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Rules and Regulations Federal Register

8717 

Vol. 77, No. 31 

Wednesday, February 15, 2012 

DEPARTMENT OF AGRICULTURE 

Agricultural Marketing Service 

7 CFR Part 1170 

[Doc. #AMS–DA–10–0089; DA–11–01] 

RIN 0581–AD12 

Dairy Product Mandatory Reporting 

AGENCY: Agricultural Marketing Service, 

USDA. 

ACTION: Final rule. 

SUMMARY: This final rule adopts changes 

to Agricultural Marketing Service (AMS) 

regulations as required by section 273(d) 

of the Agricultural Marketing Act of 

1946 (the Act) as amended by the 

Mandatory Price Reporting Act of 2010. 

The amendment to the Act requires the 

Secretary of Agriculture (Secretary) to 

establish an electronic reporting system 

for certain manufacturers of dairy 

products to report sales information for 

a mandatory dairy product reporting 

program. The amendment further states 

that the Secretary shall publish the 

information obtained for the preceding 

week not later than 3 p.m. Eastern Time 

on Wednesday of each week. 

DATES: This rule is effective April 1, 

2012. 

FOR FURTHER INFORMATION CONTACT: For 

information relevant to this final rule, 

contact Clifford M. Carman, Assistant to 

the Deputy Administrator, USDA/AMS/ 

Dairy Programs, Office of the Deputy 

Administrator, STOP 0225—Room 2968, 

1400 Independence Ave. SW., 

Washington, DC 20250–0225, 

clifford.carman@ams.usda.gov. 

SUPPLEMENTARY INFORMATION: This final 

rule is a statutory requirement pursuant 

to the Agricultural Marketing Act of 

1946 [7 U.S.C. 1621–1627, 1635–1638], 

as amended November 22, 2000, by 

Public Law 106–532, 114 Stat. 2541; 

May 13, 2002, by Public Law 107–171, 

116 Stat. 207; and September 27, 2010, 

by Public Law 111–239, 124 Stat. 2502. 

The proposed rule was published in 

the Federal Register on June 10, 2011 

(76 FR 112), with comments to be 

submitted on or before August 9, 2011. 

The U.S. Department of Agriculture 

(USDA) has reviewed and considered all 

of the comments submitted in a timely 

manner for this final rule. 

Background: The Dairy Product 

Mandatory Reporting Program, 7 CFR 

part 1170, was established on August 2, 

2007, on an interim final basis (72 FR 

36341). A final rule associated with 

implementation of the program (73 FR 

34175) became effective June 22, 2008. 

The National Agricultural Statistics 

Service (NASS) has collected 

information for the program, and the 

Agricultural Marketing Service (AMS) 

has provided verification and 

enforcement functions for the program. 

NASS has published sales information 

for cheddar cheese, butter, dry whey, 

and nonfat dry milk (NFDM) on a 

weekly basis. NASS began publishing 

cheddar cheese sales information in 

1997 and butter, nonfat dry milk 

(NFDM), and dry whey sales 

information in 1998. Information was 

collected on a voluntary basis before the 

Dairy Product Mandatory Reporting 

Program became effective. Any 

manufacturer that processes and 

markets less than 1 million pounds of 

the applicable dairy products per 

calendar year has been exempt from 

these reporting requirements. 

AMS is responsible for verifying the 

sales information submitted by 

reporting entities to NASS. To verify 

information submitted, AMS visits 

larger entities that account for 80 

percent of the yearly reported product 

volume, based on the previous year, of 

each specified dairy product at least 

once annually. AMS visits one-half of 

entities that account for the remaining 

20 percent each year, visiting each such 

entity at least once every other year. 

During each visit, AMS reviews 

applicable sales transactions records for 

at least the 4 most recent weeks. In some 

cases, AMS may review sales records for 

up to 2 years. AMS verifies that sales 

transactions match the information 

reported to NASS and that there have 

been no applicable sales transactions 

that have not been reported to NASS. 

Noncompliance, appeals, and 

enforcement procedures are 

administered by AMS. 

The Mandatory Price Reporting Act of 

2010 (Pub. L. 111–239, Sept. 27, 2010) 

amended section 273(d) of the Act (7 

U.S.C. 1637b) to require that the 

Secretary establish an electronic 

reporting system for manufacturers of 

dairy products to report certain market 

information for the mandatory dairy 

product reporting program. The 

amendment further states that the 

Secretary shall publish the information 

obtained under this section for the 

preceding week not later than 3 p.m. 

Eastern Time on Wednesday of each 

week. This final rule, in accordance 

with the Act, includes regulatory 

changes for implementing these 

provisions. This rule also transfers 

applicable data collection 

responsibilities from NASS to AMS and 

includes conforming changes. 

AMS requested comments on the 

proposed rule. AMS has reviewed all 

comments received within the 60-day 

comment period and has considered 

these comments in developing this final 

rule. 

Executive Order 12866 

This final rule has been determined 

not to be significant for purposes of 

Executive Order 12866 and therefore 

has not been reviewed by the Office of 

Management and Budget with respect to 

this Executive Order. 

Executive Order 12988 Civil Justice 

Reform 

This final rule has been reviewed 

under Executive Order 12988, Civil 

Justice Reform. The amendments 

contained in this final rule are not 

intended to have a retroactive effect. 

Regulatory Flexibility Act 

Pursuant to requirements set forth in 

the Regulatory Flexibility Act (RFA) (5 

U.S.C. 601–612), AMS has considered 

the economic impact of this final rule 

on small entities and has determined 

that this rule would not have a 

significant economic impact on a 

substantial number of small entities. 

The purpose of the RFA is to fit 

regulatory actions to the scale of 

businesses subject to such actions in 

order that small businesses will not be 

unduly or disproportionately burdened. 


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8718 Federal Register / Vol. 77, No. 31 / Wednesday, February 15, 2012 / Rules and Regulations 

1North American Industry Classification System 

(NAICS) code 3115. 

Small businesses in the dairy product 

manufacturing 1 industry have been 

defined by the Small Business 

Administration (SBA) as those 

processors employing not more than 500 

employees. For purposes of determining 

a processor’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. According to U.S. Census 

Bureau Statistics of U.S. Businesses, 

there were 1,583 dairy manufacturing 

establishments in the United States in 

2008. Of these businesses, 1,039 

establishments had fewer than 500 

employees, and 544 establishments had 

greater than 500 employees (U.S. Census 

Bureau, 2008 County Business Patterns, 

http://www.census.gov/econ/susb/). 

The dairy manufacturing 

establishments included in U.S. Census 

Bureau statistics include manufacturers 

of all types of dairy products. The 

number of plants that produce butter, 

cheese, NFDM, and dry whey with the 

precise specifications included in the 

mandatory reporting requirements is 

much lower than this. Furthermore, 

those manufacturers that process and 

market less than 1 million pounds of the 

applicable dairy products annually are 

exempt from reporting sales data. NASS 

has conducted an annual validation 

survey that serves to determine which 

plants are required to report. In 2011, 

this survey included 181 plants. The 

annual cost for plants to complete this 

survey is estimated at approximately $9 

per plant. AMS will continue to conduct 

the validation survey annually. For 2011 

there were 94 dairy product plants 

subject to mandatory reporting of sales 

data. There are 51 reporting entities that 

report data for one or more plants. 

(Plant numbers and numbers of 

reporting entities have been updated 

from the 2010 numbers that were 

reported in the proposed rule.) Based 

upon company profile information 

available on the Internet, AMS estimates 

that almost half of the reporting entities 

are considered small businesses under 

the criteria established by the SBA. 

AMS estimates that the annual cost 

per plant for reporting sales information 

for products included in the surveys 

will be approximately $586. (The 

change from $511 shown in the 

proposed rule is due to recognition of 

greater costs associated with plants that 

must report sales information for both 

40-pound blocks and 500-pound barrel 

cheddar cheese.) The majority of 

reporting entities have already been 

submitting data to NASS through a 

secure Web-based application. Less than 

three plants have been regularly faxing 

their information, and it is believed that 

these plants do have Internet access. 

Therefore, there would be no significant 

start-up costs anticipated for the 

reporting entities as a result of 

implementing this final rule. 

Under the current Dairy Product 

Mandatory Reporting Program, dairy 

manufacturers are required to maintain 

records for verification purposes for a 

2-year period. This final rule makes no 

changes to this requirement. These 

records are maintained as part of the 

normal course of business. Thus, there 

is no additional burden or cost 

associated with the maintenance of 

these records. Therefore, in total, this 

final rule will not have a significant 

economic impact on a substantial 

number of small entities. 

Paperwork Reduction Act 

In accordance with the Paperwork 

Reduction Act (44 U.S.C. Chapter 35), 

reporting and recordkeeping 

requirements that are utilized to collect 

the information required by the Act 

have been reviewed by the Office of 

Management and Budget (OMB). OMB 

has assigned a reference number of 

0581–0274. 

Abstract: The information collection 

requirements in the request are essential 

to carry out the intent of the 

Agricultural Marketing Act of 1946 as 

amended (the Act). 

The Act requires each manufacturer to 

report to the Secretary information 

concerning the price, quantity, and 

moisture content (where applicable) of 

dairy products sold by the 

manufacturer. Dairy products reported 

include cheddar cheese, butter, dry 

whey, and NFDM. Dairy manufacturers 

report information for these products if 

the products meet certain product 

specifications. 

The collection and reporting of sales 

information, as required by the Act, 

have been the responsibility of NASS. 

NASS has collected the information as 

part of the information collection 

package OMB 0535–0020. NASS has 

allowed manufacturers to submit 

information through a secure Web-based 

application, by email, or by fax. 

Manufacturers have been required to 

submit information to NASS by 12 noon 

on Wednesday on all applicable sales of 

products during the 7 days ending 12 

midnight of the previous Saturday, local 

time of the plant or storage facility 

where the sales are made. NASS has 

compiled and aggregated the 

information reported by the reporting 

entities and has published the 

information each Friday morning. When 

a Federal holiday has fallen on a 

Tuesday or Wednesday, NASS has 

contacted manufacturers via email or 

phone concerning the applicable report 

deadline. 

Manufacturers that process and 

market less than 1 million pounds of 

applicable dairy products annually are 

exempt from reporting requirements. 

Each year, dairy manufacturers have 

completed an Annual Validation 

Worksheet for NASS to determine 

which dairy manufacturers are exempt 

and to ascertain if valid information has 

been supplied. 

The Mandatory Price Reporting Act of 

2010 amended subsection 273(d), of the 

Act, requiring the Secretary to establish 

an electronic reporting system to collect 

certain information. Using this reporting 

system, AMS will publish, not later than 

3 p.m. Eastern Time on Wednesday of 

each week, a report containing the 

preceding week’s information. The 

information collection and reporting 

requirements have been the 

responsibility of NASS. Under this final 

rule, AMS will assume this 

responsibility. NASS will no longer 

collect price, quantity, or moisture 

content (where applicable) information 

for cheddar cheese, butter, NFDM, or 

dry whey, and NASS will no longer 

collect the associated annual validation 

information. The forms associated with 

this data collection will be removed 

from NASS collection package, OMB 

0535–0020, and will be replaced by 

forms in AMS collection package, OMB 

0581–0274. 

Every effort has been made to 

minimize any unnecessary 

recordkeeping costs or requirements. 

The electronic submission forms will 

require the minimum information 

necessary to carry out the requirements 

of the program effectively, and their use 

is necessary to fulfill the intent of the 

Act. It is expected that no outside 

technical expertise will be needed. The 

forms are simple, easy to understand, 

and place as small a burden as possible 

on respondents. 

To assist the industry in achieving 

compliance, educational and outreach 

sessions will be held prior to 

implementation. AMS will assist 

reporting entities in understanding 

requirements for submitting data 

through electronic means. In addition, 

AMS will beta test the electronicsubmission technology before 

implementation, and all entities 

required to report will be encouraged to 

participate in the beta-testing program. 

Any feedback received during this 


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Federal Register / Vol. 77, No. 31 / Wednesday, February 15, 2012 / Rules and Regulations 8719 

outreach and testing period will be used 

to correct technical problems. 

Collecting the information will 

coincide with normal industry business 

practices. The timing and frequency of 

collecting information are intended to 

meet the needs of the program while 

minimizing the amount of work 

necessary to submit the required 

reports. The information to be collected 

by AMS is almost identical to the 

information that has been collected by 

NASS. While NASS has required either 

the total sales dollars or the dollars per 

pound in addition to the total pounds of 

products sold to be reported, AMS will 

require both the total sales dollars and 

the dollars per pound to be reported 

along with the total pounds of products 

sold in order to provide an additional 

validation check. NASS has permitted 

manufacturers to submit information 

through a secure web-based application, 

by email, or by fax. This final rule, 

however, requires manufacturers to 

submit information only by electronic 

means specified by AMS. AMS has 

specified that each manufacturer submit 

the information using a secure Internet 

connection that includes a user name 

and password. The requirement that 

reporting entities submit information 

electronically is in accordance with the 

Act. 

The frequency of data collection will 

not change. Reporting entities have been 

required to report information to NASS 

on a weekly basis by 12 noon local time 

on Wednesday. This final rule requires 

reporting entities to report information 

to AMS on a weekly basis by 12 noon, 

local time of the reporting entities, on 

Tuesday. This change is necessary to 

allow AMS personnel time to review 

and compile data and to publish the 

information by 3 p.m. Eastern Time on 

Wednesday as required by the Act. If a 

Federal holiday falls on Monday 

through Wednesday of a particular 

week, the due date for report 

submission may be adjusted. Prior to the 

beginning of each calendar year, AMS 

shall inform reporting entities of the 

times and dates that reports are due. 

The first date reporting entities shall 

provide information to AMS will be 

Tuesday, April 3, 2012, of sales data for 

the week ending Saturday, March 31, 

2012. The first publication by AMS will 

be on Wednesday, April 4, 2012, by 3 

p.m. Eastern Time. The last publication 

by NASS will be on March 30, 2012, of 

sales data through the week ending 

March 24, 2012. 

Information collection requirements 

included in this final rule are listed 

below. There have been minor changes 

to the number of respondents compared 

to the proposed rule due to updated 

information and the separation of 

cheddar cheese surveys into two types: 

blocks and barrels. 

(1) Dairy Products Sales, Cheddar 

Cheese, 40-Pound Blocks 

Estimate of Burden: Public reporting 

burden for this collection of information 

is estimated to average 20 minutes per 

week for each report submitted. 

Respondents: Cheddar cheese 

manufacturers of 40-pound blocks. Each 

reporting entity may report for a single 

cheddar cheese plant or it may report 

for more than one cheddar cheese plant, 

depending upon how the business is 

structured. 

Estimated Number of Respondents: 

18. 

Estimated Total Annual Burden on 

Respondents: 312 hours. 

(2) Dairy Products Sales, Cheddar 

Cheese, 500-Pound Barrels 

Estimate of Burden: Public reporting 

burden for this collection of information 

is estimated to average 20 minutes per 

week for each report submitted. 

Respondents: Cheddar cheese 

manufacturers of 500-pound barrels. 

Each reporting entity may report for a 

single cheddar cheese plant or it may 

report for more than one cheddar cheese 

plant, depending upon how the 

business is structured. 

Estimated Number of Respondents: 

14. 

Estimated Total Annual Burden on 

Respondents: 243 hours. 

(3) Dairy Products Sales, Butter 

Estimate of Burden: Public reporting 

burden for this collection of information 

is estimated to average 20 minutes per 

week for each report submitted. 

Respondents: Butter manufacturers. 

Each reporting entity may report for a 

single butter plant or it may report for 

more than one butter plant, depending 

upon how the business is structured. 

Estimated Number of Respondents: 

19. 

Estimated Total Annual Burden on 

Respondents: 329 hours. 

(4) Dairy Products Sales, Nonfat Dry 

Milk 

Estimate of Burden: Public reporting 

burden for this collection of information 

is estimated to average 20 minutes per 

week for each report submitted. 

Respondents: NFDM manufacturers. 

Each reporting entity may report for a 

single NFDM plant or it may report for 

more than one NFDM plant, depending 

upon how the business is structured. 

Estimated Number of Respondents: 

28. 

Estimated Total Annual Burden on 

Respondents: 485 hours. 

(5) Dairy Products Sales, Dry Whey 

Estimate of Burden: Public reporting 

burden for this collection of information 

is estimated to average 20 minutes per 

week for each report submitted. 

Respondents: Dry whey 

manufacturers. Each reporting entity 

may report for a single dry whey plant 

or it may report for more than one dry 

whey plant, depending upon how the 

business is structured. 

Estimated Number of Respondents: 

20. 

Estimated Total Annual Burden on 

Respondents: 347 hours. 

(6) Annual Validation Survey 

Estimate of Burden: Public reporting 

burden for this collection of information 

is estimated to average 20 minutes per 

year for each report submitted. 

Respondents: Dairy manufacturers. 

Each reporting entity may report for a 

single plant or it may report for more 

than one plant, depending upon how 

the business is structured. 

Estimated Number of Respondents: 

181. 

Estimated Total Annual Burden on 

Respondents: 60 hours. 

(7) Survey Follow-Up, Verification 

Estimate of Burden: Public reporting 

burden for this collection of information 

is estimated to average 5 minutes for 

each contact from AMS. 

Respondents: Dairy manufacturers. 

Each reporting entity may report for a 

single plant or it may report for more 

than one plant, depending upon how 

the business is structured. 

Estimated Number of Respondents: 7 

per week. 

Estimated Total Annual Burden on 

Respondents: 30 hours. 

Copies of this information collection 

and related instructions can be obtained 

without charge from Clifford M. 

Carman, Assistant to the Deputy 

Administrator, Dairy Programs, AMS, 

USDA, clifford.carman@ams.usda.gov, 

phone: (202) 690–2998. 

Except as otherwise directed by the 

Secretary of Agriculture or the U.S. 

Attorney General for enforcement 

purposes, no officer, employee, or agent 

of the United States shall provide the 

public any information, statistics, or 

documents obtained from or submitted 

by any person under the Act that does 

not ensure preservation of 

confidentiality regarding the identity of 

persons, including parties to contracts 

and proprietary business information. 

All report forms include a statement 

that individual reports are kept 

confidential. 

With respect to the application of the 

Privacy Act of 1974 (5 U.S.C. 552a) to 


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8720 Federal Register / Vol. 77, No. 31 / Wednesday, February 15, 2012 / Rules and Regulations 

the maintenance of records required by 

the Act, the Dairy Products Sales survey 

population consists of dairy product 

manufacturers. Data collected by this 

survey relates to manufacturers’ 

operations and transactions and not to 

those of individuals. Records 

maintained at business sites for 

verification of information that would 

be reported to AMS include contracts, 

agreements, receipts, and other 

materials related to sales of specific 

dairy products. No records about 

individuals would be maintained by 

AMS for this survey, and AMS believes 

that none would be part of these 

maintained business papers. 

Discussion of Comments 

The proposed rule solicited comments 

to be submitted to USDA on or before 

August 9, 2011. During this 60-day 

comment period, seven comment 

submissions were received: Three from 

dairy cooperative associations, two from 

cooperative federations, one from a 

dairy producer association, and one 

from a dairy manufacturer/processor 

trade association. Six of the commenters 

expressed overall support for the 

mandatory electronic reporting system 

and one commenter specifically 

expressed support for AMS to beta test 

the electronic submission technology. 

Two commenters asked that AMS 

initiate a second rule and comment 

period so that the industry can address 

issues on product specifications, data 

collection, and publication. AMS will 

consider soliciting public comments 

through the Federal Register on related 

issues for mandatory reporting, such as 

product specifications. 

One commenter stated that, although 

the Mandatory Price Reporting Act of 

2010 sets timing for mandatory 

electronic reporting, they believe 

congressional authority exists for daily 

reporting, citing that the 2008 Farm Bill 

authorizes ‘‘more frequent reporting.’’ 

AMS considered this comment, 

however, the Act does not permit a 

requirement for reporting entities to 

report at any frequency other than 

weekly. Paragraph (b)(2)(C) of section 

273 of the Act provides a condition that 

‘‘the frequency of the required reporting 

* * * does not exceed the frequency 

used to establish minimum prices for 

Class III or Class IV milk under a 

Federal milk marketing order.’’ The 

Federal milk marketing orders establish 

minimum prices for Class III and Class 

IV milk based upon weekly dairy 

products prices reported (7 CFR 

1000.50). Although the 2008 Farm Bill 

amended subsection (d) of section 273 

of the Act to require more frequent 

reporting, subject to the availability of 

funds, the Mandatory Price Reporting 

Act of 2010 further amended the Act, 

deleting the requirement for more 

frequent reporting. One reporting entity 

specifically opposed any reporting 

period that is more frequent than 

weekly, citing time needed to receive 

warehouse bills of lading and 

preparation time for reporting 

information. 

Three commenters expressed concern 

about the proposed change to move the 

weekly manufacturers’ submission of 

reports from Wednesday 12 noon local 

time to Tuesday 12 noon local time, 

stating that this change would result in 

increased regulatory costs and increased 

revisions. AMS acknowledges that the 

change in reporting date by one day may 

cause manufacturers to change their 

methods of data collection and 

reporting, adding some additional 

reporting burden. However, AMS must 

publish sales reports by 3 p.m. Eastern 

Time on Wednesday whereas NASS has 

published sales reports on Friday 

morning. USDA, therefore, must change 

the weekly reporting day in order to 

complete validation checks and data 

analysis before weekly publication. 

Three commenters had concerns 

about increased burdens and revisions 

for weeks that include an intervening 

holiday. AMS plans to allow reporting 

later in the week than Tuesday at noon 

when holidays intervene with reporting 

dates. USDA will provide the public an 

annual reporting schedule prior to the 

beginning of each calendar year. 

One commenter requested that 

reporting flexibility be extended to 

accommodate situations that arise 

outside the control of the reporting 

facility. Barring any unforeseen 

circumstances which would make 

timely reporting impossible (such as an 

extreme natural disaster), AMS plans to 

hold the Tuesday noon submission 

deadline steadfast each week (other than 

a week with an intervening holiday). 

This will facilitate AMS in fulfilling its 

obligation to report by Wednesday at 3 

p.m. Eastern Time each week (other 

than a week with an intervening 

holiday). 

One commenter asked for guidance on 

how revisions would be submitted with 

the new electronic reporting system. 

Although revision procedures are not 

specifically spelled out in this rule, 

AMS will provide instructions for 

reporting requirements, including 

reporting of revisions, to all parties that 

must report. These instructions will be 

available to respondents during the 

reporting process. In addition, the 

procedures will be covered in 

educational and outreach sessions that 

will be provided to respondents prior to 

implementation of the amendments. 

One commenter encouraged AMS to 

provide weekly notices to dairy 

manufacturers reminding them of the 

reporting deadlines for the following 

week. AMS does not plan to send 

weekly reminders concerning the due 

dates of reports. This final rule states 

that a schedule shall be provided to 

reporting entities prior to the beginning 

of each calendar year; AMS plans to 

post the scheduled reporting due dates 

on the Internet. This does not preclude 

AMS from providing other reminders to 

reporting entities throughout the year, 

such as for weeks with upcoming 

holidays. 

Two commenters requested that 

reporting requirements be expanded 

beyond the current four commodities: 

Cheddar cheese, butter, nonfat dry milk, 

and dry whey. One commenter asked for 

reporting requirements to include 

yogurt, sour cream, cottage cheese, and 

other types of cheeses with a large sales 

volume. Another commenter asked that 

other products be added to the reporting 

list, including mozzarella (low or high 

moisture), Monterey Jack, Grade A 

Swiss, skim milk powder, buttermilk 

powder, whole milk powder, whey 

protein concentrate, and soft products 

or spot cream. The Act does not permit 

expanding the list of mandatory 

reported commodities beyond the four 

products historically reported. 

Paragraph (b)(2) of section 273 of the 

Act provides a condition that ‘‘the 

information * * * is required only to 

the extent that the information is 

actually used to establish minimum 

prices for Class III or Class IV milk 

under a Federal milk marketing order.’’ 

The Federal milk marketing orders 

establish minimum prices for Class III 

and Class IV milk based upon prices 

reported for butter, cheddar cheese, 

nonfat dry milk, and dry whey (7 CFR 

1000.50). 

One of the commenters requested that 

AMS expand the required reporting 

plants by reducing the 1 million pounds 

per year threshold to 500,000 pounds 

per year production or sales. Paragraph 

(b)(2)(D) of section 273 of the Act states, 

‘‘the Secretary may exempt from all 

reporting requirements any 

manufacturer that processes and 

markets less than 1,000,000 pounds of 

dairy products per year.’’ The Act does 

not permit AMS to establish a reporting 

exemption threshold for manufacturers 

at any level other than 1 million pounds 

of dairy products processed and 

marketed per year. 

One commenter asked that cheese 

committed for sale, but not yet sold 

(delivered), be designated as such for 


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Federal Register / Vol. 77, No. 31 / Wednesday, February 15, 2012 / Rules and Regulations 8721 

mandatory storage reporting. Mandatory 

dairy product storage reporting is the 

responsibility of NASS, and this final 

rule makes no changes with respect to 

mandatory storage reporting. 

AMS has made one change in this 

final rule from the proposed rule. The 

reporting requirements in § 1170.7(a) 

have been modified to indicate that 

reporting entities must report both the 

total sales dollars and dollars per pound 

for the applicable products. NASS has 

required either the total sales dollars or 

dollars per pound for the applicable 

products to be reported, and the 

proposed rule would have continued 

this requirement without change. 

However, the requirement to report both 

the total sales dollars and dollars per 

pound will provide AMS with a 

validation check to insure that, in each 

instance, the total sales dollars reported 

equals the dollars per pound times the 

reported quantity. Since this is a de 

minimus change in reporting burden, it 

has no effect on the estimated reporting 

burden for each survey. 

List of Subjects in 7 CFR Part 1170 

Dairy products, Reporting and 

recordkeeping requirements, Cheese, 

Butter, Dry whey, Nonfat dry milk. 

Accordingly, 7 CFR part 1170 is 

amended as follows: 

PART 1170—DAIRY PRODUCT 

MANDATORY REPORTING 

■ 1. The authority citation for part 1170 

is revised to read as follows: 

Authority: 7 U.S.C. 1637–1637b, as 

amended by Pub. L. 106–532, 114 Stat. 2541; 

Pub. L. 107–171, 116 Stat. 207; and Pub. L. 

111–239, 124 Stat. 2501. 

■ 2. Revise § 1170.2 to read as follows: 

§ 1170.2 Act. 

Act means the Agricultural Marketing 

Act of 1946, 7 U.S.C. 1621 et seq., as 

amended by the Dairy Market 

Enhancement Act of 2000, Pub. L. 106– 

532, 114 Stat. 2541; the Farm Security 

and Rural Investment Act of 2002, Pub. 

L. 107–171, 116 Stat. 207; and the 

Mandatory Price Reporting Act of 2010, 

Pub. L. 111–239, 124 Stat. 2501. 

■ 3. Revise § 1170.7 to read as follows: 

§ 1170.7 Reporting requirements. 

(a) All dairy product manufacturers, 

with the exception of those who are 

exempt as described in § 1170.9, shall 

submit a report weekly to the 

Agricultural Marketing Service (AMS) 

by Tuesday, 12 noon local time of 

reporting entities, on all products sold 

as specified in § 1170.8 during the 7 

days ending 12 midnight of the previous 

Saturday, local time of the plant or 

storage facility where the sales are 

made. If a Federal holiday falls on 

Monday through Wednesday of a 

particular week, the due date for report 

submission may be adjusted. Prior to the 

beginning of each calendar year, AMS 

shall release, to manufacturers that are 

required to report, the times and dates 

that reports are due. For the applicable 

products, the report shall be submitted 

by electronic means specified by AMS 

and shall indicate the name, address, 

plant location(s), quantities sold, total 

sales dollars, dollars per pound, and the 

moisture content where applicable. 

Each sale shall be reported for the time 

period when the transaction is 

completed, i.e. the product is ‘‘shipped 

out’’ and title transfer occurs. Each sale 

shall be reported either f.o.b. plant if the 

product is ‘‘shipped out’’ from the plant 

or f.o.b. storage facility location if the 

product is ‘‘shipped out’’ from a storage 

facility. In calculating the total dollars 

received and dollars per pound, the 

reporting entity shall neither add 

transportation charges incurred at the 

time the product is ‘‘shipped out’’ or 

after the product is ‘‘shipped out’’ nor 

deduct transportation charges incurred 

before the product is ‘‘shipped out.’’ In 

calculating the total dollars received 

and dollars per pound, the reporting 

entity shall not deduct brokerage fees or 

clearing charges paid by the 

manufacturer. 

(b) Manufacturers or other persons 

storing dairy products are required to 

report, on a monthly basis, stocks of 

dairy products (as defined in § 1170.4) 

on hand, on the appropriate forms 

supplied by the National Agricultural 

Statistic Service. The report shall 

indicate the name, address, and stocks 

on hand at the end of the month for 

each storage location. 

■ 4. Revise § 1170.8 (a)(3)(ii) to read as 

follows: 

§ 1170.8 Price reporting specifications. 

* * * * * 

(a) * * * 

(3) * * * 

(ii) 500-pound barrels: Report 

weighted average moisture content of 

cheese sold. AMS will adjust price to a 

benchmark of 38.0 percent based on 

standard moisture adjustment formulas. 

Exclude cheese with moisture content 

exceeding 37.7 percent. 

* * * * * 

■ 5. Add § 1170.17 to read as follows: 

§ 1170.17 Publication of statistical 

information. 

Not later than 3 p.m. Eastern Time on 

the Wednesday of each week, AMS shall 

publish aggregated information obtained 

from manufacturers or other persons of 

all products sold as specified in 

§ 1170.8. If a Federal holiday falls on 

Monday through Wednesday of a 

particular week, the due date for report 

publication may be adjusted. The public 

shall be notified of report times prior to 

the beginning of the calendar year. 

Dated: February 9, 2012. 

Robert C. Keeney, 

Acting Administrator, Agricultural Marketing 

Service. 

[FR Doc. 2012–3566 Filed 2–14–12; 8:45 am] 

BILLING CODE 3410–02–P 

BUREAU OF CONSUMER FINANCIAL 

PROTECTION 

12 CFR Part 1003 

[Docket No. CFPB–2011–0020] 

RIN 3170–AA06 

Home Mortgage Disclosure 

(Regulation C) 

AGENCY: Bureau of Consumer Financial 

Protection. 

ACTION: Final rule; official commentary. 

SUMMARY: The Bureau of Consumer 

Financial Protection (Bureau) is 

publishing a final rule amending the 

official commentary that interprets the 

requirements of Regulation C (Home 

Mortgage Disclosure) to reflect a change 

in the asset-size exemption threshold for 

depository institutions based on the 

annual percentage change in the 

Consumer Price Index for Urban Wage 

Earners and Clerical Workers (CPI–W). 

The exemption threshold has been 

adjusted to increase to $41 million from 

$40 million. The adjustment is based on 

the 3.43 percent increase in the average 

of the CPI–W for the twelve-month 

period ending in November 2011. 

Therefore, depository institutions with 

assets of $41 million or less as of 

December 31, 2011 are exempt from 

collecting data in 2012. 

DATES: Effective February 15, 2012. 

FOR FURTHER INFORMATION CONTACT: 

Jennifer Diamantis, Senior Counsel, 

Office of Regulations, at (202) 435–7700. 

SUPPLEMENTARY INFORMATION: The Home 

Mortgage Disclosure Act of 1975, as 

amended (HMDA; 12 U.S.C. 2801 et 

seq.) requires most mortgage lenders 

located in metropolitan areas to collect 

data about their housing-related lending 

activity. Annually, lenders must report 

those data to the appropriate federal 

agencies and make the data available to 

the public. The Bureau’s Regulation C, 

12 CFR part 1003, implements HMDA. 

Prior to 1997, HMDA exempted 

depository institutions with assets 


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