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United States Agricultural 1400 Independence Ave., SW.

Department of Marketing Stop 0225, South Building

Agriculture Service Washington, DC 20250-0231

November 28, 2022

Invitation to Submit Proposals for Consideration at a Public Hearing 

that may be held to Discuss Amendments to the Appalachian, Southeast,

and Florida Milk Marketing Orders

The Dairy Cooperative Marketing Agency (DCMA) has requested that the Department of

Agriculture (USDA) hold a public hearing to consider proposals to amend inter-market 

transportation credits in the Appalachian and Southeast Milk Marketing Orders and create

distributing plant delivery credits in the Appalachian, Southeast, and Florida Milk Marketing 

Orders. Proponents contend the three southeastern FMMO areas have a chronic milk deficit, 

creating challenging marketing conditions to ensure the fluid milk needs of the orders are met.

Consequently, they have requested a rulemaking be initiated on an emergency basis.

The proposal may be viewed on the Dairy Programs website at: https://www.ams.usda.gov/rulesregulations/moa/dairy/petitions.

The proposal has not yet been approved for inclusion in a Notice of Hearing. Before deciding 

whether a hearing will be held, USDA is providing the opportunity for interested parties to 

submit additional proposals regarding potential amendments to the current inter-market 

transportation credit provisions in the Appalachian and Southeast orders and creating distributing

plant delivery credits in the Appalachian, Southeast, and Florida orders.

The preferred method of submission is via email. Electronic submissions should be emailed to

amsdairycomments@usda.gov. Proposals can also be mailed to: Deputy Administrator, 

USDA/AMS/Dairy Programs, STOP-0225-Room 2530, 1400 Independence Ave., SW, 

Washington, DC 20250-0225. Proposals must be received by December 19, 2022. Each 

proposal should be accompanied by a comprehensive statement on the need for the proposal. 

The statement will be evaluated to determine whether the proposal will be accepted if a hearing 

is held. In accordance with 7 CFR 900.22 and adoption of the final rule published in the Federal 

Register on August 20, 2008 (73 FR 49085), proposal submissions must include detailed 

explanations of the following:

1. Explain the proposal. What is the disorderly marketing condition that the proposal is 

intended to address?

2. What is the purpose of the proposal?

3. Describe the current Federal order requirements or industry practices relative to the 

proposal. 

4. Describe the expected impact on the industry, including on producers and handlers, and 

on consumers. Explain/Quantify.

5. What are the expected effects on small businesses as defined by the Regulatory 

Flexibility Act (5 U.S.C. 601-612)? Explain/Quantify.
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6. How would the proposal increase or decrease costs to producers, handlers, others in the 

marketing chain, consumers, the Market Administrator offices and/or the Secretary? 

Explain/Quantify?

7. Would a pre-hearing information session be helpful to explain the proposal?

Actions under the Federal milk order program are subject to the Regulatory Flexibility Act which 

seeks to ensure that the regulatory and informational requirements are tailored to the size and 

nature of small businesses. For the purposes of the Federal order program, a dairy farm is 

considered a small business if it has an annual gross revenue of less than $3.75 million.

1 A dairy 

products manufacturer is a small business if it has fewer than the number of employees listed in 

the chart below:

NAICS

Code

NAICS U.S. industry title Size standards in 

number of employees

311511 Fluid Milk Manufacturing 1,000

311512 Creamery Butter Manufacturing 750

311513 Cheese Manufacturing 1,250

311514 Dry, Condensed, and Evaporated Dairy Product 

Manufacturing

750

For purposes of determining a handler’s size, if the plant is part of a larger company operating 

multiple plants that collectively exceed the listed-employee limit, the plant will be considered a 

large business even if the local plant has fewer than the listed number of employees. Interested 

persons are encouraged to submit proposals that carry out the intent of the Regulatory Flexibility 

Act. 

If USDA determines that a hearing be held, all known interested parties would be sent a copy of 

the Notice of Hearing. Anyone who desires to present evidence on proposals set forth in the 

Notice of Hearing would have an opportunity to do so at the hearing.

Once a Notice of Hearing is issued and until the issuance of a Final Decision, USDA employees 

involved in the decisional process may not discuss the merits of a proceeding on an “ex parte” 

basis. Accordingly, it is suggested that any discussions you may wish to have with USDA 

personnel, including Market Administrator employees, be initiated as soon as possible. 

Procedural matters may be discussed at any time throughout the proceeding. 

Sincerely,

/s/ Dana H. Coale

Dana H. Coale

Deputy Administrator

Dairy Programs

1 The Small Business Administration has issued a Final Rule, effective December 19, 2022, increasing the size of a 

small business dairy farm to an annual gross revenue of less than $3.75 million. See:

https://www.federalregister.gov/documents/2022/11/17/2022-24595/small-business-size-standards-adjustment-ofmonetary-based-size-standards-disadvantage-thresholds