Milk in the Appalachian, Florida and Southeast Marketing Areas; Notice of Hearing on Proposed Amendments to Tentative Marketing Agreements and Orders

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Federal RegisterMay 8, 2007
72 Fed. Reg. 25986 (May. 8, 2007)
7 CFR Part Marketing area AO Nos.
1005 Appalachian AO-388-A22
1006 Florida AO-356-A43
1007 Southeast AO-366-A51

AGENCY:

Agricultural Marketing Service, USDA.

ACTION:

Proposed rule; Notice of public hearing on proposed rulemaking.

SUMMARY:

A public hearing is being held to consider proposals seeking to amend certain pooling and related provisions of the Appalachian, Florida and Southeast orders. Proposals include temporarily adjusting the Class I pricing surface for each county within each of the three milk marketing orders until such time that the Department is able to comprehensively address the Class I pricing surface on a national scale. Proposals also include changing the diversion percentage limits, the producer delivery days and the transportation credit provisions of the Appalachian and Southeast orders. Other proposals would change the maximum rates for each of the three orders the market administrator may charge for the expense of administration of the order from 5 cents per hundredweight (cwt) up to 8 cents per cwt. Testimony will be taken to determine if any of the proposals should be handled on an emergency basis.

DATES:

The hearing will convene at 1 p.m. on Monday, May, 21, 2007.

ADDRESSES:

The hearing will be held at the Sheraton Suites Tampa Airport, 4400 W. Cypress Street, Tampa, FL 33607, (813) 873-8675.

FOR FURTHER INFORMATION CONTACT:

Gino M. Tosi, Associate Deputy Administrator, Order Formulation and Enforcement Branch, USDA/AMS/Dairy Programs, STOP 0231—Room 2971-A, 1400 Independence Avenue, SW., Washington, DC 20250-0231. Gino.Tosi@usda.gov.

Persons requiring a sign language interpreter or other special accommodations should contact Sue L. Mosley, Market Administrator, at (770) 682-2501; e-mail smosley@fmmatlanta.com before the hearing begins.

SUPPLEMENTARY INFORMATION:

This administrative action is governed by the provisions of Sections 556 and 557 of Title 5 of the United States Code and, therefore, is excluded from the requirements of Executive Order 12866.

Notice is hereby given of a public hearing to be held at the Sheraton Suites Tampa Airport, 4400 W. Cypress Street, Tampa, FL 33607, (813) 873-8675, beginning at 1 p.m. on Monday, May, 21, 2007, with respect to proposed amendments to the tentative marketing agreements and to the orders regulating the handling of milk in the Appalachian, Florida, and Southeast marketing areas.

The hearing is called pursuant to the provisions of the Agricultural Marketing Agreement Act of 1937, as amended (7 U.S.C. 601-674), and the applicable rules of practice and procedure governing the formulation of 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 which relate to the proposed amendments, hereinafter set forth, and any appropriate modifications thereof, to the tentative marketing agreements and to the orders.

Evidence also will be taken to determine whether emergency marketing conditions exist that would warrant omission of a recommended decision under the rules of practice and procedure (7 CFR 900.12 (d)) with respect to any proposed amendments.

Actions under the Federal milk order program are subject to the Regulatory Flexibility Act (5 U.S.C. 601 et seq.). This Act 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 Act, a dairy farm is a “small business” if it has an annual gross revenue of less than $750,000, and a dairy products manufacturer is a “small business” if it has fewer than 500 employees (13 CFR 121.201). Most parties subject to a milk order are considered as 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. If adopted, the proposed amendments would not preempt any state or local laws, regulations, or policies, unless they present an irreconcilable conflict with this rule.

The Agricultural Marketing Agreement Act provides that administrative proceedings must be exhausted before parties may file suit in court. Under section 8c(15) (A) of the Act, any handler subject to an order may request modification or exemption from such order by filing with the Department of Agriculture (Department) a petition stating that the order, any provision of the order, or any obligation imposed in connection with the order is not in accordance with the law. A handler is afforded the opportunity for a hearing on the petition. After a hearing, the Department would rule on the petition. The Act provides that the District Court of the United States in any district in which the handler is an inhabitant, has its principle place of business, has jurisdiction in equity to review the Department's ruling on the petition, provided a bill in equity is filed not later than 20 days after the date of the entry of the ruling.

This public hearing is being conducted to collect evidence for the record concerning the effect on the orderly marketing of fluid milk by adjusting Class I differentials on a temporary basis for the Appalachian, Florida and Southeast marketing areas. Evidence will be taken to determine whether tighter pooling provisions and changes to the transportation credit provisions in the Appalachian and Southeast orders are warranted. Evidence will also be collected to consider increasing the maximum administrative assessment rates for the Appalachian, Florida and Southeast market administrators to 8 cents per hundredweight.

Interested parties who wish to introduce exhibits should provide the Presiding Officer at the hearing with (4) copies of such exhibits for the Official Record. Also, it would be helpful if additional copies are available for the use of other participants at the hearing.

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

  • Milk marketing orders

The authority citation for 7 CFR parts 1005, 1006 and 1007 read as follows:

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

The proposed amendments, as set forth below, have not received the approval of the Department.

Proposed by Dairy Cooperative Marketing Association, Inc

Proposal No. 1

This proposal would temporarily adjust the Class I pricing surface in each county within the geographical marketing area of the Appalachian milk marketing order. Specifically, this proposal, on a temporary basis, would modify section 1005.51 of the Appalachian order by including a new provision, a “Class I price adjustment,” which would be added to the Class I price “mover,” and to the section 1000.52 Class I differential, to obtain the minimum Order Class I price. The proposed changes to the Class I prices for plant locations in the Appalachian milk marketing area would range from an increase of $0.10 per cwt to an increase in $1.00 per cwt.

Proposal 1 would also reduce the volume of milk which may be pooled by diversion on the Appalachian order. Specifically, the proposal would decrease the diversion percentages by 5 percent, from 40% to 35%, for the months of March through June and for the month of December. In addition, this proposal proposes that the producer delivery day requirements be amended in the Appalachian order. The current provisions in the Appalachian order require delivery to a pool plant of not less than 2 days' production in the months of January through June, and not less than 6 days' production in the months of July through December, in order for the producer's milk to be eligible for diversion to a nonpool plant. This proposal would allow a producer's milk to be diverted to a nonpool plant if that dairy farmer's milk is delivered to a pool plant one day per month, year around.

Proposal 1 would also amend the current transportation credit balancing fund provisions in the Appalachian order. Specifically, this proposal would: (1) Add the months of January and February to the months when transportation credits are paid, and retain June as an optional payment month based on industry request and market administrator determination of need, (2) pay transportation credits on the entire load of supplemental milk, rather than the current calculated Class I portion of the load, and (3) simplify the process for determination of which producers' milk is eligible for transportation credits as supplemental milk.

1. Amend § 1005.50 by revising paragraph (b) and (c) to read as follows:

§ 1005.50
Class prices, component prices, and advanced pricing factors.

(b) Class I skim milk price. The Class I skim milk price per hundredweight shall be the adjusted Class I differential specified in § 1000.52 plus the adjustment to Class I prices specified in § 1005.51(b) plus the higher of the advanced pricing factors computed in paragraph (q)(1) or (2) of this section.

(c) Class I butterfat price. The Class I butterfat price per pound shall be the adjusted Class I differential specified in § 1000.52 divided by 100, plus the adjustment to Class I prices specified in § 1005.51(b) divided by 100, plus the advanced butterfat price computed in paragraph (q)(3) of this section.

2. Amend § 1005.51 by renaming the section, designating the first subsection as (a), amending the language, and adding a new subsection (b) to read as follows:

§ 1005.51
Class I differential, adjustments to Class I prices, and Class I price.

(a) The Class I differential shall be the differential established for Mecklenburg County, North Carolina, which is reported in § 1000.52. The Class I price shall be the price computed pursuant to § 1005.50(a) for Mecklenburg County, North Carolina.

(b) Adjustment to Class I prices. Class I prices shall be established pursuant to § 1005.50(a), (b) and (c) using the following adjustments:

State County/parish FIPS Class I price adjustment
GA CATOOSA 13047 0.60
GA CHATTOOGA 13055 0.60
GA DADE 13083 0.60
GA FANNIN 13111 0.60
GA MURRAY 13213 0.60
GA WALKER 13295 0.60
GA WHITFIELD 13313 0.60
IN CLARK 18019 0.10
IN CRAWFORD 18025 0.10
IN DAVIESS 18027 0.10
IN DUBOIS 18037 0.10
IN FLOYD 18043 0.10
IN GIBSON 18051 0.10
IN GREENE 18055 0.10
IN HARRISON 18061 0.10
IN KNOX 18083 0.10
IN MARTIN 18101 0.10
IN ORANGE 18117 0.10
IN PERRY 18123 0.10
IN PIKE 18125 0.10
IN POSEY 18129 0.10
IN SCOTT 18143 0.10
IN SPENCER 18147 0.10
IN SULLIVAN 18153 0.10
IN VANDERBURGH 18163 0.10
IN WARRICK 18173 0.10
IN WASHINGTON 18175 0.10
KY ADAIR 21001 0.20
KY ANDERSON 21005 0.40
KY BATH 21011 0.40
KY BELL 21013 0.50
KY BOURBON 21017 0.40
KY BOYLE 21021 0.40
KY BREATHITT 21025 0.70
KY BRECKINRIDGE 21027 0.10
KY BULLITT 21029 0.10
KY BUTLER 21031 0.20
KY CARROLL 21041 0.10
KY CARTER 21043 0.40
KY CASEY 21045 0.20
KY CLARK 21049 0.40
KY CLAY 21051 0.50
KY CLINTON 21053 0.50
KY CUMBERLAND 21057 0.50
KY DAVIESS 21059 0.10
KY EDMONSON 21061 0.20
KY ELLIOTT 21063 0.40
KY ESTILL 21065 0.40
KY FAYETTE 21067 0.40
KY FLEMING 21069 0.40
KY FRANKLIN 21073 0.10
KY GALLATIN 21077 0.10
KY GARRARD 21079 0.40
KY GRAYSON 21085 0.20
KY GREEN 21087 0.20
KY HANCOCK 21091 0.10
KY HARDIN 21093 0.10
KY HARLAN 21095 0.50
KY HART 21099 0.20
KY HENDERSON 21101 0.10
KY HENRY 21103 0.10
KY HOPKINS 21107 0.20
KY JACKSON 21109 0.70
KY JEFFERSON 21111 0.10
KY JESSAMINE 21113 0.40
KY KNOTT 21119 0.50
KY KNOX 21121 0.50
KY LARUE 21123 0.40
KY LAUREL 21125 0.50
KY LEE 21129 0.40
KY LESLIE 21131 0.50
KY LETCHER 21133 0.50
KY LINCOLN 21137 0.40
KY MCCREARY 21147 0.50
KY MCLEAN 21149 0.40
KY MADISON 21151 0.40
KY MARION 21155 0.40
KY MEADE 21163 0.10
KY MENIFEE 21165 0.40
KY MERCER 21167 0.40
KY MONTGOMERY 21173 0.40
KY MORGAN 21175 0.40
KY MUHLENBURG 21177 0.20
KY NELSON 21179 0.10
KY NICHOLAS 21181 0.40
KY OHIO 21183 0.20
KY OLDHAM 21185 0.10
KY OWEN 21187 0.10
KY OWSLEY 21189 0.70
KY PERRY 21193 0.50
KY POWELL 21197 0.40
KY PULASKI 21199 0.50
KY ROCKCASTLE 21203 0.70
KY ROWAN 21205 0.40
KY RUSSELL 21207 0.50
KY SCOTT 21209 0.10
KY SHELBY 21211 0.10
KY SPENCER 21215 0.10
KY TAYLOR 21217 0.20
KY TRIMBLE 21223 0.10
KY UNION 21225 0.10
KY WASHINGTON 21229 0.40
KY WAYNE 21231 0.50
KY WEBSTER 21233 0.20
KY WHITLEY 21235 0.50
KY WOLFE 21237 0.40
KY WOODFORD 21239 0.40
NC ALAMANCE 37001 0.30
NC ALEXANDER 37003 0.45
NC ALLEGHANY 37005 0.45
NC ANSON 37007 0.50
NC ASHE 37009 0.45
NC AVERY 37011 0.45
NC BEAUFORT 37013 0.40
NC BERTIE 37015 0.20
NC BLADEN 37017 0.70
NC BRUNSWICK 37019 0.70
NC BUNCOMBE 37021 0.45
NC BURKE 37023 0.45
NC CABARRUS 37025 0.30
NC CALDWELL 37027 0.45
NC CAMDEN 37029 0.20
NC CARTERET 37031 0.40
NC CASWELL 37033 0.30
NC CATAWBA 37035 0.30
NC CHATHAM 37037 0.30
NC CHEROKEE 37039 0.45
NC CHOWAN 37041 0.20
NC CLAY 37043 0.45
NC CLEVELAND 37045 0.30
NC COLUMBUS 37047 0.70
NC CRAVEN 37049 0.40
NC CUMBERLAND 37051 0.30
NC CURRITUCK 37053 0.20
NC DARE 37055 0.40
NC DAVIDSON 37057 0.30
NC DAVIE 37059 0.30
NC DUPLIN 37061 0.30
NC DURHAM 37063 0.30
NC EDGECOMBE 37065 0.20
NC FORSYTH 37067 0.30
NC FRANKLIN 37069 0.30
NC GASTON 37071 0.30
NC GATES 37073 0.20
NC GRAHAM 37075 0.45
NC GRANVILLE 37077 0.30
NC GREENE 37079 0.40
NC GUILFORD 37081 0.30
NC HALIFAX 37083 0.30
NC HARNETT 37085 0.10
NC HAYWOOD 37087 0.45
NC HENDERSON 37089 0.45
NC HERTFORD 37091 0.20
NC HOKE 37093 0.30
NC HYDE 37095 0.40
NC IREDELL 37097 0.30
NC JACKSON 37099 0.45
NC JOHNSTON 37101 0.20
NC JONES 37103 0.40
NC LEE 37105 0.30
NC LENOIR 37107 0.40
NC LINCOLN 37109 0.30
NC MCDOWELL 37111 0.45
NC MACON 37113 0.45
NC MADISON 37115 0.45
NC MARTIN 37117 0.40
NC MECKLENBURG 37119 0.30
NC MITCHELL 37121 0.45
NC MONTGOMERY 37123 0.30
NC MOORE 37125 0.30
NC NASH 37127 0.30
NC NEW HANOVER 37129 0.70
NC NORTHAMPTON 37131 0.30
NC ONSLOW 37133 0.30
NC ORANGE 37135 0.30
NC PAMLICO 37137 0.40
NC PASQUOTANK 37139 0.20
NC PENDER 37141 0.70
NC PERQUIMANS 37143 0.20
NC PERSON 37145 0.30
NC PITT 37147 0.40
NC POLK 37149 0.30
NC RANDOLPH 37151 0.30
NC RICHMOND 37153 0.50
NC ROBESON 37155 0.70
NC ROCKINGHAM 37157 0.45
NC ROWAN 37159 0.30
NC RUTHERFORD 37161 0.30
NC SAMPSON 37163 0.30
NC SCOTLAND 37165 0.30
NC STANLY 37167 0.30
NC STOKES 37169 0.45
NC SURRY 37171 0.45
NC SWAIN 37173 0.45
NC TRANSYLVANIA 37175 0.45
NC TYRRELL 37177 0.40
NC UNION 37179 0.50
NC VANCE 37181 0.30
NC WAKE 37183 0.30
NC WARREN 37185 0.30
NC WASHINGTON 37187 0.40
NC WATAUGA 37189 0.45
NC WAYNE 37191 0.40
NC WILKES 37193 0.45
NC WILSON 37195 0.20
NC YADKIN 37197 0.30
NC YANCEY 37199 0.45
SC ABBEVILLE 45001 0.50
SC AIKEN 45003 0.70
SC ALLENDALE 45005 1.00
SC ANDERSON 45007 0.50
SC BAMBERG 45009 0.70
SC BARNWELL 45011 0.70
SC BEAUFORT 45013 1.00
SC BERKELEY 45015 1.00
SC CALHOUN 45017 0.70
SC CHARLESTON 45019 1.00
SC CHEROKEE 45021 0.50
SC CHESTER 45023 0.50
SC CHESTERFIELD 45025 0.30
SC CLARENDON 45027 0.70
SC COLLETON 45029 1.00
SC DARLINGTON 45031 0.70
SC DILLON 45033 0.70
SC DORCHESTER 45035 1.00
SC EDGEFIELD 45037 0.30
SC FAIRFIELD 45039 0.30
SC FLORENCE 45041 0.70
SC GEORGETOWN 45043 0.70
SC GREENVILLE 45045 0.50
SC GREENWOOD 45047 0.50
SC HAMPTON 45049 1.00
SC HORRY 45051 0.70
SC JASPER 45053 1.00
SC KERSHAW 45055 0.30
SC LANCASTER 45057 0.50
SC LAURENS 45059 0.50
SC LEE 45061 0.70
SC LEXINGTON 45063 0.70
SC MCCORMICK 45065 0.50
SC MARION 45067 0.70
SC MARLBORO 45069 0.70
SC NEWBERRY 45071 0.30
SC OCONEE 45073 0.50
SC ORANGEBURG 45075 0.70
SC PICKENS 45077 0.50
SC RICHLAND 45079 0.70
SC SALUDA 45081 0.30
SC SPARTANBURG 45083 0.50
SC SUMTER 45085 0.70
SC UNION 45087 0.50
SC WILLIAMSBURG 45089 0.70
SC YORK 45091 0.50
TN ANDERSON 47001 0.40
TN BLOUNT 47009 0.40
TN BRADLEY 47011 0.60
TN CAMPBELL 47013 0.40
TN CARTER 47019 0.40
TN CLAIBORNE 47025 0.40
TN COCKE 47029 0.40
TN CUMBERLAND 47035 0.40
TN GRAINGER 47057 0.40
TN GREENE 47059 0.40
TN HAMBLEN 47063 0.40
TN HAMILTON 47065 0.60
TN HANCOCK 47067 0.40
TN HAWKINS 47073 0.40
TN JEFFERSON 47089 0.40
TN JOHNSON 47091 0.40
TN KNOX 47093 0.40
TN LOUDON 47105 0.40
TN MCMINN 47107 0.60
TN MARION 47115 0.60
TN MEIGS 47121 0.60
TN MONROE 47123 0.60
TN MORGAN 47129 0.40
TN POLK 47139 0.60
TN RHEA 47143 0.40
TN ROANE 47145 0.40
TN SCOTT 47151 0.10
TN SEQUATCHIE 47153 0.40
TN SEVIER 47155 0.40
TN SULLIVAN 47163 0.40
TN UNICOI 47171 0.40
TN UNION 47173 0.40
TN WASHINGTON 47179 0.40
VA ALLEGHANY 51005 0.10
VA AMHERST 51009 0.40
VA AUGUSTA 51015 0.10
VA BATH 51017 0.10
VA BEDFORD 51019 0.40
VA BLAND 51021 0.40
VA BOTETOURT 51023 0.10
VA BUCHANAN 51027 0.10
VA CAMPBELL 51031 0.40
VA CARROLL 51035 0.40
VA CRAIG 51045 0.10
VA DICKENSON 51051 0.40
VA FLOYD 51063 0.40
VA FRANKLIN 51067 0.40
VA GILES 51071 0.10
VA GRAYSON 51077 0.40
VA HENRY 51089 0.40
VA HIGHLAND 51091 0.10
VA LEE 51105 0.40
VA MONTGOMERY 51121 0.40
VA PATRICK 51141 0.40
VA PITTSYLVANIA 51143 0.40
VA PULASKI 51155 0.40
VA ROANOKE 51161 0.40
VA ROCKBRIDGE 51163 0.10
VA ROCKINGHAM 51165 0.10
VA RUSSELL 51167 0.40
VA SCOTT 51169 0.40
VA SMYTH 51173 0.40
VA TAZEWELL 51185 0.40
VA WASHINGTON 51191 0.40
VA WISE 51195 0.40
VA WYTHE 51197 0.40
VA BEDFORD CITY 51515 0.40
VA BRISTOL CITY 51520 0.40
VA BUENA VISTA CITY 51530 0.10
VA CLIFTON FORGE CITY 51560 0.10
VA COVINGTON CITY 51580 0.10
VA DANVILLE CITY 51590 0.40
VA GALAX CITY 51640 0.40
VA HARRISONBURG CITY 51660 0.10
VA LEXINGTON CITY 51678 0.10
VA LYNCHBURG CITY 51680 0.40
VA MARTINSVILLE CITY 51690 0.40
VA NORTON CITY 51720 0.40
VA RADFORD CITY 51750 0.40
VA ROANOKE CITY 51770 0.40
VA SALEM CITY 51775 0.40
VA STAUNTON CITY 51790 0.10
VA WAYNESBORO CITY 51820 0.10
WV MCDOWELL 54047 0.10
WV MERCER 54055 0.10

3. Amend § 1005.13 by revising paragraph (d)(1) through (4) to read as follows:

§ 1005.13
Producer milk.

(d) * * *

(1) In any month of July through December, not less than 1 days' production of the producer whose milk is diverted is physically received at a pool plant during the month;

(2) In any month of January through June, not less than 1 days' production of the producer whose milk is diverted is physically received at a pool plant during the month;

(3) The total quantity of milk so diverted during the month by a cooperative association shall not exceed 25 percent during the months of July through November, January, and February, and 35 percent during the months of December and March through June, of the producer milk that the cooperative association caused to be delivered to, and physically received at, pool plants during the month;

(4) The operator of a pool plant that is not a cooperative association may divert any milk that is not under the control of a cooperative association that diverts milk during the month pursuant to paragraph (d) of this section. The total quantity of milk so diverted during the month shall not exceed 25 percent during the months of July through November, January, and February, and 35 percent during the months of December and March through June, of the producer milk physically received at such plant (or such unit of plants in the case of plants that pool as a unit pursuant to § 1005.7(d)) during the month, excluding the quantity of producer milk received from handler described in § 1000.9(c);

4. Amend § 1005.81 by revising (a) to read as follows:

§ 1005.81
Payments to the transportation credit balancing fund.

(a) On or before the 12th day after the end of the month (except) as provided in § 1009.90), each handler operating a pool plant and each handler specified in § 1000.9(c) shall pay to the Market Administrator a transportation credit balancing fund assessment determined by multiplying the pounds of Class I producer milk assigned pursuant to § 1005.44 by $0.15 per hundredweight or such lesser amount as the Market Administrator deems necessary to maintain a balance in the fund equal to the total transportation credits disbursed during the prior June-February period. In the event that during any month of the June-February period the fund balance is insufficient to cover the amount of credits that are due, the assessment should be based upon the amount of credits that would have been disbursed had the fund balance been sufficient.

5. Amend § 1005.82 by revising paragraphs (a)(1), (b), (c)(1), (d)(2) (iii), (d)(3)(v), and redesignating paragraphs (c)(2)(ii), (c)(2)(iii), (c)(2)(iv) to read as (c)(2)(i), (c)(2)(ii) and (c)(2)(iii) to read as follows:

(a) * * *

(1) On or before the 13th day (except as provided in § 1000.90) after the end of each of the months of January, February and July through December and any other month in which transportation credits are in effect pursuant to paragraph (b) of this section, the Market Administrator shall pay to each handler that received, and reported pursuant to § 1005.30(a)(5), bulk milk transferred from a plant fully regulated under another Federal order as described in paragraph (c)(1) of this section or that received, and reported pursuant to § 1005.30(a)(6), milk directly from producers' farms as specified in paragraph (c)(2) of this section, a preliminary amount determined pursuant to paragraph (d) of this section to the extent that funds are available in the transportation credit balancing fund. If an insufficient balance exists to pay all of the credits computed pursuant to this section, the market administrator shall distribute the balance available in the transportation credit balancing fund by reducing payments prorata using the percentage derived by dividing the balance in the fund by the total credits that are due for the month. The amount of credits resulting from this initial proration shall be subject to audit adjustment pursuant to paragraph (a)(2) of this section.

(4) * * *

(b) The Market Administrator may extend the period during which transportation credits are in effect (i.e., the transportation credit period) to the month of June if a written request to do so is received 15 days prior to the beginning of the month for which the request is made and, after conducting an independent investigation, finds that such extension is necessary to assure the market of an adequate supply of milk for fluid use. Before making such a finding, the Market Administrator shall notify the Director of the Dairy Division and all handlers in the market that an extension is being considered and invite written data, views, and arguments. Any decision to extend the transportation credit period must be issued in writing prior to the first day of the month for which the extension is to be effective.

(c) * * *

(1) Bulk milk received from a plant regulated under another Federal order, except Federal Order 1007; and

(2) Bulk milk received directly from the farms of dairy farmers at pool distributing plants subject to the following conditions:

(i) The farmer was not a “producer” under this order for more than 45 days during the immediately preceding months of March through May, or not more than 50 percent of the production of the dairy farmer during those 3 months, in aggregate, was received as producer milk under this order during those 3 months; and

(ii) The farm on which the milk was produced is not located within the specified marketing area of the order in this part or the marketing area of Federal Order 1007 (7 CFR part 1007).

(iii) The market administrator may increase or decrease the milk production standard specified in paragraph (c)(2)(i) of this section if the market administrator finds that such revision is necessary to assure orderly marketing and efficient handling of milk in the marketing area. Before making such a finding, the market administrator shall investigate the need for the revision either on the market administrator's own initiative or at the request of interested persons. If the investigation shows that a revision might be appropriate, the market administrator shall issue a notice stating that the revision is being considered and inviting written data, views, and arguments. Any decision to revise an applicable percentage must be issued in writing at least one day before the effective date.

(d) * * *

(iii) Subtract the applicable Class I price specified in § 1005.51 for the county in which the shipping plant is located from the Class I price applicable for the county in which the receiving plant is located;

(3) * * *

(v) Subtract the Class I price specified in § 1005.51 applicable for the county in which the origination point is located from the Class I price applicable at the receiving pool plant's location;

Proposed by Dairy Cooperative Marketing Association, Inc

Proposal No. 2

This proposal would temporarily adjust the Class I pricing surface in each county within the geographical marketing area of the Southeast milk marketing order. Specifically, this proposal would, on a temporary basis, modify section 1007.51 of the Southeast order by including a new provision, a “Class I price adjustment,” which would be added to the Class I price “mover,” and to the section 1000.52 Class I differential, to obtain the minimum Order Class I price. The proposed changes to the Class I prices for plant locations in the Southeast milk marketing area would range from an increase of $0.10 per cwt to an increase of $1.15 per cwt.

Proposal 2 would also reduce the volume of milk which may be pooled by diversion on the Southeast order. Specifically, the proposal would decrease the current diversion percentages for each month, from 50% for the months of January through June and 33% for the months of July through December, to 25% for the months of January, February, and July through November, and to 35% for the months of March through June and the month of December. In addition, this proposal proposes that the producer delivery day requirements be amended in the Southeast order. The current provisions in the Southeast order require delivery to a pool plant of not less than 4 days' production in the months of January through June, and not less than 10 days' production in the months of July through December, in order for the producer's milk to be eligible for diversion to a nonpool plant. This proposal would allow a producer's milk to be diverted to a nonpool plant if that dairy farmer's milk is delivered to a pool plant one day per month, year around.

Proposal 2 would also amend the current transportation credit balancing fund provisions in the Southeast order. Specifically, this proposal would: (1) Add the months of January and February to the months when transportation credits are paid, and retain June as an optional payment month based on industry request and market administrator determination of need, (2) pay transportation credits on the entire load of supplemental milk, rather than the current calculated Class I portion of the load, (3) simplify the process for determination of which producers' milk is eligible for transportation credits as supplemental milk, and (4) increase the maximum transportation credit assessment in the Southeast order from the current $0.20 per cwt to $0.30 per cwt of Class I producer milk.

1. Amend § 1007.50 by revising paragraph (b) and (c) to read as follows:

§ 1007.50
Class prices, component prices, and advanced pricing factors.

(b) Class I skim milk price. The Class I skim milk price per hundredweight shall be the adjusted Class I differential specified in § 1000.52 plus the adjustment to Class I prices specified in § 1007.51(b) plus the higher of the advanced pricing factors computed in paragraph (q)(1) or (2) of this section.

(c) Class I butterfat price. The Class I butterfat price per pound shall be the adjusted Class I differential specified in § 1000.52 divided by 100, plus the adjustment to Class I prices specified in § 1007.51(b) divided by 100, plus the advanced butterfat price computed in paragraph (q)(3) of this section.

2. Amend § 1007.51 by renaming the section, designating the first subsection as (a), amending the language, and adding a new subsection (b) to read as follows:

§ 1007.51
Class I differential, adjustments to Class I prices, and Class I price.

(a) The Class I differential shall be the differential established for Fulton County, Georgia, which is reported in § 1000.52. The Class I price shall be the price computed pursuant to § 1007.50(a) for Fulton County, Georgia.

(b) Adjustment to Class I prices. Class I prices shall be established pursuant to § 1007.50(a), (b) and (c) using the following adjustments:

State County/Parish FIPS Class I price adjustment
AL AUTAUGA 01001 0.50
AL BALDWIN 01003 0.50
AL BARBOUR 01005 0.55
AL BIBB 01007 0.30
AL BLOUNT 01009 0.20
AL BULLOCK 01011 0.70
AL BUTLER 01013 0.55
AL CALHOUN 01015 0.30
AL CHAMBERS 01017 0.70
AL CHEROKEE 01019 0.30
AL CHILTON 01021 0.70
AL CHOCTAW 01023 0.50
AL CLARKE 01025 0.35
AL CLAY 01027 0.70
AL CLEBURNE 01029 0.70
AL COFFEE 01031 0.85
AL COLBERT 01033 0.30
AL CONECUH 01035 0.55
AL COOSA 01037 0.70
AL COVINGTON 01039 0.55
AL CRENSHAW 01041 0.55
AL CULLMAN 01043 0.20
AL DALE 01045 0.85
AL DALLAS 01047 0.50
AL DE KALB 01049 0.40
AL ELMORE 01051 0.50
AL ESCAMBIA 01053 0.55
AL ETOWAH 01055 0.30
AL FAYETTE 01057 0.20
AL FRANKLIN 01059 0.30
AL GENEVA 01061 0.85
AL GREENE 01063 0.30
AL HALE 01065 0.30
AL HENRY 01067 0.85
AL HOUSTON 01069 0.85
AL JACKSON 01071 0.40
AL JEFFERSON 01073 0.30
AL LAMAR 01075 0.20
AL LAUDERDALE 01077 0.30
AL LAWRENCE 01079 0.30
AL LEE 01081 0.70
AL LIMESTONE 01083 0.30
AL LOWNDES 01085 0.70
AL MACON 01087 0.70
AL MADISON 01089 0.30
AL MARENGO 01091 0.50
AL MARION 01093 0.20
AL MARSHALL 01095 0.40
AL MOBILE 01097 0.50
AL MONROE 01099 0.35
AL MONTGOMERY 01101 0.70
AL MORGAN 01103 0.30
AL PERRY 01105 0.30
AL PICKENS 01107 0.30
AL PIKE 01109 0.55
AL RANDOLPH 01111 0.70
AL RUSSELL 01113 0.70
AL SAINT CLAIR 01115 0.30
AL SHELBY 01117 0.30
AL SUMTER 01119 0.30
AL TALLADEGA 01121 0.30
AL TALLAPOOSA 01123 0.70
AL TUSCALOOSA 01125 0.30
AL WALKER 01127 0.20
AL WASHINGTON 01129 0.35
AL WILCOX 01131 0.50
AL WINSTON 01133 0.20
AR ARKANSAS 05001 0.00
AR ASHLEY 05003 0.10
AR BAXTER 05005 0.10
AR BENTON 05007 0.10
AR BOONE 05009 0.10
AR BRADLEY 05011 0.30
AR CALHOUN 05013 0.30
AR CARROLL 05015 0.10
AR CHICOT 05017 0.10
AR CLARK 05019 0.00
AR CLAY 05021 0.10
AR CLEBURNE 05023 0.10
AR CLEVELAND 05025 0.30
AR COLUMBIA 05027 0.10
AR CONWAY 05029 0.10
AR CRAIGHEAD 05031 0.10
AR CRAWFORD 05033 0.10
AR CRITTENDEN 05035 0.10
AR CROSS 05037 0.10
AR DALLAS 05039 0.00
AR DESHA 05041 0.30
AR DREW 05043 0.30
AR FAULKNER 05045 0.10
AR FRANKLIN 05047 0.10
AR FULTON 05049 0.10
AR GARLAND 05051 0.10
AR GRANT 05053 0.00
AR GREENE 05055 0.10
AR HEMPSTEAD 05057 0.30
AR HOT SPRING 05059 0.00
AR HOWARD 05061 0.00
AR INDEPENDENCE 05063 0.10
AR IZARD 05065 0.10
AR JACKSON 05067 0.10
AR JEFFERSON 05069 0.00
AR JOHNSON 05071 0.10
AR LAFAYETTE 05073 0.10
AR LAWRENCE 05075 0.10
AR LEE 05077 0.10
AR LINCOLN 05079 0.30
AR LITTLE RIVER 05081 0.30
AR LOGAN 05083 0.10
AR LONOKE 05085 0.10
AR MADISON 05087 0.10
AR MARION 05089 0.10
AR MILLER 05091 0.10
AR MISSISSIPPI 05093 0.30
AR MONROE 05095 0.10
AR MONTGOMERY 05097 0.10
AR NEVADA 05099 0.30
AR NEWTON 05101 0.10
AR OUACHITA 05103 0.30
AR PERRY 05105 0.10
AR PHILLIPS 05107 0.00
AR PIKE 05109 0.00
AR POINSETT 05111 0.30
AR POLK 05113 0.10
AR POPE 05115 0.10
AR PRAIRIE 05117 0.10
AR PULASKI 05119 0.10
AR RANDOLPH 05121 0.10
AR SAINT FRANCIS 05123 0.10
AR SALINE 05125 0.10
AR SCOTT 05127 0.10
AR SEARCY 05129 0.10
AR SEBASTIAN 05131 0.10
AR SEVIER 05133 0.00
AR SHARP 05135 0.10
AR STONE 05137 0.10
AR UNION 05139 0.10
AR VAN BUREN 05141 0.10
AR WASHINGTON 05143 0.10
AR WHITE 05145 0.10
AR WOODRUFF 05147 0.10
AR YELL 05149 0.10
FL ESCAMBIA 12033 0.55
FL OKALOOSA 12091 0.55
FL SANTA ROSA 12113 0.55
FL WALTON 12131 0.55
GA APPLING 13001 1.15
GA ATKINSON 13003 1.15
GA BACON 13005 1.15
GA BAKER 13007 0.85
GA BALDWIN 13009 0.70
GA BANKS 13011 0.70
GA BARROW 13013 0.70
GA BARTOW 13015 0.30
GA BEN HILL 13017 1.15
GA BERRIEN 13019 1.15
GA BIBB 13021 0.70
GA BLECKLEY 13023 1.00
GA BRANTLEY 13025 1.15
GA BROOKS 13027 1.15
GA BRYAN 13029 1.15
GA BULLOCH 13031 1.00
GA BURKE 13033 0.70
GA BUTTS 13035 0.70
GA CALHOUN 13037 0.85
GA CAMDEN 13039 1.15
GA CANDLER 13043 1.00
GA CARROLL 13045 0.70
GA CHARLTON 13049 1.15
GA CHATHAM 13051 1.15
GA CHATTAHOOCHEE 13053 0.70
GA CHEROKEE 13057 0.30
GA CLARKE 13059 0.70
GA CLAY 13061 0.85
GA CLAYTON 13063 0.70
GA CLINCH 13065 1.15
GA COBB 13067 0.70
GA COFFEE 13069 1.15
GA COLQUITT 13071 1.15
GA COLUMBIA 13073 0.70
GA COOK 13075 1.15
GA COWETA 13077 0.70
GA CRAWFORD 13079 0.70
GA CRISP 13081 0.85
GA DAWSON 13085 0.30
GA DECATUR 13087 1.15
GA DE KALB 13089 0.70
GA DODGE 13091 0.85
GA DOOLY 13093 0.85
GA DOUGHERTY 13095 0.85
GA DOUGLAS 13097 0.70
GA EARLY 13099 0.85
GA ECHOLS 13101 1.15
GA EFFINGHAM 13103 1.00
GA ELBERT 13105 0.70
GA EMANUEL 13107 1.00
GA EVANS 13109 1.15
GA FAYETTE 13113 0.70
GA FLOYD 13115 0.30
GA FORSYTH 13117 0.70
GA FRANKLIN 13119 0.70
GA FULTON 13121 0.70
GA GILMER 13123 0.30
GA GLASCOCK 13125 0.90
GA GLYNN 13127 1.15
GA GORDON 13129 0.30
GA GRADY 13131 1.15
GA GREENE 13133 0.70
GA GWINNETT 13135 0.70
GA HABERSHAM 13137 0.30
GA HALL 13139 0.70
GA HANCOCK 13141 0.70
GA HARALSON 13143 0.70
GA HARRIS 13145 0.70
GA HART 13147 0.70
GA HEARD 13149 0.70
GA HENRY 13151 0.70
GA HOUSTON 13153 0.70
GA IRWIN 13155 1.15
GA JACKSON 13157 0.70
GA JASPER 13159 0.70
GA JEFF DAVIS 13161 1.15
GA JEFFERSON 13163 0.70
GA JENKINS 13165 1.00
GA JOHNSON 13167 1.00
GA JONES 13169 0.70
GA LAMAR 13171 0.70
GA LANIER 13173 1.15
GA LAURENS 13175 1.00
GA LEE 13177 0.85
GA LIBERTY 13179 1.15
GA LINCOLN 13181 0.70
GA LONG 13183 1.15
GA LOWNDES 13185 1.15
GA LUMPKIN 13187 0.30
GA MCDUFFIE 13189 0.70
GA MCINTOSH 13191 1.15
GA MACON 13193 0.70
GA MADISON 13195 0.70
GA MARION 13197 0.70
GA MERIWETHER 13199 0.70
GA MILLER 13201 0.85
GA MITCHELL 13205 1.15
GA MONROE 13207 0.70
GA MONTGOMERY 13209 1.15
GA MORGAN 13211 0.70
GA MUSCOGEE 13215 0.70
GA NEWTON 13217 0.70
GA OCONEE 13219 0.70
GA OGLETHORPE 13221 0.70
GA PAULDING 13223 0.70
GA PEACH 13225 0.70
GA PICKENS 13227 0.30
GA PIERCE 13229 1.15
GA PIKE 13231 0.70
GA POLK 13233 0.70
GA PULASKI 13235 0.85
GA PUTNAM 13237 0.70
GA QUITMAN 13239 0.85
GA RABUN 13241 0.30
GA RANDOLPH 13243 0.85
GA RICHMOND 13245 0.70
GA ROCKDALE 13247 0.70
GA SCHLEY 13249 0.70
GA SCREVEN 13251 1.00
GA SEMINOLE 13253 1.15
GA SPALDING 13255 0.70
GA STEPHENS 13257 0.30
GA STEWART 13259 0.55
GA SUMTER 13261 0.85
GA TALBOT 13263 0.70
GA TALIAFERRO 13265 0.70
GA TATTNALL 13267 1.15
GA TAYLOR 13269 0.70
GA TELFAIR 13271 1.15
GA TERRELL 13273 0.85
GA THOMAS 13275 1.15
GA TIFT 13277 1.15
GA TOOMBS 13279 1.15
GA TOWNS 13281 0.30
GA TREUTLEN 13283 1.00
GA TROUP 13285 0.70
GA TURNER 13287 0.85
GA TWIGGS 13289 0.70
GA UNION 13291 0.30
GA UPSON 13293 0.70
GA WALTON 13297 0.70
GA WARE 13299 1.15
GA WARREN 13301 0.70
GA WASHINGTON 13303 0.70
GA WAYNE 13305 1.15
GA WEBSTER 13307 0.55
GA WHEELER 13309 1.15
GA WHITE 13311 0.30
GA WILCOX 13315 0.85
GA WILKES 13317 0.70
GA WILKINSON 13319 0.70
GA WORTH 13321 0.85
KY ALLEN 21003 0.20
KY BALLARD 21007 0.30
KY BARREN 21009 0.20
KY CALDWELL 21033 0.20
KY CALLOWAY 21035 0.30
KY CARLISLE 21039 0.30
KY CHRISTIAN 21047 0.20
KY CRITTENDEN 21055 0.20
KY FULTON 21075 0.30
KY GRAVES 21083 0.30
KY HICKMAN 21105 0.30
KY LIVINGSTON 21139 0.30
KY LOGAN 21141 0.20
KY LYON 21143 0.20
KY MCCRACKEN 21145 0.30
KY MARSHALL 21157 0.30
KY METCALFE 21169 0.20
KY MONROE 21171 0.50
KY SIMPSON 21213 0.20
KY TODD 21219 0.20
KY TRIGG 21221 0.20
KY WARREN 21227 0.20
LA ACADIA 22001 0.30
LA ALLEN 22003 0.30
LA ASCENSION 22005 0.20
LA ASSUMPTION 22007 0.20
LA AVOYELLES 22009 0.00
LA BEAUREGARD 22011 0.30
LA BIENVILLE 22013 0.00
LA BOSSIER 22015 0.10
LA CADDO 22017 0.10
LA CALCASIEU 22019 0.30
LA CALDWELL 22021 0.00
LA CAMERON 22023 0.20
LA CATAHOULA 22025 0.00
LA CLAIBORNE 22027 0.10
LA CONCORDIA 22029 0.00
LA DE SOTO 22031 0.00
LA EAST BATON ROUGE 22033 0.20
LA EAST CARROLL 22035 0.20
LA EAST FELICIANA 22037 0.30
LA EVANGELINE 22039 0.30
LA FRANKLIN 22041 0.00
LA GRANT 22043 0.00
LA IBERIA 22045 0.20
LA IBERVILLE 22047 0.20
LA JACKSON 22049 0.00
LA JEFFERSON 22051 0.20
LA JEFFERSON DAVIS 22053 0.30
LA LAFAYETTE 22055 0.20
LA LAFOURCHE 22057 0.20
LA LA SALLE 22059 0.00
LA LINCOLN 22061 0.10
LA LIVINGSTON 22063 0.20
LA MADISON 22065 0.00
LA MOREHOUSE 22067 0.10
LA NATCHITOCHES 22069 0.00
LA ORLEANS 22071 0.20
LA OUACHITA 22073 0.10
LA PLAQUEMINES 22075 0.20
LA POINTE COUPEE 22077 0.30
LA RAPIDES 22079 0.00
LA RED RIVER 22081 0.00
LA RICHLAND 22083 0.20
LA SABINE 22085 0.00
LA SAINT BERNARD 22087 0.20
LA SAINT CHARLES 22089 0.20
LA SAINT HELENA 22091 0.30
LA SAINT JAMES 22093 0.20
LA SAINT JOHN THE BAPTIST 22095 0.20
LA SAINT LANDRY 22097 0.30
LA SAINT MARTIN 22099 0.20
LA SAINT MARY 22101 0.20
LA SAINT TAMMANY 22103 0.30
LA TANGIPAHOA 22105 0.20
LA TENSAS 22107 0.00
LA TERREBONNE 22109 0.20
LA UNION 22111 0.10
LA VERMILION 22113 0.20
LA VERMILION 22113 0.20
LA VERNON 22115 0.00
LA WASHINGTON 22117 0.30
LA WEBSTER 22119 0.10
LA WEST BATON ROUGE 22121 0.20
LA WEST CARROLL 22123 0.10
LA WEST FELICIANA 22125 0.30
LA WINN 22127 0.00
MS ADAMS 28001 0.00
MS ALCORN 28003 0.30
MS AMITE 28005 0.40
MS ATTALA 28007 0.20
MS BENTON 28009 0.30
MS BOLIVAR 28011 0.10
MS CALHOUN 28013 0.10
MS CARROLL 28015 0.20
MS CHICKASAW 28017 0.10
MS CHOCTAW 28019 0.20
MS CLAIBORNE 28021 0.10
MS CLARKE 28023 0.50
MS CLAY 28025 0.20
MS COAHOMA 28027 0.30
MS COPIAH 28029 0.10
MS COVINGTON 28031 0.00
MS DE SOTO 28033 0.00
MS FORREST 28035 0.40
MS FRANKLIN 28037 0.00
MS GEORGE 28039 0.40
MS GREENE 28041 0.40
MS GRENADA 28043 0.10
MS HANCOCK 28045 0.30
MS HARRISON 28047 0.30
MS HINDS 28049 0.00
MS HOLMES 28051 0.20
MS HUMPHREYS 28053 0.20
MS ISSAQUENA 28055 0.20
MS ITAWAMBA 28057 0.30
MS JACKSON 28059 0.30
MS JASPER 28061 0.10
MS JEFFERSON 28063 0.00
MS JEFFERSON DAVIS 28065 0.00
MS JONES 28067 0.40
MS KEMPER 28069 0.30
MS LAFAYETTE 28071 0.30
MS LAMAR 28073 0.40
MS LAUDERDALE 28075 0.10
MS LAWRENCE 28077 0.00
MS LEAKE 28079 0.20
MS LEE 28081 0.30
MS LEFLORE 28083 0.10
MS LINCOLN 28085 0.00
MS LOWNDES 28087 0.20
MS MADISON 28089 0.20
MS MARION 28091 0.40
MS MARSHALL 28093 0.00
MS MONROE 28095 0.20
MS MONTGOMERY 28097 0.20
MS NESHOBA 28099 0.20
MS NEWTON 28101 0.10
MS NOXUBEE 28103 0.30
MS OKTIBBEHA 28105 0.20
MS PANOLA 28107 0.30
MS PEARL RIVER 28109 0.40
MS PERRY 28111 0.40
MS PIKE 28113 0.40
MS PONTOTOC 28115 0.30
MS PRENTISS 28117 0.30
MS QUITMAN 28119 0.30
MS RANKIN 28121 0.10
MS SCOTT 28123 0.10
MS SHARKEY 28125 0.20
MS SIMPSON 28127 0.10
MS SMITH 28129 0.10
MS STONE 28131 0.40
MS SUNFLOWER 28133 0.10
MS TALLAHATCHIE 28135 0.10
MS TATE 28137 0.00
MS TIPPAH 28139 0.30
MS TISHOMINGO 28141 0.30
MS TUNICA 28143 0.00
MS UNION 28145 0.30
MS WALTHALL 28147 0.40
MS WARREN 28149 0.00
MS WASHINGTON 28151 0.10
MS WAYNE 28153 0.40
MS WEBSTER 28155 0.20
MS WILKINSON 28157 0.40
MS WINSTON 28159 0.20
MS YALOBUSHA 28161 0.10
MS YAZOO 28163 0.20
MO BARRY 29009 0.20
MO BARTON 29011 0.20
MO BOLLINGER 29017 0.20
MO BUTLER 29023 0.20
MO CAPE GIRARDEAU 29031 0.20
MO CARTER 29035 0.20
MO CEDAR 29039 0.20
MO CHRISTIAN 29043 0.20
MO CRAWFORD 29055 0.40
MO DADE 29057 0.20
MO DALLAS 29059 0.20
MO DENT 29065 0.40
MO DOUGLAS 29067 0.20
MO DUNKLIN 29069 0.50
MO GREENE 29077 0.20
MO HOWELL 29091 0.20
MO IRON 29093 0.40
MO JASPER 29097 0.20
MO LACLEDE 29105 0.20
MO LAWRENCE 29109 0.20
MO MCDONALD 29119 0.20
MO MADISON 29123 0.20
MO MISSISSIPPI 29133 0.50
MO NEW MADRID 29143 0.50
MO NEWTON 29145 0.20
MO OREGON 29149 0.20
MO OZARK 29153 0.20
MO PEMISCOT 29155 0.50
MO PERRY 29157 0.20
MO POLK 29167 0.20
MO REYNOLDS 29179 0.20
MO RIPLEY 29181 0.20
MO SAINT FRANCOIS 29187 0.40
MO SCOTT 29201 0.20
MO SHANNON 29203 0.20
MO STODDARD 29207 0.20
MO STONE 29209 0.20
MO TANEY 29213 0.20
MO TEXAS 29215 0.20
MO VERNON 29217 0.20
MO WASHINGTON 29221 0.40
MO WAYNE 29223 0.20
MO WEBSTER 29225 0.20
MO WRIGHT 29229 0.20
TN BEDFORD 47003 0.30
TN BENTON 47005 0.30
TN BLEDSOE 47007 0.60
TN CANNON 47015 0.30
TN CARROLL 47017 0.10
TN CHEATHAM 47021 0.30
TN CHESTER 47023 0.10
TN CLAY 47027 0.30
TN COFFEE 47031 0.60
TN CROCKETT 47033 0.30
TN DAVIDSON 47037 0.30
TN DECATUR 47039 0.30
TN DE KALB 47041 0.30
TN DICKSON 47043 0.30
TN DYER 47045 0.10
TN FAYETTE 47047 0.10
TN FENTRESS 47049 0.30
TN FRANKLIN 47051 0.40
TN GIBSON 47053 0.10
TN GILES 47055 0.40
TN GRUNDY 47061 0.60
TN HARDEMAN 47069 0.10
TN HARDIN 47071 0.10
TN HAYWOOD 47075 0.30
TN HENDERSON 47077 0.30
TN HENRY 47079 0.10
TN HICKMAN 47081 0.30
TN HOUSTON 47083 0.30
TN HUMPHREYS 47085 0.30
TN JACKSON 47087 0.30
TN LAKE 47095 0.10
TN LAUDERDALE 47097 0.30
TN LAWRENCE 47099 0.40
TN LEWIS 47101 0.30
TN LINCOLN 47103 0.40
TN MCNAIRY 47109 0.10
TN MACON 47111 0.30
TN MADISON 47113 0.30
TN MARSHALL 47117 0.30
TN MAURY 47119 0.30
TN MONTGOMERY 47125 0.30
TN MOORE 47127 0.40
TN OBION 47131 0.10
TN OVERTON 47133 0.30
TN PERRY 47135 0.30
TN PICKETT 47137 0.30
TN PUTNAM 47141 0.30
TN ROBERTSON 47147 0.30
TN RUTHERFORD 47149 0.30
TN SHELBY 47157 0.10
TN SMITH 47159 0.30
TN STEWART 47161 0.30
TN SUMNER 47165 0.30
TN TIPTON 47167 0.10
TN TROUSDALE 47169 0.30
TN VAN BUREN 47175 0.60
TN WARREN 47177 0.60
TN WAYNE 47181 0.40
TN WEAKLEY 47183 0.10
TN WHITE 47185 0.30
TN WILLIAMSON 47187 0.30
TN WILSON 47189 0.30

3. Amend § 1007.13 by revising paragraph (d) (1) through (4) to read as follows:

§ 1007.13
Producer milk.

(d) * * *

(1) In any month of January through June, not less than 1 days' production of the producer whose milk is diverted is physically received at a pool plant during the month;

(2) In any month of July through December, not less than 1 days' production of the producer whose milk diverted is physically received at a pool plant during the month;

(3) The total quantity of milk so diverted during the month by a cooperative association shall not exceed 25 percent during the months of July through November, January, and February, and 35 percent during the months of December and March through June, of the producer milk that the cooperative association caused to be delivered to, and physically received at, pool plants during the month;

(4) The operator of a pool plant that is not a cooperative association may divert any milk that is not under the control of a cooperative association that diverts milk during the month pursuant to paragraph (d) of this section. The total quantity of milk so diverted during the month shall not exceed 25 percent during the months of July through November, January, and February, and 35 percent during the months of December and March through June of the producer milk physically received at such plant (or such unit of plants in the case of plants that pool as a unit pursuant to § 1007.7 (e)) during the month, excluding the quantity of producer milk received from a handler described in § 1000.9 (c);

4. Amend § 1007.81 by revising (a) to read as follows:

§ 1007.81
Payments to the transportation credit balancing fund.

(a) On or before the 12th day after the end of the month (except as provided in § 1000.90), each handler operating a pool plant and each handler specified in § 1000.9 (c) shall pay to the market administrator a transportation credit balancing fund assessment determined by multiplying the pounds of Class I producer milk assigned pursuant to § 1007.44 by $0.30 per hundredweight or such lesser amount as the market administrator deems necessary to maintain a balance in the fund equal to the total transportation credits disbursed during the prior June-February period to reflect any changes in the current mileage rate versus the mileage rate(s) in effect during the prior June-February period. In the event that during any month of the June-February period the fund balance is insufficient to cover the amount of credits that are due, the assessment should be based upon the amount of credits that would have been disbursed had the fund balance been sufficient.

5. Amend § 1007.82 by revising paragraphs (a)(1), (b), (c)(1), (d)(2) (iii), (d)(3)(v), and redesignating paragraphs (c)(2)(ii), (c)(2)(iii), (c)(2)(iv) to read as (c)(2)(i), (c)(2)(ii) and (c)(2)(iii) to read as follows:

§ 1007.82
[Amended]

(a) * * *

(1) On or before the 13th day (except as provided in § 1000.90) after the end of each of the months of January, February and July through December and any other month in which transportation credits are in effect pursuant to paragraph (b) of this section, the market administrator shall pay to each handler that received, and reported pursuant to § 1007.30(a)(5), bulk milk transferred from a plant fully regulated under another Federal order as described in paragraph (c)(1) of this section or that received, and reported pursuant to § 1007.30(a)(6), milk directly from producers' farms as specified in paragraph (c)(2) of this section, a preliminary amount determined pursuant to paragraph (d) of this section to the extent that funds are available in the transportation credit balancing fund. If an insufficient balance exists to pay all of the credits computed pursuant to this section, the market administrator shall distribute the balance available in the transportation credit balancing fund by reducing payments pro rata using the percentage derived by dividing the balance in the fund by the total credits that are due for the month. The amount of credits resulting from this initial proration shall be subject to audit adjustment pursuant to paragraph (a)(2) of this section.

(4) * * *

(b) The Market Administrator may extend the period during which transportation credits are in effect (i.e., the transportation credit period) to the month of June if a written request to do so is received 15 days prior to the beginning of the month for which the request is made and, after conducting an independent investigation, finds that such extension is necessary to assure the market of an adequate supply of milk for fluid use. Before making such a finding, the Market Administrator shall notify the Director of the Dairy Division and all handlers in the market that an extension is being considered and invite written data, views, and arguments. Any decision to extend the transportation credit period must be issued in writing prior to the first day of the month for which the extension is to be effective.

(c) * * *

(1) Bulk milk received from a plant regulated under another Federal order, except Federal Order 1005; and

(2) Bulk milk received directly from the farms of dairy farmers at pool distributing plants subject to the following conditions:

(i) The farmer was not a “producer” under this order for more than 45 days during the immediately preceding months of March through May, or not more than 50 percent of the production of the dairy farmer during those 3 months, in aggregate, was received as producer milk under this order during those 3 months; and

(ii) The farm on which the milk was produced is not located within the specified marketing area of the order in this part or the marketing area of Federal Order 1005 (7 CFR part 1005).

(iii) The market administrator may increase or decrease the milk production standard specified in paragraph (c)(2)(i) of this section if the market administrator finds that such revision is necessary to assure orderly marketing and efficient handling of milk in the marketing area. Before making such a finding, the market administrator shall investigate the need for the revision either on the market administrator's own initiative or at the request of interested persons. If the investigation shows that a revision might be appropriate, the market administrator shall issue a notice stating that the revision is being considered and inviting written data, views, and arguments. Any decision to revise an applicable percentage must be issued in writing at least one day before the effective date.

(d) * * *

(iii) Subtract the applicable Class I price specified in § 1007.51 for the county in which the shipping plant is located from the Class I price applicable for the county in which the receiving plant is located;

(3) * * *

(v) Subtract the Class I price specified in § 1007.51 applicable for the county in which the origination point is located from the Class I price applicable at the receiving pool plant's location;

Proposed by Dairy Cooperative Marketing Association, Inc.

Proposal No. 3

This proposal would temporarily adjust the Class I pricing surface in each county within the geographical marketing area of the Florida milk marketing order. Specifically, this proposal would, on a temporary basis, modify section 1006.51 of the Florida order by including a new provision, a “Class I price adjustment,” which would be added to the Class I price “mover,” and to the section 1000.52 Class I differential, to obtain the minimum Order Class I price. Proposed changes to the Class I prices for plant locations in the Florida order would range from an increase of $1.30 per cwt to an increase of $1.70 per cwt.

1. Amend § 1006.50 by revising paragraph (b) and (c) to read as follows:

§ 1006.50
Class prices, component prices, and advanced pricing factors.

(b) Class I skim milk price. The Class I skim milk price per hundredweight shall be the adjusted Class I differential specified in § 1000.52 plus the adjustment to Class I prices specified in § 1006.51 (b) plus the higher of the advanced pricing factors computed in paragraph (q) (1) or (2) of this section.

(c) Class I butterfat price. The Class I butterfat price per pound shall be the adjusted Class I differential specified in § 1000.52 divided by 100, plus the adjustment to Class I prices specified in § 1006.51(b) divided by 100, plus the advanced butterfat price computed in paragraph (q) (3) of this section.

2. Amend § 1006.51 by renaming the section, designating the first subsection as (a), amending the language, and adding a new subsection (b) to read as follows:

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

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

(b) Adjustment to Class I prices. Class I prices shall be established pursuant to § 1006.50 (a), (b) and (c) using the following adjustments:

State County/parish FIPS Class I price adjustment
FL ALACHUA 12001 1.30
FL BAKER 12003 1.30
FL BAY 12005 0.60
FL BRADFORD 12007 1.30
FL BREVARD 12009 1.40
FL BROWARD 12011 1.70
FL CALHOUN 12013 0.60
FL CHARLOTTE 12015 1.50
FL CITRUS 12017 1.40
FL CLAY 12019 1.30
FL COLLIER 12021 1.70
FL COLUMBIA 12023 1.30
FL DADE 12025 1.70
FL DE SOTO 12027 1.80
FL DIXIE 12029 1.30
FL DUVAL 12031 1.30
FL FLAGLER 12035 1.00
FL FRANKLIN 12037 0.90
FL GADSDEN 12039 0.90
FL GILCHRIST 12041 1.30
FL GLADES 12043 1.50
FL GULF 12045 0.90
FL HAMILTON 12047 1.30
FL HARDEE 12049 1.80
FL HENDRY 12051 1.70
FL HERNANDO 12053 1.40
FL HIGHLANDS 12055 1.80
FL HILLSBOROUGH 12057 1.40
FL HOLMES 12059 0.60
FL INDIAN RIVER 12061 1.80
FL JACKSON 12063 0.60
FL JEFFERSON 12065 0.90
FL LAFAYETTE 12067 1.30
FL LAKE 12069 1.40
FL LEE 12071 1.70
FL LEON 12073 0.90
FL LEVY 12075 1.00
FL LIBERTY 12077 0.90
FL MADISON 12079 1.30
FL MANATEE 12081 1.80
FL MARION 12083 1.00
FL MARTIN 12085 1.50
FL MONROE 12087 1.70
FL NASSAU 12089 1.30
FL OKEECHOBEE 12093 1.80
FL ORANGE 12095 1.40
FL OSCEOLA 12097 1.40
FL PALM BEACH 12099 1.70
FL PASCO 12101 1.40
FL PINELLAS 12103 1.40
FL POLK 12105 1.40
FL PUTNAM 12107 1.30
FL SAINT JOHNS 12109 1.30
FL SAINT LUCIE 12111 1.80
FL SARASOTA 12115 1.80
FL SEMINOLE 12117 1.40
FL SUMTER 12119 1.40
FL SUWANNEE 12121 1.30
FL TAYLOR 12123 1.30
FL UNION 12125 1.30
FL VOLUSIA 12127 1.40
FL WAKULLA 12129 0.90
FL WASHINGTON 12133 0.60

Proposed by the Appalachian Market Administrator

Proposal No. 4

This proposal seeks to increase the maximum administrative assessment from the current 5 cents per cwt to a maximum of 8 cents per cwt for the Appalachian milk marketing order.

Revise § 1005.85 to read as follows:

§ 1005.85
Assessment for order administration.

On or before the payment receipt date specified under § 1005.71, each handler shall pay to the market administrator its pro rata share of the expense of administration of the order at a rate specified by the market administrator that is no more than 8 cents per hundredweight with respect to:

(a) Receipts of producer milk (including the handler's own production) other than such receipts by a handler described in § 1000.9 (c) that were delivered to pool plants of other handlers;

(b) Receipts from a handler described in § 1000.9 (c);

(c) Receipts of concentrated fluid milk products from unregulated supply plants and receipts of nonfluid milk products assigned to Class I use pursuant to § 1000.43 (d) and other source milk allocated to Class I pursuant to § 1000.44 (a) (3) and (8) and the corresponding steps of § 1000.44 (b), except other source milk that is excluded from the computations pursuant to § 1005.60 (h) and (i); and

(d) Route disposition in the marketing area from a partially regulated distributing plant that exceeds the skim milk and butterfat subtracted pursuant to 1000.76 (a) (1) (i) and (ii)

Proposed by the Southeast Market Administrator

Proposal No. 5

This proposal seeks to increase the maximum administrative assessment from the current 5 cents per cwt to a maximum of 8 cents per cwt for the Southeast milk marketing order.

Revise § 1007.85 to read as follows:

§ 1007.85
Assessment for order administration.

On or before the payment receipt date specified under § 1007.71, each handler shall pay to the market administrator its pro rata share of the expense of administration of the order at a rate specified by the market administrator that is no more than 8 cents per hundredweight with respect to:

(a) Receipts of producer milk (including the handler's own production) other than such receipts by a handler described in § 1000.9 (c) that were delivered to pool plants of other handlers;

(b) Receipts from a handler described in § 1000.9 (c);

(c) Receipts of concentrated fluid milk products from unregulated supply plants and receipts of nonfluid milk products assigned to Class I use pursuant to § 1000.43(d) and other source milk allocated to Class I pursuant to § 1000.44(a)(3) and (8) and the corresponding steps of § 1000.44(b), except other source milk that is excluded from the computations pursuant to § 1007.60 (h) and (i); and

(d) Route disposition in the marketing area from a partially regulated distributing plant that exceeds the skim milk and butterfat subtracted pursuant to 1000.76 (a) (1) (i) and (ii)

Proposed by the Florida Market Administrator

Proposal No. 6

This proposal seeks to increase the maximum administrative assessment from the current 5 cents per cwt to a maximum of 8 cents per cwt for the Florida milk marketing order.

Revise § 1006.85 to read as follows:

§ 1006.85
Assessment for order administration.

On or before the payment receipt date specified under § 1006.71, each handler shall pay to the market administrator its pro rata share of the expense of administration of the order at a rate specified by the market administrator that is no more than 8 cents per hundredweight with respect to:

(a) Receipts of producer milk (including the handler's own production) other than such receipts by a handler described in § 1000.9 (c) that were delivered to pool plants of other handlers;

(b) Receipts from a handler described in § 1000.9 (c);

(c) Receipts of concentrated fluid milk products from unregulated supply plants and receipts of nonfluid milk products assigned to Class I use pursuant to § 1000.43 (d) and other source milk allocated to Class I pursuant to § 1000.44 (a) (3) and (8) and the corresponding steps of § 1000.44 (b), except other source milk that is excluded from the computations pursuant to § 1006.60 (h) and (i); and

(d) Route disposition in the marketing area from a partially regulated distributing plant that exceeds the skim milk and butterfat subtracted pursuant to 1000.76 (a) (1) (i) and (ii)

Proposal by Dairy Programs, Agricultural Marketing Service

Proposal No. 7

Make such changes as may be necessary to make the entire marketing agreement and the order conform with any amendments thereto that may result from this hearing.

Copies of this notice of hearing and the orders may be procured from the Market Administrator of the aforesaid marketing areas, or from the Hearing Clerk, United States Department of Agriculture, Room 1083—STOP 9200, 1400 Independence Avenue, SW., Washington, DC 20250-9200, or may be inspected there.

Copies of the transcript of testimony taken at the hearing will not be available for distribution through the Hearing Clerk's Office. If you wish to purchase a copy, arrangements may be made with the reporter at the hearing.

From the time that a hearing notice is issued and until the issuance of a final decision in a proceeding, Department 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 particular 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 Programs, Agricultural Marketing Service (Washington office) and the Offices of all Market Administrators.

Procedural matters are not subject to the above prohibition and may be discussed at any time.

Dated: May 3, 2007.

Lloyd C. Day,

Administrator, Agricultural Marketing Service.

[FR Doc. E7-8802 Filed 5-7-07; 8:45 am]

BILLING CODE 3410-02-P