Milk in the Northeast and Other Marketing Areas; Notice of Hearing on Proposed Amendments to Marketing Agreements and Orders, 47396-47399 [2023-15496]
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47396
Proposed Rules
Federal Register
Vol. 88, No. 140
Monday, July 24, 2023
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.
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 1000
[Doc. No. 23–J–0067; AMS–DA–23–0031]
Milk in the Northeast and Other
Marketing Areas; Notice of Hearing on
Proposed Amendments to Marketing
Agreements and Orders
Agricultural Marketing Service,
Department of Agriculture (USDA).
ACTION: Notice of public hearing on
proposed rulemaking.
AGENCY:
A national public hearing is
being held to consider and take
evidence on proposals to amend the
pricing formulas in the 11 Federal Milk
Marketing Orders (FMMOs).
DATES: The hearing will convene at 9:00
a.m. ET on Wednesday, August 23,
2023.
SUMMARY:
The hearing will be held at
the 502 East Event Centre, 502 East
ADDRESSES:
Carmel Drive, Carmel, Indiana 46032.
Telephone (317) 843–1234.
Copies of this notice of hearing may
be procured from the Market
Administrator of any of the 11
marketing areas, or from the Hearing
Clerk, United States Department of
Agriculture, STOP 9200—Room 1031,
1400 Independence Avenue SW,
Washington, DC 20250–9200.
Copies of the notice of hearing and
the corresponding hearing record will
be made available online on the Hearing
website: https://www.ams.usda.gov/
rules-regulations/moa/dairy/hearings/
national-fmmo-pricing-hearing.
FOR FURTHER INFORMATION CONTACT: Erin
Taylor, Director, Order Formulation and
Enforcement Division, USDA/AMS/
Dairy Programs, Stop 0225—Room 2530,
1400 Independence Avenue SW,
Washington, DC 20250–0225, (202) 720–
7311, email: Erin.Taylor@usda.gov.
Persons requiring a sign language
interpreter or other special
accommodations should contact
FMMOHearing@usda.gov a minimum of
five days before the start of the hearing.
SUPPLEMENTARY INFORMATION: This
administrative action is governed by the
provisions of 5 U.S.C. 556 and 557 and,
therefore, is excluded from the
requirements of Executive Order 12866.
Notice is hereby given of a public
hearing to be held at the 502 East Event
Centre, 502 East Carmel Drive, Carmel,
NAICS code
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311511
311512
311513
311514
.....................................
.....................................
.....................................
.....................................
16:14 Jul 21, 2023
Size standards
in number of
employees
NAICS U.S. industry title
Fluid Milk Manufacturing ............................................................................................................
Creamery Butter Manufacturing ................................................................................................
Cheese Manufacturing ...............................................................................................................
Dry, Condensed, and Evaporated Dairy Product Manufacturing ..............................................
Most parties subject to a FMMO are
considered a small business.
Accordingly, interested parties are
invited to present evidence on the
probable regulatory and informational
impact of the hearing proposals on
small businesses. Also, parties may
suggest modifications of these proposals
for the purpose of tailoring their
applicability to small businesses.
The amendments to the rules
proposed herein have been reviewed
under Executive Order 12988, Civil
Justice Reform. They are not intended to
have a retroactive effect.
VerDate Sep<11>2014
Indiana, beginning Wednesday, August
23, 2023, at 9:00 a.m. ET, with respect
to proposed amendments to the orders
regulating the handling of milk in the
Northeast and other marketing areas.
The hearing is called pursuant to the
provisions of the Agricultural Marketing
Agreement Act of 1937, as amended (7
U.S.C. 601–674) (Act), and the
applicable rules of practice and
procedure governing amendments to
marketing agreements and marketing
orders (7 CFR part 900).
The purpose of the hearing is to
receive evidence with respect to the
economic and marketing conditions
related to the proposed amendments,
hereinafter set forth, and any
appropriate modifications thereof to the
marketing orders.
Actions under the FMMO program are
subject to the Regulatory Flexibility Act
(5 U.S.C. 601–612) (RFA). The RFA
seeks to ensure that, within the statutory
authority of a program, the regulatory
and information collection requirements
are tailored to the size and nature of
small businesses. For the purpose of the
RFA, a dairy farm is a ‘‘small business’’
if it has an annual gross revenue of
$3.75 million or less, and a dairy
products manufacturer is a ‘‘small
business’’ if it has no more than the
number of employees listed in the chart
below (13 CFR 121.201):
Jkt 259001
The Agricultural Marketing Service
(AMS) is committed to complying with
the E-Government Act to promote the
use of the internet and other
information technologies, to provide
increased opportunities for citizen
access to Government information and
services, and for other purposes.
The Act provides that administrative
proceedings must be exhausted before
parties may file suit in court. Under sec.
8c(15)(A) of the Act, any handler subject
to an order may request modification or
exemption from such order by filing
with the U.S. Department of Agriculture
(USDA) a petition stating that the order,
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1,000
750
1,250
750
any provision of the order, or any
obligation imposed in connection with
the order is not in accordance with the
law. A handler is afforded the
opportunity for a hearing on the
petition. After a hearing, the USDA
would rule on the petition. The Act
provides that the United States District
Court in any district in which the
handler is an inhabitant or has its
principal place of business, has
jurisdiction to review USDA’s ruling on
the petition, provided an appeal is filed
not later than 20 days after the ruling is
issued.
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Federal Register / Vol. 88, No. 140 / Monday, July 24, 2023 / Proposed Rules
Testimony Guidelines
Each witness will have 60 minutes to
present their testimony and have direct
examination. If a witness’s prepared
testimony and direct examination
would be expected to exceed 60
minutes, the witness should submit in
advance a written prepared statement as
an exhibit and present a summary of
that statement during their allotted time.
This summary does not need to be
submitted in advance, but paper copies
should be provided the day of
submission in accordance with the
exhibit guidelines outlined below, if the
summary is in written form. The full
written prepared statement should be
submitted as an exhibit in advance of
testifying according to the Exhibit
Submission Schedule found on the
Hearing website. There will be no time
limit on cross-examination or re-direct.
Dairy farmers may testify in person at
any time during the hearing, or virtually
via Zoom on Fridays. Starting Friday,
September 1, 2023, and each Friday
thereafter during the hearing, beginning
at 12:00 p.m. ET, ten (10) time slots will
be available for dairy farmers to testify
virtually. Dairy farmers must preregister to testify virtually, as outlined
in the instructions provided on the
Hearing website. Each registered dairy
farmer will be allocated up to 15
minutes to present testimony.
Additional time may be requested.
There will be no time limit on crossexamination. Dairy farmers testifying,
either in person or virtually, are not
required to pre-submit testimony or
exhibits.
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Exhibit Guidelines
Any party with a proposal noticed
herein, when participating as a witness,
must enter exhibits related to testimony
in advance, according to an Exhibit
Submission Schedule posted on the
Hearing website. Prepared exhibits must
be submitted electronically to
FMMOHearing@usda.gov. Submitted
exhibits will be posted online within 2
business days following the submission
deadline. Fifteen (15) paper copies of
each exhibit submitted in advance
should also be submitted at the hearing
to the designated USDA official. Four of
the 15 copies will be submitted to the
Administrative Law Judge for the
Official Record, and the remaining
copies will be distributed to USDA staff.
Interested parties entering exhibits
during the hearing, not in advance, must
provide 15 paper copies to the
designated USDA official, plus
additional paper copies for distribution
to other hearing participants and
interested parties. In order to submit
VerDate Sep<11>2014
16:14 Jul 21, 2023
Jkt 259001
exhibits into the record, exhibits should
be sent to FMMOHearing@usda.gov by
8:00 a.m. ET on the day of scheduled
testimony.
All exhibits should be prenumbered
in the following format: ‘‘[Submitter
Name or Acronym]—Number’’ on the
top righthand corner of each page. For
example, ‘‘USDA–1.’’ Each exhibit must
include a page number ‘‘X of Y’’ on the
bottom righthand corner. For example,
‘‘1 of 100.’’ Each exhibit will be given
an Official Exhibit Number upon
presentation.
Individual dairy farmers are not
subject to the Exhibit Guidelines.
Data Requests
Interested parties requesting USDA
data to be used at the hearing must
submit requests via FMMOHearing@
usda.gov by August 11, 2023.
Hearing Schedule
The hearing will continue until such
time as determined to have ended by the
presiding Administrative Law Judge.
The hearing will be in recess and will
not convene on September 4, 2023, for
the Labor Day holiday or on September
21–22, 2023. If necessary, in addition to
the dates listed, the schedule for the
next session will be announced at the
time of adjournment. Such reconvening
date and time will also be posted on the
Hearing website.
Testimony is invited on the following
proposals or appropriate modifications
to such proposals. Proposed regulatory
text may be found in a supplemental
document on the Hearing website.
Testimony will be heard by subject
area, in the following order:
1. Milk Composition
Proposal 1: Submitted by the National
Milk Producers Federation
Proposal 2: Submitted by National
All-Jersey Inc.
2. Surveyed Commodity Products
Proposal 3: Submitted by the National
Milk Producers Federation
Proposal 4: Submitted by the
American Farm Bureau Federation
Proposal 5: Submitted by the
American Farm Bureau Federation
Proposal 6: Submitted by the
California Dairy Campaign
3. Class III and Class IV Formula Factors
Proposal 7: Submitted by the National
Milk Producers Federation
Proposal 8: Submitted by the
Wisconsin Cheese Makers
Association
Proposal 9: Submitted by the
International Dairy Foods
Association
Proposal 10: Submitted by Select Milk
Producers, Inc.
Proposal 11: Submitted by Select Milk
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47397
Producers, Inc.
Proposal 12: Submitted by Select Milk
Producers, Inc.
4. Base Class I Skim Milk Price
Proposal 13: Submitted by the
National Milk Producers Federation
Proposal 14: Submitted by the
International Dairy Foods
Association
Proposal 15: Submitted by the Milk
Innovation Group
Proposal 16: Submitted by Edge Dairy
Farmer Cooperative
Proposal 17: Submitted by Edge Dairy
Farmer Cooperative
Proposal 18: Submitted by the
American Farm Bureau Federation
5. Class I and Class II Differentials
Proposal 19: Submitted by the
National Milk Producers Federation
Proposal 20: Submitted by the Milk
Innovation Group
Proposal 21: Submitted by the
American Farm Bureau
6. AMS Proposal
Proposal 22: Submitted by Dairy
Programs, Agricultural Marketing
Service
Summary of Proposals
Milk Composition
Proposal 1: Submitted by the National
Milk Producers Federation
This proposal seeks to amend the
milk component factors in the Class III
and Class IV skim milk price formulas.
Specifically, the proposal seeks to
increase the skim component factors to
equal the weighted average nonfat
solids, true protein, and other solids
factors for milk pooled on Federal
orders using data for the three years
prior to implementation, with a 12month implementation lag. The factors
are proposed to be updated as follows:
• Nonfat solids: from 9.0 to 9.41 per
hundredweight of Class IV skim milk;
• Protein: from 3.1 to 3.39 per
hundredweight of Class III skim milk;
and
• Other solids: from 5.9 to 6.02 per
hundredweight of Class III skim milk.
The proponent also proposes the skim
component factors be updated no less
than every three years, but only once the
weighted average nonfat solids
component for the prior three years
changes by at least 0.07 percentage
points. The updated component values
would be calculated, and, if a change is
warranted, formally announced in
February of such year, with the
implementation of such changes
occurring March 1 of the following year.
Proposal 2: Submitted by National AllJersey Inc.
This proposal seeks to amend the
milk component factors in the Class III
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Federal Register / Vol. 88, No. 140 / Monday, July 24, 2023 / Proposed Rules
and Class IV skim milk price formulas.
The proposal seeks to update the factors
annually using the previous year’s
weighted average calculations, with a
12-month implementation lag.
Proposal 5: Submitted by the American
Farm Bureau Federation
Surveyed Commodity Products
Proposal 6: Submitted by the California
Dairy Campaign
Proposal 3: Submitted by the National
Milk Producers Federation
This proposal seeks to eliminate the
Cheddar cheese 500-pound barrel price
series from protein price formula.
Proposal 4: Submitted by the American
Farm Bureau Federation
This proposal seeks to add 640-pound
Cheddar cheese blocks to the protein
price formula.
This proposal seeks to add unsalted
butter to the butterfat and protein price
formulas.
This proposal seeks to add mozzarella
to the protein price formula.
Class III and Class IV Formula Factors
Proposal 7: Submitted by the National
Milk Producers Federation
This proposal seeks to amend the
manufacturing cost (make) allowances
found in the four component price
formulas. The proposal includes the
following increases:
Butterfat: from $0.1715 to $0.2100 per
pound of butter,
Nonfat solids: from $0.1678 to
$0.2100 per pound of nonfat dry milk
(NFDM),
Protein: from $0.2003 to $0.2400 per
pound of Cheddar cheese,
Other solids: from $0.1991 to $0.2300
per pound of dry whey.
The requested changes are equivalent
to an increase of $0.0385 per pound in
the butter make allowance, an increase
of $0.0422 per pound in the nonfat dry
milk make allowance, an increase of
$0.0397 per pound in the Cheddar
cheese make allowance, and an increase
of $0.0309 per pound in the dry whey
make allowance.
Proposal 8: Submitted by the Wisconsin
Cheese Makers Association
This proposal seeks to update the
current make allowances with a 4-year
phase-in implementation schedule.
PROPOSED MAKE ALLOWANCE LEVELS
Product
Current
Cheese .................................................................................
Whey ....................................................................................
NFDM ...................................................................................
Butter ....................................................................................
This proposal also proposes not to
adopt any of the increases described
above if, prior to January 1 of that year,
USDA has been provided authority and
funding to conduct audited dairy
product cost studies of all
Year 1
$0.2003
0.1991
0.1678
0.1715
$0.2422
0.2582
0.2198
0.2251
manufacturers of products used to set
Class III and Class IV prices, has
promulgated regulations implementing
that authority, and has adopted make
allowances pursuant thereto.
Year 2
$0.2561
0.2778
0.2370
0.2428
Year 3
$0.2701
0.2976
0.2544
0.2607
Year 4
$0.2840
0.3172
0.2716
0.2785
Proposal 9: Submitted by the
International Dairy Foods Association
This proposal seeks to update the
current make allowances with a 4-year
phase-in implementation schedule.
PROPOSED MAKE ALLOWANCE LEVELS
Product
Current
Cheese .................................................................................
Whey ....................................................................................
NFDM ...................................................................................
Butter ....................................................................................
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This proposal also proposes not to
adopt any of the increases described
above if, prior to January 1 of that year,
USDA has been provided authority and
funding to conduct audited dairy
product cost studies of all
manufacturers of products used to set
Class III and Class IV prices, has
promulgated regulations implementing
that authority, and has adopted make
allowances pursuant thereto.
Proposal 10: Submitted by Select Milk
Producers, Inc.
This proposal seeks to increase the
butterfat recovery factor in the Class III
price formula to 93 percent, which
would necessitate a corresponding
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16:14 Jul 21, 2023
Jkt 259001
Year 1
$0.2003
0.1991
0.1678
0.1715
$0.2422
0.2582
0.2198
0.2251
increase in the butterfat yield in cheese
to 1.624.
Proposal 11: Submitted by Select Milk
Producers, Inc.
This proposal seeks to update the
specified yield factors to reflect actual
farm-to-plant shrink. The yield factors
for nonfat solids and other solids would
remain unchanged. The proposed yield
factors are:
Butterfat: 1.22;
Protein value in cheese: 1.386; and
Butterfat value in cheese: 1.582.
Proposal 12: Submitted by Select Milk
Producers, Inc.
This proposal seeks to update the
nonfat solids factor from 0.99 to 1.03.
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Fmt 4702
Sfmt 4702
Year 2
$0.2561
0.2778
0.2370
0.2428
Year 3
$0.2701
0.2976
0.2544
0.2607
Year 4
$0.2840
0.3172
0.2716
0.2785
Base Class I Skim Milk Price
Proposal 13: Submitted by the National
Milk Producers Federation
This proposal seeks to amend the base
Class I skim milk price in all Federal
orders. Specifically, the proposal seeks
to replace the simple average of the
Class III and Class IV Advanced Skim
Milk pricing factors with the ‘‘higher of’’
the two factors and remove the
additional $0.74 per hundredweight.
Proposal 14: Submitted by the
International Dairy Foods Association
This proposal seeks to amend the base
Class I skim milk price to equal the
simple average of the Advanced Class III
and Class IV prices, plus the ‘‘higher of’’
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Federal Register / Vol. 88, No. 140 / Monday, July 24, 2023 / Proposed Rules
either $0.74 or an adjustor equal to the
24-month (August–July) rolling simple
average difference between the
Advanced Class III and Class IV skim
milk prices.
Proposal 15: Submitted by the Milk
Innovation Group
This proposal seeks to retain the
current ‘‘average of’’ formula for the
base Class I skim milk price and
proposes to update the adjuster monthly
using a 24-month look back period with
a 12-month lag, i.e., the preceding the
13-to-36-month period. The ‘‘rolling’’
adjuster calculation would be the
difference between the ‘‘higher of’’ the
advanced Class III or IV skim milk price
for each month and the ‘‘average of’’ the
advanced Class III or IV skim milk price,
averaged over the preceding 13-to-36month period, plus the ‘‘average of’’ the
Class III and IV advanced skim milk
prices for that month.
Proposal 16: Submitted by Edge Dairy
Farmer Cooperative
This proposal seeks to change the
base Class I skim milk price to the
announced Class III skim milk price,
plus an adjuster. The proposal seeks to
amend calculation of Class I prices to
use announced rather than advanced
prices. The proposed adjuster would be
a 36-month average (August–July) of the
monthly differences between the
‘‘higher of’’ the advanced Class III skim
milk price or advanced Class IV skim
milk price, and the Class III skim milk
price.
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Proposal 17: Submitted by Edge Dairy
Farmer Cooperative
This proposal seeks to use the ‘‘higher
of’’ the Class III skim milk price or the
Class IV skim milk price to calculate the
base Class I skim milk price. The
proposal also seeks to amend
calculation of Class I prices to use
announced rather than advanced prices.
Proposal 18: Submitted by the American
Farm Bureau Federation
This proposal seeks to eliminate the
advanced pricing of Class I milk and
components, and Class II skim milk and
components. As proposed, the Class II
skim milk price would be equal to the
Announced Class IV skim milk price
plus the Class II differential; the Class
II nonfat solids price would be equal to
the Announced Class IV nonfat solids
price plus one-hundredth of the Class II
differential. The proponent proposes the
Class I skim milk price would be the
‘‘higher of’’ the Announced Class III or
Class IV skim milk prices plus the Class
I differential; and the Class I butterfat
price would be equal to the butterfat
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16:14 Jul 21, 2023
Jkt 259001
47399
price plus one-hundredth of the Class I
differential.
List of Subjects in 7 CFR Part 1000
Milk marketing orders.
Class I and Class II Differentials
Erin Morris,
Associate Administrator, Agricultural
Marketing Service.
Proposal 19: Submitted by the National
Milk Producers Federation
This proposal seeks to update the
Adjusted Class I differentials as
referenced in all Federal orders for the
3,108 named counties, parishes, and
independent cities in the contiguous 48
United States. The proposed update
would increase Class I differentials at all
locations, in varying amounts.
Proposal 20: Submitted by the Milk
Innovation Group
This proposal seeks to lower the
current base Class I differential from
$1.60 to $0.00.
Proposal 21: Submitted by the American
Farm Bureau Federation
This proposal seeks to update the
Class II differential to $1.56.
Specifically, the proposal seeks to
calculate the Class II differential using
the current nonfat dry milk make
allowance multiplied by the current
nonfat solids yield factor and updated
butterfat and nonfat solids tests for milk
in the FMMOs.
Proposal 22: Submitted by Dairy
Program, Agricultural Marketing
Service:
Make such changes as may be
necessary to make the respective
marketing orders conform with any
amendments thereto that may result
from this hearing.
From the time that a hearing notice is
issued and until the issuance of a final
decision in a proceeding, USDA
employees involved in the decisionmaking process are prohibited from
discussing the merits of the hearing
issues on an ex parte basis with any
person having an interest in the
proceeding. For this proceeding, the
prohibition applies to employees in the
following organizational units:
Office of the Secretary of Agriculture
Office of the Administrator, Agricultural
Marketing Service
Office of the General Counsel
Dairy Program, Agricultural Marketing
Service (Washington, DC Office, and
the Offices of all Market
Administrators)
Procedural matters are not subject to
the above prohibition and may be
discussed at any time.
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[FR Doc. 2023–15496 Filed 7–21–23; 8:45 am]
BILLING CODE 3410–02–P
DEPARTMENT OF TRANSPORTATION
Federal Aviation Administration
14 CFR Part 39
[Docket No. FAA–2023–1413; Project
Identifier AD–2023–00087–T]
RIN 2120–AA64
Airworthiness Directives; The Boeing
Company Airplanes
Federal Aviation
Administration (FAA), DOT.
ACTION: Notice of proposed rulemaking
(NPRM).
AGENCY:
The FAA proposes to adopt a
new airworthiness directive (AD) for
certain The Boeing Company Model
737–600, –700, –700C, –800, –900 and
–900ER airplanes. This proposed AD
was prompted by reports of cracks in
the forward galley door cutout forward
upper corner bear strap. It has been
determined that the cracks were caused
by high operating stresses in the
fuselage skin door cutout corner area
due to stress concentration at the door
cutout. This proposed AD would require
an inspection of the fuselage skin and
the bear strap at the forward galley door
cutout forward upper corner for existing
repairs, and applicable related
investigative and corrective inspections.
The FAA is proposing this AD to
address the unsafe condition on these
products.
DATES: The FAA must receive comments
on this proposed AD by September 7,
2023.
ADDRESSES: You may send comments,
using the procedures found in 14 CFR
11.43 and 11.45, by any of the following
methods:
• Federal eRulemaking Portal: Go to
regulations.gov. Follow the instructions
for submitting comments.
• Fax: 202–493–2251.
• Mail: U.S. Department of
Transportation, Docket Operations, M–
30, West Building Ground Floor, Room
W12–140, 1200 New Jersey Avenue SE,
Washington, DC 20590.
• Hand Delivery: Deliver to Mail
address above between 9 a.m. and 5
p.m., Monday through Friday, except
Federal holidays.
SUMMARY:
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]]>Agencies
[Federal Register Volume 88, Number 140 (Monday, July 24, 2023)]
[Proposed Rules]
[Pages 47396-47399]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-15496]
========================================================================
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.
========================================================================
Federal Register / Vol. 88, No. 140 / Monday, July 24, 2023 /
Proposed Rules
[[Page 47396]]
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 1000
[Doc. No. 23-J-0067; AMS-DA-23-0031]
Milk in the Northeast and Other Marketing Areas; Notice of
Hearing on Proposed Amendments to Marketing Agreements and Orders
AGENCY: Agricultural Marketing Service, Department of Agriculture
(USDA).
ACTION: Notice of public hearing on proposed rulemaking.
-----------------------------------------------------------------------
SUMMARY: A national public hearing is being held to consider and take
evidence on proposals to amend the pricing formulas in the 11 Federal
Milk Marketing Orders (FMMOs).
DATES: The hearing will convene at 9:00 a.m. ET on Wednesday, August
23, 2023.
ADDRESSES: The hearing will be held at the 502 East Event Centre, 502
East Carmel Drive, Carmel, Indiana 46032. Telephone (317) 843-1234.
Copies of this notice of hearing may be procured from the Market
Administrator of any of the 11 marketing areas, or from the Hearing
Clerk, United States Department of Agriculture, STOP 9200--Room 1031,
1400 Independence Avenue SW, Washington, DC 20250-9200.
Copies of the notice of hearing and the corresponding hearing
record will be made available online on the Hearing website: https://www.ams.usda.gov/rules-regulations/moa/dairy/hearings/national-fmmo-pricing-hearing.
FOR FURTHER INFORMATION CONTACT: Erin Taylor, Director, Order
Formulation and Enforcement Division, USDA/AMS/Dairy Programs, Stop
0225--Room 2530, 1400 Independence Avenue SW, Washington, DC 20250-
0225, (202) 720-7311, email: [email protected].
Persons requiring a sign language interpreter or other special
accommodations should contact [email protected] a minimum of five
days before the start of the hearing.
SUPPLEMENTARY INFORMATION: This administrative action is governed by
the provisions of 5 U.S.C. 556 and 557 and, therefore, is excluded from
the requirements of Executive Order 12866.
Notice is hereby given of a public hearing to be held at the 502
East Event Centre, 502 East Carmel Drive, Carmel, Indiana, beginning
Wednesday, August 23, 2023, at 9:00 a.m. ET, with respect to proposed
amendments to the orders regulating the handling of milk in the
Northeast and other marketing areas.
The hearing is called pursuant to the provisions of the
Agricultural Marketing Agreement Act of 1937, as amended (7 U.S.C. 601-
674) (Act), and the applicable rules of practice and procedure
governing amendments to marketing agreements and marketing orders (7
CFR part 900).
The purpose of the hearing is to receive evidence with respect to
the economic and marketing conditions related to the proposed
amendments, hereinafter set forth, and any appropriate modifications
thereof to the marketing orders.
Actions under the FMMO program are subject to the Regulatory
Flexibility Act (5 U.S.C. 601-612) (RFA). The RFA seeks to ensure that,
within the statutory authority of a program, the regulatory and
information collection requirements are tailored to the size and nature
of small businesses. For the purpose of the RFA, a dairy farm is a
``small business'' if it has an annual gross revenue of $3.75 million
or less, and a dairy products manufacturer is a ``small business'' if
it has no more than the number of employees listed in the chart below
(13 CFR 121.201):
----------------------------------------------------------------------------------------------------------------
Size standards
NAICS code NAICS U.S. industry title in number of
employees
----------------------------------------------------------------------------------------------------------------
311511....................................... Fluid Milk Manufacturing....................... 1,000
311512....................................... Creamery Butter Manufacturing.................. 750
311513....................................... Cheese Manufacturing........................... 1,250
311514....................................... Dry, Condensed, and Evaporated Dairy Product 750
Manufacturing.
----------------------------------------------------------------------------------------------------------------
Most parties subject to a FMMO are considered a small business.
Accordingly, interested parties are invited to present evidence on the
probable regulatory and informational impact of the hearing proposals
on small businesses. Also, parties may suggest modifications of these
proposals for the purpose of tailoring their applicability to small
businesses.
The amendments to the rules proposed herein have been reviewed
under Executive Order 12988, Civil Justice Reform. They are not
intended to have a retroactive effect.
The Agricultural Marketing Service (AMS) is committed to complying
with the E-Government Act to promote the use of the internet and other
information technologies, to provide increased opportunities for
citizen access to Government information and services, and for other
purposes.
The Act provides that administrative proceedings must be exhausted
before parties may file suit in court. Under sec. 8c(15)(A) of the Act,
any handler subject to an order may request modification or exemption
from such order by filing with the U.S. Department of Agriculture
(USDA) a petition stating that the order, any provision of the order,
or any obligation imposed in connection with the order is not in
accordance with the law. A handler is afforded the opportunity for a
hearing on the petition. After a hearing, the USDA would rule on the
petition. The Act provides that the United States District Court in any
district in which the handler is an inhabitant or has its principal
place of business, has jurisdiction to review USDA's ruling on the
petition, provided an appeal is filed not later than 20 days after the
ruling is issued.
[[Page 47397]]
Testimony Guidelines
Each witness will have 60 minutes to present their testimony and
have direct examination. If a witness's prepared testimony and direct
examination would be expected to exceed 60 minutes, the witness should
submit in advance a written prepared statement as an exhibit and
present a summary of that statement during their allotted time. This
summary does not need to be submitted in advance, but paper copies
should be provided the day of submission in accordance with the exhibit
guidelines outlined below, if the summary is in written form. The full
written prepared statement should be submitted as an exhibit in advance
of testifying according to the Exhibit Submission Schedule found on the
Hearing website. There will be no time limit on cross-examination or
re-direct.
Dairy farmers may testify in person at any time during the hearing,
or virtually via Zoom on Fridays. Starting Friday, September 1, 2023,
and each Friday thereafter during the hearing, beginning at 12:00 p.m.
ET, ten (10) time slots will be available for dairy farmers to testify
virtually. Dairy farmers must pre-register to testify virtually, as
outlined in the instructions provided on the Hearing website. Each
registered dairy farmer will be allocated up to 15 minutes to present
testimony. Additional time may be requested. There will be no time
limit on cross-examination. Dairy farmers testifying, either in person
or virtually, are not required to pre-submit testimony or exhibits.
Exhibit Guidelines
Any party with a proposal noticed herein, when participating as a
witness, must enter exhibits related to testimony in advance, according
to an Exhibit Submission Schedule posted on the Hearing website.
Prepared exhibits must be submitted electronically to
[email protected]. Submitted exhibits will be posted online within 2
business days following the submission deadline. Fifteen (15) paper
copies of each exhibit submitted in advance should also be submitted at
the hearing to the designated USDA official. Four of the 15 copies will
be submitted to the Administrative Law Judge for the Official Record,
and the remaining copies will be distributed to USDA staff.
Interested parties entering exhibits during the hearing, not in
advance, must provide 15 paper copies to the designated USDA official,
plus additional paper copies for distribution to other hearing
participants and interested parties. In order to submit exhibits into
the record, exhibits should be sent to [email protected] by 8:00
a.m. ET on the day of scheduled testimony.
All exhibits should be prenumbered in the following format:
``[Submitter Name or Acronym]--Number'' on the top righthand corner of
each page. For example, ``USDA-1.'' Each exhibit must include a page
number ``X of Y'' on the bottom righthand corner. For example, ``1 of
100.'' Each exhibit will be given an Official Exhibit Number upon
presentation.
Individual dairy farmers are not subject to the Exhibit Guidelines.
Data Requests
Interested parties requesting USDA data to be used at the hearing
must submit requests via [email protected] by August 11, 2023.
Hearing Schedule
The hearing will continue until such time as determined to have
ended by the presiding Administrative Law Judge. The hearing will be in
recess and will not convene on September 4, 2023, for the Labor Day
holiday or on September 21-22, 2023. If necessary, in addition to the
dates listed, the schedule for the next session will be announced at
the time of adjournment. Such reconvening date and time will also be
posted on the Hearing website.
Testimony is invited on the following proposals or appropriate
modifications to such proposals. Proposed regulatory text may be found
in a supplemental document on the Hearing website.
Testimony will be heard by subject area, in the following order:
1. Milk Composition
Proposal 1: Submitted by the National Milk Producers Federation
Proposal 2: Submitted by National All-Jersey Inc.
2. Surveyed Commodity Products
Proposal 3: Submitted by the National Milk Producers Federation
Proposal 4: Submitted by the American Farm Bureau Federation
Proposal 5: Submitted by the American Farm Bureau Federation
Proposal 6: Submitted by the California Dairy Campaign
3. Class III and Class IV Formula Factors
Proposal 7: Submitted by the National Milk Producers Federation
Proposal 8: Submitted by the Wisconsin Cheese Makers Association
Proposal 9: Submitted by the International Dairy Foods Association
Proposal 10: Submitted by Select Milk Producers, Inc.
Proposal 11: Submitted by Select Milk Producers, Inc.
Proposal 12: Submitted by Select Milk Producers, Inc.
4. Base Class I Skim Milk Price
Proposal 13: Submitted by the National Milk Producers Federation
Proposal 14: Submitted by the International Dairy Foods Association
Proposal 15: Submitted by the Milk Innovation Group
Proposal 16: Submitted by Edge Dairy Farmer Cooperative
Proposal 17: Submitted by Edge Dairy Farmer Cooperative
Proposal 18: Submitted by the American Farm Bureau Federation
5. Class I and Class II Differentials
Proposal 19: Submitted by the National Milk Producers Federation
Proposal 20: Submitted by the Milk Innovation Group
Proposal 21: Submitted by the American Farm Bureau
6. AMS Proposal
Proposal 22: Submitted by Dairy Programs, Agricultural Marketing
Service
Summary of Proposals
Milk Composition
Proposal 1: Submitted by the National Milk Producers Federation
This proposal seeks to amend the milk component factors in the
Class III and Class IV skim milk price formulas. Specifically, the
proposal seeks to increase the skim component factors to equal the
weighted average nonfat solids, true protein, and other solids factors
for milk pooled on Federal orders using data for the three years prior
to implementation, with a 12-month implementation lag. The factors are
proposed to be updated as follows:
Nonfat solids: from 9.0 to 9.41 per hundredweight of Class
IV skim milk;
Protein: from 3.1 to 3.39 per hundredweight of Class III
skim milk; and
Other solids: from 5.9 to 6.02 per hundredweight of Class
III skim milk.
The proponent also proposes the skim component factors be updated
no less than every three years, but only once the weighted average
nonfat solids component for the prior three years changes by at least
0.07 percentage points. The updated component values would be
calculated, and, if a change is warranted, formally announced in
February of such year, with the implementation of such changes
occurring March 1 of the following year.
Proposal 2: Submitted by National All-Jersey Inc.
This proposal seeks to amend the milk component factors in the
Class III
[[Page 47398]]
and Class IV skim milk price formulas. The proposal seeks to update the
factors annually using the previous year's weighted average
calculations, with a 12-month implementation lag.
Surveyed Commodity Products
Proposal 3: Submitted by the National Milk Producers Federation
This proposal seeks to eliminate the Cheddar cheese 500-pound
barrel price series from protein price formula.
Proposal 4: Submitted by the American Farm Bureau Federation
This proposal seeks to add 640-pound Cheddar cheese blocks to the
protein price formula.
Proposal 5: Submitted by the American Farm Bureau Federation
This proposal seeks to add unsalted butter to the butterfat and
protein price formulas.
Proposal 6: Submitted by the California Dairy Campaign
This proposal seeks to add mozzarella to the protein price formula.
Class III and Class IV Formula Factors
Proposal 7: Submitted by the National Milk Producers Federation
This proposal seeks to amend the manufacturing cost (make)
allowances found in the four component price formulas. The proposal
includes the following increases:
Butterfat: from $0.1715 to $0.2100 per pound of butter,
Nonfat solids: from $0.1678 to $0.2100 per pound of nonfat dry milk
(NFDM),
Protein: from $0.2003 to $0.2400 per pound of Cheddar cheese,
Other solids: from $0.1991 to $0.2300 per pound of dry whey.
The requested changes are equivalent to an increase of $0.0385 per
pound in the butter make allowance, an increase of $0.0422 per pound in
the nonfat dry milk make allowance, an increase of $0.0397 per pound in
the Cheddar cheese make allowance, and an increase of $0.0309 per pound
in the dry whey make allowance.
Proposal 8: Submitted by the Wisconsin Cheese Makers Association
This proposal seeks to update the current make allowances with a 4-
year phase-in implementation schedule.
Proposed Make Allowance Levels
----------------------------------------------------------------------------------------------------------------
Product Current Year 1 Year 2 Year 3 Year 4
----------------------------------------------------------------------------------------------------------------
Cheese.......................... $0.2003 $0.2422 $0.2561 $0.2701 $0.2840
Whey............................ 0.1991 0.2582 0.2778 0.2976 0.3172
NFDM............................ 0.1678 0.2198 0.2370 0.2544 0.2716
Butter.......................... 0.1715 0.2251 0.2428 0.2607 0.2785
----------------------------------------------------------------------------------------------------------------
This proposal also proposes not to adopt any of the increases
described above if, prior to January 1 of that year, USDA has been
provided authority and funding to conduct audited dairy product cost
studies of all manufacturers of products used to set Class III and
Class IV prices, has promulgated regulations implementing that
authority, and has adopted make allowances pursuant thereto.
Proposal 9: Submitted by the International Dairy Foods Association
This proposal seeks to update the current make allowances with a 4-
year phase-in implementation schedule.
Proposed Make Allowance Levels
----------------------------------------------------------------------------------------------------------------
Product Current Year 1 Year 2 Year 3 Year 4
----------------------------------------------------------------------------------------------------------------
Cheese.......................... $0.2003 $0.2422 $0.2561 $0.2701 $0.2840
Whey............................ 0.1991 0.2582 0.2778 0.2976 0.3172
NFDM............................ 0.1678 0.2198 0.2370 0.2544 0.2716
Butter.......................... 0.1715 0.2251 0.2428 0.2607 0.2785
----------------------------------------------------------------------------------------------------------------
This proposal also proposes not to adopt any of the increases
described above if, prior to January 1 of that year, USDA has been
provided authority and funding to conduct audited dairy product cost
studies of all manufacturers of products used to set Class III and
Class IV prices, has promulgated regulations implementing that
authority, and has adopted make allowances pursuant thereto.
Proposal 10: Submitted by Select Milk Producers, Inc.
This proposal seeks to increase the butterfat recovery factor in
the Class III price formula to 93 percent, which would necessitate a
corresponding increase in the butterfat yield in cheese to 1.624.
Proposal 11: Submitted by Select Milk Producers, Inc.
This proposal seeks to update the specified yield factors to
reflect actual farm-to-plant shrink. The yield factors for nonfat
solids and other solids would remain unchanged. The proposed yield
factors are:
Butterfat: 1.22;
Protein value in cheese: 1.386; and
Butterfat value in cheese: 1.582.
Proposal 12: Submitted by Select Milk Producers, Inc.
This proposal seeks to update the nonfat solids factor from 0.99 to
1.03.
Base Class I Skim Milk Price
Proposal 13: Submitted by the National Milk Producers Federation
This proposal seeks to amend the base Class I skim milk price in
all Federal orders. Specifically, the proposal seeks to replace the
simple average of the Class III and Class IV Advanced Skim Milk pricing
factors with the ``higher of'' the two factors and remove the
additional $0.74 per hundredweight.
Proposal 14: Submitted by the International Dairy Foods Association
This proposal seeks to amend the base Class I skim milk price to
equal the simple average of the Advanced Class III and Class IV prices,
plus the ``higher of''
[[Page 47399]]
either $0.74 or an adjustor equal to the 24-month (August-July) rolling
simple average difference between the Advanced Class III and Class IV
skim milk prices.
Proposal 15: Submitted by the Milk Innovation Group
This proposal seeks to retain the current ``average of'' formula
for the base Class I skim milk price and proposes to update the
adjuster monthly using a 24-month look back period with a 12-month lag,
i.e., the preceding the 13-to-36-month period. The ``rolling'' adjuster
calculation would be the difference between the ``higher of'' the
advanced Class III or IV skim milk price for each month and the
``average of'' the advanced Class III or IV skim milk price, averaged
over the preceding 13-to-36-month period, plus the ``average of'' the
Class III and IV advanced skim milk prices for that month.
Proposal 16: Submitted by Edge Dairy Farmer Cooperative
This proposal seeks to change the base Class I skim milk price to
the announced Class III skim milk price, plus an adjuster. The proposal
seeks to amend calculation of Class I prices to use announced rather
than advanced prices. The proposed adjuster would be a 36-month average
(August-July) of the monthly differences between the ``higher of'' the
advanced Class III skim milk price or advanced Class IV skim milk
price, and the Class III skim milk price.
Proposal 17: Submitted by Edge Dairy Farmer Cooperative
This proposal seeks to use the ``higher of'' the Class III skim
milk price or the Class IV skim milk price to calculate the base Class
I skim milk price. The proposal also seeks to amend calculation of
Class I prices to use announced rather than advanced prices.
Proposal 18: Submitted by the American Farm Bureau Federation
This proposal seeks to eliminate the advanced pricing of Class I
milk and components, and Class II skim milk and components. As
proposed, the Class II skim milk price would be equal to the Announced
Class IV skim milk price plus the Class II differential; the Class II
nonfat solids price would be equal to the Announced Class IV nonfat
solids price plus one-hundredth of the Class II differential. The
proponent proposes the Class I skim milk price would be the ``higher
of'' the Announced Class III or Class IV skim milk prices plus the
Class I differential; and the Class I butterfat price would be equal to
the butterfat price plus one-hundredth of the Class I differential.
Class I and Class II Differentials
Proposal 19: Submitted by the National Milk Producers Federation
This proposal seeks to update the Adjusted Class I differentials as
referenced in all Federal orders for the 3,108 named counties,
parishes, and independent cities in the contiguous 48 United States.
The proposed update would increase Class I differentials at all
locations, in varying amounts.
Proposal 20: Submitted by the Milk Innovation Group
This proposal seeks to lower the current base Class I differential
from $1.60 to $0.00.
Proposal 21: Submitted by the American Farm Bureau Federation
This proposal seeks to update the Class II differential to $1.56.
Specifically, the proposal seeks to calculate the Class II differential
using the current nonfat dry milk make allowance multiplied by the
current nonfat solids yield factor and updated butterfat and nonfat
solids tests for milk in the FMMOs.
Proposal 22: Submitted by Dairy Program, Agricultural Marketing
Service:
Make such changes as may be necessary to make the respective
marketing orders conform with any amendments thereto that may result
from this hearing.
From the time that a hearing notice is issued and until the
issuance of a final decision in a proceeding, USDA employees involved
in the decision-making process are prohibited from discussing the
merits of the hearing issues on an ex parte basis with any person
having an interest in the proceeding. For this proceeding, the
prohibition applies to employees in the following organizational units:
Office of the Secretary of Agriculture
Office of the Administrator, Agricultural Marketing Service
Office of the General Counsel
Dairy Program, Agricultural Marketing Service (Washington, DC Office,
and the Offices of all Market Administrators)
Procedural matters are not subject to the above prohibition and may
be discussed at any time.
List of Subjects in 7 CFR Part 1000
Milk marketing orders.
Erin Morris,
Associate Administrator, Agricultural Marketing Service.
[FR Doc. 2023-15496 Filed 7-21-23; 8:45 am]
BILLING CODE 3410-02-P
