This section of the FEDERAL REGISTER

contains regulatory documents having general

applicability and legal effect, most of which

are keyed to and codified in the Code of

Federal Regulations, which is published under

50 titles pursuant to 44 U.S.C. 1510.

The Code of Federal Regulations is sold by

the Superintendent of Documents.

Rules and Regulations Federal Register

6401 

Vol. 89, No. 22 

Thursday, February 1, 2024 

DEPARTMENT OF AGRICULTURE 

Agricultural Marketing Service 

7 CFR Parts 1005, 1006, and 1007 

[Doc. No. AMS–DA–23–0003; 23–J–0019] 

Milk in the Appalachian, Florida, and 

Southeast Marketing Areas; 

Amendments to Marketing Agreements 

and to Orders 

AGENCY: Agricultural Marketing Service, 

USDA. 

ACTION: Final rule. 

SUMMARY: This final rule amends the 

transportation credit balancing fund 

provisions for the Appalachian and 

Southeast Federal milk marketing orders 

and establishes distributing plant 

delivery credits in the Appalachian, 

Florida, and Southeast Federal milk 

marketing orders. More than the 

required number of producers in the 

three impacted marketing areas have 

approved the issuance of the final order. 

DATES: This rule is effective March 1, 

2024. 

ADDRESSES: To review the hearing 

record and relevant materials, please see 

https://www.ams.usda.gov/rulesregulations/milk-appalachiansoutheast-and-florida-areas-hearingproposed-amendments. 

FOR FURTHER INFORMATION CONTACT: Erin 

Taylor, USDA/AMS/Dairy Programs, 

Order Formulation and Enforcement 

Branch, STOP 0231—Room 2530, 1400 

Independence Avenue SW, Washington, 

DC 20250–0231, Telephone: (202) 720– 

7183, Email: Erin.Taylor@usda.gov. 

SUPPLEMENTARY INFORMATION: This rule, 

in accordance with 7 CFR 900.14(c), is 

the Secretary’s final rule in this 

proceeding and adopts the amendments 

detailed in the proposed rule published 

in the Federal Register on December 1, 

2023 (88 FR 84038). 

This final rule amends the 

transportation credit balancing fund 

(TCBF) provisions in the Appalachian 

and Southeast Federal milk marketing 

orders (FMMOs or orders) by (1) 

updating the components of the mileage 

rate calculation; (2) revising the months 

of mandatory and discretionary 

payment; (3) revising the nonreimbursed mileage factor; and (4) 

increasing the maximum assessment 

rate on Class I milk. This final rule also 

establishes distributing plant delivery 

credit (DPDC) provisions in the 

Appalachian, Florida, and Southeast 

FMMOs that will make marketwide 

service payments to qualifying handlers 

and cooperatives for milk shipments to 

pool distributing plants from farms that 

are year-round, consistent suppliers. As 

required by regulation, AMS conducted 

a vote where more than two-thirds of 

the participating producers approved 

the amended orders. Thus, AMS is 

issuing this final rule implementing 

new and amended provisions. 

This administrative action is governed 

by sections 556 and 557 of Title 5 of the 

United States Code and, therefore, is 

excluded from the requirements of 

Executive Orders 12866, 13175, 13563, 

and 14094. This action falls within a 

category of regulatory actions that the 

Office of Management and Budget 

(OMB) exempted from Executive Orders 

12866, 13563, and 14094 review. 

The amendments adopted in this final 

rule have been reviewed under 

Executive Order 12988, Civil Justice 

Reform. They are not intended to have 

a retroactive effect and will not preempt 

any state or local laws, regulations, or 

policies, unless they present an 

irreconcilable conflict with this rule. 

The Agricultural Marketing 

Agreement Act of 1937, as amended (7 

U.S.C. 601–674) (AMAA), provides that 

administrative proceedings must be 

exhausted before parties may file suit in 

court. Under section 608c(15)(A) of the 

AMAA, any handler subject to an order 

may request modification or exemption 

from such order by filing a petition with 

the United States Department of 

Agriculture (USDA) 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 AMAA 

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 (RFA) (5 U.S.C. 601 et 

seq.), the Agricultural Marketing Service 

has considered the economic impact of 

this action on small entities and has 

certified this final rule will 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 so 

that small businesses will not be unduly 

or disproportionately burdened. 

Marketing orders and amendments 

thereto are unique in that they are 

normally brought about through group 

action of essentially small entities for 

their own benefit. A small dairy farm as 

defined by the Small Business 

Administration (SBA) (13 CFR 121.201) 

is one that has an annual gross revenue 

of $3.75 million or less, and a small 

dairy products manufacturer is one that 

has no more 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 ..................................................................................................................... 1,150 

311512 ........................... Creamery Butter Manufacturing .......................................................................................................... 750 

311513 ........................... Cheese Manufacturing ........................................................................................................................ 1,250 

311514 ........................... Dry, Condensed, and Evaporated Dairy Product Manufacturing ........................................................ 1,000 


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To determine which dairy farms are 

‘‘small businesses,’’ the $3.75 million 

per year income limit was used to 

establish a milk marketing threshold of 

1,220,703 pounds per month. Although 

this threshold does not factor in 

additional monies that may be received 

by dairy producers, it should be an 

accurate standard for most ‘‘small’’ 

dairy farmers. To determine a handler’s 

size, if the plant is part of a larger 

company operating multiple plants that 

collectively exceed the 750-employee 

limit for creamery butter; the 1,000- 

employee limit for dry, condensed, and 

evaporated dairy product 

manufacturing; the 1,150-employee 

limit for fluid milk manufacturing; or 

the 1,250-employee limit for cheese 

manufacturing; the plant was 

considered a large business even if the 

local plant does not exceed the 750-; 

1,000-; 1,150-; or 1,250-employee limits, 

respectively. 

During March 2023, the milk of 2,191 

dairy farms was pooled on the 

Appalachian (1,359), Florida (83), and 

Southeast (749) FMMOs. Of the totals, 

1,233 farms on the Appalachian FMMO 

(91 percent), 37 on the Florida FMMO 

(45 percent), and 658 on the Southeast 

FMMO (88 percent) were considered 

small businesses. 

During March 2023, there were a total 

of 17 plants associated with the 

Appalachian FMMO (16 pool 

distributing plants and 1 pool supply 

plant), 7 plants associated with the 

Florida FMMO (all pool distributing 

plants), and 16 plants associated with 

the Southeast FMMO (15 pool 

distributing plants and 1 pool supply 

plant). The number of plants meeting 

the small business criteria under the 

Appalachian, Florida, and Southeast 

FMMOs were estimated to be 2 (13 

percent), 2 (29 percent), and 2 (13 

percent), respectively. 

Currently, the Appalachian and 

Southeast orders provide transportation 

credit balancing fund (TCBF) payments 

on supplemental shipments of milk for 

Class I use provided the milk was from 

producers located outside of the 

marketing areas who are not regular 

suppliers to the market. Producer milk 

received at a pool distributing plant 

eligible for a transportation credit under 

the orders is defined as bulk milk 

received directly from a dairy farmer (1) 

from whom not more than 50 percent of 

the dairy farmer’s milk production, in 

aggregate, is received as producer milk 

during the immediately preceding 

months of March through May of each 

order; and (2) who produced milk on a 

farm not located within the specified 

marketing areas of either order. Milk 

deliveries from producers located 

outside the marketing area who are 

consistent suppliers to the market, or 

from producers located inside the 

marketing areas, is not eligible for 

transportation credits. 

This final rule amends the 

Appalachian and Southeast TCBF 

provisions. Specifically, the 

amendments amend the non-reimbursed 

mileage level from 85 miles to 15 

percent of total miles and update 

components of the mileage rate factor to 

reflect more current market 

transportation costs. 

The amendments also will increase 

the maximum TCBF assessment rates for 

the Appalachian and Southeast orders. 

Specifically, the maximum 

transportation credit assessment rate for 

the Appalachian and Southeast orders 

will increase to $0.30 and $0.60 per 

hundredweight (cwt), respectively. The 

increases are intended to minimize the 

proration and depletion of each order’s 

TCBF to provide more adequate TCBF 

payments. 

This final rule also adopts DPDCs in 

the Appalachian, Florida, and Southeast 

FMMOs to provide transportation 

assistance to handlers and cooperatives 

procuring year-round, consistent milk 

supplies for the region. Currently, there 

are no provisions in any of the three 

southeastern FMMOs to provide 

transportation assistance to handlers 

and cooperatives for these types of milk 

deliveries. 

The DPDCs adopted in this final rule 

will operate similar to the TCBF 

program: (1) DPDCs will be funded 

through an assessment on Class I 

producer milk; (2) DPDCs will be 

payable to handlers and cooperatives for 

procuring year-round milk supplies as 

determined by location and delivery 

criteria; (3) DPDC payment provisions 

will be identical to those for TCBF 

payments; and (4) DPDC provisions are 

designed to safeguard against excess 

assessment collections and prevent 

persistent and pervasive uneconomic 

milk movements for the purpose of 

receiving a DPDC payment. 

The TCBF and DPDC provisions are 

applied identically to large and small 

handlers and cooperatives regulated by 

the Appalachian, Florida, and Southeast 

FMMOs. Since the amendments will 

apply to all regulated cooperatives and 

handlers regardless of their size, the 

amendments should not have a 

significant economic impact on a 

substantial number of small entities. 

A review of reporting requirements 

was completed under the Paperwork 

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

chapter 35). It was determined that 

these amendments will have no impact 

on reporting, recordkeeping, or other 

compliance requirements because those 

requirements will remain unchanged. 

No new forms are proposed, and no 

additional reporting requirements will 

be necessary. 

This final rule does not require 

additional information collection that 

requires clearance by the 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 which can be supplied 

without data processing equipment or a 

trained statistical staff. Thus, since the 

information is already provided, no new 

information collection requirements are 

needed, and the current 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. 

The Agricultural Marketing Service is 

committed to complying with the EGovernment 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. 

No other burdens are expected to fall 

on the dairy industry as a result of 

overlapping Federal rules. This 

rulemaking proceeding does not 

duplicate, overlap, or conflict with any 

existing Federal rules. 

Prior Documents in This Proceeding 

Notice of Hearing: Published in the 

Federal Register on January 30, 2023 

(88 FR 5800). 

Recommended Decision: Published in 

the Federal Register on July 18, 2023 

(88 FR 46016). 

Final Decision: Published in the 

Federal Register on December 1, 2023 

(88 FR 84038). 

Findings and Determinations 

The findings and determinations 

hereinafter set forth supplement those 

that were made when the 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. 

(a) Findings Upon the Basis of the 

Hearing Record 

The amendments to the order are 

based on the record of a public hearing 

held in Franklin, Tennessee, February 

28–March 2, 2023, pursuant to a notice 

of hearing published January 30, 2023 

(88 FR 5800). The hearing was held 


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pursuant to the provisions of the 

Agricultural Marketing Agreement Act 

of 1937, as amended (7 U.S.C. 601–674), 

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 determined 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 

AMAA; 

(2) The parity prices of milk, as 

determined pursuant to section 2 of the 

AMAA, 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 area. 

The minimum prices specified in the 

orders as hereby amended are such 

prices as will reflect the aforesaid 

factors, ensure 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 are 

applicable only to persons in the 

respective classes of industrial or 

commercial activity specified in, 

marketing agreements upon which a 

hearing has been held. 

(b) Additional Findings 

The amendments to these orders are 

known to handlers. The final decision 

containing the amendments to these 

orders was issued and published in the 

Federal Register (88 FR 84038) on 

December 1, 2023. 

(c) Determinations 

It is hereby determined that: 

(1) The refusal or failure of handlers 

(excluding cooperative associations 

specified in section 8c(9) of the AMAA) 

of more than 50 percent of the milk 

marketed within the specified marketing 

areas to sign a proposed marketing 

agreement, tends to prevent the 

effectuation of the declared policy of the 

AMAA; 

(2) The issuance of this order 

amending the Appalachian, Florida, and 

Southeast orders is the only practical 

means pursuant to the declared policy 

of the AMAA of advancing the interests 

of producers as defined in the order as 

hereby amended; and 

(3) The issuance of this order 

amending the Appalachian, Florida, and 

Southeast FMMOs 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 Parts 1005, 

1006, and 1007 

Milk marketing orders. 

Order Amending the Order Regulating 

the Handling of Milk in the 

Appalachian, Florida, and Southeast 

Marketing Areas 

It is therefore ordered, that on and 

after the effective date hereof, the 

handling of milk in the Appalachian, 

Florida, and Southeast 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: 

PART 1005—MILK IN THE 

APPALACHIAN MARKETING AREA 

■ 1. The authority citation for part 1005 

continues to read as follows: 

Authority: 7 U.S.C. 601–674, and 7253. 

■ 2. Amend § 1005.30 by: 

■ a. Redesignating paragraphs (a)(5) 

through (9) as paragraphs (a)(7) through 

(11), respectively; 

■ b. Adding new paragraphs (a)(5) and 

(6); 

■ c. Redesignating paragraph (c)(3) as 

(c)(4) and revising it; and 

■ d. Adding new paragraph (c)(3). 

The additions and revision read as 

follows: 

§ 1005.30 Reports of receipts and 

utilization. 

(a) * * * 

(5) Receipts of producer milk 

described in § 1005.84(e), including the 

identity of the individual producers 

whose milk is eligible for the 

distributing plant delivery credit 

pursuant to that paragraph and the date 

that such milk was received; 

(6) For handlers submitting 

distributing plant delivery credit 

requests, transfers of bulk 

unconcentrated milk to nonpool plants, 

including the dates that such milk was 

transferred; 

* * * * * 

(c) * * * 

(3) With respect to milk for which a 

cooperative association is requesting a 

distributing plant delivery credit 

pursuant to § 1005.84, all of the 

information required in paragraphs 

(a)(5) and (6) of this section. 

(4) With respect to milk for which a 

cooperative association is requesting a 

transportation credit pursuant to 

§ 1005.82, all of the information 

required in paragraphs (a)(7) through (9) 

of this section. 

* * * * * 

■ 3. Amend § 1005.32 by revising 

paragraph (a) to read as follows: 

§ 1005.32 Other reports. 

(a) On or before the 20th day after the 

end of each month, each handler 

described in § 1000.9(a) and (c) of this 

chapter shall report to the market 

administrator any adjustments to 

distributing plant delivery credit 

requests as reported pursuant to 

§ 1005.30(a)(5) and (6), and any 

adjustments to transportation credit 

requests as reported pursuant to 

§ 1005.30(a)(7) through (9). 

* * * * * 

■ 4. Amend § 1005.81 by revising the 

first sentence of paragraph (a) to read as 

follows: 

§ 1005.81 Payments to the transportation 

credit balancing fund. 

(a) On or before the 12th day after the 

end of the month (except as provided in 

§ 1000.90 of this chapter), each handler 

operating a pool plant and each handler 

specified in § 1000.9(c) of this chapter 

shall pay to the market administrator a 

transportation credit balancing fund 

assessment determined by multiplying 

the pounds of Class I producer milk 

assigned pursuant to § 1005.44 by $0.30 

per hundredweight or such lesser 

amount as the market administrator 

deems necessary to maintain a balance 

in the fund equal to the total 

transportation credits disbursed during 

the prior June—February period. * * * 

* * * * * 

■ 5. Amend § 1005.82 by: 

■ a. Revising the first sentence of 

paragraph (a)(1), the first sentence of 

paragraph (b), and paragraph (d)(3)(iii); 

and 

■ b. Adding paragraph (d)(3)(viii). 

The revisions and addition read as 

follows: 

§ 1005.82 Payments from the 

transportation credit balancing fund. 

(a) * * * 

(1) On or before the 13th day (except 

as provided in § 1000.90 of this chapter) 

after the end of each of the months of 

January and July through December and 

any other month in which 

transportation credits are in effect 

pursuant to paragraph (b) of this section, 

the market administrator shall pay to 

each handler that received, and reported 

pursuant to § 1005.30(a)(7), bulk milk 

transferred from a plant fully regulated 

under another Federal order as 

described in paragraph (c)(1) of this 

section or that received, and reported 

pursuant to § 1005.30(a)(8), milk 

directly from producers’ farms as 

specified in paragraph (c)(2) of this 

section, a preliminary amount 

determined pursuant to paragraph (d) of 

this section to the extent that funds are 


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available in the transportation credit 

balancing fund. * * * 

* * * * * 

(b) The market administrator may 

extend the period during which 

transportation credits are in effect (i.e., 

the transportation credit period) to the 

month of February or June if a written 

request to do so is received fifteen (15) 

days prior to the beginning of the month 

for which the request is made and, after 

conducting an independent 

investigation, finds that such extension 

is necessary to assure the market of an 

adequate supply of milk for fluid use. 

* * * 

* * * * * 

(d) * * * 

(3) * * * 

(iii) Subtract 15 percent (15%) of the 

miles from the mileage so determined; 

* * * * * 

(viii) The market administrator may 

revise the factor described in paragraph 

(d)(3)(iii) of this section (the mileage 

adjustment factor) if a written request to 

do so is received fifteen (15) days prior 

to the beginning of the month for which 

the request is made and, after 

conducting an independent 

investigation, finds that such revision is 

necessary to assure orderly marketing, 

efficient handling of milk in the 

marketing area, and an adequate supply 

of milk for fluid use. The market 

administrator may increase the mileage 

adjustment factor by as much as ten 

percentage points, up to twenty-five 

percent (25%) or decrease it by as much 

as ten percentage points, to a minimum 

of five percent (5%). Before making 

such a finding, the market administrator 

shall notify all handlers in the market 

that a revision is being considered and 

invite written data, comments, and 

arguments. Any decision to revise the 

mileage rate factor must be issued in 

writing prior to the first day of the 

month for which the revision is to be 

effective. 

■ 6. Amend § 1005.83 by revising 

paragraphs (a)(2) through (5) to read as 

follows: 

§ 1005.83 Mileage rate for the 

transportation credit balancing fund. 

(a) * * * 

(2) From the result in paragraph (a)(1) 

of this section subtract $2.26 per gallon; 

(3) Divide the result in paragraph 

(a)(2) of this section by 6.2, and round 

down to three decimal places to 

compute the fuel cost adjustment factor; 

(4) Add the result in paragraph (a)(3) 

of this section to $3.67; 

(5) Divide the result in paragraph 

(a)(4) of this section by 497; 

* * * * * 

■ 7. Add § 1005.84 before the 

undesignated center heading 

‘‘Administrative Assessment and 

Marketing Service Deduction’’ to read as 

follows: 

§ 1005.84 Distributing plant delivery 

credits. 

(a) Distributing plant delivery credit 

fund. The market administrator shall 

maintain a separate fund known as the 

Distributing Plant Delivery Credit Fund 

into which shall be deposited the 

payments made by handlers pursuant to 

paragraph (b) of this section and out of 

which shall be made the payments due 

handlers pursuant to paragraph (d) of 

this section. Payments due a handler 

shall be offset against payments due 

from the handler. 

(b) Payments to the distributing plant 

delivery credit fund. On or before the 

12th day after the end of the month 

(except as provided in § 1000.90 of this 

chapter), each handler operating a pool 

plant and each handler specified in 

§ 1000.9(c) of this chapter shall pay to 

the market administrator a distributing 

plant delivery credit fund assessment 

determined by multiplying the pounds 

of Class I producer milk assigned 

pursuant to § 1005.44 by a per 

hundredweight assessment rate of $0.60 

or such lesser amount as the market 

administrator deems necessary to 

maintain a balance in the fund equal to 

the total distributing plant delivery 

credit disbursed during the prior 

calendar year. If the distributing plant 

delivery credit fund is in an overfunded 

position, the market administrator may 

completely waive the distributing plant 

delivery credit assessment for one or 

more months. In determining the 

distributing plant delivery credit 

assessment rate, in the event that during 

any month of that previous calendar 

year the fund balance was insufficient to 

cover the amount of credits that were 

due, the assessment should be based 

upon the amount of credits that would 

have been disbursed had the fund 

balance been sufficient. 

(c) Assessment rate announcement. 

The market administrator shall 

announce publicly on or before the 23rd 

day of the month (except as provided in 

§ 1000.90 of this chapter), the 

assessment rate per hundredweight 

pursuant to paragraph (b) of this section 

for the following month. 

(d) Payments from the distributing 

plant delivery credit fund. Payments 

from the distributing plant delivery 

credit fund to handlers and cooperative 

associations requesting distributing 

plant delivery credits shall be made as 

follows: 

(1) On or before the 13th day (except 

as provided in § 1000.90 of this chapter) 

after the end of each month, the market 

administrator shall pay to each handler 

that received, and reported pursuant to 

§ 1005.30(a)(5), bulk unconcentrated 

milk directly from producers’ farms, or 

receipts of bulk unconcentrated milk by 

transfer from a pool supply plant as 

defined in § 1005.7(c) or (d), a 

preliminary amount determined 

pursuant to paragraph (f) of this section 

to the extent that funds are available in 

the distributing plant delivery credit 

fund. If an insufficient balance exists to 

pay all of the credits computed pursuant 

to this section, the market administrator 

shall distribute the balance available in 

the distributing plant delivery credit 

fund by reducing payments pro rata 

using the percentage derived by 

dividing the balance in the fund by the 

total credits that are due for the month. 

The credits resulting from this initial 

proration shall be subject to audit 

adjustment pursuant to paragraph (d)(3) 

of this section. 

(2) The market administrator shall 

accept adjusted requests for distributing 

plant delivery credits on or before the 

20th day of the month following the 

month for which such credits were 

requested pursuant to § 1005.32(a). After 

such date, a preliminary audit will be 

conducted by the market administrator, 

who will recalculate any necessary 

proration of distributing plant delivery 

credit payments for the preceding 

month pursuant to the process provided 

in paragraph (d)(1) of this section. 

Handlers will be promptly notified of an 

overpayment of credits based upon this 

final computation and remedial 

payments to or from the distributing 

plant delivery credit fund will be made 

on or before the next payment date for 

the following month. 

(3) Distributing plant delivery credits 

paid pursuant to paragraphs (d)(1) and 

(2) of this section shall be subject to 

final verification by the market 

administrator pursuant to § 1000.77 of 

this chapter. Adjusted payments to or 

from the distributing plant delivery 

credit fund will remain subject to the 

final proration established pursuant to 

paragraph (d)(2) of this section. 

(4) In the event that a qualified 

cooperative association is the 

responsible party for whose account 

such milk is received and written 

documentation of this fact is provided 

to the market administrator pursuant to 

§ 1005.30(c)(3) prior to the date payment 

is due, the distributing plant delivery 

credits for such milk computed 

pursuant to this section shall be made 

to such cooperative association rather 


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than to the operator of the pool plant at 

which the milk was received. 

(5) The market administrator shall 

provide monthly, to producers who are 

not members of a qualified cooperative 

association, a statement of the amount 

per hundredweight of distributing plant 

delivery credit which the distributing 

plant handler receiving their milk is 

entitled to claim. 

(e) Eligible milk. Distributing plant 

delivery credits shall apply to the 

following milk: 

(1) Bulk unconcentrated fluid milk 

received directly from dairy farms at a 

pool distributing plant as producer milk 

subject to the following conditions: 

(i) The farm on which the milk was 

produced is located within the specified 

marketing areas of the order in this part 

or the marketing area of Federal Order 

1007 (7 CFR part 1007). 

(ii) The farm on which the milk was 

produced is located in the following 

counties: 

(A) Illinois: Alexander, Bond, 

Champaign, Christian, Clark, Clay, 

Clinton, Coles, Crawford, Cumberland, 

Douglas, Edgar, Edwards, Effingham, 

Fayette, Franklin, Gallatin, Hamilton, 

Hardin, Jackson, Jasper, Jefferson, 

Johnson, Lawrence, Macon, Marion, 

Massac, Monroe, Montgomery, Moultrie, 

Perry, Piatt, Pope, Pulaski, Randolph, 

Richland, St Clair, Saline, Shelby, 

Union, Vermilion, Wabash, Washington, 

Wayne, White, and Williamson. 

(B) Indiana: Bartholomew, Boone, 

Brown, Clay, Clinton, Dearborn, 

Decatur, Delaware, Fayette, Fountain, 

Franklin, Hamilton, Hancock, 

Hendricks, Henry, Jackson, Jefferson, 

Jennings, Johnson, Lawrence, Madison, 

Marion, Monroe, Montgomery, Morgan, 

Ohio, Owen, Parke, Putnam, Randolph, 

Ripley, Rush, Shelby, Switzerland, 

Tippecanoe, Tipton, Union, Vermillion, 

Vigo, Warren, and Wayne. 

(C) Kentucky: Boone, Boyd, Bracken, 

Campbell, Floyd, Grant, Greenup, 

Harrison, Johnson, Kenton, Lawrence, 

Lewis, Magoffin, Martin, Mason, 

Pendleton, Pike, and Robertson. 

(D) Maryland: Allegany, Frederick, 

Garrett, Montgomery, and Washington. 

(E) Ohio: Adams, Athens, Brown, 

Butler, Clark, Clermont, Clinton, Darke, 

Fairfield, Fayette, Franklin, Gallia, 

Greene, Hamilton, Highland, Hocking, 

Jackson, Lawrence, Madison, Meigs, 

Miami, Montgomery, Morgan, Perry, 

Pickaway, Pike, Preble, Ross, Scioto, 

Vinton, Warren, Washington. 

(F) Pennsylvania: Bedford, Fayette, 

Franklin, Fulton, Greene, and Somerset. 

(G) Virginia counties: Albemarle, 

Amelia, Appomattox, Arlington, 

Brunswick, Buckingham, Caroline, 

Charles City, Charlotte, Chesterfield, 

Clarke, Culpeper, Cumberland, 

Dinwiddie, Essex, Fairfax, Fauquier, 

Fluvanna, Frederick, Gloucester, 

Goochland, Greene, Greensville, 

Halifax, Hanover, Henrico, Isle Of 

Wight, James City, King And Queen, 

King George, King William, Lancaster, 

Loudoun, Louisa, Lunenburg, Madison, 

Mathews, Mecklenburg, Middlesex, 

Nelson, New Kent, Northumberland, 

Nottoway, Orange, Page, Powhatan, 

Prince Edward, Prince George, Prince 

William, Rappahannock, Richmond, 

Shenandoah, Southampton, 

Spotsylvania, Stafford, Surry, Sussex, 

Warren, Westmoreland, York. 

(H) Virginia cities: Alexandria City, 

Charlottesville City, Chesapeake City, 

Colonial Heights City, Emporia City, 

Fairfax City, Falls Church City, Franklin 

City, Fredericksburg City, Hampton 

City, Hopewell City, Manassas City, 

Manassas Park City, Newport News 

City, Norfolk City, Petersburg City, 

Poquoson City, Portsmouth City, 

Richmond City, Suffolk City, Virginia 

Beach City, Williamsburg City, and 

Winchester City. 

(I) West Virginia: Barbour, Berkeley, 

Boone, Braxton, Cabell, Calhoun, Clay, 

Doddridge, Fayette, Gilmer, Grant, 

Greenbrier, Hampshire, Hardy, 

Harrison, Jackson, Jefferson, Kanawha, 

Lewis, Lincoln, Logan, Marion, Mason, 

Mineral, Mingo, Monongalia, Monroe, 

Morgan, Nicholas, Pendleton, Pleasants, 

Pocahontas, Preston, Putnam, Raleigh, 

Randolph, Ritchie, Roane, Summers, 

Taylor, Tucker, Tyler, Upshur, Wayne, 

Webster, Wetzel, Wirt, Wood, and 

Wyoming. 

(iii) The market administrator may 

include additional counties from the 

states listed in paragraph (e)(1)(ii) of this 

section upon the request of a pool 

handler and provision of satisfactory 

proof that the county is a source of 

regular supply of milk to order 

distributing plants. 

(iv) Producer milk eligible for a 

payment under this section cannot be 

eligible for payment from the 

transportation credit balancing fund as 

specified in § 1005.82(c)(2). 

(v) The quantity of milk described 

herein shall be reduced by the quantity 

of any bulk unconcentrated fluid milk 

products transferred from a pool 

distributing plant to a nonpool plant or 

transferred to a pool supply plant on the 

same calendar day as producer milk was 

received at such plant for which a 

distributing plant delivery credit is 

requested. 

(2) Bulk unconcentrated fluid milk 

transferred from a pool plant regulated 

pursuant to § 1005.7(c) or (d) to a pool 

distributing plant regulated pursuant to 

§ 1005.7(a) or (b). The quantity of milk 

described herein shall be reduced by the 

quantity of any bulk unconcentrated 

fluid milk products transferred from a 

pool distributing plant to a nonpool 

plant or transferred to a pool supply 

plant on the same calendar day as milk 

was received by transfer from a pool 

supply plant at such pool distributing 

plant for which a distributing plant 

delivery credit is requested. 

(f) Credit computation. Distributing 

plant delivery credits shall be computed 

as follows: 

(1) With respect to milk delivered 

directly from the farm to a distributing 

plant: 

(i) Determine the shortest hard-surface 

highway distance between the shipping 

farm’s county seat and the receiving 

plant and multiply the miles by an 

adjustment rate of not greater than 

ninety-five percent (95%) and not less 

than seventy-five percent (75%); 

(ii) Subtract the Class I price specified 

in § 1000.50(a) of this chapter for the 

county in which the shipping farm is 

located from the Class I price applicable 

for the county in which the receiving 

pool distributing plant is located; 

(iii) Multiply the adjusted miles so 

computed in paragraph (f)(1)(i) of this 

section by the monthly mileage rate 

factor for the month computed pursuant 

to paragraph (h) of this section; 

(iv) Subtract any positive difference in 

Class I prices computed in paragraph 

(f)(1)(ii) of this section from the rate 

determined in paragraph (f)(1)(iii) of 

this section; 

(v) Multiply the remainder computed 

in paragraph (f)(1)(iv) of this section by 

the hundredweight of milk described in 

paragraph (e)(1) of this section. 

(2) With respect to milk delivered 

from a pool supply plant to a 

distributing plant: 

(i) Determine the shortest hard-surface 

highway distance between the 

transferring pool plant and the receiving 

plant, and multiply the miles by an 

adjustment rate not greater than ninetyfive percent (95%) and not less than 

seventy-five percent (75%); 

(ii) Subtract the Class I price specified 

in § 1000.50(a) of this chapter for the 

transferring pool plant from the Class I 

price applicable for the county in which 

the receiving pool distributing plant is 

located; 

(iii) Multiply the adjusted miles so 

computed in paragraph (f)(2)(i) of this 

section by the mileage rate factor for the 

month computed pursuant to paragraph 

(h) of this section; 

(iv) Subtract any positive difference in 

Class I prices computed in paragraph 

(f)(2)(ii) of this section from the rate 

determined in paragraph (f)(2)(iii) of 

this section; 


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(v) Multiply the remainder computed 

in paragraph (f)(2)(iv) of this section by 

the hundredweight of milk described in 

paragraph (e)(2) of this section. 

(g) Mileage percentage rate 

adjustment. The monthly percentage 

rate adjustment within the range of 

permissible percentage adjustments 

provided in paragraphs (f)(1)(i) and 

(f)(2)(i) of this section shall be 

determined by the market administrator, 

and publicly announced prior to the 

month for which effective. In 

determining the percentage adjustment 

to the actual mileages of milk delivered 

from farms and milk transferred from 

pool plants the market administrator 

shall evaluate the general supply and 

demand for milk in the marketing area, 

any previous occurrences of sustained 

uneconomic movements of milk, and 

the balances in the distributing plant 

delivery credit fund. The adjustment 

percentage pursuant to paragraphs 

(f)(1)(i) and (f)(2)(i) of this section to the 

actual miles used for computing 

distributing plant delivery credits and 

announced by the market administrator 

shall always be the same percentage. 

(h) Mileage rate for the distributing 

plant delivery credit fund. The mileage 

rate for the distributing plant delivery 

credit fund shall be the mileage rate 

computed by the market administrator 

pursuant to § 1005.83. 

(i) Oversight of milk movements. The 

market administrator shall regularly 

monitor and evaluate the requests for 

distributing plant delivery credits to 

determine that such credits are not 

encouraging uneconomic movements of 

milk, and that the credits continue to 

assure orderly marketing and efficient 

handling of milk in the marketing area. 

In making such determinations, the 

market administrator will include in the 

evaluation the general supply and 

demand for milk. If the market 

administrator finds that uneconomic 

movements are occurring, and such 

movements are persistent and pervasive, 

or are not being made in a way that 

assures orderly marketing and efficient 

handling of milk in the marketing area, 

after good cause shown, the market 

administrator may disallow the 

payments of distributing plant delivery 

credit on such milk. Before making such 

a finding, the market administrator shall 

give the handler of such milk sufficient 

notice that an investigation is being 

considered and shall provide notice that 

the handler has the opportunity to 

explain why such movements were 

necessary, or the opportunity to correct 

such movements prior to the 

disallowance of any distributing plant 

delivery credits. Any disallowance of 

distributing plant delivery credit 

pursuant to this provision shall remain 

confidential between the market 

administrator and the handler. 

PART 1006—MILK IN THE FLORIDA 

MARKETING AREA 

■ 8. The authority citation for part 1006 

continues to read as follows: 

Authority: 7 U.S.C. 601–674, and 7253. 

■ 9. Amend § 1006.30 by: 

■ a. Redesignating paragraphs (a)(5) and 

(6) as paragraphs (a)(7) and (8), 

respectively; 

■ b. Adding new paragraphs (a)(5) and 

(6); and 

■ c. Adding paragraph (c)(3). 

The additions read as follows: 

§ 1006.30 Reports of receipts and 

utilization. 

(a) * * * 

(5) Receipts of producer milk 

described in § 1006.84(e), including the 

identity of the individual producers 

whose milk is eligible for the 

distributing plant delivery credit 

pursuant to that paragraph and the date 

that such milk was received; 

(6) For handlers submitting 

distributing plant delivery credit 

requests, transfers of bulk 

unconcentrated milk to nonpool plants, 

including the dates that such milk was 

transferred. 

* * * * * 

(c) * * * 

(3) With respect to milk for which a 

cooperative association is requesting a 

distributing plant delivery credit 

pursuant to § 1006.84, all of the 

information required in paragraphs 

(a)(5) and (6) of this section. 

* * * * * 

■ 10. Revise § 1006.32 to read as 

follows: 

§ 1006.32 Other reports. 

(a) On or before the 20th day after the 

end of each month, each handler 

described in § 1000.9(a) and (c) of this 

chapter shall report to the market 

administrator any adjustments to 

distributing plant delivery credit 

requests as reported pursuant to 

§ 1006.30(a)(5) and (6). 

(b) In addition to the reports required 

pursuant to §§ 1006.30 and 1006.31 and 

paragraph (a) of this section, each 

handler shall report any information the 

market administrator deems necessary 

to verify or establish each handler’s 

obligation under the order. 

■ 11. Add an undesignated center 

heading preceding the undesignated 

center heading ‘‘Administrative 

Assessment and Marketing Service 

Deduction’’ to read as follows: 

Marketwide Service Payments. 

■ 12. Add § 1006.84 preceding the 

undesignated center heading 

‘‘Administrative Assessment and 

Marketing Service Deduction’’ to read as 

follows: 

§ 1006.84 Distributing plant delivery 

credits. 

(a) Distributing plant delivery credit 

fund. The market administrator shall 

maintain a separate fund known as the 

Distributing Plant Delivery Credit Fund 

into which shall be deposited the 

payments made by handlers pursuant to 

paragraph (b) of this section and out of 

which shall be made the payments due 

handlers pursuant to § 1005.84(b) of this 

chapter. Payments due a handler shall 

be offset against payments due from the 

handler. 

(b) Payments to the distributing plant 

delivery credit fund. On or before the 

12th day after the end of the month 

(except as provided in § 1000.90 of this 

chapter), each handler operating a pool 

plant and each handler specified in 

§ 1000.9(c) of this chapter shall pay to 

the market administrator a distributing 

plant delivery credit fund assessment 

determined by multiplying the pounds 

of Class I producer milk assigned 

pursuant to § 1006.44 by a per 

hundredweight assessment rate of $0.85 

or such lesser amount as the market 

administrator deems necessary to 

maintain a balance in the fund equal to 

the total distributing plant delivery 

credit disbursed during the prior 

calendar year. If the distributing plant 

delivery credit fund is in an overfunded 

position, the market administrator may 

completely waive the distributing plant 

delivery credit assessment for one or 

more months. In determining the 

distributing plant delivery credit 

assessment rate, in the event that during 

any month of that previous calendar 

year the fund balance was insufficient to 

cover the amount of credits that were 

due, the assessment should be based 

upon the amount of credits that would 

have been disbursed had the fund 

balance been sufficient. 

(c) Assessment rate announcement. 

The market administrator shall 

announce publicly on or before the 23rd 

day of the month (except as provided in 

§ 1000.90 of this chapter) the assessment 

rate per hundredweight pursuant to 

paragraph (b) of this section for the 

following month. 

(d) Payments from the distributing 

plant delivery credit fund. Payments 

from the distributing plant delivery 

credit fund to handlers and cooperative 

associations requesting distributing 

plant delivery credits shall be made as 

follows: 


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(1) On or before the 13th day (except 

as provided in § 1000.90 of this chapter) 

after the end of each month, the market 

administrator shall pay to each handler 

that received, and reported pursuant to 

§ 1006.30(a)(5), bulk unconcentrated 

milk directly from producers’ farms, or 

receipts of bulk unconcentrated milk by 

transfer from a pool supply plant as 

defined in § 1006.7(c) or (d), a 

preliminary amount determined 

pursuant to paragraph (f) of this section 

to the extent that funds are available in 

the distributing plant delivery credit 

fund. If an insufficient balance exists to 

pay all of the credits computed pursuant 

to this section, the market administrator 

shall distribute the balance available in 

the distributing plant delivery credit 

fund by reducing payments pro rata 

using the percentage derived by 

dividing the balance in the fund by the 

total credits that are due for the month. 

The credits resulting from this initial 

proration shall be subject to audit 

adjustment pursuant to paragraph (d)(3) 

of this section. 

(2) The market administrator shall 

accept adjusted requests for distributing 

plant delivery credits on or before the 

20th day of the month following the 

month for which such credits were 

requested pursuant to § 1006.32(a). After 

such date, a preliminary audit will be 

conducted by the market administrator, 

who will recalculate any necessary 

proration of distributing plant delivery 

credit payments for the preceding 

month pursuant to the process provided 

in paragraph (d)(1) of this section. 

Handlers will be promptly notified of an 

overpayment of credits based upon this 

final computation and remedial 

payments to or from the distributing 

plant delivery credit fund will be made 

on or before the next payment date for 

the following month. 

(3) Distributing plant delivery credits 

paid pursuant to paragraphs (d)(1) and 

(2) of this section shall be subject to 

final verification by the market 

administrator pursuant to § 1000.77 of 

this chapter. Adjusted payments to or 

from the distributing plant delivery 

credit fund will remain subject to the 

final proration established pursuant to 

paragraph (d)(2) of this section. 

(4) In the event that a qualified 

cooperative association is the 

responsible party for whose account 

such milk is received and written 

documentation of this fact is provided 

to the market administrator pursuant to 

§ 1006.30(c)(3) prior to the date payment 

is due, the distributing plant delivery 

credits for such milk computed 

pursuant to this section shall be made 

to such cooperative association rather 

than to the operator of the pool plant at 

which the milk was received. 

(5) The market administrator shall 

provide monthly, to producers who are 

not members of a qualified cooperative 

association, a statement of the amount 

per hundredweight of distributing plant 

delivery credit which the distributing 

plant handler receiving their milk is 

entitled to claim. 

(e) Eligible milk. Distributing plant 

delivery credits shall apply to the 

following milk: 

(1) Bulk unconcentrated fluid milk 

received at a pool distributing plant as 

producer milk directly from dairy farms 

located within the marketing area; or 

located within the Georgia counties of 

Appling, Atkinson, Bacon, Baker, Ben 

Hill, Berrien, Brooks, Calhoun, 

Charlton, Chattahoochee, Clay, Clinch, 

Coffee, Cook, Colquitt, Crisp, Decatur, 

Dodge, Dooley, Dougherty, Early, 

Echols, Grady, Irwin, Lanier, Lee, 

Lowndes, Jeff Davis, Macon, Marion, 

Miller, Mitchell, Pierce, Pulaski, 

Quitman, Randolph, Schley, Seminole, 

Stewart, Sumter, Telfair, Terrel, 

Thomas, Tift, Turner, Ware, Webster, 

Wilcox, and Worth, and received at pool 

distributing plants. The quantity of milk 

described herein shall be reduced by the 

quantity of any bulk unconcentrated 

fluid milk products transferred from a 

pool distributing plant to a nonpool 

plant or transferred to a pool supply 

plant on the same calendar day as 

producer milk was received at such 

plant for which a distributing plant 

delivery credit is requested. 

(2) Bulk unconcentrated fluid milk 

transferred from a pool plant regulated 

pursuant to § 1006.7(c) or (d) to a pool 

distributing plant regulated pursuant to 

§ 1006.7(a) or (b). The quantity of milk 

described herein shall be reduced by the 

quantity of any bulk unconcentrated 

fluid milk products transferred from a 

pool distributing plant to a nonpool 

plant or transferred to a pool supply 

plant on the same calendar day as milk 

was received by transfer from a pool 

supply plant at such pool distributing 

plant for which a distributing plant 

delivery credit is requested. 

(f) Credit computation. Distributing 

plant delivery credits shall be computed 

as follows: 

(1) With respect to milk delivered 

directly from the farm to a distributing 

plant: 

(i) Determine the shortest hard-surface 

highway distance between the shipping 

farm’s county seat and the receiving 

plant and multiply the miles by an 

adjustment rate of not greater than 

ninety-five percent (95%) and not less 

than seventy-five percent (75%); 

(ii) Subtract the Class I price specified 

in § 1000.50(a) of this chapter for the 

county in which the shipping farm is 

located from the Class I price applicable 

for the county in which the receiving 

pool distributing plant is located; 

(iii) Multiply the adjusted miles so 

computed in (f)(1)(i) of this section by 

the monthly mileage rate factor for the 

month computed pursuant to paragraph 

(h) of this section; 

(iv) Subtract any positive difference in 

Class I prices computed in paragraph 

(f)(1)(ii) of this section from the rate 

determined in paragraph (f)(1)(iii) of 

this section; 

(v) Multiply the remainder computed 

in paragraph (f)(1(iv) of this section by 

the hundredweight of milk described in 

paragraph (e)(1) of this section; 

(2) With respect to milk delivered 

from a pool supply plant to a 

distributing plant: 

(i) Determine the shortest hard-surface 

highway distance between the 

transferring pool plant and the receiving 

plant, and multiply the miles by an 

adjustment rate of not greater than 

ninety-five percent (95%) and not less 

than seventy-five percent (75%); 

(ii) Subtract the Class I price specified 

in § 1000.50(a) of this chapter for the 

transferring pool plant from the Class I 

price applicable for the county in which 

the receiving pool distributing plant is 

located; 

(iii) Multiply the adjusted miles so 

computed in paragraph (f)(2)(i) of this 

section by the mileage rate factor for the 

month computed pursuant to paragraph 

(h) of this section; 

(iv) Subtract any positive difference in 

Class I prices computed in paragraph 

(f)(2)(ii) from the rate determined in 

paragraph (f)(2)(iii) of this section; 

(v) Multiply the remainder computed 

in paragraph (f)(2)(iv) of this section by 

the hundredweight of milk described in 

paragraph (e)(2) of this section. 

(g) Mileage percentage rate 

adjustment. The monthly percentage 

rate adjustment within the range of 

permissible percentage adjustments 

provided in paragraphs (f)(1)(i) and 

(f)(2)(i) of this section shall be 

determined by the market administrator, 

and publicly announced prior to the 

month for which effective. In 

determining the percentage adjustment 

to the actual mileages of milk delivered 

from farms and milk transferred from 

pool plants the market administrator 

shall evaluate the general supply and 

demand for milk in the marketing area, 

any previous occurrences of sustained 

uneconomic movements of milk, and 

the balances in the distributing plant 

delivery credit fund. The adjustment 

percentage pursuant to paragraphs 


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6408 Federal Register / Vol. 89, No. 22 / Thursday, February 1, 2024 / Rules and Regulations 

(f)(1)(i) and (f)(2)(i) to of this section the 

actual miles used for computing 

distributing plant credits and 

announced by the market administrator 

shall always be the same percentage. 

(h) Mileage rate for the distributing 

plant delivery credit fund. The market 

administrator shall compute a mileage 

rate factor each month as follows: 

(1) Compute the simple average 

rounded down to three decimal places 

for the most recent four (4) weeks of the 

Diesel Price per Gallon as reported by 

the Energy Information Administration 

of the United States Department of 

Energy for the Lower Atlantic and Gulf 

Coast Districts combined; 

(2) From the result in paragraph (h)(1) 

of this section subtract $2.26 per gallon; 

(3) Divide the result in paragraph 

(h)(2) of this section by 6.2, and round 

down to three decimal places to 

compute the fuel cost adjustment factor; 

(4) Add the result in paragraph (h)(3) 

of this section to $3.67; 

(5) Divide the result in paragraph 

(h)(4) of this section by 497; 

(6) Round the result in paragraph 

(h)(5) of this section down to five 

decimal places to compute the mileage 

rate. 

(i) Oversight of milk movements. The 

market administrator shall regularly 

monitor and evaluate the requests for 

distributing plant delivery credits to 

determine that such credits are not 

encouraging uneconomic movements of 

milk, and the credits continue to assure 

orderly marketing and efficient handling 

of milk in the marketing area. In making 

such determinations the market 

administrator will include in the 

evaluation the general supply and 

demands for milk. If the market 

administrator finds that uneconomic 

movements are occurring, and such 

movements are persistent and pervasive, 

or are not being made in a way that 

assures orderly marketing and efficient 

handling of milk in the marketing area, 

after good cause shown, the market 

administrator may disallow the 

payments of distributing plant delivery 

credit on such milk. Before making such 

a finding, the market administrator shall 

give the handler on such milk sufficient 

notice that an investigation is being 

considered and shall provide notice that 

the handler has the opportunity to 

explain why such movements were 

necessary, or the opportunity to correct 

such movements prior to the 

disallowance of any distributing plant 

delivery credits. Any disallowance of 

distributing plant delivery credit 

pursuant to this provision shall remain 

confidential between the market 

administrator and the handler. 

PART 1007—MILK IN THE SOUTHEAST 

MARKETING AREA 

■ 13. The authority citation for part 

1007 continues to read as follows: 

Authority: 7 U.S.C. 601–674, and 7253. 

■ 14. Amend § 1007.30 by: 

■ a. Redesignating paragraphs (a)(5) 

through (9) as paragraphs (a)(7) through 

(11), respectively; 

■ b. Adding new paragraphs (a)(5) and 

(6); 

■ c. Redesignating paragraph (c)(3) as 

paragraph (c)(4) and revising it; and 

■ d. Adding new paragraph (c)(3). 

The revisions and additions read as 

follows. 

§ 1007.30 Reports of receipts and 

utilization. 

(a) * * * 

(5) Receipts of producer milk 

described in § 1007.84(e), including the 

identity of the individual producers 

whose milk is eligible for the 

distributing plant delivery credit 

pursuant to that paragraph and the date 

that such milk was received; 

(6) For handlers submitting 

distributing plant delivery credit 

requests, transfers of bulk 

unconcentrated milk to nonpool plants, 

including the dates that such milk was 

transferred; 

* * * * * 

(c) * * * 

(3) With respect to milk for which a 

cooperative association is requesting a 

distributing plant delivery credit 

pursuant to § 1007.84, all of the 

information required in paragraphs 

(a)(5) and (6) of this section. 

(4) With respect to milk for which a 

cooperative association is requesting a 

transportation credit pursuant to 

§ 1007.82, all of the information 

required in paragraphs (a)(7) through (9) 

of this section. 

* * * * * 

■ 15. Amend § 1007.32 by revising 

paragraph (a) to read as follows: 

§ 1007.32 Other reports. 

(a) On or before the 20th day after the 

end of each month, each handler 

described in § 1000.9(a) and (c) of this 

chapter shall report to the market 

administrator any adjustments to 

distributing plant delivery credit 

requests as reported pursuant to 

§ 1007.30(a)(5) and (6) and any 

adjustments to transportation credit 

requests as reported pursuant to 

§ 1007.30(a)(7) through (9) of this part. 

* * * * * 

■ 16. Amend § 1007.81 by revising the 

first sentence of paragraph (a) to read as 

follows: 

§ 1007.81 Payments to the transportation 

credit balancing fund. 

(a) On or before the 12th day after the 

end of the month (except as provided in 

§ 1000.90 of this chapter), each handler 

operating a pool plant and each handler 

specified in § 1000.9(c) of this chapter 

shall pay to the market administrator a 

transportation credit balancing fund 

assessment determined by multiplying 

the pounds of Class I producer milk 

assigned pursuant to § 1007.44 by $0.60 

per hundredweight or such lesser 

amount as the market administrator 

deems necessary to maintain a balance 

in the fund equal to the total 

transportation credits disbursed during 

the prior June through February period 

to reflect any changes in the current 

mileage rate versus the mileage rate(s) in 

effect during the prior June through 

February period. * * * 

* * * * * 

■ 17. Amend § 1007.82 by: 

■ a. Revising the first sentence of 

paragraph (a)(1), the first sentence of 

paragraph (b), and paragraph (d)(3)(iii); 

and 

■ b. Adding paragraph (d)(3)(viii). 

The revisions and addition read as 

follows: 

§ 1007.82 Payments from the 

transportation credit balancing fund. 

(a) * * * 

(1) On or before the 13th day (except 

as provided in § 1000.90) after the end 

of each of the months of January, and 

July through December and any other 

month in which transportation credits 

are in effect pursuant to paragraph (b) of 

this section, the market administrator 

shall pay to each handler that received, 

and reported pursuant to 

§ 1007.30(a)(7), bulk milk transferred 

from a plant fully regulated under 

another Federal order as described in 

paragraph (c)(1) of this section or that 

received, and reported pursuant to 

§ 1007.30(a)(8), milk directly from 

producers’ farms as specified in 

paragraph (c)(2) of this section, a 

preliminary amount determined 

pursuant to paragraph (d) of this section 

to the extent that funds are available in 

the transportation credit balancing fund. 

* * * 

(b) The market administrator may 

extend the period during which 

transportation credits are in effect (i.e., 

the transportation credit period) to the 

month of February or June if a written 

request to do so is received fifteen (15) 

days prior to the beginning of the month 

for which the request is made and, after 

conducting an independent 

investigation, finds that such extension 

is necessary to assure the market of an 


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adequate supply of milk for fluid use. 

* * * 

* * * * * 

(d) * * * 

(3) * * * 

(iii) Subtract 15 percent (15%) of the 

miles from the mileage so determined; 

* * * * * 

(viii) The market administrator may 

revise the factor described in (3)(iii) of 

this section (the mileage adjustment 

factor) if a written request to do so is 

received fifteen (15) days prior to the 

beginning of the month for which the 

request is made and, (15) days prior to 

the beginning of the month for which 

the request is made and, after 

conducting an independent 

investigation, finds that such revision is 

necessary to assure orderly marketing, 

efficient handling of milk in the 

marketing area, and an adequate supply 

of milk for fluid use. The market 

administrator may increase the mileage 

adjustment factor by as much as ten 

percentage points (10%) up to twentyfive percent (25%) or decrease it by as 

much as ten percentage points (10%), to 

a minimum of five percent (5%). Before 

making such a finding, the market 

administrator shall notify all handlers in 

the market that a revision is being 

considered and invite written data, 

comments, and arguments. Any 

decision to revise the mileage rate factor 

must be issued in writing prior to the 

first day of the month for which the 

revision is to be effective. 

■ 18. Amend § 1007.83 by revising 

paragraphs (a)(2) through (5) to read as 

follows: 

§ 1007.83 Mileage rate for the 

transportation credit balancing fund. 

(a) * * * 

(2) From the result in paragraph (a)(1) 

of this section subtract $2.26 per gallon; 

(3) Divide the result in paragraph 

(a)(2) of this section by 6.2, and round 

down to three decimal places to 

compute the fuel cost adjustment factor; 

(4) Add the result in paragraph (a)(3) 

of this section to $3.67; 

(5) Divide the result in paragraph 

(a)(4) of this section by 497; 

* * * * * 

■ 19. Add § 1007.84 before the 

undesignated center heading 

‘‘Administrative Assessment and 

Marketing Service Deduction’’ to read as 

follows: 

§ 1007.84 Distributing plant delivery 

credits. 

(a) Distributing plant delivery credit 

fund. The market administrator shall 

maintain a separate fund known as the 

Distributing Plant Delivery Credit Fund 

into which shall be deposited the 

payments made by handlers pursuant to 

paragraph (b) of this section and out of 

which shall be made the payments due 

handlers pursuant to paragraph (d) of 

this section. Payments due a handler 

shall be offset against payments due 

from the handler. 

(b) Payments to the distributing plant 

delivery credit fund. On or before the 

12th day after the end of the month 

(except as provided in § 1000.90 of this 

chapter), each handler operating a pool 

plant and each handler specified in 

§ 1000.9(c) of this chapter shall pay to 

the market administrator a distributing 

plant delivery credit fund assessment 

determined by multiplying the pounds 

of Class I producer milk assigned 

pursuant to § 1007.44 by a per 

hundredweight assessment rate of $0.50 

or such lesser amount as the market 

administrator deems necessary to 

maintain a balance in the fund equal to 

the total distributing plant delivery 

credit disbursed during the prior 

calendar year. If the distributing plant 

delivery credit fund is in an overfunded 

position, the market administrator may 

completely waive the distributing plant 

delivery credit assessment for one or 

more months. In determining the 

distributing plant delivery credit 

assessment rate, in the event that during 

any month of that previous calendar 

year the fund balance was insufficient to 

cover the amount of credits that were 

due, the assessment should be based 

upon the amount of credits that would 

have been disbursed had the fund 

balance been sufficient. 

(c) Assessment rate announcement. 

The market administrator shall 

announce publicly on or before the 23rd 

day of the month (except as provided in 

§ 1000.90 of this chapter), the 

assessment rate per hundredweight 

pursuant to paragraph (b) of this section 

for the following month. 

(d) Payments from the distributing 

plant delivery credit fund. Payments 

from the distributing plant delivery 

credit fund to handlers and cooperative 

associations requesting distributing 

plant delivery credits shall be made as 

follows: 

(1) On or before the 13th day (except 

as provided in § 1000.90 of this chapter) 

after the end of each month, the market 

administrator shall pay to each handler 

that received, and reported pursuant to 

§ 1007.30(a)(5), bulk unconcentrated 

milk directly from producers’ farms, or 

receipts of bulk unconcentrated milk by 

transfer from a pool supply plant as 

defined in § 1007.7(c) or (d), a 

preliminary amount determined 

pursuant to paragraph (f) of this section 

to the extent that funds are available in 

the distributing plant delivery credit 

fund. If an insufficient balance exists to 

pay all of the credits computed pursuant 

to this section, the market administrator 

shall distribute the balance available in 

the distributing plant delivery credit 

fund by reducing payments pro rata 

using the percentage derived by 

dividing the balance in the fund by the 

total credits that are due for the month. 

The credits resulting from this initial 

proration shall be subject to audit 

adjustment pursuant to paragraph (d)(3) 

of this section. 

(2) The market administrator shall 

accept adjusted requests for distributing 

plant delivery credits on or before the 

20th day of the month following the 

month for which such credits were 

requested pursuant to § 1007.32(a). After 

such date, a preliminary audit will be 

conducted by the market administrator, 

who will recalculate any necessary 

proration of distributing plant delivery 

credit payments for the preceding 

month pursuant to the process provided 

in paragraph (d)(1) of this section. 

Handlers will be promptly notified of an 

overpayment of credits based upon this 

final computation and remedial 

payments to or from the distributing 

plant delivery credit fund will be made 

on or before the next payment date for 

the following month. 

(3) Distributing plant delivery credits 

paid pursuant to paragraphs (d)(1) and 

(2) of this section shall be subject to 

final verification by the market 

administrator pursuant to § 1000.77 of 

this chapter. Adjusted payments to or 

from the distributing plant delivery 

credit fund will remain subject to the 

final proration established pursuant to 

paragraph (d)(2) of this section. 

(4) In the event that a qualified 

cooperative association is the 

responsible party for whose account 

such milk is received and written 

documentation of this fact is provided 

to the market administrator pursuant to 

§ 1007.30(c)(3) prior to the date payment 

is due, the distributing plant delivery 

credits for such milk computed 

pursuant to this section shall be made 

to such cooperative association rather 

than to the operator of the pool plant at 

which the milk was received. 

(5) The market administrator shall 

provide monthly to producers who are 

not members of a qualified cooperative 

association a statement of the amount 

per hundredweight of distributing plant 

delivery credit which the distributing 

plant handler receiving their milk is 

entitled to claim. 

(e) Eligible milk. Distributing plant 

delivery credits shall apply to the 

following milk: 


ddrumheller on DSK120RN23PROD with RULES1
6410 Federal Register / Vol. 89, No. 22 / Thursday, February 1, 2024 / Rules and Regulations 

(1) Bulk unconcentrated fluid milk 

received directly from dairy farms at a 

pool distributing plant as producer milk 

subject to the following conditions: 

(i) The farm on which the milk was 

produced is located within the specified 

marketing areas of the order in this part 

or the marketing area of Federal Order 

1005 (7 CFR part 1005). 

(ii) The farm on which the milk was 

produced is located in the following 

counties in the State of: 

(A) Illinois: Alexander, Bond, Clay, 

Clinton, Crawford, Edwards, Effingham, 

Fayette, Franklin, Gallatin, Hamilton, 

Hardin, Jackson, Jasper, Jefferson, 

Johnson, Lawrence, Marion, Massac, 

Monroe, Montgomery, Perry, Pope, 

Pulaski, Randolph, Richland, St Clair, 

Saline, Union, Washington, Wayne, 

White, Williamson, Calhoun, Greene, 

Jersey, Macoupin, Madison, and 

Wabash. 

(B) Kansas: Allen, Anderson, 

Bourbon, Chautauqua, Cherokee, Coffey, 

Crawford, Douglas, Elk, Franklin, 

Greenwood, Jefferson, Johnson, Labette, 

Leavenworth, Linn, Lyon, Miami, 

Montgomery, Neosho, Osage, Shawnee, 

Wabaunsee, Wilson, Woodson, and 

Wyandotte 

(C) Missouri: Audrain, Bates, Benton, 

Boone, Callaway, Camden, Cass, Clay, 

Cole, Cooper, Franklin, Gasconade, 

Henry, Hickory, Howard, Jackson, 

Jefferson, Johnson, Lafayette, Lincoln, 

Maries, Miller, Moniteau, Montgomery, 

Morgan, Osage, Pettis, Phelps, Pike, 

Platte, Pulaski, Ray, St Charles, St Clair, 

Ste Genevieve, St Louis, St. Louis City, 

Saline, and Warren 

(D) Oklahoma: Adair, Atoka, Bryan, 

Cherokee, Choctaw, Coal, Craig, Creek, 

Delaware, Haskell, Hughes, Latimer, Le 

Flore, McCurtain, Mcintosh, Mayes, 

Muskogee, Nowata, Okfuskee, 

Okmulgee, Osage, Ottawa, Pawnee, 

Pittsburg, Pushmataha, Rogers, 

Sequoyah, Tulsa, Wagoner, and 

Washington 

(E) Texas: Anderson, Angelina, 

Bowie, Camp, Cass, Chambers, 

Cherokee, Delta, Fannin, Franklin, 

Galveston, Gregg, Hardin, Harris, 

Harrison, Henderson, Hopkins, 

Houston, Hunt, Jasper, Jefferson, 

Kaufman, Lamar, Liberty, Marion, 

Montgomery, Morris, Nacogdoches, 

Newton, Orange, Panola, Polk, Rains, 

Red River, Rusk, Sabine, San Augustine, 

San Jacinto, Shelby, Smith, Titus, 

Trinity, Tyler, Upshur, Van Zandt, 

Walker, and Wood. 

(iii) The Market Administrator may 

include additional counties from the 

states listed in paragraph (e)(1)(ii) of this 

section upon the request of a pool 

handler and provision of satisfactory 

proof that the county is a source of 

regular supply of milk to order 

distributing plants. 

(iv) Producer milk eligible for a 

payment under this section cannot be 

eligible for payment from the 

transportation credit balancing fund as 

specified in § 1007.82(c)(2). 

(v) The quantity of milk described 

herein shall be reduced by the quantity 

of any bulk unconcentrated fluid milk 

products transferred from a pool 

distributing plant to a nonpool plant or 

transferred to a pool supply plant on the 

same calendar day as producer milk was 

received at such plant for which a 

distributing plant delivery credit is 

requested. 

(2) Bulk unconcentrated fluid milk 

transferred from a pool supply plant 

regulated pursuant to § 1007.7(c) or (d) 

to a pool distributing plant regulated 

pursuant to § 1007.7(a) or (b). The 

quantity of milk described herein shall 

be reduced by the quantity of any bulk 

unconcentrated fluid milk products 

transferred from a pool distributing 

plant to a nonpool plant or transferred 

to a pool supply plant on the same 

calendar day as milk was received by 

transfer from a pool supply plant at 

such pool distributing plant for which a 

distributing plant delivery credit is 

requested. 

(f) Credit computation. Distributing 

plant delivery credits shall be computed 

as follows: 

(1) With respect to milk delivered 

directly from the farm to a distributing 

plant: 

(i) Determine the shortest hard-surface 

highway distance between the shipping 

farm’s county seat and the receiving 

plant, and multiply the miles by an 

adjustment rate of not greater than 

ninety-five percent (95%) and not less 

than seventy-five percent (75%); 

(ii) Subtract the Class I price specified 

in § 1000.50(a) of this chapter for the 

county in which the shipping farm is 

located from the Class I price applicable 

for the county in which the receiving 

pool distributing plant is located; 

(iii) Multiply the adjusted miles so 

computed in (f)(1)(i) of this section by 

the monthly mileage rate factor for the 

month computed pursuant to paragraph 

(h) of this section; 

(iv) Subtract any positive difference in 

Class I prices computed in paragraph 

(f)(1)(ii) of this section from the rate 

determined in paragraph (f)(1)(iii) of 

this section; 

(v) Multiply the remainder computed 

in paragraph (f)(1)(iv) of this section by 

the hundredweight of milk described in 

paragraph (e)(1) of this section; 

(2) With respect to milk delivered 

from a pool supply plant to a 

distributing plant: 

(i) Determine the shortest hard-surface 

highway distance between the 

transferring pool plant and the receiving 

plant, and multiply the miles by an 

adjustment rate of not greater than 

ninety-five (95%) percent and not less 

than seventy-five (75%) percent; 

(ii) Subtract the Class I price specified 

in § 1000.50(a) of this chapter for the 

transferring pool plant from the Class I 

price applicable for the county in which 

the receiving pool distributing plant is 

located; 

(iii) Multiply the adjusted miles so 

computed in paragraph (f)(2)(i) of this 

section by the mileage rate factor for the 

month computed pursuant to paragraph 

(h) of this section; 

(iv) Subtract any positive difference in 

Class I prices computed in paragraph 

(f)(2)(ii) of this section from the rate 

determined in paragraph (f)(2)(iii) of 

this section; 

(v) Multiply the remainder computed 

in paragraph (f)(2)(iv) of this section by 

the hundredweight of milk described in 

paragraph (e)(2) of this section; 

(g) Mileage percentage rate 

adjustment. The monthly percentage 

rate adjustment within the range of 

permissible percentage adjustments 

provided in paragraphs (f)(1)(i) and 

(f)(2)(i) of this section shall be 

determined by the market administrator, 

and publicly announced prior to the 

month for which effective. In 

determining the percentage adjustment 

to the actual mileages of milk delivered 

from farms and milk transferred from 

pool plants the market administrator 

shall evaluate the general supply and 

demand for milk in the marketing area, 

any previous occurrences of sustained 

uneconomic movements of milk, and 

the balances in the distributing plant 

delivery credit fund. The adjustment 

percentage pursuant to paragraphs (f)(1) 

and (2) of this section to the actual miles 

used for computing distributing plant 

delivery credits and announced by the 

market administrator shall always be the 

same percentage. 

(h) Mileage rate for the distributing 

plant delivery credit fund. The mileage 

rate for the distributing plant delivery 

credit fund shall be the mileage rate 

computed by the market administrator 

pursuant to § 1007.83. 

(i) Oversight of milk movements. The 

market administrator shall regularly 

monitor and evaluate the requests for 

distributing plant delivery credits to 

determine that such credits are not 

encouraging uneconomic movements of 

milk, and the credits continue to assure 

orderly marketing and efficient handling 

of milk in the marketing area. In making 

such determinations the market 

administrator will include in the 


ddrumheller on DSK120RN23PROD with RULES1
Federal Register / Vol. 89, No. 22 / Thursday, February 1, 2024 / Rules and Regulations 6411 

evaluation the general supply and 

demand for milk. If the market 

administrator finds that uneconomic 

movements are occurring, and such 

movements are persistent and pervasive, 

or are not being made in a way that 

assures orderly marketing and efficient 

handling of milk in the marketing area, 

after good cause shown, the market 

administrator may disallow the 

payments of distributing plant delivery 

credit on such milk. Before making such 

a finding, the market administrator shall 

give the handler on such milk sufficient 

notice that an investigation is being 

considered and shall provide notice that 

the handler has the opportunity to 

explain why such movements were 

necessary, or the opportunity to correct 

such movements prior to the 

disallowance of any distributing plant 

delivery credits. Any disallowance of 

distributing plant delivery credit 

pursuant to this provision shall remain 

confidential between the market 

administrator and the handler. 

Erin Morris, 

Associate Administrator, Agricultural 

Marketing Service. 

[FR Doc. 2024–01829 Filed 1–30–24; 8:45 am] 

BILLING CODE 3410–02–P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Part 39 

[Docket No. FAA–2023–1895; Project 

Identifier MCAI–2023–00652–T; Amendment 

39–22649; AD 2023–26–06] 

RIN 2120–AA64 

Airworthiness Directives; Airbus SAS 

Airplanes 

AGENCY: Federal Aviation 

Administration (FAA), DOT. 

ACTION: Final rule. 

SUMMARY: The FAA is adopting a new 

airworthiness directive (AD) for all 

Airbus SAS A300 B4–600, B4–600R, 

and F4–600R series airplanes, and 

Model A300 C4–605R Variant F 

airplanes (collectively called Model 

A300–600 series airplanes). This AD 

was prompted by a determination that 

new or more restrictive airworthiness 

limitations are necessary. This AD 

requires revising the existing 

maintenance or inspection program, as 

applicable, to incorporate new or more 

restrictive airworthiness limitations, as 

specified in a European Union Aviation 

Safety Agency (EASA) AD, which is 

incorporated by reference. The FAA is 

issuing this AD to address the unsafe 

condition on these products. 

DATES: This AD is effective March 7, 

2024. 

The Director of the Federal Register 

approved the incorporation by reference 

of a certain publication listed in this AD 

as of March 7, 2024. 

ADDRESSES: 

AD Docket: You may examine the AD 

docket at regulations.gov under Docket 

No. FAA–2023–1895; or in person at 

Docket Operations between 9 a.m. and 

5 p.m., Monday through Friday, except 

Federal holidays. The AD docket 

contains this final rule, the mandatory 

continuing airworthiness information 

(MCAI), any comments received, and 

other information. The address for 

Docket Operations is U.S. Department of 

Transportation, Docket Operations, M– 

30, West Building Ground Floor, Room 

W12–140, 1200 New Jersey Avenue SE, 

Washington, DC 20590. 

Material Incorporated by Reference: 

• For material incorporated by 

reference in this AD, contact EASA, 

Konrad-Adenauer-Ufer 3, 50668 

Cologne, Germany; telephone +49 221 

8999 000; email ADs@easa.europa.eu; 

website easa.europa.eu. You may find 

this material on the EASA website at 

ad.easa.europa.eu. 

• You may view this material at the 

FAA, Airworthiness Products Section, 

Operational Safety Branch, 2200 South 

216th St., Des Moines, WA. For 

information on the availability of this 

material at the FAA, call 206–231–3195. 

It is also available in the AD docket at 

regulations.gov under Docket No. FAA– 

2023–1895. 

FOR FURTHER INFORMATION CONTACT: Dan 

Rodina, Aviation Safety Engineer, FAA, 

1600 Stewart Avenue, Suite 410, 

Westbury, NY 11590; telephone 206– 

231–3225; email dan.rodina@faa.gov. 

SUPPLEMENTARY INFORMATION: 

Background 

The FAA issued a notice of proposed 

rulemaking (NPRM) to amend 14 CFR 

part 39 by adding an AD that would 

apply to all Airbus SAS Model A300– 

600 series airplanes. The NPRM 

published in the Federal Register on 

October 2, 2023 (88 FR 67685). The 

NPRM was prompted by AD 2023–0091, 

dated May 5, 2023, issued by EASA, 

which is the Technical Agent for the 

Member States of the European Union 

(EASA AD 2023–0091) (also referred to 

as the MCAI). The MCAI states that new 

or more restrictive airworthiness 

limitations have been developed. 

EASA AD 2023–0091 specifies that it 

requires certain tasks (limitations) 

already in Airbus A300–600 

Airworthiness Limitations Section 

(ALS), Part 2 DT–ALI, Revision 03, that 

is required by EASA AD 2019–0090, 

dated April 26, 2019 (which 

corresponds to FAA AD 2019–21–01, 

Amendment 39–19767 (84 FR 56935, 

October 24, 2019) (AD 2019–21–01)), 

and that incorporation of EASA AD 

2023–0091 invalidates (terminates) prior 

instructions for those tasks. This AD 

would therefore terminate the 

limitations required by paragraph (g) of 

AD 2019–21–01, for the tasks identified 

in the service information referred to in 

EASA AD 2023–0091 only. 

In the NPRM, the FAA proposed to 

require revising the existing 

maintenance or inspection program, as 

applicable, to incorporate new or more 

restrictive airworthiness limitations, as 

specified in EASA AD 2023–0091. The 

FAA is issuing this AD to address 

fatigue cracking, damage, or corrosion in 

principal structural elements, which 

could result in reduced structural 

integrity of the airplane. 

You may examine the MCAI in the 

AD docket at regulations.gov under 

Docket No. FAA–2023–1895. 

Discussion of Final Airworthiness 

Directive 

Comments 

The FAA received comments from 

FedEx and DonZel Culver. Both 

commenters supported the NPRM 

without change. 

Conclusion 

This product has been approved by 

the aviation authority of another 

country and is approved for operation in 

the United States. Pursuant to the FAA’s 

bilateral agreement with this State of 

Design Authority, it has notified the 

FAA of the unsafe condition described 

in the MCAI referenced above. The FAA 

reviewed the relevant data, considered 

the comments received, and determined 

that air safety requires adopting this AD 

as proposed. Accordingly, the FAA is 

issuing this AD to address the unsafe 

condition on this product. Except for 

minor editorial changes, this AD is 

adopted as proposed in the NPRM. 

None of the changes will increase the 

economic burden on any operator. 

Related Service Information Under 1 

CFR Part 51 

EASA AD 2023–0091 specifies new or 

more restrictive airworthiness 

limitations for airplane structures and 

safe life limits. This material is 

reasonably available because the 

interested parties have access to it 

through their normal course of business 

or by the means identified in the 

ADDRESSES section. 


ddrumheller on DSK120RN23PROD with RULES1