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[Federal Register Volume 76, Number 64 (Monday, April 4, 2011)]
[Proposed Rules]
[Pages 18422-18425]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-7826]

[[Page 18422]]

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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 1260

[No. AMS-LS-10-0086]

Beef Promotion and Research; Reapportionment

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Proposed rule.

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SUMMARY: This proposed rule would adjust representation on the 
Cattlemen's Beef Promotion and Research Board (Board), established 
under the Beef Promotion and Research Act of 1985 (Act), to reflect 
changes in cattle inventories and cattle and beef imports that have 
occurred since the most recent Board reapportionment rule became 
effective in October 2008. These adjustments are required by the Beef 
Promotion and Research Order (Order) and would result in a decrease in 
Board membership from 106 to 103, effective with the U.S. Department of 
Agriculture's (USDA) appointments for terms beginning early in the year 
2012.

DATES: Written comments must be received by May 4, 2011.

ADDRESSES: Comments must be posted online at http://www.regulations.gov 
or sent to Craig Shackelford, Marketing Programs Branch, Livestock and 
Seed Program, Agricultural Marketing Service, USDA, Room 2628-S, STOP 
0251, 1400 Independence Avenue, SW., Washington, DC 20250-0251; or fax 
to (202) 720-1125. All comments should reference the docket number, the 
date, and the page number of this issue of the Federal Register. 
Comments will be available for public inspection at the aforementioned 
address, as well as on the Internet at http://www.regulations.gov/.

FOR FURTHER INFORMATION CONTACT: Craig Shackelford, Marketing Programs 
Branch, on 202/720-1115, fax 202/720-1125, or by e-mail at 
craig.shackelford@ams.usda.gov.

SUPPLEMENTARY INFORMATION:

Executive Order 12866

    The Office of Management and Budget (OMB) has waived the review 
process required by Executive Order 12866 for this action.

Executive Order 12988

    This proposed rule has been reviewed under Executive Order 12988, 
Civil Justice Reform. It is not intended to have retroactive effect.
    Section 11 of the Act provides that nothing in the Act may be 
construed to preempt or supersede any other program relating to beef 
promotion organized and operated under the laws of the United States or 
any State. There are no administrative proceedings that must be 
exhausted prior to any judicial challenge to the provisions of this 
rule.

Regulatory Flexibility Act and Paperwork Reduction Act

    Pursuant to the requirements set forth in the Regulatory 
Flexibility Act (RFA) (5 U.S.C. 601-612), the Administrator of the 
Agricultural Marketing Service (AMS) has considered the economic effect 
of this action on small entities and has determined that this proposed 
rule will not have a significant economic impact on a substantial 
number of small entities. The purpose of RFA is to fit regulatory 
actions to the scale of businesses subject to such actions in order 
that small businesses will not be unduly burdened.
    In the February 2010 publication of ``Farms, Land in Farms, and 
Livestock Operations,'' USDA's National Agricultural Statistics Service 
(NASS) estimates that in 2009 the number of operations in the United 
States with cattle totaled approximately 950,000. The majority of these 
operations that are subject to the Order may be classified as small 
entities.
    The proposed rule imposes no new burden on the industry. It only 
adjusts representation on the Board to reflect changes in domestic 
cattle inventory and cattle and beef imports. The adjustments are 
required by the Order and would result in a decrease in Board 
membership from 106 to 103.

Background and Proposed Action

    The Board was initially appointed August 4, 1986, pursuant to the 
provisions of the Act (7 U.S.C. 2901-2911) and the Order issued 
thereunder. Domestic representation on the Board is based on cattle 
inventory numbers, and importer representation is based on the 
conversion of the volume of imported cattle, beef, or beef products 
into live animal equivalencies.
    Section 1260.141(b) of the Order provides that the Board shall be 
composed of cattle producers and importers appointed by the Department 
from nominations submitted by certified producer organizations. A 
producer may only be nominated to represent the unit in which that 
producer is a resident.
    Section 1260.141(c) of the Order provides that at least every 3 
years and not more than every 2 years, the Board shall review the 
geographic distribution of cattle inventories throughout the United 
States and the volume of imported cattle, beef, and beef products and, 
if warranted, shall reapportion units and/or modify the number of Board 
members from units in order to reflect the geographic distribution of 
cattle production volume in the United States and the volume of cattle, 
beef, or beef products imported into the United States.
    Section 1260.141(d) of the Order authorizes the Board to recommend 
to the Department modifications to the number of cattle per unit 
necessary for representation on the Board.
    Section 1260.141(e)(1) provides that each geographic unit or State 
that includes a total cattle inventory equal to or greater than 500,000 
head of cattle shall be entitled to one representative on the Board. 
Section 1260.141(e)(2) provides that States that do not have total 
cattle inventories equal to or greater than 500,000 head shall be 
grouped, to the extent practicable, into geographically-contiguous 
units, each of which have a combined total inventory of not less than 
500,000 head. Such grouped units are entitled to at least one 
representative on the Board. Each unit that has an additional 1 million 
head of cattle within a unit qualifies for additional representation on 
the Board as provided in Sec.  1260.141(e)(4). As provided in Sec.  
1260.141(e)(3), importers are represented by a single unit, with the 
number of Board members based on a conversion of the total volume of 
imported cattle, beef, or beef products into live animal equivalencies.
    The initial Board appointed in 1986 was composed of 113 members. 
Reapportionment, based on a 3-year average of cattle inventory numbers 
and import data, reduced the Board to 111 members in 1990 and 107 
members in 1993 before the Board was increased to 111 members in 1996. 
The Board was decreased to 110 members in 1999, 108 members in 2001, 
104 members in 2005, and increased to 106 members in 2009. This 
proposal would, when finalized, decrease the number of Board members 
from 106 to 103 with appointments for terms effective early in 2012.
    The current Board representation by States or units was based on an 
average of the January 1, 2005, 2006, and 2007, inventory of cattle in 
the various States as reported by NASS. Current importer representation 
was based on a combined total average of the 2005, 2006, and 2007 live 
cattle imports as published by USDA's Foreign Agricultural Service and 
the average of the 2004, 2005, and 2006 live animal equivalents for 
imported beef products.
    In considering reapportionment, the Board reviewed cattle 
inventories as well as cattle, beef, and beef product import data for 
the period of January 1,

[[Page 18423]]

2008, to January 1, 2010. The Board recommended that a 3-year average 
of cattle inventories and import numbers should be continued. The Board 
determined that an average of the January 1, 2008, 2009, and 2010, 
cattle inventory numbers would best reflect the number of cattle in 
each State or unit since publication of the last reapportionment rule 
published in 2008 (73 FR 60097).
    The Board reviewed data published by the USDA's Economic Research 
Service to determine proper importer representation. The Board 
recommended the use of a combined total of the average of the 2008, 
2009, and 2010, cattle import data and the average of the 2007, 2008, 
and 2009, live animal equivalents for imported beef products. The 
method used to calculate the total number of live animal equivalents 
was the same as that used in the previous reapportionment of the Board. 
The live animal equivalent weight was changed in 2006 from 509 pounds 
to 592 pounds.
    The Board's recommended reapportionment plan would decrease the 
number of representatives on the Board from 106 to 103. From the 
Board's analysis of USDA cattle inventories and import equivalencies, 
Kansas, Nebraska, Nevada, and the Southeast Region would each lose one 
Board seat. Montana would gain a Board seat. The importers would lose 
two Board seats. The Board has recommended that the Southeast Region be 
expanded to include Alabama, permitting the new unit three Board 
members. According to the Board analysis, Nevada would lose its 
representation on the Board. However, the Board also proposed that 
California and Nevada be combined to form a Southwest unit.
    The States and units affected by the reapportionment plan and the 
current and proposed member representation per unit are as follows:

------------------------------------------------------------------------
                                     Current              Revised
          State/unit             representation       representation
------------------------------------------------------------------------
Kansas........................                 7  6.
Nebraska......................                 7  6.
Nevada........................                 1  0.
Southeast.....................                 3  3 (lost one seat but
                                                   added a seat with
                                                   Alabama joining the
                                                   unit).
Importers.....................                 9  7.
Montana.......................                 2  3.
Southwest Unit................               N/A  6 (California and
                                                   Nevada).
------------------------------------------------------------------------

    The 2012 nomination and appointment process was not in progress 
while the Board was developing its recommendations. Thus, the Board 
reapportionment as proposed by this rulemaking would be effective, if 
adopted, with appointments that will be effective early in the year 
2012.
    A 30-day comment period is provided to allow interested persons to 
respond to this proposal. Thirty days is deemed appropriate to 
facilitate the adjustment of the representation on the Board, which is 
required by the Order at least every 3 years, and not more than every 2 
years. To permit timely execution of the annual nomination and 
appointment process, publication of a subsequent final rule must occur 
as soon as practical.
    It is found that good cause exists to provide a 30 day comment 
period after the date of publication in the Federal Register because 
the Beef Promotion and Research Program would benefit by having this 
rule in effect as soon as possible for the Board appointments that will 
be effective early in the year 2012.

List of Subjects in 7 CFR Part 1260

    Administrative practice and procedure, Advertising, Agricultural 
research, Imports, Marketing agreement, Meat and meat products, 
Reporting and recordkeeping requirements.
    For reasons set forth in the preamble, it is proposed that 7 CFR 
part 1260 be amended as follows:

PART 1260--BEEF PROMOTION AND RESEARCH

    1. The authority citation for 7 CFR part 1260 continues to read as 
follows:

    Authority: 7 U.S.C. 2901-2911 and 7 U.S.C. 7401.

    2. In Sec.  1260.141, paragraph (a) and the table immediately 
following it, are revised to read as follows:

Sec.  1260.141  Membership of Board.

    (a) Beginning with the 2011 Board nominations and the associated 
appointments effective early in the year 2012, the United States shall 
be divided into 37 geographical units and, 1 unit representing 
importers, for a total of 38 units. The number of Board members from 
each unit shall be as follows:

                        Cattle and Calves [shel1]
------------------------------------------------------------------------
                 State/unit                    (1,000 Head)   Directors
------------------------------------------------------------------------
1. Arizona.................................             983            1
2. Arkansas................................           1,837            2
3. Colorado................................           2,650            3
4. Florida.................................           1,710            2
5. Idaho...................................           2,153            2
6. Illinois................................           1,200            1
7. Indiana.................................             873            1
8. Iowa....................................           3,933            4
9. Kansas..................................           6,317            6
10. Kentucky...............................           2,333            2
11. Louisiana..............................             873            1

[[Page 18424]]

 
12. Michigan...............................           1,080            1
13. Minnesota..............................           2,407            2
14. Mississippi............................             957            1
15. Missouri...............................           4,217            4
16. Montana................................           2,583            3
17. Nebraska...............................           6,350            6
18. New Mexico.............................           1,540            2
19. New York...............................           1,410            1
20. North Carolina.........................             833            1
21. North Dakota...........................           1,763            2
22. Ohio...................................           1,270            1
23. Oklahoma...............................           5,417            5
24. Oregon.................................           1,290            1
25. Pennsylvania...........................           1,607            2
26. South Dakota...........................           3,733            4
27. Tennessee..............................           2,040            2
28. Texas..................................          13,500           14
29. Utah...................................             820            1
30. Virginia...............................           1,530            2
31. Wisconsin..............................           3,367            3
32. Wyoming................................           1,327            1
33. Northwest..............................  ..............            1
                                            ----------------------------
    Alaska.................................              15  ...........
    Hawaii.................................             151  ...........
    Washington.............................           1,070  ...........
                                            ----------------------------
        Total..............................           1,236  ...........
                                            ============================
34. Northeast..............................  ..............            1
                                            ----------------------------
    Connecticut............................              50  ...........
    Delaware...............................              21  ...........
    Maine..................................              88  ...........
    Massachusetts..........................              44  ...........
    New Hampshire..........................              38  ...........
    New Jersey.............................              37  ...........
    Rhode Island...........................               5  ...........
    Vermont................................             267  ...........
                                            ----------------------------
        Total..............................             550  ...........
                                            ============================
35. Mid-Atlantic...........................  ..............            1
                                            ----------------------------
    Maryland...............................             192  ...........
    West Virginia..........................             400  ...........
                                            ----------------------------
        Total..............................             592  ...........
                                            ============================
36. Southeast..............................  ..............            3
                                            ----------------------------
    Alabama................................           1,253  ...........
    Georgia................................           1,100  ...........
    South Carolina.........................             385  ...........
                                            ----------------------------
        Total..............................           2,738  ...........
                                            ============================
37. Southwest..............................  ..............            6
                                            ----------------------------
    California.............................           5,283  ...........
    Nevada.................................             450  ...........
                                            ----------------------------
        Total..............................           5,733  ...........
                                            ============================
38. Importer 2.............................           6,887            7
------------------------------------------------------------------------
\1\ 2008, 2009, and 2010 average of January 1 cattle inventory data.
\2\ 2007, 2008, and 2009 average of annual import data.

[[Page 18425]]

* * * * *

    Dated: March 29, 2011.
David R. Shipman,
Acting Administrator, Agricultural Marketing Service.
[FR Doc. 2011-7826 Filed 4-1-11; 8:45 am]
BILLING CODE 3410-02-P
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