24334 Federal Register / Vol. 78, No. 80 / Thursday, April 25, 2013 / Rules and Regulations 

the Small Business Administration 

(SBA) as those having annual receipts of 

less than $7,000,000, and small 

agricultural producers are defined as 

those whose annual receipts are less 

than $750,000 (13 CFR 121.201). 

Based on Committee data and 

information from the National 

Agricultural Statistics Service, the 

average annual f.o.b. price of cranberries 

during the 2010 season was 

approximately $46.50 per barrel and 

total shipments were approximately 6.8 

million barrels. As a percentage, about 

18 percent of the handlers shipped 

approximately 6.5 million barrels of 

cranberries. Using the average f.o.b. 

price and shipment data, about 82 

percent of cranberry handlers could be 

considered small businesses under 

SBA’s definition. In addition, based on 

production and producer prices and the 

total number of cranberry growers, the 

average grower revenue is less than 

$750,000. Therefore, the majority of 

growers and handlers of cranberries may 

be considered small entities. 

This rule continues in effect the 

action that revised the reporting 

requirements prescribed under the 

cranberry marketing order. This rule 

revises § 929.105 by changing the due 

date for the third reporting period from 

August 20 to July 20. To accommodate 

the new due date, this rule also adjusts 

the end date for the timeframe covered 

under the third period reporting from 

July 31 to June 30 for cranberries 

acquired and handled, and from August 

1 to June 30 for reporting inventory 

held. These changes will help ensure 

the Committee has current and complete 

information available for discussion 

during its annual August meeting, while 

providing handlers sufficient time to 

submit their Handler Inventory Report 

(Form HIR). The authority for these 

actions is provided in § 929.62. These 

changes were unanimously 

recommended by the Committee at a 

meeting on August 31, 2011. 

It is not anticipated that this action 

will impose any additional costs on the 

industry nor will it change the reporting 

and recordkeeping burden on handlers. 

Having current and complete 

information available during the 

Committee’s August meeting will assist 

the Committee when making decisions 

regarding the administration of the 

order. The benefits of this rule are not 

expected to be disproportionately 

greater or less for small handlers or 

growers than for large entities. 

In accordance with the Paperwork 

Reduction Act of 1995, (44 U.S.C. 

Chapter 35), the order’s information 

collection requirements have been 

previously approved by the Office of 

Management and Budget (OMB) and 

assigned OMB No. 0581–0189, Generic 

Fruit Crops. Because this revision 

changes neither the content of the 

Handler Inventory Report (Form HIR) 

nor its calculated burden, no changes in 

OMB requirements as a result of this 

action are necessary. Should any 

changes become necessary, they would 

be submitted to OMB for approval. 

This rule will not impose any 

additional reporting or recordkeeping 

requirements on either small or large 

cranberry handlers. As with all Federal 

marketing order programs, reports and 

forms are periodically reviewed to 

reduce information requirements and 

duplication by industry and public 

sector agencies. In addition, USDA has 

not identified any relevant Federal rules 

that duplicate, overlap or conflict with 

this rule. 

Further, the Committee’s meeting was 

widely publicized throughout the 

cranberry industry and all interested 

persons were invited to attend the 

meeting and participate in Committee 

deliberations. Like all Committee 

meetings, the August 31, 2011, meeting 

was a public meeting and all entities, 

both large and small, were able to 

express their views on this issue. 

Comments on the interim rule were 

required to be received on or before 

October 29, 2012. No comments were 

received. Therefore, for the reasons 

given in the interim rule, we are 

adopting the interim rule as a final rule, 

without change. 

To view the interim rule, go to: http://

www.regulations.gov/ 

#!documentDetail;D=AMS-FV-12-0002- 

0001. 

This action also affirms information 

contained in the interim rule concerning 

Executive Orders 12866 and 12988, the 

Paperwork Reduction Act (44 U.S.C. 

Chapter 35), and the E-Gov Act (44 

U.S.C. 101). 

After consideration of all relevant 

material presented, it is found that 

finalizing the interim rule, without 

change, as published in the Federal 

Register (77 FR 52595, August 30, 2012) 

will tend to effectuate the declared 

policy of the Act. 

List of Subjects in 7 CFR Part 929 

Cranberries, Marketing agreements, 

Reporting and recordkeeping 

requirements. 

PART 929—CRANBERRIES GROWN IN 

STATES OF MASSACHUSETTS, 

RHODE ISLAND, CONNECTICUT, NEW 

JERSEY, WISCONSIN, MICHIGAN, 

MINNESOTA, OREGON, 

WASHINGTON, AND LONG ISLAND IN 

THE STATE OF NEW YORK 

■ Accordingly, the interim rule that 

amended 7 CFR part 929 and that was 

published at 77 FR 52595 on August 30, 

2012, is adopted as a final rule, without 

change. 

Dated: April 22, 2013. 

David R. Shipman, 

Administrator, Agricultural Marketing 

Service. 

[FR Doc. 2013–09817 Filed 4–24–13; 8:45 am] 

BILLING CODE 3410–02–P 

DEPARTMENT OF AGRICULTURE 

Agricultural Marketing Service 

7 CFR Part 1000 

[Doc. no. AMS–DA–07–0026; AO–14–A77, et 

al.; DA–07–02] 

Milk in the Northeast and Other 

Marketing Areas; Order Amending the 

Orders 

AGENCY: Agricultural Marketing Service, 

USDA. 

ACTION: Final rule. 

SUMMARY: This final rule permanently 

adopts changes to the manufacturing 

cost allowances and the butterfat yield 

factor used in Class III and Class IV 

product-price formulas applicable to all 

Federal milk marketing orders. These 

amendments were adopted by an 

interim final rule issued on July 25, 

2008, that became effective on October 

1, 2008. More than the required number 

of producers approved the issuance of 

the orders as amended. 

DATES: Effective Date: July 1, 2013. 

FOR FURTHER INFORMATION CONTACT: 

William Francis, Director, Order 

Formulation and Enforcement Division, 

USDA/AMS/Dairy Programs, Order 

Formulation and Enforcement, Stop 

0231-Room 2971–S 1400 Independence 

Avenue SW., Washington, DC 20250– 

0231, (202) 720–7183, email address: 

william.francis@ams.usda.gov. 

SUPPLEMENTARY INFORMATION: This final 

rule finalizes manufacturing (make) 

allowances for cheese, butter, nonfat dry 

milk (NFDM) and dry whey contained 

in the Class III and Class IV product 

price formulas that were implemented 

October 1, 2008, on an interim basis. 

Specifically, this decision finalizes the 

following make allowances: cheese 


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Federal Register / Vol. 78, No. 80 / Thursday, April 25, 2013 / Rules and Regulations 24335 

($0.2003 per pound); butter ($0.1715 per 

pound); NFDM ($0.1678 per pound); 

and dry whey ($0.1991 per pound). In 

addition, the butterfat yield factor in the 

butterfat price formula continues to be 

1.211. 

Accordingly, this final rule adopts 

proposed amendments detailed in the 

final decision (78 FR 9248). 

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. 

This final rule has been reviewed 

under Executive Order 12988, Civil 

Justice Reform. This rule is not intended 

to have a retroactive effect. 

The Agricultural Marketing 

Agreement Act of 1937, as amended (7 

U.S.C. 601–674) (Act), provides that 

administrative proceedings must be 

exhausted before parties may file suit in 

court. Under section 608c(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 (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, USDA 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, or has its principal place of 

business, has jurisdiction in equity to 

review USDA’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. 

Regulatory Flexibility Act and 

Paperwork Reduction Act 

In accordance with the Regulatory 

Flexibility Act (5 U.S.C. 601–612), the 

Agricultural Marketing Service has 

considered the economic impact of this 

action on small entities and has certified 

that this rule would not have a 

significant economic impact on a 

substantial number of small entities. For 

the purposes of the Regulatory 

Flexibility Act, a dairy farm is 

considered 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. 

For the purposes of determining 

which dairy farms are small businesses, 

the $750,000 per year criterion was used 

to establish a marketing guideline of 

500,000 pounds per month. Although 

this guideline does not factor in 

additional monies that may be received 

by dairy producers, it should be an 

inclusive standard for most small dairy 

farms. For purposes of determining a 

handler’s size, if the plant is part of a 

larger company operating multiple 

plants that collectively exceed the 500- 

employee limit, the plant will be 

considered a large business even if the 

local plant has fewer than 500 

employees. 

For the month of February 2007, the 

month the initial public hearing was 

held, the milk of 49,712 dairy farms 

were pooled on the Federal order 

system. Of the total, 46,729 dairy farms, 

or 94 percent, were considered small 

businesses. During the same month, 352 

plants were regulated by or reported 

their milk receipts to be pooled and 

priced on a Federal order. Of the total, 

186 plants, or 53 percent, were 

considered small businesses. 

This decision finalizes the make 

allowances contained in the formulas 

used to compute component prices and 

the minimum class prices in all Federal 

milk orders. Specifically, the make 

allowance for butter continues to be 

$0.1715 per pound (initially increased 

from $0.1202 per pound), the make 

allowance for cheese continues to be 

$0.2003 per pound (initially increased 

from $0.1682 per pound), the make 

allowance for NFDM continues to be 

$0.1678 per pound (initially increased 

from $0.1570 per pound), and the make 

allowance for dry whey continues to be 

$0.1991 per pound (initially increased 

from $0.1956 per pound). Finally, the 

butterfat yield factor in the butterfat 

price formulas continues to be 1.211 

(initially increased from 1.20). 

These make allowances serve to 

approximate the average cost of 

producing cheese, butter, NFDM and 

dry whey for manufacturing plants 

located in Federal milk marketing areas. 

The established criteria for the make 

allowance changes are applied in an 

identical fashion to both large and small 

businesses and will not have any 

different impact on those businesses 

producing manufactured milk products. 

An economic analysis has been 

performed that discusses impacts of the 

proposed amendments on industry 

participants including producers and 

manufacturers. It can be found on the 

AMS Web site at www.ams.usda.gov/ 

dairy. Based on that economic analysis 

we have concluded that the proposed 

amendments will not have a significant 

economic impact on a substantial 

number of small entities. 

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. 

This final rule does not require 

additional information collection that 

needs clearance by the Office of 

Management and Budget (OMB) beyond 

currently approved information 

collection. The primary sources of data 

used to complete the forms are routinely 

used in most business transactions. 

Forms require only a minimal amount of 

information that can be supplied 

without data processing equipment or a 

trained statistical staff. Thus, the 

information collection and reporting 

burden is relatively small. Requiring the 

same reports for all handlers does not 

significantly disadvantage any handler 

that is smaller than the industry 

average. 

Prior Documents in This Proceeding 

Notice of Hearing: Issued February 5, 

2007; published February 9, 2007 (72 FR 

6179). 

Supplemental Notice of Hearing: 

Issued February 14, 2007; published 

February 20, 2007 (72 FR 7753). 

Notice to Reconvene Hearing: Issued 

March 15, 2007; published March 21, 

2007 (72 FR 13219). 

Notice to Reconvene Hearing: Issued 

May 2, 2007; published May 8, 2007 (72 

FR 25986). 

Tentative Partial Final Decision: 

Issued June 16, 2008; published June 20, 

2008 (73 FR 35306). 

Interim Final Rule: Issued July 25, 

2008; published July 31, 2008 (73 FR 

44617). 

Delay of Effective Date: Issued August 

28, 2008; published September 3, 2008 

(73 FR 51352). 

Final Decision: Issued February 1, 

2013; published February 7, 2013 (78 FR 

9248) 

Findings and Determinations 

The findings and determinations 

hereinafter set forth supplement those 

that were made when the Northeast and 

other orders were first issued and when 

they were amended. The previous 

findings and determinations are hereby 

ratified and confirmed, except where 

they may conflict with those set forth 

herein. 

The following findings are hereby 

made with respect to the Northeast and 

other marketing orders: 

(a) Findings upon the basis of the 

hearing record. 

A public hearing was held upon 

certain proposed amendments to the 

tentative marketing agreements and to 

the orders regulating the handling of 

milk in the Northeast and other 

marketing areas. The hearing was held 


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24336 Federal Register / Vol. 78, No. 80 / Thursday, April 25, 2013 / Rules and Regulations 

1 28 U.S.C. 2461 note. 

2Public Law 112–141, 126 Stat. 405 (July 6, 

2012). 3See 28 U.S.C. 2461 note. Section 3(2) of the 

amended Inflation Adjustment Act defines a CMP 

as any penalty, fine, or other sanction that: (1) 

Either is for a specific monetary amount as 

provided by Federal law or has a maximum amount 

provided for by Federal law; and (2) is assessed or 

enforced by an agency pursuant to Federal law; and 

(3) is assessed or enforced pursuant to an 

administrative proceeding or a civil action in the 

Federal courts. 

4The CPI is published by the Department of 

Labor, Bureau of Statistics, and is available at its 

Web site: ftp://ftp.bls.gov/pub/special.requests/cpi/ 

cpiai.txt. 

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 (7 CFR part 900). 

Upon the basis of the evidence 

introduced at such hearing and the 

record thereof, it is found that: 

(1) The said orders as hereby 

amended, and all of the terms and 

conditions thereof, will tend to 

effectuate the declared policy of the Act; 

(2) The parity prices of milk, as 

determined pursuant to section 2 of the 

Act, are not reasonable in view of the 

price of feeds, available supplies of 

feeds, and other economic conditions 

which affect market supply and demand 

for milk in the aforesaid marketing 

areas. The minimum prices specified in 

the orders as hereby amended are such 

prices as will reflect the aforesaid 

factors, insure a sufficient quantity of 

pure and wholesome milk, and be in the 

public interest; and 

(3) The said orders, as hereby 

amended, regulate the handling of milk 

in the same manner as, and is applicable 

only to persons in the respective classes 

of industrial or commercial activity 

specified in, a marketing agreement 

upon which a hearing has been held. 

(b) Determinations. It is hereby 

determined that: 

(1) The refusal or failure of handlers 

(excluding cooperative associations 

specified in Section 8c(9) of the Act) of 

more than 50 percent of the milk, which 

is marketed within the specified 

marketing areas, to sign a proposed 

marketing agreement, tends to prevent 

the effectuation of the declared policy of 

the Act; 

(2) The issuance of this order 

amending the Northeast and other 

orders is the only practical means 

pursuant to the declared policy of the 

Act of advancing the interests of 

producers as defined in the orders as 

hereby amended; 

(3) The issuance of this order 

amending the Northeast and other 

orders is favored by at least two-thirds 

of the producers who were engaged in 

the production of milk for sale in the 

respective marketing areas. 

List of Subjects in 7 CFR Part 1000 

Milk marketing orders. 

Order Relative to Handling 

It is therefore ordered, that on and 

after the effective date hereof, the 

handling of milk in the Northeast and 

other marketing areas shall be in 

conformity to and in compliance with 

the terms and conditions of the orders, 

as amended, and as hereby amended, as 

follows: 

The provisions of the order amending 

the orders contained in the interim 

amendments of the orders issued by the 

Administrator, Agricultural Marketing 

Service, on July 25, 2008, and published 

in the Federal Register on July 31, 2008, 

(73 FR 44617), are adopted and shall be 

the terms and provisions of these orders. 

Dated: April 22, 2013. 

David R. Shipman, 

Administrator, Agricultural Marketing 

Service. 

[FR Doc. 2013–09819 Filed 4–24–13; 8:45 am] 

BILLING CODE 3410–02–P 

FARM CREDIT ADMINISTRATION 

12 CFR Part 622 

RIN 3052–AC87 

Rules of Practice and Procedure; 

Adjusting Civil Money Penalties for 

Inflation 

AGENCY: Farm Credit Administration. 

ACTION: Final rule. 

SUMMARY: This regulation implements 

inflation adjustments to civil money 

penalties (CMPs) that the Farm Credit 

Administration (FCA) may impose 

pursuant to the Farm Credit Act of 1971, 

as amended (Farm Credit Act), and 

pursuant to the Flood Disaster 

Protection Act of 1973, as amended by 

the National Flood Insurance Reform 

Act of 1994 (Reform Act), and further 

amended by the Biggert-Waters Flood 

Insurance Reform Act of 2012 (BiggertWaters Act). The Federal Civil Penalties 

Inflation Adjustment Act of 1990, as 

amended by the Debt Collection 

Improvement Act of 1996 (Inflation 

Adjustment Act), requires all Federal 

agencies with the authority to impose 

CMPs to evaluate those CMPs 

periodically to ensure that they 

continue to maintain their deterrent 

value and promote compliance with the 

law. 

DATES: This regulation is effective on 

July 1, 2013. 

FOR FURTHER INFORMATION CONTACT: 

Michael T. Wilson, Policy Analyst, 

Office of Regulatory Policy, Farm Credit 

Administration, McLean, VA 22102– 

5090, (703) 883–4124, TTY (703) 883– 

4056, or Nancy Tunis, Senior Attorney, 

Office of General Counsel, Farm Credit 

Administration, McLean, VA 22102– 

5090, (703) 883–4061, TTY (703) 883– 

4056. 

SUPPLEMENTARY INFORMATION: 

I. Objective 

The objectives of this regulation are 

to: 

• Adjust for inflation the maximum 

amount of CMPs that the FCA has 

jurisdiction to administer pursuant to 

the Farm Credit Act in accordance with 

the requirements of the Inflation 

Adjustment Act,1 and 

• Implement the provisions for the 

maximum amount of CMPs provided by 

the Biggert-Waters Act.2

II. Background 

A. Federal Civil Penalties Inflation 

Adjustment Act of 1990, as Amended 

The Inflation Adjustment Act requires 

every Federal agency with authority to 

issue CMPs 3 to enact regulations that 

adjust its CMPs pursuant to the inflation 

adjustment formula in section 5(b) of 

the Inflation Adjustment Act. Each 

Federal agency was required to issue 

these regulations by October 23, 1996, 

and, thereafter, to evaluate and adjust 

the CMPs when necessary, but at least 

once every 4 years. Section 6 of the 

amended Inflation Adjustment Act 

specifies that inflation-adjusted CMPs 

will apply only to violations that occur 

after the effective date of the 

adjustment. The inflation adjustment is 

based on the percentage increase in the 

Consumer Price Index (CPI).4

Specifically, section 5(b) of the Inflation 

Adjustment Act defines the term ‘‘costof-living adjustment’’ as ‘‘the percentage 

(if any) for each civil monetary penalty 

by which (1) the Consumer Price Index 

for the month of June of the calendar 

year preceding the adjustment, exceeds 

(2) the Consumer Price Index for the 

month of June of the calendar year in 

which the amount of such civil 

monetary penalty was last set or 

adjusted pursuant to law.’’ Furthermore, 

the increase for each CMP adjusted for 

inflation must be rounded using a 

method prescribed by section 5(a) of the 

Inflation Adjustment Act. FCA made its 

last adjustments to CMPs in January 

2009. 

B. CMPs Issued Under the Farm Credit 

Act 

The adjustment requirement affects 

two provisions of section 5.32(a) of the 


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