[Federal Register: August 23, 2007 (Volume 72, Number 163)]
[Rules and Regulations]
[Page 48229-48231]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr23au07-4]
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DEPARTMENT OF AGRICULTURE
Commodity Credit Corporation
7 CFR Part 1430
RIN 0560-AH73
Milk Income Loss Contract Program
AGENCY: Commodity Credit Corporation, USDA.
ACTION: Final rule.
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SUMMARY: This rule amends the regulations for the Milk Income Loss
Contract (MILC) Program as authorized by the U.S. Troop Readiness,
Veterans' Care, Katrina Recovery, and Iraq Accountability
Appropriations Act, 2007, to extend the payment calculation at 34
percent for the month of September 2007.
DATES: Effective Date: August 22, 2007.
FOR FURTHER INFORMATION CONTACT: Danielle Cooke, Special Programs
Manager, Price Support Division, FSA/USDA, STOP 0512, 1400 Independence
Ave., SW., Washington, DC 20250-0512; telephone (202) 720-1919;
facsimile (202) 690-1536; e-mail: Danielle.Cooke@wdc.usda.gov. Persons
with disabilities who require alternative means for communication
(Braille, large print, audio tape, etc.) should contact the USDA Target
Center at (202) 720-2600 (voice and TDD).
SUPPLEMENTARY INFORMATION:
Background
The Milk Income Loss Contract (MILC) Program is administered by the
Commodity Credit Corporation (CCC). The MILC Program compensates dairy
producers when domestic milk prices fall below a specified level. In
general, eligible dairy producers are those who commercially produce
and market cow milk in the United States or produce milk in the United
States and commercially market the milk outside the United States.
The program began on December 1, 2001 and was extended to September
30, 2007. In 2006, applicable to the program extension, the signup and
contract periods were both set to end on September 30, 2007. The 2006
amendment lowered the payment calculation percentage from 45 to 34;
however, it only extended the payment
[[Page 48230]]
calculation of 34 percent through August 31, 2007. It further specified
that beginning on September 1, 2007, the payment calculation would be
zero percent (0%).
Recently, section 9006 of the U.S. Troop Readiness, Veterans' Care,
Katrina Recovery, and Iraq Accountability Appropriations Act, 2007
(2007 Emergency Supplemental) amended the authority for the MILC
Program to extend the current payment calculation percentage of 34
percent to September 30, 2007.
The MILC Program supports the dairy industry by providing direct
counter-cyclical payments to milk producers when the Boston Milk
Marketing Order Class I price for fluid milk falls below $16.94 per
hundredweight (cwt). Each fiscal year, eligible dairy operations can
receive a monthly payment based on the quantity of milk sold in that
month, up to a maximum of 2.4 million pounds per dairy operation for
the fiscal year. We determine the per hundredweight payment rate for
the applicable month by subtracting the Boston Class I price for that
month from the $16.94 baseline, and multiplying the difference by 34
percent. For example:
Boston Class I price announced in February 2006 = $16.63.
$16.94 - $16.63 = $0.31.
$0.31 x 34 percent = $0.1054000.
Therefore, the payment rate for February 2006 was $0.1054
per hundredweight.
This rule amends 7 CFR part 1430 to increase the payment rate
percentage during the month of September 2007. This makes the
calculation percentage consistent for all months in fiscal years 2006
and 2007.
MILC payments are based on the commercially-marketed milk
production from the MILC production start month selected by the dairy
operation, and continue with each subsequent month's commercial milk
production until the earlier of the following: the dairy operation
reaches the maximum payment quantity of 2.4 million pounds or the
applicable fiscal year ends.
If there is a payment rate in effect during the month of September
2007 and the dairy operation has received MILC payments on less than
2.4 million pounds of production for the 2007 fiscal year, payments
will continue through September 2007. The dairy operation can change
its production start month selection, with some limitations, to
September 2007, as specified in 7 CFR 1430.205, Selection of Starting
Month. New MILC producers entering into a MILC will be allowed to
select, with some limitations, September 2007 as the production start
month for their dairy operation. Those selections must be made in
advance of the announcement of the Boston Class I milk price and
establishment of the MILC payment rate for that month. Dairy operations
that have exceeded their 2.4 million pound production limitation for
the 2007 fiscal year will not receive a MILC payment for September
2007.
Notice and Comment
Section 1601(c) of the Farm Security and Rural Investment Act of
2002 (Pub. L. 107-171), also referred to as the 2002 Farm Bill,
requires that the regulations necessary to implement Title I of the
2002 Act, including the MILC Program, are to be promulgated and
administered without regard to the notice and comment provisions of 5
U.S.C. 553 or the Statement of Policy of the Secretary of Agriculture
effective July 24, 1971, (36 FR 13804) relating to notices of proposed
rulemaking and public participation in rulemaking. This regulatory
change of the MILC Program is therefore issued as final.
Executive Order 12866
This final rule is not significant according to Executive Order
12866 and has not been reviewed by the Office of Management and Budget
(OMB).
Regulatory Flexibility Act
The Regulatory Flexibility Act is not applicable to this rule
because CCC is not required to publish a notice of proposed rulemaking
with respect to the subject matter of this rule.
Environmental Review
In accordance with the National Environmental Policy Act (42 U.S.C.
4321-4347) and the regulations in 40 CFR 1502.4 (Major Federal actions
requiring the preparation of Environmental Impact Statements), 7 CFR
part 799 (Environmental Quality and Related Environmental Concerns--
Compliance with NEPA implementing the regulations of the Council on
Environmental Quality), and 40 CFR parts 1500-1508, FSA has determined
that this final rule will have no significant impacts upon the human
environment. Therefore no environmental assessment or environmental
impact statement will be prepared.
Executive Order 12988
The final rule has been reviewed under Executive Order 12988. This
rule preempts State laws that are inconsistent with its provisions.
Before any judicial action may be brought regarding this rule, all
administrative remedies must be exhausted.
Executive Order 12372
This program is not subject to Executive Order 12372, which
requires consultation with State and local officials. See the notice
related to 7 CFR part 3015, subpart V, published in the Federal
Register on June 24, 1983 (48 FR 29115).
Unfunded Mandates
Title II of the Unfunded Mandates Reform Act of 1995 (UMRA) does
not apply to this rule because CCC is not required to publish a notice
of proposed rulemaking about the subject matter of this rule. Further,
this rule imposes no unfunded mandates, as define in UMRA, on any
local, state, or tribal government or the private sector.
Paperwork Reduction Act
Section 1601(c) of the 2002 Farm Bill provides that the
promulgation of regulations and the administration of Title I of the
2002 Farm Bill, including the MILC Program, be made without regard to
chapter 5 of title 44 of the United States Code (the Paperwork
Reduction Act). Accordingly, these regulations, the forms, and other
information collection activities needed to administer the program
authorized by these regulations are not subject to review by the Office
of Management and Budget under the Paperwork Reduction Act.
E-Government Act Compliance
FSA 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.
Federal Assistance Programs
The title and number of the Federal assistance program in the
Catalog of Federal Domestic Assistance to which this final rule applies
is 10.051--Commodity Loans and Loan Deficiency Payments.
List of Subjects in 7 CFR Part 1430
Dairy products, Fraud, Loan programs--agriculture, Penalties, Price
support programs, Reporting and recordkeeping requirements.
0
For the reasons explained above, 7 CFR part 1430 is amended as set
forth below.
PART 1430--DAIRY PRODUCTS
0
1. Revise the authority citation for part 1430 to read as follows:
Authority: 7 U.S.C. 7981 and 7982; 15 U.S.C. 714b and 714c; Pub.
L. 108-324, 118
[[Page 48231]]
Stat. 1235; 16 U.S.C. 3801 note (Pub. L. 109-234, 120 Stat. 474);
and Pub. L. 110-28, section 9006.
Subpart B--Milk Income Loss Contract Program
Sec. 1430.208 [Amended]
0
2. Amend Sec. 1430.208 as follows:
0
a. In paragraph (b)(2), remove the words ``August 31'' and add, in
their place, the words ``September 30''; remove the words ``; and'' and
add in their place a period; and
0
b. Remove paragraph (b)(3).
Signed in Washington, DC, on August 9, 2007.
Glen L. Keppy,
Executive Vice President, Commodity Credit Corporation.
[FR Doc. E7-16713 Filed 8-22-07; 8:45 am]
BILLING CODE 3410-05-P