Federal Milk Marketing Orders; Section 610 Review, 7549-7550 [2015-02902]

Agencies

• Agricultural Marketing Service
• DEPARTMENT OF AGRICULTURE

[Federal Register Volume 80, Number 28 (Wednesday, February 11, 2015)]
[Proposed Rules]
[Pages 7549-7550]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2015-02902]


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Proposed Rules
                                                Federal Register
________________________________________________________________________

This section of the FEDERAL REGISTER contains notices to the public of 
the proposed issuance of rules and regulations. The purpose of these 
notices is to give interested persons an opportunity to participate in 
the rule making prior to the adoption of the final rules.

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Federal Register / Vol. 80, No. 28 / Wednesday, February 11, 2015 / 
Proposed Rules

[[Page 7549]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Parts 1000, 1001, 1005, 1006, 1007, 1030, 1032, 1033, 1124, 
1126 and 1131

[Doc. No. AMS-DA-09-0065; DA-09-04]


Federal Milk Marketing Orders; Section 610 Review

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Notice of regulatory review and request for comments.

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SUMMARY: This notice announces the Agricultural Marketing Service's 
(AMS) review of the Federal Milk Marketing Orders using the criteria 
contained in section 610 of the Regulatory Flexibility Act (RFA), as 
amended.

DATES: Written comments on this notice must be received by April 13, 
2015.

ADDRESSES: Interested persons are invited to submit comments concerning 
this notice of review by using the electronic process available at 
https://www.regulations.gov. Written comments may also be sent to Erin 
C. Taylor, Marketing Specialist, Order Formulation and Enforcement 
Branch, USDA/AMS/Dairy Programs, STOP 0231-Room 2971-S, 1400 
Independence Avenue SW., Washington, DC 20250-0231. All comments, which 
should reference the docket number and the date and page number of this 
issue of the Federal Register, will be made available for public 
inspection via www.regulations.gov, or during regular business hours.

FOR FURTHER INFORMATION CONTACT: Erin C. Taylor, USDA/AMS/Dairy 
Programs, Order Formulations and Enforcement Branch, Stop 0231-Room 
2971-S, 1400 Independence Avenue SW., Washington, DC 20250-0233, (202) 
720-7311, Erin.Taylor@ams.usda.gov.

SUPPLEMENTARY INFORMATION: The Federal milk marketing order (FMMO) 
program is authorized by the Agricultural Marketing Agreement Act of 
1937 (Act), as amended (7 U.S.C. 601-674). It is designed to ensure a 
stable supply of fresh fluid milk for fluid processors and consumers. 
The program accomplishes this by providing a framework to make buying 
and selling milk a more orderly process thereby counteracting the 
inherent instability in the fluid milk markets.
    A FMMO is a regulation issued by the Secretary of Agriculture that 
places certain requirements on the handling of milk for the fluid 
market in a geographic marketing area. It requires that handlers of 
milk for a marketing area pay no less than specified minimum class 
prices according to how the milk is used or classified. Class prices 
are determined by supply and demand conditions and the costs of serving 
alternative markets. A FMMO requires that payments for milk be combined 
and paid to individual farmers or cooperative associations of farmers 
on the basis of a uniform or average price for all milk sold. Thus, 
eligible farmers (producers) share the proceeds from all milk purchased 
by regulated handlers in the marketing area. There are 10 marketing 
orders regulating the handling of milk in the respective marketing 
areas. Approximately 60 percent of all milk marketed in the United 
States is marketed under Federal milk marketing orders.
    The two principle objectives of the program are the classified 
pricing of products and the marketwide pooling of returns. A classified 
pricing plan sets forth minimum prices that handlers must pay for milk 
used in different classes of products. The program requires that Class 
I (bottled milk) demand always be met. The remaining milk produced is 
considered a reserve supply that is needed to ensure daily fluctuations 
in Class I demand are always fulfilled. This reserve supply is made 
into manufactured products (Class II through Class IV) that are sold at 
prices related to the supply and demand for those products. Class II 
includes ``soft'' products such as cottage cheese, ice cream, and 
yogurt, while Class III and Class IV include the storable, ``hard'' 
manufactured products, such as cheese, butter, and nonfat dry milk. 
Classification is uniform throughout the order system.
    Monthly prices for the four classes of milk are determined and 
announced to both buyers and sellers, providing a measure of 
predictability for economic decisions that facilitate orderly 
marketing. It is at these classified prices that regulated handlers 
account to the marketwide pool. Each marketing order maintains its own 
marketwide pool from which a uniform blend price is computed for all 
the milk sold within that marketing area. The blend price is paid to 
all farmers who sell milk under the regulations of the program 
regardless of how their milk is used.
    The FMMO program also provides several other functions that benefit 
producers whose milk is regulated under the program. Federal orders 
have the authority to verify producer milk weights and component tests, 
a function that helps assure accurate and equitable payments for milk 
by regulated handlers. Producers also are assured of receiving timely 
payments for their milk since order provisions establish and enforce 
payment dates for milk purchases. In addition, Federal orders perform 
comprehensive audits to assure accurate reporting of how handlers 
utilize milk.
    AMS published in the Federal Register a plan (64 FR 8014, February 
18, 1999), and later an updated plan (71 FR 14827, March 24, 2006), to 
review certain regulations using criteria contained in section 610 of 
the RFA (5 U.S.C. 601-612). Given that many AMS regulations impact 
small entities, AMS decided as a matter of policy to review certain 
regulations which, although they may not meet the threshold requirement 
under section 610 of the RFA, warrant review. Accordingly, this notice 
and request for comments is made for the FMMO program.
    The purpose of the review is to determine whether the FMMO program 
should be continued without change, amended, or rescinded (consistent 
with the objectives of the Act) to minimize any significant economic 
impact of rules upon a substantial number of small entities. AMS will 
consider the continued need for the FMMO program; the nature of 
complaints or comments received from the public concerning the FMMO 
program; the complexity of the FMMO program; the extent to which the 
FMMO program overlaps, duplicates, or conflicts with other Federal 
rules, and, to the extent feasible, with State and local government 
rules; and the length of time since the FMMO program has been evaluated 
or the degrees to which

[[Page 7550]]

technology, economic conditions, or other factors have changes in the 
area affect by the FMMO program.
    Written comments, views, opinions, and other information regarding 
the FMMO program's impact on small businesses are invited.

    Dated: February 6, 2015.
Rex A. Barnes,
Associate Administrator, Agricultural Marketing Service.
[FR Doc. 2015-02902 Filed 2-10-15; 8:45 am]
BILLING CODE P