAA regulations with
widely used advances in the amateur
rocket industry, specify the required
information collected from operators of
advanced amateur rocket launches, and
define amateur rocket classifications.
This action also corrects minor
inconsistencies in the current rule.
DATES: These amendments become
effective February 2, 2009.
FOR FURTHER INFORMATION CONTACT: For
technical questions concerning this final
rule contact Charles P. Brinkman,
Licensing and Safety Division (AST–
200), Commercial Space Transportation,
Federal Aviation Administration, 800
Independence Avenue, Washington, DC
20591, telephone (202) 267–7715, e-mail
Phil.Brinkman@faa.gov. For legal
questions concerning this final rule
contact Gary Michel, Office of the Chief
Counsel, Federal Aviation
Administration, 800 Independence
Avenue, Washington, DC 20591,
telephone (202) 267–3148.
SUPPLEMENTARY INFORMATION:
Authority for This Rulemaking
The FAA’s authority to issue rules on
aviation safety is found in Title 49 of the
United States Code. Subtitle I, Section
106 describes the authority of the FAA
Administrator. Subtitle VII, Aviation
Programs describes in more detail the
scope of the agency’s authority.
This rulemaking is promulgated
under the authority described in
Subtitle VII, Part A, Subpart III, Sections
40102, 40103, 40113–40114, and 44701–
44702. Under those sections, the FAA is
charged with prescribing regulations
that govern air traffic rules on the flight
of aircraft (which include unmanned
rockets). This regulation is within the
scope of that authority because it
defines classes of unmanned rockets
and details the information the FAA
would require to issue a certificate of
waiver or authorization to allow
launching of an amateur rocket.
Background
Historically, the FAA relied on State
and local regulation, voluntary selfregulation, and its own analysis to fulfill
its oversight responsibility for
unmanned rocket operations under part
101. Until now, the voluntary selfregulation and State and local
regulations adequately protected the
public and ensured safe operation of
amateur rockets. Amateur rocket
performance continued to improve and
participation in amateur rocket launches
increased significantly.
PO 00000
Frm 00008
Fmt 4700
Sfmt 4700
The FAA believes these activities
need appropriate regulation for
continued safe operation. This
rulemaking is intended to preserve the
safety record of amateur rocket
activities, address inconsistencies, and
clarify existing amateur rocket
regulations.
Summary of the NPRM
The Requirements for Amateur Rocket
Activities notice of proposed
rulemaking (NPRM) published in the
Federal Register on June 14, 2007 (72
FR 32816).
The proposal added two new
categories of amateur rocket operations
and amended the definitions of the
existing two categories. The new
category structure would be numbered
from Class 1 to Class 4. The two new
categories would be Class 3—HighPowered Rocket and Class 4—Advanced
High-Power Rockets. These two new
categories would capture amateur
rockets that require significant FAA
analyses to determine whether they can
be safely operated within the National
Air Space (NAS). The Class 1 and Class
2 rocket categories, meanwhile, would
be slightly modified to incorporate
current definitions of model rocket and
large model rocket, respectively.
We proposed to re-classify the
existing information requirements and
operating limitations currently required
before a proposed launch for the more
advanced amateur rocket activities. Low
risk Class 1—Model Rocket operators
would continue to be exempt from
information requirements. Operators of
Class 2—Large Model Rockets would
continue to provide their names,
addresses, highest anticipated altitude,
location of the launch, date, time, and
duration of the launch event. This
information enables us to take
appropriate action to ensure safe
operation in the NAS.
The notice also proposed to specify
reporting practices for the new category
Class 3 and Class 4 rockets. Operators of
rockets with these characteristics
generally file for a certificate of waiver
or authorization to conduct their
operations. They are exempt from
launch license regulations in part 400.
Operators are often contacted for
additional information when the FAA
receives their waiver application. As
proposed, most, if not all, information
would be submitted on the initial
waiver application, which would save
the FAA and the operator’s time and
expense.
Amateur rocket regulations were
written when the amateur rocket
community used mainly solid rocket
motors. Now the amateur rocket
E:\FR\FM\04DER1.SGM
04DER1
Agencies
[Federal Register Volume 73, Number 234 (Thursday, December 4, 2008)]
[Rules and Regulations]
[Pages 73764-73768]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-28710]
-----------------------------------------------------------------------
DEPARTMENT OF AGRICULTURE
Commodity Credit Corporation
7 CFR Part 1430
RIN 0560-AH83
Milk Income Loss Contract Program and Price Support Program for
Milk
AGENCY: Commodity Credit Corporation, USDA.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: This rule amends the regulations for the Milk Income Loss
Contract (MILC) Program, as authorized by the Food, Conservation, and
Energy Act of 2008 (the 2008 Farm Bill), to extend the program from
October 1, 2007, through September 30, 2012. This rule also increases
the percentage rate for the payment calculation after fiscal year (FY)
2008 and increases the payment quantity limitation of eligible pounds
of milk per operation beginning in FY 2009. This rule also provides for
an adjustment to the MILC payment rate if feed costs increase above a
specified level. This rule is needed to extend the MILC program, which
is designed to stabilize and generally enhance milk producer revenue,
through FY 2012 and to make changes to that program authorized by the
2008 Farm Bill. This rule also adjusts the milk price support program
regulations to specify that support purchases will only be made from
manufacturers and not from third parties such as brokers.
DATES: Effective Date: December 1, 2008.
FOR FURTHER INFORMATION CONTACT: Danielle Cooke, Special Programs
Manager, Price Support Division, FSA, USDA, STOP 0512, 1400
Independence Ave., SW., Washington, DC 20250-0512; telephone: (202)
720-1919; fax: (202) 690-1536; e-mail: Danielle.Cooke@wdc.usda.gov.
Persons with disabilities who require alternative means for
communication (Braille, large print, audio tape, etc.) should contact
the USDA Target Center at (202) 720-2600 (voice and TDD).
SUPPLEMENTARY INFORMATION:
Background
This final rule implements changes in the MILC program enacted in
section 1506 in Title I of the 2008 Farm Bill (Pub. L. 110-246, 7
U.S.C. 8773). It, in effect, permits new contracts to extend the old
MILC program first provided for in Section 1502 of the Food Security
and Rural Investment Act of 2002 (Pub. L. 107-171, 7 U.S.C. 7982). That
program, as amended by subsequent enactments, ended its coverage with
milk marketed in September of 2007. The 2008 Farm Bill permits coverage
starting with October 2007 marketings carrying through September 2012
marketings. The ``old'' program, regulations were codified in 7 CFR
part 1430. This rule, to provide for the ``new'' program, modifies 7
CFR part 1430 to:
Cover marketings during the new period and make changes to
the payment rate formula used to calculate payments;
Change the production limits for payments during specific
periods;
Add applicability of Adjusted Gross Income (AGI)
provisions to eligibility requirements; and
Add provisions to adjust the payment rate if feed costs
exceed a specified level.
With certain per year per operation eligibility pound limits, the
MILC program provides payments to dairy operations when milk prices
fall below a set benchmark. What constitutes an ``operation'' for
purposes of the ``new'' program, including poundage limits, will be
determined as before. All prior participants in the ``old'' program
must sign new contracts. New participants (those not in the ``old''
program) cannot be affiliated with prior participants. Also, the rule,
as required by the 2008 Farm Bill, beginning in FY 2009, sets new
eligibility limits tied to the AGI of persons or entities seeking
payment. Payees for the relevant year cannot have nonfarm income in
excess of $500,000. AGI rules will cover multi-program regulations to
be issued separately.
As indicated, there is a per-operation per year pound limit to the
MILC payment eligibility of operations. For FY 2009 (October 1, 2008,
through September 30, 2009), FY 2010 (October 1, 2009, through
September 30, 2010), FY 2011 (October 1, 2010, through September 30,
2011), and FY 2012 (October 1, 2011, through September 30, 2012), the
limit for each fiscal year is 2.985 million pounds. Further, no
payments will be made for September 2012 marketings, as specified in
the 2008 Farm Bill, if the operation's cumulative total for FY 2012 is
over 2.4 million pounds and if the operation is under that amount the
payable marketings for September will be limited to those that will not
bring the total over 2.4 million pounds. Payments are computed,
however, on a monthly basis. They are made only when the official
Federal class I milk marketing order milk price per cwt. for Boston,
Massachusetts is less than $16.94. When the Boston price is under the
target, the payment for eligible production will be, for FYs 2009
through 2012, 45 percent of the difference. Otherwise, for September
2012 marketings the percentage will be 34 percent. The pay rate can be
raised, by command of the 2008 Farm Bill; however, if the National
Average Feed Dairy Feed Ration Cost as officially computed exceeds
$7.35 per cwt. ($9.50 per cwt. for September 2012 marketings). If the
triggering feed ration amount is exceeded, the benchmark $16.94 figure
for the MILC payment rate calculation will be increased by the
percentage amount which is 45 percent of the percentage amount by which
the Feed Ration Cost exceeded its own benchmark ($7.35 or $9.50,
depending on the month involved). Feed Ration Cost is calculated using
the same procedures used to calculate the feed components of the
estimated price of 16 percent Mixed Dairy Feed per pound as reported in
the USDA Agricultural Prices publication. Entire month prices used to
calculate feed price ratios for each month will be used. As to the
calculation, if for example, the May 2009 Feed Ration Cost exceed by 14
percent the $7.35 per cwt. benchmark, then the MILC payment benchmark
for May 2009 marketings would be increased by 6.3 percent (45% of 14%)
[[Page 73765]]
and upped by $1.07 to $18.01 for May 2009 marketings only.
For purposes of applying the yearly pay limits on pounds per
operation, the rule will continue to use a start month concept for each
year. The operation must, with limitations set out in the rules, pick a
start month for each fiscal year. Once the start month is picked, any
marketing in the month and subsequent months of the fiscal year that
generate a payment will count against the operation's fiscal year
limit. (The special rule for September 2012 has been noted and will not
be repeated here.) Generally under the rule, once signup is opened
after October 1, 2008, an operation can pick any start month for FY
2008. However, this point is moot because no payments were generated
from that fiscal year. Provisions regarding FY 2008 are included in the
rule for the sake of completeness. Likewise, under the rule, if the
operation signs its new MILC contract within 30 days of the beginning
of the application period for this new FY 2008 though 2012 program it
can pick any preceding FY 2009 month as its start month for that
period. Also, whenever the operation submits its FY 2008 through 2012
contract, it can pick the month of the submission as the start month
for the current fiscal year. Otherwise, for the fiscal year in which
the contract is submitted, or for later fiscal years if the operation
wants a different start month for a subsequent fiscal year, the rule
will be that the month chosen or the start month must be chosen by the
14th of the month preceding the month chosen. Once a month is chosen
for a fiscal year, the corresponding month will be the start month for
subsequent fiscal years unless affirmatively changed by the operation.
No payment will be made for any fiscal year that has ended before the
FY 2008 through 2012 program contract is submitted.
Producers to be paid must:
(1) Sign the contract,
(2) Provide verifiable data,
(3) Be actively engaged in milk production for the relevant period,
(4) Meet the AGI test for payment, and
(5) Pick the start month for each fiscal year (as indicated, the
original start month will be the same for subsequent fiscal years
unless changed by the operation).
Dairy operations can apply at FSA county offices, via fax, or at
https://www.fsa.usda.gov/dafp/psd/.
This final rule includes changes in the dates marketed production
must be submitted. Editorial changes to the previous regulations are
made as well. While the statute in some places suggests that the
program may carry beyond FY 2012, the statute and these regulations
limit the covered marketings to those made no later than September,
2012. Also, as before in the program contract, the regulations specify
that the payment rules are subject to change, even after the contract
is signed, to reflect statutory changes. Also, as indicated, payments
are subject to the AGI limits being implemented through a separate
rulemaking.
Dairy Product Price Support Program
This rule amends Sec. 1430.2, ``Price Support Levels and Purchase
Conditions,'' to ensure that the Dairy Product Price Support Program
supports dairy producers by ensuring that manufacturers have sufficient
incentive to pay the support rate to producers. CCC will only purchase
dairy products from the manufacturer of the product. CCC will no longer
purchase eligible dairy products from nonmanufacturers, as the program
is not intended to provide a speculative market for third parties.
Notice and Comment
These regulations are exempt from the notice and comment
requirements of the Administrative Procedure Act (5 U.S.C. 553), as
specified in section 1601(c) of the 2008 Farm Bill, which requires that
the regulations be promulgated and administered without regard to those
provisions, the Statement of Policy of the Secretary of Agriculture
effective July 24, 1971 (36 FR 13804) relating to notices of proposed
rulemaking and public participation in rulemaking. Therefore, these
regulations are issued as final.
Executive Order 12866
The Office of Management and Budget (OMB) designated this final
rule as significant under Executive Order 12866 and, therefore, OMB
reviewed this rule. A cost benefit assessment of this rule is
summarized below and is available from the contact information listed
above.
Summary of Economic Impacts
The MILC program has paid about $2.5 billion to dairy operations
over the five initial years of operation. Annual expenditures during
the last two years of the program have totaled over $350 million in FY
2006 and $160 million in FY 2007. Expenditures during the period
authorized by the 2008 Farm Bill, are expected to be between $300 and
$400 million based on estimated milk prices during the period. Dairy
farm direct payments and Government expenditures will increase
commensurately. MILC program impact on milk prices will reduce benefits
to dairy farmers, which will result in consumers being able to buy
dairy products at lower prices than if the program was not operating.
Regulatory Flexibility Act
The Regulatory Flexibility Act is not applicable to this rule
because CCC is not required to publish a notice of proposed rulemaking
for this rule.
Environmental Review
The environmental impacts of this rule were considered in a manner
consistent with the provisions of the National Environmental Policy Act
(NEPA), 42 U.S.C. 4321-4347, the regulations of the Council on
Environmental Quality (40 CFR parts 1500-1508), and FSA regulations for
compliance with NEPA (7 CFR part 799). The substantive changes to the
MILC program, required by the 2008 Farm Bill that are identified in
this final rule are non-discretionary. Therefore, FSA has determined
that NEPA does not apply to this final rule and no environmental
assessment or environmental impact statement will be prepared.
Executive Order 12988
The final rule has been reviewed under Executive Order 12988. This
rule preempts State laws that are inconsistent with its provisions.
This rule is not retroactive as such, but does apply to marketings in a
period that precedes this rule. Before any judicial action may be
brought regarding this rule, all administrative remedies must be
exhausted.
Executive Order 12372
This program is not subject to Executive Order 12372, which
requires consultation with State and local officials. See the notice
related to 7 CFR part 3015, subpart V, published at 48 FR 29115 (June
24, 1983).
Executive Order 13132
The policies contained in this rule do not have any substantial
direct effect on States, on the relationship between the national
government and the States, or on the distribution of power and
responsibilities among the various levels of government. Nor does this
rule impose substantial direct compliance costs on State and local
governments. Therefore, consultation with the States is not required.
Unfunded Mandates
Title II of the Unfunded Mandates Reform Act of 1995 (UMRA) does
not apply to this rule because CCC is not
[[Page 73766]]
required to publish a notice of proposed rulemaking for this rule.
Further, this rule imposes no unfunded mandates, as defined in UMRA, on
any local, State, or tribal government or on the private sector.
Federal Assistance Programs
The title and number of the Federal assistance program in the
Catalog of Federal Domestic Assistance to which this final rule applies
is 10.051--Commodity Loans and Loan Deficiency Payments.
Paperwork Reduction Act
The regulations in this rule are exempt from requirements of the
Paperwork Reduction Act (44 U.S.C. Chapter 35), as specified in section
1601 of the 2008 Farm Bill, which provides that these regulations be
promulgated and administered without regard to the Paperwork Reduction
Act.
E-Government Act Compliance
CCC 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.
List of Subjects in 7 CFR Part 1430
Dairy products, Price support programs.
0
For the reasons discussed above, 7 CFR part 1430 is amended as set
forth below.
PART 1430--DAIRY PRODUCTS
0
1. Revise the authority citation to read as follows:
Authority: 7 U.S.C. 7981, 7982, and 8773; and 15 U.S.C. 714b and
714c.
Subpart A--Price Support Program for Milk
0
2. Amend Sec. 1430.2, paragraph (a)(2), by adding a sentence at the
end to read as follows:
Sec. 1430.2 Price support levels and purchase conditions.
(a) * * *
(2) * * * Purchases may only be made from eligible offerers which
must be the manufacturer of the product offered and must meet all other
conditions set by CCC.
* * * * *
Subpart B--Milk Income Loss Contract Program
0
3. Amend Sec. 1430.202 by removing the definitions for ``Fiscal
Year,'' and ``Transition Period,'' revising the definitions of ``Dairy
operation,'' ``Eligible production,'' ``Participating State,'' and
``United States,'' and adding the definition for ``Fiscal Year or FY''
to read as follows:
Sec. 1430.202 Definitions.
* * * * *
Dairy operation means any person or group of persons who as a
single unit as determined by CCC, produce and market milk commercially
produced from cows, and whose production facilities are located in the
United States. In administering this program, for purposes of
determining what is a ``dairy operation'' and its eligibility under
this program, those determinations will be made in the same manner as
was done for the Dairy Market Loss Assistance (DMLA) contracts in the
State in which the dairy is located. New MILC operations, which is to
say those operations that did not participate in the MILC program for
marketings prior to FY 2008, must be unaffiliated with any other DMLA
or MILC operations.
* * * * *
Eligible production means milk that was produced at a time relevant
to this program by cows in the United States and marketed commercially
by a producer in a participating State.
* * * * *
Fiscal Year or FY means the year beginning October 1 and ending the
following September 30. Fiscal years will be designated for this part
by year by reference to the calendar year in which it ends. For
example, FY 2009 is from October 1, 2008, through September 30, 2009
(inclusive).
* * * * *
Participating State means each of the 50 States in the United
States of America, the District of Columbia, and the Commonwealth of
Puerto Rico, or any other territory or possession of the United States.
* * * * *
United States means the 50 States of the United Sates of America,
the District of Columbia, and the Commonwealth of Puerto Rico, or any
other territory or possession of the United States.
* * * * *
0
4. Amend Sec. 1430.203 as follows:
0
a. In paragraphs (a) and (f) remove the words ``December 1, 2001,
through September 30, 2007'' and add, in their place, the words
``October 1, 2007, through September 30, 2012;''
0
b. Amend paragraph (f) by removing the period at the end and adding a
semicolon in its place; and
0
c. Revise paragraph (g) and add paragraphs (h) and (i) to read as
follows:
Sec. 1430.203 Eligibility.
* * * * *
(g) Meet all adjusted gross income eligibility requirements of part
1400 of this chapter as regards any person or entity seeking to receive
payment under this part. No person or entity may, generally, receive
any payment for FY 2009 marketings and subsequent marketings if their
nonfarm yearly income for the relevant base period for the relevant
marketings as determined under the adjusted gross income rules (as in
effect when the payment is sought) is over $500,000 as determined under
this subpart. Further, for entities an otherwise due payment will be
reduced commensurately to the extent that any person with an interest
in the entity, as determined under the adjusted gross income rules had
such income over that limit for the relevant period;
(h) Have submitted a contract during the applicable contract period
for FYs 2008 through 2012:
(1) Except for 2009, and subject to the start month provision of
Sec. 1430.205, must have for any fiscal year or month for which
payment is sought to be paid submitted the FY 2008 through 2012
contract before the end of that fiscal year or month or
(2) For FY 2008 payments, if payments are generated under this part
for that fiscal year, must have submitted a contract for the FY 2008
through 2012 program by October 1, 2009 and for FY 2009 the contract
must have been submitted by the month for which payment is first sought
except to the extent that Sec. 1430.205 explicitly permits the
operation to pick a start month in advance of the month in which the
contract is submitted; and
(i) Must not, if it did not participate in the preceding MILC
program for fiscal years prior to FY 2008, be affiliated with any other
dairy operation.
0
5. In Sec. 1430.205 revise paragraphs (a) through (d) and (g) to read
as follows:
Sec. 1430.205 Selection of starting month.
(a) A dairy operation that enters into a MILC contract with CCC
must designate the starting month for each fiscal year for the
calculation of payments and pound limits for the operation. Once a
start month is chosen for a fiscal year the corresponding month will be
the start month for each subsequent fiscal year unless changed by an
affirmative request in writing on a form approved by CCC. The
production start month must be selected on or before the 14th of the
month
[[Page 73767]]
before the month for which payment is sought. If such date falls on a
weekend, the start month selection must be made on the last business
day preceding the weekend. A dairy operation cannot select as the start
month for payment a month which:
(1) Has already begun, except as provided in paragraph (c)(1) of
this section;
(2) Has already passed; or
(3) During which no milk production was produced by the dairy
operation.
(b) For FY 2009, if the operation signs its FY 2008 through 2012
MILC contract within 30 days of the beginning of the application period
it can pick any preceding FY 2009 month as its start month for that
period or can use the normal rule of paragraph (c) of this section to
pick the start month.
(c) Except as provided in paragraph (b) of this section, the start
month for a fiscal year may only be
(1) For the fiscal year in which the contract is submitted, the
month the contract is submitted or
(2) For a fiscal year that has not yet begun, any month, provided
that a month may not be selected after the 14th of the preceding month.
(d) Dairy operations may change the production start month on or
before the 14th day of the month previously selected.
* * * * *
(g)(1) MILC production start month selections made during the
signup period designated by CCC may be made as provided in paragraph
(b) of this section, otherwise MILC production start month selections
must be made in accordance with paragraph (c) of this section. If a
payment rate is not in effect during the production start month
selected by the dairy operation, payments to the dairy operation will
be issued based on the next consecutive month with a payment rate in
effect following the MILC production start month selected by the dairy
operation. Production in months in which the pay formula does not
produce a payment will not count against the fiscal year's poundage
limit for the operation.
(2) Dairy operations with MILC production start months that begin
with the month a MILC contract is submitted to FSA or that begin with
the first month of the fiscal year with an effective payment rate will
receive payments made by CCC consecutively on a monthly basis, if
otherwise provided for in this part, until the earlier of the
following:
(i) The maximum payment quantity for the fiscal year or month is
reached as determined in accordance with Sec. 1430.207 or
(ii) The end of the applicable fiscal year.
* * * * *
0
6. Amend Sec. 1430.207 by revising paragraph (b) and by adding
paragraph (c) to read as follows:
Sec. 1430.207 Dairy operation payment quantity.
* * * * *
(b) The maximum quantity of eligible production for which dairy
operations, per separate and distinct operation, are eligible for
payment per fiscal year under this subpart will be:
(1) 2,400,000 pounds (24,000 cwt.) for FY 2008 (October 1, 2007,
through September 30, 2008);
(2) 2,985,000 pounds (29,850 cwt.) for FY 2009 (October 1, 2008
through September 30, 2009), FY 2010 (October 1, 2009, through
September 30, 2010), FY 2011 (October 1, 2010, through September 30,
2011) and FY 2012 (October 1, 2011, through September 30, 2012),
provided further an operation may receive payment for September, 2012,
marketings only if its pre-September FY 2012 marketings did not exceed
2,400,000 pounds in which case new marketings that would not put the
operation's FY 2012 marketings over 2,400,000 pounds will be eligible
for payments otherwise permitted in this rule.
(c) In accordance with these regulations, the Deputy Administrator
will determine what is a separate and distinct operation. That decision
will be final.
0
7. In Sec. 1430.208 revise paragraphs (b) through (e) and add
paragraph (f) to read as follows:
Sec. 1430.208 Payment rate and dairy operation payment.
* * * * *
(b) A per-hundredweight payment rate will be determined for the
applicable month by:
(1) Subtracting from $16.94 the Class I milk price per cwt. in
Boston;
(2) Multiplying the difference by 34 percent for marketings during
the period beginning on October 1, 2007, and ending on September 30,
2008;
(3) Multiplying the difference by 45 percent for marketings during
the period beginning on October 1, 2008, and ending on August 31, 2012;
and
(4) Multiplying the difference by 34 percent for marketings in
September 2012.
(c) The payment rate as calculated as specified in paragraph (b) of
this section, will be adjusted to compensate for feed prices when the
National Average Dairy Feed Ration Cost for a month is greater than the
levels set in paragraphs (c)(1) and (c)(2) of this section. The
National Average Dairy Feed Ration Cost per cwt. for each month will be
calculated using the same procedures used to calculate the feed
components of the estimated price of 16 percent Mixed Dairy Feed per
pound noted on page 33 of the USDA monthly Agricultural Prices
publication (including the data and factors noted in footnote 4). The
payment rate adjustment for Entire Month feed prices will be determined
by increasing $16.94 by the percentage that is 45 percent of the
percentage by which the National Average Dairy Feed Ration Cost exceeds
$7.35 per cwt. (except that $7.35 will be $9.50 for September 2012
marketings.)
(d) Each eligible dairy operation payment will be calculated, as
determined by the Secretary, by:
(1) Converting whole pounds of milk to hundredweight and
(2) Multiplying the payment rate determined in paragraphs (b) and
(c) of this section by the quantity of eligible production marketed by
the operation during the applicable month as determined according to
Sec. 1430.205 and other provisions of this subpart.
(3) Payments to dairy operations will be based on calculated
payment rates rounded seven places to the right of the decimal.
(e) Payments under this subpart may be made to a dairy operation
only up to the maximum production limitations set in Sec. 1430.207(b)
of eligible production per applicable fiscal year.
(f) Dairy operations receiving benefits under this subpart, will
receive earned payments on a monthly basis according to the MILC
contract, to the extent practicable, not later than 60 days after the
later of production evidence and all supporting documents for the
applicable month are received by CCC or the entire month National
Average Dairy Feed Ration Cost is made available by USDA, as
applicable. Payments issued by CCC more than 60 days after the later of
all production evidence and supporting documentation are received by
CCC or the entire month National Average Dairy Feed Ration Cost is made
available by USDA, whichever is later, will be subject to prompt
payment interest as allowed by law. However, CCC will endeavor where
possible to make payments within 60 days of the end of the marketing
month.
Sec. 1430.209 [Amended]
0
8. Amend Sec. 1430.209 in paragraph (a) by removing the words
``October 1, 2005, and ending September 30, 2007'' and adding in their
place the words ``October 1, 2007, and ending September 30, 2012.''
[[Page 73768]]
Sec. 1430.211 [Amended]
0
9. Amend Sec. 1430.211 in paragraph (a) by removing the words
``September 30, 2007'' and adding, in their place, the words
``September 30, 2012.''
0
10. Amend Sec. 1430.212 by revising the section heading and adding
paragraph (c) to read as follows:
Sec. 1430.212 Contract Modifications and Statutory Changes in
Program.
* * * * *
(c) Payments otherwise due under this subpart or the program will
be adjusted or denied to the extent provided for by a statutory change
in program eligibilities or requirements of any kind irrespective of
whether the program contract preceded the statutory change. Operations
will be given the option of accepting the changes or terminating the
contract.
0
11. Amend Sec. 1430.213 by revising paragraph (a) to read as follows:
Sec. 1430.213 Reconstitutions.
(a) A dairy operation receiving MILC benefits may reorganize or
restructure such that the constitution or makeup of its operation is
reconstituted in another organizational framework. However, any
operation that reorganizes or restructures after October 1, 2007, is
subject to a review by FSA to determine if the operation was
reorganized or restructured for the sole purpose of receiving multiple
or additional MILC payments.
* * * * *
Signed in Washington, DC, on December 1, 2008.
Teresa C. Lasseter,
Executive Vice President, Commodity Credit Corporation.
[FR Doc. E8-28710 Filed 12-1-08; 4:15 pm]
BILLING CODE 3410-05-P