Beef Promotion and Research; Reapportionment, 42012-42015 [2011-17885]
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Federal Register / Vol. 76, No. 137 / Monday, July 18, 2011 / Rules and Regulations
Pursuant to 5 U.S.C. 553, it also found
that good cause exists for not
postponing the effective date of this
action until one day after publication in
the Federal Register because the Board’s
term of office begins January 1, 2012,
and this rule will allow the upcoming
nominations and appointments to be
conducted in a timely manner for the
new members to be appointed to the
Board so they can begin serving during
the next term of office.
List of Subjects in 7 CFR Part 1210
(e) District 5—The State of California.
(f) District 6—The State of Texas.
(g) District 7—The States of Alaska,
Arkansas, Arizona, Colorado, Hawaii,
Idaho, Iowa, Kansas, Louisiana,
Minnesota, Mississippi, Missouri,
Montana, Nebraska, Nevada, New
Mexico, North Dakota, Oklahoma,
Oregon, South Dakota, Utah,
Washington, and Wyoming.
3. Section 1210.502 is added to read
as follows:
■
§ 1210.502
Importer members.
Administrative practice and
procedure, Advertising, Consumer
information, Marketing agreements,
Reporting and recordkeeping
requirements, Watermelon promotion.
For the reasons set forth in the
preamble, Part 1210, Chapter XI of Title
7 is amended as follows:
Pursuant to § 1210.320(d) of the Plan,
there are eight importer representatives
on the Board based on the proportionate
percentage of assessments paid by
importers to the Board.
PART 1210—WATERMELON
RESEARCH AND PROMOTION PLAN
[FR Doc. 2011–17882 Filed 7–15–11; 8:45 am]
Dated: July 12, 2011.
Rayne Pegg,
Administrator.
BILLING CODE P
1. The authority citation for 7 CFR
Part 1210 continues to read as follows:
DEPARTMENT OF AGRICULTURE
Authority: 7 U.S.C. 4901–4916 and 7
U.S.C. 7401.
Agricultural Marketing Service
Subpart C—Rules and Regulations
7 CFR Part 1260
■
2. Section 1210.501 is revised to read
as follows:
■
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§ 1210.501
Realignment of districts.
Pursuant to § 1210.320(c) of the Plan,
the districts shall be as follows:
(a) District 1—The Florida counties of
Brevard, Broward, Charlotte, Collier,
Dade, Desoto, Glades, Hardee, Hendry,
Highlands, Hillsborough, Indian River,
Lake, Lee, Manatee, Martin, Monroe,
Okeechobee, Orange, Osceola, Palm
Beach, Pasco, Pinellas, Polk, Sarasota,
Seminole, St. Lucie, and Volusia.
(b) District 2—The Florida counties of
Alachua, Baker, Bay, Bradford, Calhoun,
Citrus, Clay, Columbia, Dixie, Duval,
Escambia, Flagler, Franklin, Gadsden,
Gilchrist, Gulf, Hamilton, Hernando,
Holmes, Jackson, Jefferson, Lafayette,
Leon, Levy, Liberty, Madison, Marion,
Nassau, Okaloosa, Putnam, Santa Rosa,
St. Johns, Sumter, Suwannee, Taylor,
Union, Wakulla, Walton, and
Washington, and the States of North
Carolina and South Carolina.
(c) District 3—The State of Georgia.
(d) District 4—The States of Alabama,
Connecticut, Delaware, Illinois, Indiana,
Kentucky, Maine, Maryland,
Massachusetts, Michigan, New
Hampshire, New Jersey, New York,
Ohio, Pennsylvania, Rhode Island,
Tennessee, Virginia, Vermont,
Wisconsin, West Virginia, and
Washington, DC.
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[No. AMS–LS–10–0086]
Beef Promotion and Research;
Reapportionment
Agricultural Marketing Service,
USDA.
ACTION: Final rule.
AGENCY:
This final rule adjusts
representation on the Cattlemen’s Beef
Promotion and Research Board (Board),
established under the Beef Promotion
and Research Act of 1985 (Act), to
reflect changes in cattle inventories and
cattle and beef imports that have
occurred since the most recent Board
reapportionment rule became effective
in October 2008. These adjustments are
required by the Beef Promotion and
Research Order (Order) and will result
in a decrease in Board membership from
106 to 103, effective with the U.S.
Department of Agriculture’s (USDA)
appointments for terms beginning early
in the year 2012.
DATES: Effective July 19, 2011.
FOR FURTHER INFORMATION CONTACT:
Craig Shackelford, Marketing Programs
Branch, on 202/720–1115, fax 202/720–
1125, or by e-mail at
craig.shackelford@ams.usda.gov.
SUPPLEMENTARY INFORMATION:
SUMMARY:
Executive Order 12866
The Office of Management and Budget
has waived the review process required
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by Executive Order 12866 for this
action.
Executive Order 12988
This rule has been reviewed under
Executive Order 12988, Civil Justice
Reform. It is not intended to have
retroactive effect.
Section 11 of the Act provides that
nothing in the Act may be construed to
preempt or supersede any other program
relating to beef promotion organized
and operated under the laws of the
United States or any State. There are no
administrative proceedings that must be
exhausted prior to any judicial
challenge to the provisions of this rule.
Regulatory Flexibility Act and
Paperwork Reduction Act
Pursuant to the requirements set forth
in the Regulatory Flexibility Act
(RFA)(5 U.S.C. 601–612), the
Administrator of the Agricultural
Marketing Service (AMS) has
considered the economic effect of this
action on small entities and has
determined that this final rule will not
have a significant economic impact on
a substantial number of small entities.
The purpose of RFA is to fit regulatory
actions to the scale of businesses subject
to such actions in order that small
businesses will not be unduly burdened.
In the February 2010 publication of
‘‘Farms, Land in Farms, and Livestock
Operations,’’ USDA’s National
Agricultural Statistics Service (NASS)
estimates that in 2009 the number of
operations in the United States with
cattle totaled approximately 950,000.
The majority of these operations that are
subject to the Order may be classified as
small entities.
The final rule imposes no new burden
on the industry. It only adjusts
representation on the Board to reflect
changes in domestic cattle inventory
and cattle and beef imports. The
adjustments are required by the Order
and will result in a decrease in Board
membership from 106 to 103.
Background and Final Action
The Board was initially appointed
August 4, 1986, pursuant to the
provisions of the Act (7 U.S.C. 2901–
2911) and the Order issued thereunder.
Domestic representation on the Board is
based on cattle inventory numbers, and
importer representation is based on the
conversion of the volume of imported
cattle, beef, or beef products into live
animal equivalencies.
Section 1260.141(b) of the Order
provides that the Board shall be
composed of cattle producers and
importers appointed by the Secretary of
Agriculture (Secretary) from
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Federal Register / Vol. 76, No. 137 / Monday, July 18, 2011 / Rules and Regulations
nominations submitted by certified
producer organizations. A producer may
only be nominated to represent the unit
in which that producer is a resident.
Section 1260.141(c) of the Order
provides that at least every 3 years and
not more than every 2 years, the Board
shall review the geographic distribution
of cattle inventories throughout the
United States and the volume of
imported cattle, beef, and beef products
and, if warranted, shall reapportion
units and/or modify the number of
Board members from units in order to
reflect the geographic distribution of
cattle production volume in the United
States and the volume of cattle, beef, or
beef products imported into the United
States.
Section 1260.141(d) of the Order
authorizes the Board to recommend to
USDA modifications to the number of
cattle per unit necessary for
representation on the Board.
Section 1260.141(e)(1) provides that
each geographic unit or State that
includes a total cattle inventory equal to
or greater than 500,000 head of cattle
shall be entitled to one representative
on the Board. Section 1260.141(e)(2)
provides that States that do not have
total cattle inventories equal to or
greater than 500,000 head shall be
grouped, to the extent practicable, into
geographically-contiguous units, each of
which have a combined total inventory
of not less than 500,000 head. Such
grouped units are entitled to at least one
representative on the Board. Each unit
that has an additional 1 million head of
cattle within a unit qualifies for
additional representation on the Board
as provided in § 1260.141(e)(4). As
provided in § 1260.141(e)(3), importers
are represented by a single unit, with
the number of Board members based on
a conversion of the total volume of
imported cattle, beef, or beef products
into live animal equivalencies.
The initial Board appointed in 1986
was composed of 113 members.
Reapportionment, based on a 3-year
average of cattle inventory numbers and
import data, reduced the Board to 111
members in 1990 and 107 members in
1993 before the Board was increased to
111 members in 1996. The Board was
decreased to 110 members in 1999, 108
members in 2001, 104 members in 2005,
and increased to 106 members in 2009.
This final rule will decrease the number
of Board members from 106 to 103 with
appointments for terms effective early in
2012.
The current Board representation by
States or units was based on an average
of the January 1, 2005, 2006, and 2007,
inventory of cattle in the various States
as reported by NASS. Current importer
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representation was based on a combined
total average of the 2005, 2006, and
2007 live cattle imports as published by
USDA’s Foreign Agricultural Service
and the average of the 2004, 2005, and
2006 live animal equivalents for
imported beef products.
In considering reapportionment, the
Board reviewed cattle inventories as
well as cattle, beef, and beef product
import data for the period of January 1,
2008, to January 1, 2010. The Board
recommended that a 3-year average of
cattle inventories and import numbers
should be continued. The Board
determined that an average of the
January 1, 2008, 2009, and 2010, cattle
inventory numbers would best reflect
the number of cattle in each State or
unit since publication of the last
reapportionment rule published in 2008
(73 FR 60097).
The Board recommended the use of a
combined total of the average of the
2008, 2009, and 2010, cattle import data
and the average of the 2007, 2008, and
2009, live animal equivalents for
imported beef products. The method
used to calculate the total number of
live animal equivalents was the same as
that used in the previous
reapportionment of the Board. The live
animal equivalent weight was changed
in 2006 from 509 pounds to 592 pounds.
The final rule decreases the number of
representatives on the Board from 106 to
103. Kansas, Nebraska, Nevada, and the
Southeast Region will each lose one
Board seat. Montana will gain a Board
seat. The importers will lose two Board
seats. The Southeast Region will be
expanded to include Alabama,
permitting the new unit three Board
members. California and Nevada will be
combined to form a Southwest unit.
The States and units affected by the
reapportionment plan and the current
and revised member representation per
unit are as follows:
42013
membership. Comments were due to
USDA by May 4, 2011.
USDA received five comments
concerning the proposed rule for Board
reapportionment. One commenter raised
a number of points regarding the Board
and the beef industry as a whole that are
not pertinent to the proposal and
therefore are not addressed. The
commenter also suggested that the
membership of the Board be limited to
one member per State and that
importers should not have members on
the Board. Section 5 of the Act and
section 1260.141 of the Order contain
provisions that determine the structure
of the Board based on cattle inventory.
Therefore, USDA has not adopted this
suggestion.
One commenter suggested that
Checkoff collections would be a more
appropriate value to use for
apportioning Board seats and that Board
seats could be determined by each
State’s total checkoff collections, less
the amount returned to other States
under the existing State-of-origin rules.
Section 5 of the Act and Section
1260.141 of the Order contain
provisions that determine the structure
of the Board based on cattle inventory.
Therefore, USDA has not adopted this
suggestion.
One commenter offered support for
the proposed rule but also suggested
that USDA go further and ensure that
Board representation reflect the
diversity of interests of all ranchers,
representing all sizes and make-ups of
operations, and include representation
from a multitude of organizations at
both the State and national level as well
as non-affiliated ranchers. Section 5 of
the Act and Section 1260.141 of the
Order contain provisions that determine
the structure of the Board based on
cattle inventory. Therefore, USDA has
not adopted this suggestion. However,
the Secretary of Agriculture remains
committed to ensuring that the Board
reflects diversity in the size of
Current
Revised
State/unit
representation representation operations, experience of members,
methods of production and distribution,
Alabama ....
1
0
marketing strategies, and other
Kansas ......
7
6
Nebraska ..
7
6 distinguishing factors that will bring
Nevada .....
1
0 different perspectives and ideas to the
California ...
5
0 table. This communication has been
13
Southeast ..
3
distributed to all organizations that
Importers ...
9
7 nominate members to the Board.
Montana ....
2
3
Two commenters stated their
Southwest
preference that California and Nevada
26
Unit ........
N/A
not be combined, but understood that
1Lost one seat but added a seat with Alasection 1260.141 of the Order provides
bama joining the unit.
for the action. The commenters further
2 California and Nevada.
suggested that the Southwest Unit be
On April 4, 2011, USDA published in dissolved when Nevada cattle numbers
the Federal Register (76 FR 18422) for
increase to appropriate levels. Section
public comment a proposed rule
1260.141 of the Order provides that at
providing for the adjustment in Board
least every 3 years and not more than
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Federal Register / Vol. 76, No. 137 / Monday, July 18, 2011 / Rules and Regulations
every 2 years, the Board shall review the
geographic distribution of cattle
inventories throughout the United
States and the volume of imported
cattle, beef, and beef products and, if
warranted, shall reapportion units and/
or modify the number of Board members
from units in order to reflect the
geographic distribution of cattle
production volume in the United States
and the volume of cattle, beef, or beef
products imported into the United
States. This comment is consistent with
the provisions of the Order and will be
considered in future proposals. The
commenters also made a number of
suggestions regarding the nomination of
members within the proposed
Southwest Unit. These suggestions are
beyond the scope of the proposed rule
and are not considered in the final rule.
It is found that good cause exists to
make this rule effective less than 30
days after the date of publication in the
Federal Register because this rule
should be in effect as soon as possible
for the Board appointments that will be
effective early in the year 2012.
List of Subjects in 7 CFR Part 1260
Administrative practice and
procedure, Advertising, Agricultural
research, Imports, Marketing agreement,
Meat and meat products, Reporting and
recordkeeping requirements.
For reasons set forth in the preamble,
7 CFR part 1260 is amended as follows:
PART 1260—BEEF PROMOTION AND
RESEARCH
1. The authority citation for 7 CFR
part 1260 continues to read as follows:
■
Authority: 7 U.S.C. 2901–2911 and 7
U.S.C. 7401.
2. In § 1260.141, paragraph (a) and the
table immediately following it, are
revised to read as follows:
■
§ 1260.141
Membership of Board.
(a) Beginning with the 2011 Board
nominations and the associated
appointments effective early in the year
2012, the United States shall be divided
into 37 geographical units and, 1 unit
representing importers, for a total of 38
units. The number of Board members
from each unit shall be as follows:
CATTLE AND CALVES 1
1,000 head
Directors
1. Arizona .........................................................................................................................................................................
2. Arkansas ......................................................................................................................................................................
3. Colorado ......................................................................................................................................................................
4. Florida ..........................................................................................................................................................................
5. Idaho ............................................................................................................................................................................
6. Illinois ...........................................................................................................................................................................
7. Indiana .........................................................................................................................................................................
8. Iowa .............................................................................................................................................................................
9. Kansas .........................................................................................................................................................................
10. Kentucky ....................................................................................................................................................................
11. Louisiana ...................................................................................................................................................................
12. Michigan ....................................................................................................................................................................
13. Minnesota ..................................................................................................................................................................
14. Mississippi .................................................................................................................................................................
15. Missouri .....................................................................................................................................................................
16. Montana .....................................................................................................................................................................
17. Nebraska ...................................................................................................................................................................
18. New Mexico ...............................................................................................................................................................
19. New York ...................................................................................................................................................................
20. North Carolina ...........................................................................................................................................................
21. North Dakota .............................................................................................................................................................
22. Ohio ...........................................................................................................................................................................
23. Oklahoma ..................................................................................................................................................................
24. Oregon .......................................................................................................................................................................
25. Pennsylvania .............................................................................................................................................................
26. South Dakota .............................................................................................................................................................
27. Tennessee .................................................................................................................................................................
28. Texas .........................................................................................................................................................................
29. Utah ...........................................................................................................................................................................
30. Virginia .......................................................................................................................................................................
31. Wisconsin ..................................................................................................................................................................
32. Wyoming ....................................................................................................................................................................
33. Northwest ...................................................................................................................................................................
Alaska .......................................................................................................................................................................
Hawaii .......................................................................................................................................................................
Washington ...............................................................................................................................................................
983
1,837
2,650
1,710
2,153
1,200
873
3,933
6,317
2,333
873
1,080
2,407
957
4,217
2,583
6,350
1,540
1,410
833
1,763
1,270
5,417
1,290
1,607
3,733
2,040
13,500
820
1,530
3,367
1,327
....................
15
151
1,070
1
2
3
2
2
1
1
4
6
2
1
1
2
1
4
3
6
2
1
1
2
1
5
1
2
4
2
14
1
2
3
1
1
....................
....................
....................
Total ...................................................................................................................................................................
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State/unit
1,236
....................
34. Northeast ...................................................................................................................................................................
Connecticut ...............................................................................................................................................................
Delaware ...................................................................................................................................................................
Maine ........................................................................................................................................................................
Massachusetts ..........................................................................................................................................................
New Hampshire ........................................................................................................................................................
New Jersey ...............................................................................................................................................................
Rhode Island ............................................................................................................................................................
Vermont ....................................................................................................................................................................
....................
50
21
88
44
38
37
5
267
1
....................
....................
....................
....................
....................
....................
....................
....................
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CATTLE AND CALVES 1—Continued
State/unit
1,000 head
Directors
Total ...................................................................................................................................................................
550
....................
35. Mid-Atlantic ................................................................................................................................................................
Maryland ...................................................................................................................................................................
West Virginia ............................................................................................................................................................
....................
192
400
1
....................
....................
Total ...................................................................................................................................................................
592
....................
36. Southeast ...................................................................................................................................................................
Alabama ....................................................................................................................................................................
Georgia .....................................................................................................................................................................
South Carolina ..........................................................................................................................................................
....................
1,253
1,100
385
3
....................
....................
....................
Total ...................................................................................................................................................................
2,738
....................
37. Southwest ..................................................................................................................................................................
California ...................................................................................................................................................................
Nevada .....................................................................................................................................................................
....................
5,283
450
6
....................
....................
Total ...................................................................................................................................................................
5,733
....................
38. Importer 2 ...................................................................................................................................................................
6,887
7
1 2008,
2 2007,
*
2009, and 2010 average of January 1 cattle inventory data.
2008, and 2009 average of annual import data.
*
*
*
Dodd-Frank Act’s repeal of Section
19(i). The final rule also repeals the
Board’s published interpretation of
Regulation Q and removes references to
Regulation Q found in the Board’s other
regulations, interpretations, and
commentary.
*
Dated: July 12, 2011.
Rayne Pegg,
Administrator, Agricultural Marketing
Service.
[FR Doc. 2011–17885 Filed 7–15–11; 8:45 am]
BILLING CODE P
DATES:
Effective Date: July 21, 2011.
as it may deem necessary to effectuate
the purposes of this section and prevent
evasions thereof. * * *’’ The Board
promulgated Regulation Q on August
29, 1933 to implement Section 19(i) of
the Act. Section 627 of the Dodd-Frank
Act repeals Section 19(i) of the Act in
its entirety, effective July 21, 2011.
FOR FURTHER INFORMATION CONTACT:
12 CFR Parts 204, 217, and 230
Regulations D, Q, and DD
[Docket No. R–1413]
RIN 7100–AD 72
Prohibition Against Payment of
Interest on Demand Deposits
The Board is publishing a
final rule repealing Regulation Q,
Prohibition Against Payment of Interest
on Demand Deposits, effective July 21,
2011. Regulation Q was promulgated to
implement the statutory prohibition
against payment of interest on demand
deposits by institutions that are member
banks of the Federal Reserve System set
forth in Section 19(i) of the Federal
Reserve Act (‘‘Act’’). Section 627 of the
Dodd-Frank Wall Street Reform and
Consumer Protection Act (‘‘Dodd-Frank
Act’’) repeals Section 19(i) of the
Federal Reserve Act effective July 21,
2011. The final rule implements the
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On April 14, 2011, the Board
published in the Federal Register a
request for comment on its proposal to
repeal Regulation Q effective July 21,
2011 (76 FR 20892, Apr. 14, 2011). In
its request for comment, the Board also
sought comment on all aspects of the
proposal, and also sought comment on
four specific issues related to the
proposal:
1. Does the repeal of Regulation Q
have significant implications for the
balance sheets and income of depository
institutions? What are the anticipated
effects on bank profits, on the allocation
of deposit liabilities among product
offerings, and on the rates offered and
fees assessed on demand deposits,
sweep accounts, and compensating
balance arrangements?
2. Does the repeal of Regulation Q
have any implications for short-term
funding markets such as the overnight
federal funds market and Eurodollar
markets, or for institutions such as
institution-only money market mutual
funds that are active investors in shortterm funding markets?
3. Is the repeal of Regulation Q likely
to result in strong demand for interestbearing demand deposits?
I. Prohibition Against Payment of
Interest on Demand Deposits
Board of Governors of the
Federal Reserve System (Board)
ACTION: Final rule.
AGENCY:
SUMMARY:
II. Request for Public Comment
Sophia H. Allison, Senior Counsel (202/
452–3565), Legal Division, or Joshua S.
Louria, Financial Analyst (202/263–
4885), Division of Monetary Affairs; for
users of Telecommunications Device for
the Deaf (TDD) only, contact (202/263–
4869); Board of Governors of the Federal
Reserve System, 20th and C Streets,
NW., Washington, DC 20551.
SUPPLEMENTARY INFORMATION:
FEDERAL RESERVE SYSTEM
Section 19(i) of the Federal Reserve
Act (‘‘Act’’) (12 U.S.C. 371a) generally
provides that no member bank ‘‘shall,
directly or indirectly, by any device
whatsoever, pay any interest on any
deposit which is payable on demand.
* * *’’ Section 19(i) was added to the
Act by Section 11 of the Banking Act of
1933 (48 Stat. 162, 181). Section 324 of
the Banking Act of 1935 (49 Stat. 684,
714) amended Section 19(a) of the Act
to authorize the Board, ‘‘for the
purposes of this section, to define the
terms ‘demand deposits’, ‘gross demand
deposits,’ ‘deposits payable on demand’
[and] to determine what shall be
deemed to be a payment of interest, and
to prescribe such rules and regulations
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]]>Agencies
[Federal Register Volume 76, Number 137 (Monday, July 18, 2011)]
[Rules and Regulations]
[Pages 42012-42015]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-17885]
-----------------------------------------------------------------------
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 1260
[No. AMS-LS-10-0086]
Beef Promotion and Research; Reapportionment
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: This final rule adjusts representation on the Cattlemen's Beef
Promotion and Research Board (Board), established under the Beef
Promotion and Research Act of 1985 (Act), to reflect changes in cattle
inventories and cattle and beef imports that have occurred since the
most recent Board reapportionment rule became effective in October
2008. These adjustments are required by the Beef Promotion and Research
Order (Order) and will result in a decrease in Board membership from
106 to 103, effective with the U.S. Department of Agriculture's (USDA)
appointments for terms beginning early in the year 2012.
DATES: Effective July 19, 2011.
FOR FURTHER INFORMATION CONTACT: Craig Shackelford, Marketing Programs
Branch, on 202/720-1115, fax 202/720-1125, or by e-mail at
craig.shackelford@ams.usda.gov.
SUPPLEMENTARY INFORMATION:
Executive Order 12866
The Office of Management and Budget has waived the review process
required by Executive Order 12866 for this action.
Executive Order 12988
This rule has been reviewed under Executive Order 12988, Civil
Justice Reform. It is not intended to have retroactive effect.
Section 11 of the Act provides that nothing in the Act may be
construed to preempt or supersede any other program relating to beef
promotion organized and operated under the laws of the United States or
any State. There are no administrative proceedings that must be
exhausted prior to any judicial challenge to the provisions of this
rule.
Regulatory Flexibility Act and Paperwork Reduction Act
Pursuant to the requirements set forth in the Regulatory
Flexibility Act (RFA)(5 U.S.C. 601-612), the Administrator of the
Agricultural Marketing Service (AMS) has considered the economic effect
of this action on small entities and has determined that this final
rule will not have a significant economic impact on a substantial
number of small entities. The purpose of RFA is to fit regulatory
actions to the scale of businesses subject to such actions in order
that small businesses will not be unduly burdened.
In the February 2010 publication of ``Farms, Land in Farms, and
Livestock Operations,'' USDA's National Agricultural Statistics Service
(NASS) estimates that in 2009 the number of operations in the United
States with cattle totaled approximately 950,000. The majority of these
operations that are subject to the Order may be classified as small
entities.
The final rule imposes no new burden on the industry. It only
adjusts representation on the Board to reflect changes in domestic
cattle inventory and cattle and beef imports. The adjustments are
required by the Order and will result in a decrease in Board membership
from 106 to 103.
Background and Final Action
The Board was initially appointed August 4, 1986, pursuant to the
provisions of the Act (7 U.S.C. 2901-2911) and the Order issued
thereunder. Domestic representation on the Board is based on cattle
inventory numbers, and importer representation is based on the
conversion of the volume of imported cattle, beef, or beef products
into live animal equivalencies.
Section 1260.141(b) of the Order provides that the Board shall be
composed of cattle producers and importers appointed by the Secretary
of Agriculture (Secretary) from
[[Page 42013]]
nominations submitted by certified producer organizations. A producer
may only be nominated to represent the unit in which that producer is a
resident.
Section 1260.141(c) of the Order provides that at least every 3
years and not more than every 2 years, the Board shall review the
geographic distribution of cattle inventories throughout the United
States and the volume of imported cattle, beef, and beef products and,
if warranted, shall reapportion units and/or modify the number of Board
members from units in order to reflect the geographic distribution of
cattle production volume in the United States and the volume of cattle,
beef, or beef products imported into the United States.
Section 1260.141(d) of the Order authorizes the Board to recommend
to USDA modifications to the number of cattle per unit necessary for
representation on the Board.
Section 1260.141(e)(1) provides that each geographic unit or State
that includes a total cattle inventory equal to or greater than 500,000
head of cattle shall be entitled to one representative on the Board.
Section 1260.141(e)(2) provides that States that do not have total
cattle inventories equal to or greater than 500,000 head shall be
grouped, to the extent practicable, into geographically-contiguous
units, each of which have a combined total inventory of not less than
500,000 head. Such grouped units are entitled to at least one
representative on the Board. Each unit that has an additional 1 million
head of cattle within a unit qualifies for additional representation on
the Board as provided in Sec. 1260.141(e)(4). As provided in Sec.
1260.141(e)(3), importers are represented by a single unit, with the
number of Board members based on a conversion of the total volume of
imported cattle, beef, or beef products into live animal equivalencies.
The initial Board appointed in 1986 was composed of 113 members.
Reapportionment, based on a 3-year average of cattle inventory numbers
and import data, reduced the Board to 111 members in 1990 and 107
members in 1993 before the Board was increased to 111 members in 1996.
The Board was decreased to 110 members in 1999, 108 members in 2001,
104 members in 2005, and increased to 106 members in 2009. This final
rule will decrease the number of Board members from 106 to 103 with
appointments for terms effective early in 2012.
The current Board representation by States or units was based on an
average of the January 1, 2005, 2006, and 2007, inventory of cattle in
the various States as reported by NASS. Current importer representation
was based on a combined total average of the 2005, 2006, and 2007 live
cattle imports as published by USDA's Foreign Agricultural Service and
the average of the 2004, 2005, and 2006 live animal equivalents for
imported beef products.
In considering reapportionment, the Board reviewed cattle
inventories as well as cattle, beef, and beef product import data for
the period of January 1, 2008, to January 1, 2010. The Board
recommended that a 3-year average of cattle inventories and import
numbers should be continued. The Board determined that an average of
the January 1, 2008, 2009, and 2010, cattle inventory numbers would
best reflect the number of cattle in each State or unit since
publication of the last reapportionment rule published in 2008 (73 FR
60097).
The Board recommended the use of a combined total of the average of
the 2008, 2009, and 2010, cattle import data and the average of the
2007, 2008, and 2009, live animal equivalents for imported beef
products. The method used to calculate the total number of live animal
equivalents was the same as that used in the previous reapportionment
of the Board. The live animal equivalent weight was changed in 2006
from 509 pounds to 592 pounds.
The final rule decreases the number of representatives on the Board
from 106 to 103. Kansas, Nebraska, Nevada, and the Southeast Region
will each lose one Board seat. Montana will gain a Board seat. The
importers will lose two Board seats. The Southeast Region will be
expanded to include Alabama, permitting the new unit three Board
members. California and Nevada will be combined to form a Southwest
unit.
The States and units affected by the reapportionment plan and the
current and revised member representation per unit are as follows:
------------------------------------------------------------------------
Current Revised
State/unit representation representation
------------------------------------------------------------------------
Alabama................................. 1 0
Kansas.................................. 7 6
Nebraska................................ 7 6
Nevada.................................. 1 0
California.............................. 5 0
Southeast............................... 3 \1\ 3
Importers............................... 9 7
Montana................................. 2 3
Southwest Unit.......................... N/A \2\ 6
------------------------------------------------------------------------
\1\Lost one seat but added a seat with Alabama joining the unit.
\2\ California and Nevada.
On April 4, 2011, USDA published in the Federal Register (76 FR
18422) for public comment a proposed rule providing for the adjustment
in Board membership. Comments were due to USDA by May 4, 2011.
USDA received five comments concerning the proposed rule for Board
reapportionment. One commenter raised a number of points regarding the
Board and the beef industry as a whole that are not pertinent to the
proposal and therefore are not addressed. The commenter also suggested
that the membership of the Board be limited to one member per State and
that importers should not have members on the Board. Section 5 of the
Act and section 1260.141 of the Order contain provisions that determine
the structure of the Board based on cattle inventory. Therefore, USDA
has not adopted this suggestion.
One commenter suggested that Checkoff collections would be a more
appropriate value to use for apportioning Board seats and that Board
seats could be determined by each State's total checkoff collections,
less the amount returned to other States under the existing State-of-
origin rules. Section 5 of the Act and Section 1260.141 of the Order
contain provisions that determine the structure of the Board based on
cattle inventory. Therefore, USDA has not adopted this suggestion.
One commenter offered support for the proposed rule but also
suggested that USDA go further and ensure that Board representation
reflect the diversity of interests of all ranchers, representing all
sizes and make-ups of operations, and include representation from a
multitude of organizations at both the State and national level as well
as non-affiliated ranchers. Section 5 of the Act and Section 1260.141
of the Order contain provisions that determine the structure of the
Board based on cattle inventory. Therefore, USDA has not adopted this
suggestion. However, the Secretary of Agriculture remains committed to
ensuring that the Board reflects diversity in the size of operations,
experience of members, methods of production and distribution,
marketing strategies, and other distinguishing factors that will bring
different perspectives and ideas to the table. This communication has
been distributed to all organizations that nominate members to the
Board.
Two commenters stated their preference that California and Nevada
not be combined, but understood that section 1260.141 of the Order
provides for the action. The commenters further suggested that the
Southwest Unit be dissolved when Nevada cattle numbers increase to
appropriate levels. Section 1260.141 of the Order provides that at
least every 3 years and not more than
[[Page 42014]]
every 2 years, the Board shall review the geographic distribution of
cattle inventories throughout the United States and the volume of
imported cattle, beef, and beef products and, if warranted, shall
reapportion units and/or modify the number of Board members from units
in order to reflect the geographic distribution of cattle production
volume in the United States and the volume of cattle, beef, or beef
products imported into the United States. This comment is consistent
with the provisions of the Order and will be considered in future
proposals. The commenters also made a number of suggestions regarding
the nomination of members within the proposed Southwest Unit. These
suggestions are beyond the scope of the proposed rule and are not
considered in the final rule.
It is found that good cause exists to make this rule effective less
than 30 days after the date of publication in the Federal Register
because this rule should be in effect as soon as possible for the Board
appointments that will be effective early in the year 2012.
List of Subjects in 7 CFR Part 1260
Administrative practice and procedure, Advertising, Agricultural
research, Imports, Marketing agreement, Meat and meat products,
Reporting and recordkeeping requirements.
For reasons set forth in the preamble, 7 CFR part 1260 is amended
as follows:
PART 1260--BEEF PROMOTION AND RESEARCH
0
1. The authority citation for 7 CFR part 1260 continues to read as
follows:
Authority: 7 U.S.C. 2901-2911 and 7 U.S.C. 7401.
0
2. In Sec. 1260.141, paragraph (a) and the table immediately following
it, are revised to read as follows:
Sec. 1260.141 Membership of Board.
(a) Beginning with the 2011 Board nominations and the associated
appointments effective early in the year 2012, the United States shall
be divided into 37 geographical units and, 1 unit representing
importers, for a total of 38 units. The number of Board members from
each unit shall be as follows:
Cattle and Calves \1\
------------------------------------------------------------------------
State/unit 1,000 head Directors
------------------------------------------------------------------------
1. Arizona.................................... 983 1
2. Arkansas................................... 1,837 2
3. Colorado................................... 2,650 3
4. Florida.................................... 1,710 2
5. Idaho...................................... 2,153 2
6. Illinois................................... 1,200 1
7. Indiana.................................... 873 1
8. Iowa....................................... 3,933 4
9. Kansas..................................... 6,317 6
10. Kentucky.................................. 2,333 2
11. Louisiana................................. 873 1
12. Michigan.................................. 1,080 1
13. Minnesota................................. 2,407 2
14. Mississippi............................... 957 1
15. Missouri.................................. 4,217 4
16. Montana................................... 2,583 3
17. Nebraska.................................. 6,350 6
18. New Mexico................................ 1,540 2
19. New York.................................. 1,410 1
20. North Carolina............................ 833 1
21. North Dakota.............................. 1,763 2
22. Ohio...................................... 1,270 1
23. Oklahoma.................................. 5,417 5
24. Oregon.................................... 1,290 1
25. Pennsylvania.............................. 1,607 2
26. South Dakota.............................. 3,733 4
27. Tennessee................................. 2,040 2
28. Texas..................................... 13,500 14
29. Utah...................................... 820 1
30. Virginia.................................. 1,530 2
31. Wisconsin................................. 3,367 3
32. Wyoming................................... 1,327 1
33. Northwest................................. ........... 1
Alaska.................................... 15 ...........
Hawaii.................................... 151 ...........
Washington................................ 1,070 ...........
-------------------------
Total................................. 1,236 ...........
=========================
34. Northeast................................. ........... 1
Connecticut............................... 50 ...........
Delaware.................................. 21 ...........
Maine..................................... 88 ...........
Massachusetts............................. 44 ...........
New Hampshire............................. 38 ...........
New Jersey................................ 37 ...........
Rhode Island.............................. 5 ...........
Vermont................................... 267 ...........
-------------------------
[[Page 42015]]
Total................................. 550 ...........
=========================
35. Mid-Atlantic.............................. ........... 1
Maryland.................................. 192 ...........
West Virginia............................. 400 ...........
-------------------------
Total................................. 592 ...........
=========================
36. Southeast................................. ........... 3
Alabama................................... 1,253 ...........
Georgia................................... 1,100 ...........
South Carolina............................ 385 ...........
-------------------------
Total................................. 2,738 ...........
=========================
37. Southwest................................. ........... 6
California................................ 5,283 ...........
Nevada.................................... 450 ...........
-------------------------
Total................................. 5,733 ...........
=========================
38. Importer \2\.............................. 6,887 7
------------------------------------------------------------------------
\1\ 2008, 2009, and 2010 average of January 1 cattle inventory data.
\2\ 2007, 2008, and 2009 average of annual import data.
* * * * *
Dated: July 12, 2011.
Rayne Pegg,
Administrator, Agricultural Marketing Service.
[FR Doc. 2011-17885 Filed 7-15-11; 8:45 am]
BILLING CODE P
