16296 Federal Register / Vol. 74, No. 67 / Thursday, April 9, 2009 / Proposed Rules 

DEPARTMENT OF AGRICULTURE 

Agricultural Marketing Service 

7 CFR Parts 1000, 1001, 1005, 1006, 

1007, 1030, 1032, 1033, 1124, 1126 and 

1131 

[Doc. No. AO–14–A78, et al.; DA–09–02; 

AMS–09–0007] 

Milk in the Northeast and Other 

Marketing Areas; Notice of Hearing on 

Proposed Amendments to Tentative 

Marketing Agreements and Orders 

AGENCY: Agricultural Marketing Service, 

USDA. 

ACTION: Notice of public hearing on 

proposed rulemaking. 

SUMMARY: A national public hearing is 

being held to consider and take 

evidence on proposals seeking to amend 

or remove the producer-handler 

provisions and revise the exempt plant 

provisions applicable to all Federal milk 

marketing orders. Additionally, a 

proposal seeking to amend the orders to 

include provisions related to individual 

handler pools will be considered as an 

alternative to the producer-handler 

provisions. 

DATES: The hearing will convene at 1 

p.m., on Monday, May 4, 2009. 

ADDRESSES: The hearing will be held at 

The Westin, Cincinnati, 21 East Fifth 

Street, Cincinnati, Ohio 45202, phone 

(513) 621–7700. 

FOR FURTHER INFORMATION CONTACT: 

Gino M. Tosi, Senior Marketing 

Specialist, Order Formulation and 

Enforcement Branch, USDA/AMS/Dairy 

Programs, Stop 0231–Room 2971, 1400 

Independence Avenue, SW., 

Washington, DC 20250–0231, (202) 690– 

1366, e-mail address: 

gino.tosi@ams.usda.gov. 

Persons requiring a sign language 

interpreter or other special 

accommodations should contact Paul 

Huber, Assistant Market Administrator, 

at (330) 225–4758; e-mail: 

phuber@fmmaclev.com before the 

hearing begins. 

SUPPLEMENTARY INFORMATION: This 

administrative action is governed by the 

provisions of Sections 556 and 557 of 

Title 5 of the United States Code and, 

therefore, is excluded from the 

requirements of Executive Order 12866. 

Notice is hereby given of a public 

hearing to be held at The Westin, 

Cincinnati, Cincinnati, Ohio, beginning 

at 1 p.m. on Monday, May 4, 2009, with 

respect to proposed amendments to the 

marketing agreements and to the orders 

regulating the handling of milk in all 

Federal milk marketing orders. 

The hearing is called 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 

governing the formulation of marketing 

agreements and marketing orders (7 CFR 

part 900). 

The purpose of the hearing is to 

receive evidence with respect to the 

economic and marketing conditions 

which relate to the proposed 

amendments, hereinafter set forth, and 

any appropriate modifications thereof, 

to the tentative marketing agreements 

and to the orders. 

Actions under the Federal milk order 

program are subject to the Regulatory 

Flexibility Act (5 U.S.C. 601–612) 

(RFA). The RFA seeks to ensure that, 

within the statutory authority of a 

program, the regulatory and information 

collection requirements are tailored to 

the size and nature of small businesses. 

For the purpose of the RFA, a dairy farm 

is a ‘‘small business’’ if it has an annual 

gross revenue of less than $750,000, and 

a dairy products manufacturer is a 

‘‘small business’’ if it has fewer than 500 

employees (13 CFR 121.201). Most 

parties subject to a milk order are 

considered as a small business. 

Accordingly, interested parties are 

invited to present evidence on the 

probable regulatory and informational 

impact of the hearing proposals on 

small businesses. Also, parties may offer 

modifications of these proposals for the 

purpose of tailoring their applicability 

to small businesses. 

The amendments to the rules 

proposed herein have been reviewed 

under Executive Order 12988, Civil 

Justice Reform. They are not intended to 

have a retroactive effect. If adopted, the 

proposed amendments would not 

preempt any State or local laws, 

regulations, or policies, unless they 

present an irreconcilable conflict with 

this rule. 

The Agricultural Marketing 

Agreement Act (Act) provides that 

administrative proceedings must be 

exhausted before parties may file suit in 

court. Under Section 8c(15)(A) of the 

Act, any handler subject to an order may 

request modification or exemption from 

such order by filing with the United 

States Department of Agriculture 

(USDA) a petition stating that the order, 

any provision of the order, or any 

obligation imposed in connection with 

the order is not in accordance with the 

law. A handler is afforded the 

opportunity for a hearing on the 

petition. After a hearing, USDA would 

rule on the petition. The Act provides 

that the district court of the United 

States in any district in which the 

handler is an inhabitant, has its 

principle 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. 

Interested parties who wish to 

introduce exhibits should provide the 

Administrative Law Judge at the hearing 

with (4) copies of such exhibits for the 

official record. Additional copies should 

be made available for the use by other 

hearing participants. Any party that has 

submitted a proposal noticed herein, 

when participating as a witness, is 

required to make their testimony—if 

prepared as an exhibit—and any other 

exhibits, available to USDA officials 

prior to the start of the hearing on the 

day of their appearance. Individual 

dairy farmers are not subject to this 

requirement. 

The hearing will continue until such 

time as determined to have ended by the 

presiding Administrative Law Judge. 

The schedule for the next session will 

be announced at the time of 

adjournment. Such reconvening date 

and time will also be posted on the 

AMS-Dairy Programs Web site at 

http://www.ams.usda.gov/dairy. 

The proposed amendments, as set 

forth below, have not received the 

approval of USDA. 

List of Subjects in 7 CFR Parts 1000, 

1001, 1005, 1006, 1007, 1030, 1032, 

1033, 1124, 1126 and 1131 

Milk marketing orders. 

The authority citation for 7 CFR Parts 

1000, 1001, 1005, 1006, 1007, 1030, 

1032, 1033, 1124, 1126 and 1131 read as 

follows: 

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

Proposed by National Milk Producers 

Federation and International Dairy 

Foods Association. 

Proposal No. 1 

This proposal seeks to eliminate the 

producer-handler provisions from all 

orders. 

PART 1000—GENERAL PROVISIONS 

OF FEDERAL MILK MARKETING 

ORDERS 

§ 1000.8 [Amended] 

1. Amend § 1000.8 by: 

(1) Removing paragraph (b); and 

(2) Redesignating paragraphs (c), (d) 

and (e) as (b), (c) and (d). 

PART 1001—MILK IN THE 

NORTHEAST MARKETING AREA 

§ 1001.10 [Removed] 

2. Remove and reserve § 1001.10. 


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Federal Register / Vol. 74, No. 67 / Thursday, April 9, 2009 / Proposed Rules 16297 

PART 1005—MILK IN THE 

APPALACHIAN MARKETING AREA 

§ 1005.10 [Removed] 

3. Remove and reserve § 1005.10. 

PART 1006—MILK IN THE FLORIDA 

MARKETING AREA 

§ 1006.10 [Removed] 

4. Remove and reserve § 1006.10. 

PART 1007—MILK IN THE SOUTHEAST 

MARKETING AREA 

§ 1007.10 [Removed] 

5. Remove and reserve § 1007.10. 

PART 1030—MILK IN THE UPPER 

MIDWEST MARKETING AREA 

§ 1030.10 [Removed] 

6. Remove and reserve § 1030.10. 

PART 1032—MILK IN THE CENTRAL 

MARKETING AREA 

§ 1032.10 [Removed] 

7. Remove and reserve § 1032.10. 

PART 1033—MILK IN THE MIDEAST 

MARKETING AREA 

§ 1033.10 [Removed] 

8. Remove and reserve § 1033.10. 

PART 1124—MILK IN THE PACIFIC 

NORTHWEST MARKETING AREA 

§ 1124.10 [Removed] 

9. Remove and reserve § 1124.10. 

PART 1126—MILK IN THE 

SOUTHWEST MARKETING AREA 

§ 1126.10 [Removed] 

10. Remove and reserve § 1126.10. 

PART 1131—MILK IN THE ARIZONA 

MARKETING AREA 

§ 1131.10 [Removed] 

11. Remove and reserve § 1131.10. 

Proposal No. 2 

This proposal seeks to modify the 

exempt plant provision by: (1) 

Increasing the current limit on monthly 

route disposition and packaged sales of 

fluid milk products to other plants from 

150,000 pounds or less during the 

month to 450,000 pounds or less during 

the month; (2) applying the 450,000 

pound per month threshold to a plant’s 

total monthly disposition; and (3) 

limiting exemption status to plants that 

produce uniquely labeled products. 

PART 1000—GENERAL PROVISIONS 

OF FEDERAL MILK MARKETING 

ORDERS 

12. Amend § 1000.8 by revising 

paragraph (e)(4) to read as follows: 

§ 1000.8 Nonpool plant. 

* * * * * 

(e) * * * 

(4) A plant that in all markets has 

route disposition and packaged sales of 

fluid milk products to other plants of 

450,000 pounds or less during the 

month, all of which are uniquely 

branded. 

Proposed by Hatchland Farm, LLC. 

Proposal No. 3 

This proposal seeks to end the 

regulatory exemption of producerhandlers from the pooling and pricing 

provisions of the Northeast order if their 

Class I route disposition exceeds 

3,000,000 pounds of milk per month. 

PART 1001—GENERAL PROVISIONS 

OF FEDERAL MILK MARKETING 

ORDERS 

13. Amend § 1001.10 by revising 

paragraph (a) to read as follows: 

§ 1001.10 Producer-handler. 

* * * * * 

(a) Operates a dairy farm and a 

distributing plant from which there is 

route disposition within the marketing 

area during the month not to exceed 

3,000,000 pounds per month; 

* * * * * 

Proposed by Lochmead Dairy. 

Proposal No. 4 

This proposal seeks to revise the 

producer-handler provisions in all 

orders except the Pacific Northwest and 

Arizona orders. Specifically, this 

proposal seeks to end the regulatory 

exemption of producer-handlers from 

the pooling and pricing provisions of 

their respective orders if their Class I 

route disposition exceeds 3,000,000 

pounds of milk per month. 

PART 1001—MILK IN THE 

NORTHEAST MARKETING AREA 

14. Amend § 1001.10 by revising 

paragraph (a) to read as follows: 

§ 1001.10 Producer-handler. 

* * * * * 

(a) Operates a dairy farm and a 

distributing plant from which there is 

route disposition within the marketing 

area during the month not to exceed 

3,000,000 pounds per month; 

* * * * * 

PART 1005—MILK IN THE 

APPALACHIAN MARKETING AREA 

15. Amend § 1005.10 by revising 

paragraph (a) to read as follows: 

§ 1005.10 Producer-handler. 

* * * * * 

(a) Operates a dairy farm and a 

distributing plant from which there is 

route disposition within the marketing 

area during the month not to exceed 

3,000,000 pounds per month; 

* * * * * 

PART 1006—MILK IN THE FLORIDA 

MARKETING AREA 

16. Amend § 1006.10 by revising 

paragraph (a) to read as follows: 

§ 1006.10 Producer-handler. 

* * * * * 

(a) Operates a dairy farm and a 

distributing plant from which there is 

route disposition within the marketing 

area during the month not to exceed 

3,000,000 pounds per month; 

* * * * * 

PART 1007—MILK IN THE SOUTHEAST 

MARKETING AREA 

17. Amend § 1007.10 paragraph (a) to 

read as follows: 

§ 1007.10 Producer-handler. 

* * * * * 

(a) Operates a dairy farm and a 

distributing plant from which there is 

route disposition within the marketing 

area during the month not to exceed 

3,000,000 pounds per month; 

* * * * * 

PART 1030—MILK IN THE UPPER 

MIDWEST MARKETING AREA 

18. Amend § 1030.10 by revising 

paragraph (a) to read as follows: 

§ 1030.10 Producer-handler. 

* * * * * 

(a) Operates a dairy farm and a 

distributing plant from which there is 

route disposition within the marketing 

area during the month not to exceed 

3,000,000 pounds per month; 

* * * * * 

PART 1032—MILK IN THE CENTRAL 

MARKETING AREA 

19. Amend § 1032.10 by revising 

paragraph (a) to read as follows: 

§ 1032.10 Producer-handler. 

* * * * * 

(a) Operates a dairy farm and a 

distributing plant from which there is 

route disposition within the marketing 


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16298 Federal Register / Vol. 74, No. 67 / Thursday, April 9, 2009 / Proposed Rules 

area during the month not to exceed 

3,000,000 pounds per month; 

* * * * * 

PART 1033—MILK IN THE MIDEAST 

MARKETING AREA 

20. Amend § 1033.10 by revising 

paragraph (a) to read as follows: 

§ 1033.10 Producer-handler. 

* * * * * 

(a) Operates a dairy farm and a 

distributing plant from which there is 

route disposition within the marketing 

area during the month not to exceed 

3,000,000 pounds per month; 

* * * * * 

PART 1126—MILK IN THE 

SOUTHWEST MARKETING AREA 

21. Amend § 1126.10 by revising 

paragraph (a) to read as follows: 

§ 1126.10 Producer-handler. 

* * * * * 

(a) Operates a dairy farm and a 

distributing plant from which there is 

route disposition within the marketing 

area during the month not to exceed 

3,000,000 pounds per month; 

* * * * * 

Proposed by Homeland Creamery and 

Maple View Farm Milk Co., LLC. 

Proposal No. 5 

This proposal seeks to end the 

regulatory exemption of producerhandlers from the pooling and pricing 

provisions of the Appalachian, Florida 

and Southeast milk marketing orders if 

their Class I route disposition and 

packaged sales of fluid milk products to 

other plants exceeds 750,000 pounds of 

milk per month. 

PART 1005—MILK IN THE 

APPALACHIAN MILK MARKETING 

ORDER 

22. Amend § 1005.10 by revising 

paragraph (a) to read as follows: 

§ 1005.10 Producer-handler. 

* * * * * 

(a) Operates a dairy farm and a 

distributing plant from which there is 

route disposition and packaged sales of 

fluid milk products within the 

marketing area during the month not to 

exceed 750,000 pounds per month, all 

of which are uniquely branded; 

* * * * * 

PART 1006—MILK IN THE FLORIDA 

MILK MARKETING ORDER 

23. Amend § 1006.10 by revising 

paragraph (a) to read as follows: 

§ 1006.10 Producer-handler. 

* * * * * 

(a) Operates a dairy farm and a 

distributing plant from which there is 

route disposition and packaged sales of 

fluid milk products within the 

marketing area during the month not to 

exceed 750,000 pounds per month, all 

of which are uniquely branded; 

* * * * * 

PART 1007—MILK IN THE SOUTHEAST 

MILK MARKETING ORDER 

24. Amend § 1007.10 by revising 

paragraph (a) to read as follows: 

§ 1007.10 Producer-handler. 

* * * * * 

(a) Operates a dairy farm and a 

distributing plant from which there is 

route disposition and packaged sales of 

fluid milk products within the 

marketing area during the month not to 

exceed 750,000 pounds per month, all 

of which are uniquely branded; 

* * * * * 

Proposal No. 6 

This proposal seeks to amend the 

exempt plant provision for the 

Appalachian, Florida and Southeast 

milk marketing orders by increasing the 

current limit on monthly route 

disposition and packaged sales of fluid 

milk products to other plants from 

150,000 pounds or less during the 

month to 750,000 pounds or less during 

the month. 

PART 1000—GENERAL PROVISIONS 

OF FEDERAL MILK MARKETING 

ORDERS 

25. Amend § 1000.8 by revising 

paragraph (e)(4) to read as follows: 

§ 1000.8 Nonpool plant. 

* * * * * 

(e) * * * 

(4) A plant that has route disposition 

and packaged sales of fluid milk 

products to other plants of 150,000 

pounds or less during the month, except 

in the Appalachian, Florida and 

Southeast milk marketing orders. 

PART 1005—MILK IN THE 

APPALACHIAN MILK MARKETING 

ORDER 

26. Revise § 1005.8 to read as follows: 

Nonpool plant means any milk 

receiving, manufacturing, or processing 

plant other than a pool plant. The 

following categories of nonpool plants 

are further defined as follows: 

(a) A fully regulated plant regulated 

under another Federal order means a 

plant that is fully subject to the pricing 

and pooling provisions of another 

Federal order. 

(b) Producer-handler plant means a 

plant operated by a producer-handler as 

defined under any Federal order. 

(c) Partially regulated distributing 

plant means a nonpool plant that is not 

a plant fully regulated under another 

Federal order, a producer-handler plant, 

or an exempt plant, from which there is 

route disposition in the marketing area 

during the month. 

(d) Unregulated supply plant means a 

supply plant that does not qualify as a 

pool supply plant and is not a plant 

fully regulated under another Federal 

order, a producer-handler plant, or an 

exempt plant. 

(e) An exempt plant means a plant 

described in this paragraph that is 

exempt from the pricing and pooling 

provisions of any order provided that 

the operator of the plant files reports as 

prescribed by the market administrator 

of any marketing area in which the plant 

distributes packaged fluid milk products 

to enable determination of the handler’s 

exempt status: 

(1) A plant that is operated by a 

governmental agency that has no route 

disposition incommercial channels; 

(2) A plant that is operated by a duly 

accredited college or university 

disposing of fluid milk products only 

through operation of its own facilities 

with no route disposition in commercial 

channels; 

(3) A plant from which the total route 

disposition is for individuals or 

institutions for charitable purposes 

without remuneration; or 

(4) A plant that route disposition and 

packaged sales of fluid milk products to 

other plants of 750,000 pound or less 

during the month. 

PART 1006—MILK IN THE FLORIDA 

MILK MARKETING ORDER 

27. Revise § 1006.8 to read as follows: 

Nonpool plant means any milk 

receiving, manufacturing, or processing 

plant other than a pool plant. The 

following categories of nonpool plants 

are further defined as follows: 

(a) A fully regulated plant regulated 

under another Federal order means a 

plant that is fully subject to the pricing 

and pooling provisions of another 

Federal order. 

(b) Producer-handler plant means a 

plant operated by a producer-handler as 

defined under any Federal order. 

(c) Partially regulated distributing 

plant means a nonpool plant that is not 

a plant fully regulated under another 

Federal order, a producer-handler plant, 

or an exempt plant, from which there is 

route disposition in the marketing area 

during the month. 


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Federal Register / Vol. 74, No. 67 / Thursday, April 9, 2009 / Proposed Rules 16299 

(d) Unregulated supply plant means a 

supply plant that does not qualify as a 

pool supply plant and is not a plant 

fully regulated under another Federal 

order, a producer-handler plant, or an 

exempt plant. 

(e) An exempt plant means a plant 

described in this paragraph that is 

exempt from the pricing and pooling 

provisions of any order provided that 

the operator of the plant files reports as 

prescribed by the market administrator 

of any marketing area in which the plant 

distributes packaged fluid milk products 

to enable determination of the handler’s 

exempt status: 

(1) A plant that is operated by a 

governmental agency that has no route 

disposition in commercial channels; 

(2) A plant that is operated by a duly 

accredited college or university 

disposing of fluid milk products only 

through operation of its own facilities 

with no route disposition in commercial 

channels; 

(3) A plant from which the total route 

disposition is for individuals or 

institutions for charitable purposes 

without remuneration; or 

(4) A plant that route disposition and 

packaged sales of fluid milk products to 

other plants of 750,000 pound or less 

during the month. 

PART 1007—MILK IN THE SOUTHEAST 

MILK MARKETING ORDER 

28. Revise § 1007.8 to read as follows: 

Nonpool plant means any milk 

receiving, manufacturing, or processing 

plant other than a pool plant. The 

following categories of nonpool plants 

are further defined as follows: 

(a) A fully regulated plant regulated 

under another Federal order means a 

plant that is fully subject to the pricing 

and pooling provisions of another 

Federal order. 

(b) Producer-handler plant means a 

plant operated by a producer-handler as 

defined under any Federal order. 

(c) Partially regulated distributing 

plant means a nonpool plant that is not 

a plant fully regulated under another 

Federal order, a producer-handler plant, 

or an exempt plant, from which there is 

route disposition in the marketing area 

during the month. 

(d) Unregulated supply plant means a 

supply plant that does not qualify as a 

pool supply plant and is not a plant 

fully regulated under another Federal 

order, a producer-handler plant, or an 

exempt plant. 

(e) An exempt plant means a plant 

described in this paragraph that is 

exempt from the pricing and pooling 

provisions of any order provided that 

the operator of the plant files reports as 

prescribed by the market administrator 

of any marketing area in which the plant 

distributes packaged fluid milk products 

to enable determination of the handler’s 

exempt status: 

(1) A plant that is operated by a 

governmental agency that has no route 

disposition in commercial channels; 

(2) A plant that is operated by a duly 

accredited college or university 

disposing of fluid milk products only 

through operation of its own facilities 

with no route disposition in commercial 

channels; 

(3) A plant from which the total route 

disposition is for individuals or 

institutions for charitable purposes 

without remuneration; or 

(4) A plant that route disposition and 

packaged sales of fluid milk products to 

other plants of 750,000 pound or less 

during the month. 

Proposed by Dunajski Dairy. 

Proposal No. 7 

This proposal seeks to end the 

regulatory exemption of producerhandlers from the pooling and pricing 

provisions of the Northeast order if their 

Class I route disposition exceeds 

3,000,000 pounds of milk per month. 

PART 1001—MILK IN THE 

NORTHEAST MILK MARKETING 

ORDER 

29. Amend § 1001.10 by revising 

paragraph (a) to read as follows: 

§ 1001.10 Producer-handler. 

* * * * * 

(a) Operates a dairy farm and a 

distributing plant from which there is 

route disposition within the marketing 

area during the month not to exceed 

3,000,000 pounds per month. 

* * * * * 

Proposed by Administrator, Division 

of Agricultural Development, Wisconsin 

Department of Agriculture, Trade and 

Consumer Protection. 

Proposal No. 8 

This proposal seeks to end the 

regulatory exemption of producerhandlers from the pooling and pricing 

provisions of all orders if their Class I 

route disposition exceeds 2,000,000 

pounds of milk per month. 

PART 1000—GENERAL PROVISIONS 

OF FEDERAL MILK MARKETING 

ORDERS 

30. Amend § 1000.8 by revising 

paragraph (b) to read as follows: 

§ 1000.8 Nonpool plant. 

* * * * * 

(b) Producer-handler plant means a 

plant operated by a producer-handler as 

defined under any Federal order 

provided the producer-handler in all 

markets has route disposition and 

packaged fluid sales of fluid milk 

products of 2,000,000 million pounds or 

less during the month. 

* * * * * 

Proposal No. 9 

This proposal seeks to amend the 

exempt plant provision for all milk 

orders by increasing the current limit on 

monthly route disposition and packaged 

sales of fluid milk products to other 

plants from 150,000 pounds or less 

during the month to 2,000,000 pounds 

or less during the month. 

PART 1000—GENERAL PROVISIONS 

OF FEDERAL MILK MARKETING 

ORDERS 

31. Amend § 1000.8 by revising 

paragraph (e)(4) to read as follows: 

§ 1000.8 Nonpool plant. 

* * * * * 

(e) * * * 

(4) A plant that in all markets has 

route disposition and packaged sales of 

fluid milk products to other plants of 

2,000,000 pounds or less during the 

month. 

Proposed by Way-Har Farms. 

Proposal No. 10 

This proposal seeks to amend the 

exempt plant provision for all milk 

orders by increasing the current limit on 

monthly route disposition and packaged 

sales of fluid milk products to other 

plants from 150,000 pounds or less 

during the month to 450,000 pounds or 

less during the month. 

PART 1000—GENERAL PROVISIONS 

OF FEDERAL MILK MARKETING 

ORDERS 

32. Amend § 1000.8 by revising 

paragraph (e)(4) to read as follows: 

§ 1000.8 Nonpool plant. 

* * * * * 

(e) * * * 

(4) A plant that has route disposition 

and packaged sales of fluid milk 

products to other plants of 450,000 

pounds or less during the month. 

Proposed by Shatto Farms, Inc. 

Proposal No. 11 

This proposal seeks to end the 

regulatory exemption of producerhandlers from the pooling and pricing 

provisions of all orders if their Class I 

route disposition exceeds 1,000,000 

pounds of milk per month. 


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16300 Federal Register / Vol. 74, No. 67 / Thursday, April 9, 2009 / Proposed Rules 

PART 1000—GENERAL PROVISIONS 

OF FEDERAL MILK MARKETING 

ORDERS 

33. Amend § 1000.8 by revising 

paragraph (b) to read as follows: 

§ 1000.8 Nonpool plant. 

* * * * * 

(b) Producer-handler plant means a 

plant operated by a producer-handler as 

defined under any Federal order 

provided the producer-handler has 

route disposition and packaged fluid 

sales of fluid milk products of 1,000,000 

million pounds or less during the 

month. 

* * * * * 

Proposal No. 12 

This proposal seeks, assuming 

elimination of producer-handler’s 

exemption from pricing and pooling 

provisions of the orders, to amend the 

exempt plant provision for all milk 

orders by increasing the current limit on 

monthly route disposition and packaged 

sales of fluid milk products to other 

plants from 150,000 pounds or less 

during the month to 1,000,000 pounds 

or less during the month. 

PART 1000—GENERAL PROVISIONS 

OF FEDERAL MILK MARKETING 

ORDERS 

34. Amend § 1000.8 by revising 

paragraph (e)(4) to read as follows: 

§ 1000.8 Nonpool plant. 

* * * * * 

(e) * * * 

(4) A plant that has route disposition 

and packaged sales of fluid milk 

products to other plants of 1,000,000 

pounds or less during the month. 

Proposal No. 13 

Proposed by New England ProducerHandlers Association, Inc. et al. 

This proposal seeks to expand the 

producer-handler exemption from 

pricing and pooling provisions, in all 

orders, to apply to the Class I route 

disposition and packaged sales of fluid 

milk products of handlers who operate, 

in common, a milk production facility 

and the processing and packaging 

facility used to process and package the 

raw milk from the aforementioned milk 

production facility, up to 3,000,000 

pounds per month. Should this proposal 

not be adopted in all orders, then it 

shall apply exclusively to the Northeast 

and Appalachian milk marketing orders. 

PART 1000—GENERAL PROVISIONS 

OF FEDERAL MILK MARKETING 

ORDERS 

35. Amend § 1000.8 by revising 

paragraph (b) to read as follows: 

§ 1000.8 Nonpool plant. 

* * * * * 

(b) Producer-handler plant means a 

plant operated by a producer-handler as 

defined under any Federal order 

provided that the producer-handler: 

(1) Owns or operates, in common, the 

processing and packaging operations 

and the dairy animals and other 

necessary resources to produce all Class 

I milk handled, up to 3,000,000 pounds 

of route disposition and packaged fluid 

sales of fluid milk products during the 

month. All Class I route disposition and 

packaged sales of fluid milk products 

above 3,000,000 pounds per month will 

be subject to the pricing and pooling 

provisions of the order. 

(b) [Reserved] 

* * * * * 

Proposal No. 14 

PART 1000—GENERAL PROVISIONS 

OF FEDERAL MILK MARKETING 

ORDERS 

36. Amend § 1000.8 by revising 

paragraph (e)(4) to read as follows: 

§ 1000.8 Nonpool plant. 

* * * * * 

(e) * * * 

(4) A plant that has route disposition 

and packaged sales of fluid milk 

products to other plants of up to 

3,000,000 pounds or less during the 

month. All Class I route disposition and 

packaged sales of fluid milk products 

above 3,000,000 pounds per month will 

be subject to the pricing and pooling 

provisions of the order. 

Proposed by Coopers’ Hilltop Farm. 

Proposal No. 15 

This proposal seeks to end the 

regulatory exemption of producerhandlers from the pooling and pricing 

provisions of the Northeast order if their 

Class I route disposition exceeds 

3,000,000 pounds of milk per month. 

PART 1001—MILK IN THE 

NORTHEAST MILK MARKETING 

ORDER 

37. Amend § 1001.10 by revising 

paragraph (a) to read as follows: 

§ 1001.10 Producer-handler. 

* * * * * 

(a) Operates a dairy farm and a 

distributing plant from which there is 

route disposition within the marketing 

area during the month not to exceed 

3,000,000 pounds per month. 

* * * * * 

Proposal No. 16 

This proposal seeks to amend the 

exempt plant provision for all milk 

orders by increasing the current limit on 

monthly route disposition and packaged 

sales of fluid milk products to other 

plants from 150,000 pounds or less 

during the month to 450,000 pounds or 

less during the month. 

PART 1000—GENERAL PROVISIONS 

OF FEDERAL MILK MARKETING 

ORDERS 

38. Amend § 1000.8 by revising 

paragraph (e)(4) to read as follows: 

§ 1000.8 Nonpool plant. 

* * * * * 

(e) * * * 

(4) A plant that has route disposition 

and packaged sales of fluid milk 

products to other plants of 450,000 

pounds or less during the month. 

Proposed by Mallorie’s Dairy, Inc, 

Country Morning Farms and Nature’s 

Dairy. 

Proposal No. 17 

This proposal seeks to exempt, from 

pricing and pooling provisions, the 

own-farm milk of handlers—who are 

either producer-handlers, exempt 

plants, or non-pool plants—with ownfarm production during at least 3 

consecutive months during the 24- 

month period immediately prior to the 

effective date of this proposal, should it 

be adopted. The exemption would apply 

to the lesser of: (1) A monthly volume 

based on the daily average milk 

production marketed from the handler’s 

own-farm during any 3 consecutive 

months of production from January 

2007 through February 2009; or (2) 

3,000,000 pounds per month, with an 

additional allowance of up to 10 percent 

additional own-farm production for 

non-Class I balancing. Under this 

proposal any milk in excess of the 

defined exemption would be subject to 

the pricing and pooling provisions of 

the respective order. 

PART 1000—GENERAL PROVISIONS 

OF FEDERAL MILK MARKETING 

ORDERS 

39. Add new § 1000.10 to read as 

follows: 

§ 1000.10 Pool-exempt own-farm 

production of distributing plants. 

Any handler operating a plant subject 

to regulation as a pool distributing 

plant, as defined in §ll.7 of any milk 


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marketing order, or as a partially 

regulated distributing plant under any 

milk marketing order, may make a onetime election to exempt the handler’s 

own-farm milk production from the 

volume of producer milk receipts 

eligible to participate in the marketwide 

pool as ‘‘producer milk,’’ and otherwise 

subject to producer-settlement fund 

payment obligations under §§ll.71 

and ll.72 of the milk marketing order, 

or § 1000.76(b) of the General 

Provisions. Such election and 

exemption shall be subject to the 

following conditions and limitations: 

(a) Volume limitation for pool-exempt 

own-farm milk production. The volume 

of own-farm milk production that a 

distributing plant handler may elect to 

exempt under this section shall, for any 

month, be the lesser of: 

(1) A monthly volume based on the 

daily average milk production marketed 

from the handler’s own-farm(s) during 

any three consecutive months of 

production, as designated by the 

handler and subject to verification by 

the market administrator, from January 

2007 through February 2009, or 

(2) A daily average production of 

110,000 pounds times the number of 

days in the month to which the 

exemption may apply provided that the 

volume of packaged fluid milk products 

distributed on routes from such poolexempt production shall in no event 

exceed a daily average of 100,000 

pounds. Own-farm production of the 

handler in excess of the exempt volume 

shall be subject to producer-settlement 

fund payment obligations in the same 

manner as milk produced by any dairy 

farmer. 

(b) Limitations based upon prior 

operations of handlers eligible elect 

exemption for own-farm milk 

production. Handlers with own-farm 

production are not eligible to elect pool 

exemption for such production under 

this section unless the handler operated 

a distributing plant supplied with milk 

from its own-farm(s) during at least 

three consecutive months during the 24- 

month period immediately preceding 

the effective date of this section, and the 

distributing plant was either: a 

producer-handler plant, an exempt 

plant, or a non-pool plant during those 

months. 

(c) Limitations based upon common 

ownership in the handler’s plant and 

farm facilities. As used in this section, 

‘‘own-farm’’ means any dairy farm(s) of 

the handler that is owned by the same 

person or persons who own and operate 

the handler plant facility, and their 

ownership in the farm(s) is at least 95 

percent identical with their ownership 

in the handler. Additionally, 

(1) Owners of the handler and 

associated producer shall not exceed 10 

individual persons or owners of 

equitable interest in the handler or 

producer business entity, 

(2) For purposes of this section, 

ownership held by members of a family 

shall be considered single ownership by 

one person. Members of a family for 

purposes of such single ownership 

include only: A spouse, a former 

spouse, and persons of lineal 

consanguinity of the first or second 

degree or collateral consanguinity to the 

fourth degree, and their spouses (or 

former spouses), and includes an 

adopted child the same as a natural 

child and kindred of the half blood 

equally with those of the whole blood 

of the owner(s). 

(3) Property pledged or hypothecated 

in any manner to others shall 

nevertheless be considered ‘‘owned’’ if 

equitable ownership with management 

and control remain with the persons 

operating the plant and associated dairy 

farm(s). 

(d) Date upon which, and manner in 

which, the one-time election must be 

exercised. The market administrator 

shall provide timely notice in writing to 

handlers with own-farm production 

who are or may be eligible to elect a 

pool exemption for such production 

under this section. The election for 

pool-exempt own-farm production shall 

be exercised by an eligible handler by 

giving notice of election in writing to 

the market administrator, which notice 

shall contain facts upon which the 

handler claims to qualify under this 

section, on or before: 

(1) Thirty days after the effective date 

of this provision; or 

(2) For a handler with own-farm 

production on the effective date of this 

provision, but without route disposition 

in any Federal milk marketing area for 

twelve months preceding the effective 

date, thirty days following first route 

disposition in the marketing area, or 

fifteen days after notice by the market 

administrator, whichever is later. 

(e) Applicability of minimum 

classified prices to handlers with poolexempt own-farm milk. Exemption from 

payment obligations in §§ll.71 and 

ll.72 for own-farm milk under this 

section shall not constitute an 

exemption for own-farm milk from 

compliance with minimum classified 

price obligations. For payment 

purposes, the handler will be deemed to 

have paid to its own-farm a price for 

pool-exempt own-farm milk equal to its 

butterfat and skim milk (or skim 

components) value, as provided by 

calculations for ‘‘handler’s value of 

milk’’ in §ll.60 of the marketing 

order. 

(f) Waiver or loss of eligibility for 

pool-exempt own-farm production. The 

own-farm production of any handler 

(1) Who has failed to make the 

election provided by this section; 

(2) Who, after making the election, 

fails to conform with any limitation or 

requirement for such exemption; or 

(3) Who has given notice in writing to 

the market administrator that it no 

longer wishes to exempt its own-farm 

production from the pool, shall be 

regulated, pooled, and priced in the 

same manner as milk produced by any 

dairy farm not eligible for pool 

exemption, and the handler shall not 

thereafter be eligible to exercise the 

exemption provided herein. 

40. Amend § 1000.14 by adding new 

paragraph (d) to read as follows: 

* * * * * 

(d) Receipts of fluid milk products 

and bulk fluid cream products from any 

dairy farm eligible to market poolexempt own-farm milk pursuant to 

§ll.10, except with respect to such 

receipts by the distributing plant owned 

in common with the farm as described 

in § ll.10. 

PART 1001—MILK IN THE 

NORTHEAST MARKETING AREA 

41. Amend § 1001.60 by adding new 

paragraph (j) to read as follows: 

§ 1001.60 Handler’s value of milk. 

* * * * * 

(j) For purposes of calculating the 

producer price differential in §ll.61, 

or a handler’s obligation to or from the 

producer-settlement fund in §§ll.71, 

ll.72, and ll.76, the value and 

volume of pool-exempt own-farm milk 

of the handler qualified for exemption 

pursuant to §ll.10 shall not be 

included as part of the ‘‘total value’’ of 

milk, ‘‘total hundredweight’’ of 

producer milk, or ‘‘total pounds’’ of 

milk components wherever those terms 

(or equivalent terms) are used in or 

incorporated by §§ll.61 and ll.71 

through ll.76. 

PART 1005—MILK IN THE 

APPALACHIAN MARKETING AREA 

42. Amend § 1005.60 by adding new 

paragraph (h) to read as follows: 

§ 1005.60 Handler’s value of milk. 

* * * * * 

(h) For purposes of calculating the 

producer price differential in §ll.61, 

or a handler’s obligation to or from the 

producer-settlement fund in §§ll.71, 

ll.72, and ll.76, the value and 

volume of pool-exempt own-farm milk 


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of the handler qualified for exemption 

pursuant to §ll.10 shall not be 

included as part of the ‘‘total value’’ of 

milk, ‘‘total hundredweight’’ of 

producer milk, or ‘‘total pounds’’ of 

milk components wherever those terms 

(or equivalent terms) are used in or 

incorporated by §§ll.61 and ll.71 

through ll.76. 

PART 1006—MILK IN THE FLORIDA 

MARKETING AREA 

43. Amend § 1006.60 by adding new 

paragraph (h) to read as follows: 

§ 1006.60 Handler’s value of milk. 

* * * * * 

(h) For purposes of calculating the 

producer price differential in §ll.61, 

or a handler’s obligation to or from the 

producer-settlement fund in §§ll.71, 

ll.72, and ll.76, the value and 

volume of pool-exempt own-farm milk 

of the handler qualified for exemption 

pursuant to §ll.10 shall not be 

included as part of the ‘‘total value’’ of 

milk, ‘‘total hundredweight’’ of 

producer milk, or ‘‘total pounds’’ of 

milk components wherever those terms 

(or equivalent terms) are used in or 

incorporated by §§ll.61 and ll.71 

through ll.76. 

PART 1007—MILK IN THE SOUTHEAST 

MARKETING AREA 

44. Amend § 1007.60. by adding new 

paragraph (h) to read as follows: 

§ 1007.60 Handler’s value of milk. 

* * * * * 

(h) For purposes of calculating the 

producer price differential in §ll.61, 

or a handler’s obligation to or from the 

producer-settlement fund in §§ll.71, 

ll.72, and ll.76, the value and 

volume of pool-exempt own-farm milk 

of the handler qualified for exemption 

pursuant to §ll.10 shall not be 

included as part of the ‘‘total value’’ of 

milk, ‘‘total hundredweight’’ of 

producer milk, or ‘‘total pounds’’ of 

milk components wherever those terms 

(or equivalent terms) are used in or 

incorporated by §§ll.61 and ll.71 

through ll.76. 

PART 1030—MILK IN THE UPPER 

MIDWEST MARKETING AREA 

45. Amend § 1030.60 by adding new 

paragraph (l) to read as follows: 

§ 1030.60 Handler’s value of milk. 

* * * * * 

(l) For purposes of calculating the 

producer price differential in §ll.61, 

or a handler’s obligation to or from the 

producer-settlement fund in §§ll.71, 

ll.72, and ll.76, the value and 

volume of pool-exempt own-farm milk 

of the handler qualified for exemption 

pursuant to §ll.10 shall not be 

included as part of the ‘‘total value’’ of 

milk, ‘‘total hundredweight’’ of 

producer milk, or ‘‘total pounds’’ of 

milk components wherever those terms 

(or equivalent terms) are used in or 

incorporated by §§ll.61 and ll.71 

through ll.76. 

PART 1032—MILK IN THE CENTRAL 

MARKETING AREA 

46. Amend § 1032.60 by adding new 

paragraph (k) to read as follows: 

§ 1032.60 Handler’s value of milk. 

* * * * * 

(k) For purposes of calculating the 

producer price differential in §ll.61, 

or a handler’s obligation to or from the 

producer-settlement fund in §§ll.71, 

ll.72, and ll.76, the value and 

volume of pool-exempt own-farm milk 

of the handler qualified for exemption 

pursuant to §ll.10 shall not be 

included as part of the ‘‘total value’’ of 

milk, ‘‘total hundredweight’’ of 

producer milk, or ‘‘total pounds’’ of 

milk components wherever those terms 

(or equivalent terms) are used in or 

incorporated by §§ll.61 and ll.71 

through ll.76. 

PART 1033—MILK IN THE MIDEAST 

MARKETING AREA 

47. Amend § 1033.60 by adding new 

paragraph (k) to read as follows: 

§ 1033.60 Handler’s value of milk. 

* * * * * 

(k) For purposes of calculating the 

producer price differential in §ll.61, 

or a handler’s obligation to or from the 

producer-settlement fund in §§ll.71, 

ll.72, and ll.76, the value and 

volume of pool-exempt own-farm milk 

of the handler qualified for exemption 

pursuant to §ll.10 shall not be 

included as part of the ‘‘total value’’ of 

milk, ‘‘total hundredweight’’ of 

producer milk, or ‘‘total pounds’’ of 

milk components wherever those terms 

(or equivalent terms) are used in or 

incorporated by §§ll.61 and ll.71 

through ll.76. 

PART 1124—MILK IN THE PACIFIC 

NORTHWEST MARKETING AREA 

48. Amend § 1124.60 by adding new 

paragraph (j) to read as follows: 

§ 1124.60 Handler’s value of milk. 

* * * * * 

(j) For purposes of calculating the 

producer price differential in §ll.61, 

or a handler’s obligation to or from the 

producer-settlement fund in §§ll.71, 

ll.72, and ll.76, the value and 

volume of pool-exempt own-farm milk 

of the handler qualified for exemption 

pursuant to §ll.10 shall not be 

included as part of the ‘‘total value’’ of 

milk, ‘‘total hundredweight’’ of 

producer milk, or ‘‘total pounds’’ of 

milk components wherever those terms 

(or equivalent terms) are used in or 

incorporated by §§ll.61 and ll.71 

through ll.76. 

PART 1126—MILK IN THE 

SOUTHWEST MARKETING AREA 

49. Amend § 1126.60 by adding new 

paragraph (k) to read as follows: 

§ 1126.60 Handler’s value of milk. 

* * * * * 

(k) For purposes of calculating the 

producer price differential in §ll.61, 

or a handler’s obligation to or from the 

producer-settlement fund in §§ll.71, 

ll.72, and ll.76, the value and 

volume of pool-exempt own-farm milk 

of the handler qualified for exemption 

pursuant to §ll.10 shall not be 

included as part of the ‘‘total value’’ of 

milk, ‘‘total hundredweight’’ of 

producer milk, or ‘‘total pounds’’ of 

milk components wherever those terms 

(or equivalent terms) are used in or 

incorporated by §§ll.61 and ll.71 

through ll.76. 

PART 1131—MILK IN THE ARIZONA 

MARKETING AREA 

50. Amend § 1131.60 by adding new 

paragraph (g) to read as follows: 

§ 1131.60 Handler’s value of milk. 

* * * * * 

(g) For purposes of calculating the 

producer price differential in §ll.61, 

or a handler’s obligation to or from the 

producer-settlement fund in §§ll.71, 

ll.72, and ll.76, the value and 

volume of pool-exempt own-farm milk 

of the handler qualified for exemption 

pursuant to §ll.10 shall not be 

included as part of the ‘‘total value’’ of 

milk, ‘‘total hundredweight’’ of 

producer milk, or ‘‘total pounds’’ of 

milk components wherever those terms 

(or equivalent terms) are used in or 

incorporated by §§ll.61 and ll.71 

through ll.76. 

Proposed by Hornstra Farms. 

Proposal No. 18 

This proposal seeks to end the 

regulatory exemption of producerhandlers from the pooling and pricing 

provisions of all orders if their 

production exceeds 1,500,000 pounds of 

milk per month. 


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PART 1000—GENERAL PROVISIONS 

OF FEDERAL MILK MARKETING 

ORDERS 

51. Amend § 1000.8 by revising 

paragraph (b) to read as follows: 

§ 1000.8 Nonpool plant. 

* * * * * 

(b) Producer-handler plant means a 

plant operated by a producer-handler as 

defined under any Federal order 

provided the producer-handler in all 

markets has milk production of 

1,500,000 million pounds or less during 

the month. 

* * * * * 

Proposed Pennsylvania Association of 

Milk Dealers. 

Proposal No. 19 

This proposal seeks to amend the 

exempt plant provision for all milk 

orders by increasing the current limit on 

monthly route disposition and packaged 

sales of fluid milk products to other 

plants from 150,000 pounds or less 

during the month to 450,000 pounds or 

less during the month. 

PART 1000—GENERAL PROVISIONS 

OF FEDERAL MILK MARKETING 

ORDERS 

52. Amend § 1000.8 by revising 

paragraph (e)(4) to read as follows: 

§ 1000.8 Nonpool plant. 

* * * * * 

(e) * * * 

(4) A plant that in all markets has 

route disposition and packaged sales of 

fluid milk products to other plants of 

450,000 pounds or less during the 

month. 

Proposed by Select Milk Producers, 

Inc. and Continental Dairy Products, 

Inc. 

Proposal No. 20 

This proposal would establish a onetime exemption from pricing and 

pooling provisions for certain types of 

handlers. 

PART 1000—GENERAL PROVISIONS 

OF FEDERAL MILK MARKETING 

ORDERS 

53. Add new section § 1000.10 to read 

as follows: 

1000.10 Pool-exempt own-farm production 

of distributing plants. 

Any handler operating a plant subject 

to regulation as a pool distributing 

plant, as defined in §ll.7 of any milk 

marketing order, or as a partially 

regulated distributing plant under any 

milk marketing order, may make a onetime election to exempt the handler’s 

own-farm milk production from the 

volume of producer milk receipts 

otherwise subject to producersettlement fund payment obligations 

under §§ll.71 and ll.72 of the milk 

marketing order, or § 1000.76 of the 

General Provisions. Such election and 

exemption shall be subject to the 

following conditions and limitations: 

(a) Volume limitation for pool-exempt 

own-farm milk production. The volume 

of own-farm milk production that a 

distributing plant handler may elect to 

exempt under this section shall, for any 

month, be the lesser of: 

(1) A monthly volume based on the 

daily average milk production marketed 

from the handler’s own-farm(s) during 

any three consecutive months of 

production, as designated by the 

handler and subject to verification by 

the market administrator, from January 

2007 through February 2008, or, 

(2) A daily average production of 

100,000 pounds times the number of 

days in the month to which the 

exemption may apply. Own-farm 

production of the handler in excess of 

the exempt volume shall be subject to 

producer-settlement fund payment 

obligations in the same manner as milk 

produced by any dairy farmer. 

(b) Limitations based upon prior 

operations of handlers eligible elect 

exemption for own-farm milk 

production. Handlers with own-farm 

production are not eligible to elect pool 

exemption for such production under 

this section unless: 

(1) The handler operated a 

distributing plant supplied with milk 

from its own-farm(s) during at least 

three consecutive months from January 

2007 through February 2008, and 

(2) Milk produced by the own-farm(s) 

that supplied the handler’s distributing 

plant was not received as producer milk 

at the pool plant of any other handler 

under any Federal milk marketing order 

at any time after February 2008. 

(c) Limitations based upon ownership 

in the handler’s plant and farm 

facilities. Handlers with own-farm 

production are not eligible to elect ownfarm pool exemption under this section 

unless all of the ownership of the 

handler as plant operator and all of the 

ownership of the dairy farm(s) is owned 

by the same person or persons, and their 

ownership in the producer is at least 95 

percent identical with their ownership 

in the handler. Additionally, 

(1) Owners of the plant and associated 

producer shall not exceed 10 individual 

persons or owners of equitable interest 

in the handler or producer business 

entity, 

(2) For purposes of this section, a 

‘‘person’’ or ‘‘persons’’ includes the 

spouse, or other persons of lineal 

consanguinity of the first or second 

degree or collateral consanguinity to the 

fourth degree, and their spouses, and 

includes an adopted child the same as 

a natural child and kindred of the half 

blood equally with those of the whole 

blood of the owner and ownerships by 

persons so related shall be considered 

single ownership by one person. 

(3) For purposes of this section, 

property pledged or hypothecated in 

any manner to others shall nevertheless 

be considered ‘‘owned’’ if equitable 

ownership with management and 

control remain with the persons 

operating the plant and associated dairy 

farm(s). 

(d) Date upon which, and manner in 

which, the one-time election must be 

exercised. The market administrator 

shall provide timely notice in writing to 

handlers with own-farm production 

who are or may be eligible to elect a 

pool exemption for such production 

under this section. The election for 

pool-exempt own-farm production shall 

be exercised by an eligible handler by 

giving notice of election in writing to 

the market administrator, which notice 

shall contain facts upon which the 

handler claims to qualify under this 

section, on or before: 

(1) Thirty days after the effective date 

of this provision; or 

(2) For a handler with own-farm 

production on the effective date of this 

provision, but without route disposition 

in any Federal milk marketing area for 

12 months preceding the effective date, 

30 days following first route disposition 

in the marketing area, or 15 days after 

notice by the market administrator, 

whichever is later. 

(e) Applicability of minimum 

classified prices to handlers with poolexempt own-farm milk. Exemption from 

payment obligations in §§ll.71 and 

ll.72 for own-farm milk under this 

section shall not constitute an 

exemption for own-farm milk from 

compliance with minimum classified 

price obligations. For payment 

purposes, the handler will be deemed to 

have paid to its own-farm a price for 

pool-exempt own-farm milk equal to its 

butterfat and skim milk (or skim 

components) value, as provided by 

calculations for a handler’s value of 

milk in §ll.60 of the marketing order. 

(f) Waiver or loss of eligibility for 

pool-exempt own-farm production. The 

own-farm production of any handler 

(1) Who has failed to make the 

election provided by this section; 

(2) Who, after making the election, 

fails to conform with any limitation or 

requirement for such exemption for any 


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16304 Federal Register / Vol. 74, No. 67 / Thursday, April 9, 2009 / Proposed Rules 

period in which it fails to so conform; 

or 

(3) Who has given notice in writing to 

the market administrator that it no 

longer wishes to exempt its own-farm 

production from the pool shall be 

regulated and priced in the same 

manner as milk produced by any dairy 

farm not eligible for pool exemption, 

and the handler shall not thereafter be 

eligible to exercise the exemption 

provided herein. 

PART 1000—GENERAL PROVISIONS 

OF FEDERAL MILK MARKETING 

ORDERS 

54. Amend § 1000.14 by adding 

paragraph (d) to read as follows: 

* * * * * 

(d) Receipts of fluid milk products 

and bulk fluid cream products from any 

dairy farm eligible to market poolexempt own-farm milk pursuant to 

§ll.10, except with respect to such 

receipts by the distributing plant owned 

in common with the farm as described 

in §ll.10. 

PART 1001—MILK IN THE 

NORTHEAST MARKETING AREA 

55. Revise § 1001.10 to read as 

follows: 

§ 1001.10 Producer-handler. 

See § 1000.10. 

PART 1005—MILK IN THE 

APPALACHIAN MARKETING AREA 

56. Revise § 1005.10 to read as 

follows: 

§ 1005.10 Producer-handler. 

See § 1000.10. 

PART 1006—MILK IN THE FLORIDA 

MARKETING AREA 

57. Revise § 1006.10 to read as 

follows: 

§ 1006.10 Producer-handler. 

See § 1000.10. 

PART 1007—MILK IN THE SOUTHEAST 

MARKETING AREA 

58. Revise § 1007.10 to read as 

follows: 

§ 1007.10 Producer-handler. 

See § 1000.10. 

PART 1030—MILK IN THE UPPER 

MIDWEST MARKETING AREA 

59. Revise § 1030.10 to read as 

follows: 

§ 1030.10 Producer-handler. 

See § 1000.10. 

PART 1032—MILK IN THE CENTRAL 

MARKETING AREA 

60. Revise § 1032.10 to read as 

follows: 

§ 1032.10 Producer-handler. 

See § 1000.10. 

PART 1033—MILK IN THE MIDEAST 

MARKETING AREA 

61. Revise § 1033.10 to read as 

follows: 

§ 1033.10 Producer-handler. 

See § 1000.10. 

PART 1124—MILK IN THE PACIFIC 

NORTHWEST MARKETING AREA 

62. Revise § 1124.10 to read as 

follows: 

§ 1124.10 Producer-handler. 

See § 1000.10. 

PART 1126—MILK IN THE 

SOUTHWEST MARKETING AREA 

63. Revise § 1126.10 to read as 

follows: 

§ 1126.10 Producer-handler. 

See § 1000.10. 

PART 1131—MILK IN THE ARIZONA 

MARKETING AREA 

64. Revise § 1131.10 to read as 

follows: 

§ 1131.10 Producer-handler. 

See § 1000.10. 

PART 1001—MILK IN THE 

NORTHEAST MARKETING AREA 

65. Amend § 1001.60 by adding 

paragraph (j) to read as follows: 

§ 1001.60 Handler’s value of milk. 

* * * * * 

(j) For purposes of calculating the 

producer price differential in §ll.61, 

or a handler’s obligation to or from the 

producer-settlement fund in §§ll.71, 

ll.72, and ll.76, the value and 

volume of pool-exempt own-farm milk 

of the handler qualified for exemption 

pursuant to §ll.10 shall not be 

included as part of the ‘‘total value’’ of 

milk, ‘‘total hundredweight’’ of 

producer milk, or ‘‘total pounds’’ of 

milk components wherever those terms 

(or equivalent terms) are used in or 

incorporated by §§ll.61 and ll.71 

through ll.76. 

PART 1005—MILK IN THE 

APPALACHIAN MARKETING AREA 

66. Amend § 1005.60 by adding 

paragraph (h) to read as follows: 

§ 1005.60 Handler’s value of milk. 

* * * * * 

(h) For purposes of calculating the 

producer price differential in §ll.61, 

or a handler’s obligation to or from the 

producer-settlement fund in §§ll.71, 

ll.72, and ll.76, the value and 

volume of pool-exempt own-farm milk 

of the handler qualified for exemption 

pursuant to §ll.10 shall not be 

included as part of the ‘‘total value’’ of 

milk, ‘‘total hundredweight’’ of 

producer milk, or ‘‘total pounds’’ of 

milk components wherever those terms 

(or equivalent terms) are used in or 

incorporated by §§ll.61 and ll.71 

through ll.76. 

PART 1006—MILK IN THE FLORIDA 

MARKETING AREA 

67. Amend § 1006.60 by adding 

paragraph (h) to read as follows: 

§ 1006.60 Handler’s value of milk. 

* * * * * 

(h) For purposes of calculating the 

producer price differential in §ll.61, 

or a handler’s obligation to or from the 

producer-settlement fund in §§ll.71, 

ll.72, and ll.76, the value and 

volume of pool-exempt own-farm milk 

of the handler qualified for exemption 

pursuant to §ll.10 shall not be 

included as part of the ‘‘total value’’ of 

milk, ‘‘total hundredweight’’ of 

producer milk, or ‘‘total pounds’’ of 

milk components wherever those terms 

(or equivalent terms) are used in or 

incorporated by §§ll.61 and ll.71 

through ll.76. 

PART 1007—MILK IN THE SOUTHEAST 

MARKETING AREA 

68. Amend § 1007.60 by adding 

paragraph (h) to read as follows: 

§ 1007.60 Handler’s value of milk. 

* * * * * 

(h) For purposes of calculating the 

producer price differential in §ll.61, 

or a handler’s obligation to or from the 

producer-settlement fund in §§ll.71, 

ll.72, and ll.76, the value and 

volume of pool-exempt own-farm milk 

of the handler qualified for exemption 

pursuant to §ll.10 shall not be 

included as part of the ‘‘total value’’ of 

milk, ‘‘total hundredweight’’ of 

producer milk, or ‘‘total pounds’’ of 

milk components wherever those terms 

(or equivalent terms) are used in or 

incorporated by §§ll.61 and ll.71 

through ll.76. 

PART 1030—MILK IN THE UPPER 

MIDWEST MARKETING AREA 

69. Amend § 1030.60 by adding 

paragraph (l) to read as follows: 


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§ 1030.60 Handler’s value of milk. 

* * * * * 

(l) For purposes of calculating the 

producer price differential in §ll.61, 

or a handler’s obligation to or from the 

producer-settlement fund in §§ll.71, 

ll.72, and ll.76, the value and 

volume of pool-exempt own-farm milk 

of the handler qualified for exemption 

pursuant to §ll.10 shall not be 

included as part of the ‘‘total value’’ of 

milk, ‘‘total hundredweight’’ of 

producer milk, or ‘‘total pounds’’ of 

milk components wherever those terms 

(or equivalent terms) are used in or 

incorporated by §§ll.61 and ll.71 

through ll.76. 

PART 1032—MILK IN THE CENTRAL 

MARKETING AREA 

70. Amend § 1032.60 by adding 

paragraph (k) to read as follows: 

§ 1032.60 Handler’s value of milk. 

* * * * * 

(k) For purposes of calculating the 

producer price differential in §ll.61, 

or a handler’s obligation to or from the 

producer-settlement fund in §§ll.71, 

ll.72, and ll.76, the value and 

volume of pool-exempt own-farm milk 

of the handler qualified for exemption 

pursuant to §ll.10 shall not be 

included as part of the ‘‘total value’’ of 

milk, ‘‘total hundredweight’’ of 

producer milk, or ‘‘total pounds’’ of 

milk components wherever those terms 

(or equivalent terms) are used in or 

incorporated by §§ll.61 and ll.71 

through ll.76. 

PART 1033—MILK IN THE MIDEAST 

MARKETING AREA 

71. Amend § 1033.60 by adding 

paragraph (k) to read as follows: 

§ 1033.60 Handler’s value of milk. 

* * * * * 

(k) For purposes of calculating the 

producer price differential in §ll.61, 

or a handler’s obligation to or from the 

producer-settlement fund in §§ll.71, 

ll.72, and ll.76, the value and 

volume of pool-exempt own-farm milk 

of the handler qualified for exemption 

pursuant to §ll.10 shall not be 

included as part of the ‘‘total value’’ of 

milk, ‘‘total hundredweight’’ of 

producer milk, or ‘‘total pounds’’ of 

milk components wherever those terms 

(or equivalent terms) are used in or 

incorporated by §§ll.61 and ll.71 

through ll.76. 

PART 1124—MILK IN THE PACIFIC 

NORTHWEST MARKETING AREA 

72. Amend § 1124.60 by adding 

paragraph (j) to read as follows: 

§ 1124.60 Handler’s value of milk. 

* * * * * 

(j) For purposes of calculating the 

producer price differential in §ll.61, 

or a handler’s obligation to or from the 

producer-settlement fund in §§ll.71, 

ll.72, and ll.76, the value and 

volume of pool-exempt own-farm milk 

of the handler qualified for exemption 

pursuant to §ll.10 shall not be 

included as part of the ‘‘total value’’ of 

milk, ‘‘total hundredweight’’ of 

producer milk, or ‘‘total pounds’’ of 

milk components wherever those terms 

(or equivalent terms) are used in or 

incorporated by §§ll.61 and ll.71 

through ll.76. 

PART 1126—MILK IN THE 

SOUTHWEST MARKETING AREA 

73. Amend § 1126.60 by adding 

paragraph (k) to read as follows: 

§ 1126.60 Handler’s value of milk. 

* * * * * 

(k) For purposes of calculating the 

producer price differential in §ll.61, 

or a handler’s obligation to or from the 

producer-settlement fund in §§ll.71, 

ll.72, and ll.76, the value and 

volume of pool-exempt own-farm milk 

of the handler qualified for exemption 

pursuant to §ll.10 shall not be 

included as part of the ‘‘total value’’ of 

milk, ‘‘total hundredweight’’ of 

producer milk, or ‘‘total pounds’’ of 

milk components wherever those terms 

(or equivalent terms) are used in or 

incorporated by §§ll.61 and ll.71 

through ll.76. 

PART 1131—MILK IN THE ARIZONA 

MARKETING AREA 

74. Amend § 1131.60 by adding 

paragraph (g) to read as follows: 

§ 1131.60 Handler’s value of milk. 

* * * * * 

(g) For purposes of calculating the 

producer price differential in §ll.61, 

or a handler’s obligation to or from the 

producer-settlement fund in §§ll.71, 

ll.72, and ll.76, the value and 

volume of pool-exempt own-farm milk 

of the handler qualified for exemption 

pursuant to §ll.10 shall not be 

included as part of the ‘‘total value’’ of 

milk, ‘‘total hundredweight’’ of 

producer milk, or ‘‘total pounds’’ of 

milk components wherever those terms 

(or equivalent terms) are used in or 

incorporated by §§ll.61 and ll.71 

through ll.76. 

Proposal No. 21 

This proposal seeks to end the 

regulatory exemption of producerhandlers from the pricing and pooling 

provisions of all orders, except the 

Pacific Northwest and Arizona milk 

marketing orders, if their route 

disposition exceeds 3,000,000 pounds of 

milk per month. 

PART 1001—MILK IN THE 

NORTHEAST MARKETING AREA 

75. Amend § 1001.10 by revising 

paragraph (a) to read as follows: 

§ 1001.10 Producer-handler. 

* * * * * 

(a) Operates a dairy farm and a 

distributing plant from which there is 

monthly route disposition in the 

marketing area, not to exceed 3 million 

pounds; 

* * * * * 

PART 1005—MILK IN THE 

APPALACHIAN MARKETING AREA 

76. Amend § 1005.10 by revising 

paragraph (a) to read as follows: 

§ 1005.10 Producer-handler. 

* * * * * 

(a) Operates a dairy farm and a 

distributing plant from which there is 

monthly route disposition in the 

marketing area, not to exceed 3 million 

pounds; 

* * * * * 

PART 1006—MILK IN THE FLORIDA 

MARKETING AREA 

77. Amend § 1006.10 by revising 

paragraph (a) to read as follows: 

§ 1006.10 Producer-handler. 

* * * * * 

(a) Operates a dairy farm and a 

distributing plant from which there is 

monthly route disposition in the 

marketing area, not to exceed 3 million 

pounds; 

* * * * * 

PART 1007—MILK IN THE SOUTHEAST 

MARKETING AREA 

78. Amend § 1007.10 by revising 

paragraph (a) to read as follows: 

§ 1007.10 Producer-handler. 

* * * * * 

(a) Operates a dairy farm and a 

distributing plant from which there is 

monthly route disposition in the 

marketing area, not to exceed 3 million 

pounds; 

* * * * * 

PART 1030—MILK IN THE UPPER 

MIDWEST MARKETING AREA 

79. Amend § 1030.10 by revising 

paragraph (a) to read as follows: 


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§ 1030.10 Producer-handler. 

* * * * * 

(a) Operates a dairy farm and a 

distributing plant from which there is 

monthly route disposition in the 

marketing area, not to exceed 3 million 

pounds; 

* * * * * 

PART 1032—MILK IN THE CENTRAL 

MARKETING AREA 

80. Amend § 1032.10 by revising 

paragraph (a) to read as follows: 

§ 1032.10 Producer-handler. 

* * * * * 

(a) Operates a dairy farm and a 

distributing plant from which there is 

monthly route disposition in the 

marketing area, not to exceed 3 million 

pounds; 

* * * * * 

PART 1033—MILK IN THE MIDEAST 

MARKETING AREA 

81. Amend § 1033.10 by revising 

paragraph (a) to read as follows: 

§ 1033.10 Producer-handler. 

* * * * * 

(a) Operates a dairy farm and a 

distributing plant from which there is 

monthly route disposition in the 

marketing area, not to exceed 3 million 

pounds; 

* * * * * 

PART 1126—MILK IN THE 

SOUTHWEST MARKETING AREA 

82. Amend § 1126.10 by revising 

paragraph (a) to read as follows: 

§ 1126.10 Producer-handler. 

* * * * * 

(a) Operates a dairy farm and a 

distributing plant from which there is 

monthly route disposition in the 

marketing area, not to exceed 3 million 

pounds; 

* * * * * 

Proposed by Northeast Dairy Foods 

Association, Inc. 

Proposal No. 22 

This proposal seeks to eliminate the 

producer-handler provision of all 

orders. 

PART 1000—GENERAL PROVISIONS 

OF FEDERAL MILK MARKETING 

ORDERS 

§ 1000.8 [Amended] 

83. Amend § 1000.8 by: 

(1) Removing paragraph (b); and 

2) Redesignating paragraphs (c), (d) 

and (e) as (b), (c) and (d). 

PART 1001—MILK IN THE 

NORTHEAST MARKETING AREA 

§ 1001.10 [Removed] 

84. Remove and reserve § 1001.10. 

PART 1005—MILK IN THE 

APPALACHIAN MARKETING AREA 

§ 1005.10 [Removed] 

85. Remove and reserve § 1005.10. 

PART 1006—MILK IN THE FLORIDA 

MARKETING AREA 

§ 1006.10 [Removed] 

86. Remove and reserve § 1006.10. 

PART 1007—MILK IN THE SOUTHEAST 

MARKETING AREA 

§ 1007.10 [Removed] 

87. Remove and reserve § 1007.10. 

PART 1030—MILK IN THE UPPER 

MIDWEST MARKETING AREA 

§ 1030.10 [Removed] 

88. Remove and reserve § 1030.10. 

PART 1032—MILK IN THE CENTRAL 

MARKETING AREA 

§ 1032.10 [Removed] 

89. Remove and reserve § 1032.10. 

PART 1033—MILK IN THE MIDEAST 

MARKETING AREA 

§ 1033.10 [Removed] 

90. Remove and reserve § 1033.10. 

PART 1124—MILK IN THE PACIFIC 

NORTHWEST MARKETING AREA 

§ 1124.10 [Removed] 

91. Remove and reserve § 1124.10. 

PART 1126—MILK IN THE 

SOUTHWEST MARKETING AREA 

§ 1126.10 [Removed] 

92. Remove and reserve § 1126.10. 

PART 1131—MILK IN THE ARIZONA 

MARKETING AREA 

§ 1131.10 [Removed] 

93. Remove and reserve § 1131.10. 

Proposed by American Independent 

Dairy Alliance. 

Proposal No. 23 

This proposal would remove the 

producer-handler provision from all 

milk orders and establish a provision to 

exempt, from regulation, milk procured 

from a farm owned by a handler. 

Additionally, this proposal seeks to treat 

handlers with own-farm production as 

partially regulated distributing plants. 

PART 1000—GENERAL PROVISIONS 

OF FEDERAL MILK MARKETING 

ORDERS 

§ 1000.8 [Amended] 

94. Amend § 1000.8 by: 

(1) Removing paragraph (b); and 

(2) Redesignating paragraphs (c), (d) 

and (e) as (b), (c) and (d). 

95. Amend § 1000.76 by adding 

paragraph (e) to read as follows: 

§ 1000.76 Payments by a handler 

operating a partially regulated distributing 

plant. 

* * * * * 

(e) Any handler may elect partially 

regulated distributing plant status for 

any pool plant with respect to receipts 

of milk from a dairy farm owned and 

operated by the handler (hereinafter 

‘‘own farm production’’), subject to the 

following conditions: 

(1) The handler provides proof 

satisfactory to the market administrator 

that the care and management of the 

dairy animals and other resources 

necessary to produce own farm milk, 

and the processing and packaging 

operations, are the plant operator’s own 

enterprise and at its own risk; 

(2) Packaged fluid milk products 

distributed from the plant are not sold 

or marketed below the handler’s costs, 

provided: 

(i) Handler’s costs shall be Class I 

prices plus costs of manufacturing, 

processing, handling, marketing and 

delivery, 

(ii) The Deputy Administrator, Dairy 

Programs, may issue rules and 

procedures for determining handler’s 

costs, or to evaluate any complaint by 

any person that a handler subject to this 

paragraph (e) is marketing packaged 

fluid milk products below cost. 

(3) The volume of own farm 

production of milk (or of milk 

components in own farm production) 

shall be deemed to be received and paid 

for by the handler at a price equal to the 

distributing plant’s value of milk 

computed pursuant to paragraph (b)(1) 

of this section, and shall not be 

included in the volume of milk or milk 

components that are subject to 

payments to or from the producer 

settlement fund pursuant to §§ll.71 

or ll.72 of any order. 

PART 1001—MILK IN THE 

NORTHEAST MARKETING AREA 

96. Revise § 1001.10 to read as 

follows: 

§ 1001.10 Exemption for own-farm 

production of handlers. 

Any operator of a pool plant or 

partially regulated distributing plant: 


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(a) From which there is route 

disposition in the marketing area during 

the month; and 

(b) That receives fluid milk from the 

own-farm production of a farm under 

the ownership and control of the 

operator; and 

(c) Who provides proof satisfactory to 

the market administrator that the care 

and management of the dairy animals 

and other resources necessary to 

produce the volume of milk processed 

under paragraph (b) of this section and 

the processing and packaging operations 

are the operator’s own enterprise and at 

its own risk; 

(d) Shall have such the volumes of 

own-farm production treated as exempt 

volumes for the purposes of calculating 

any obligation of the handler under 

§§ll.71 and ll.72 of the order. For 

handlers also purchasing producer milk 

for use at its plant, the market 

administrator shall down-allocate the 

volumes of own-farm produced milk to 

the plant’s lowest value use before 

calculating the plant’s value of milk and 

any obligations to the producersettlement fund. 

PART 1005—MILK IN THE 

APPALACHIAN MARKETING AREA 

97. Revise § 1005.10 to read as 

follows: 

§ 1005.10 Exemption for own-farm 

production of handlers. 

Any operator of a pool plant or 

partially regulated distributing plant: 

(a) From which there is route 

disposition in the marketing area during 

the month; and 

(b) That receives fluid milk from the 

own-farm production of a farm under 

the ownership and control of the 

operator; and 

(c) Who provides proof satisfactory to 

the market administrator that the care 

and management of the dairy animals 

and other resources necessary to 

produce the volume of milk processed 

under paragraph (b) of this section and 

the processing and packaging operations 

are the operator’s own enterprise and at 

its own risk; 

(d) Shall have such the volumes of 

own-farm production treated as exempt 

volumes for the purposes of calculating 

any obligation of the handler under 

§§ll.71 and ll.72 of the order. For 

handlers also purchasing producer milk 

for use at its plant, the market 

administrator shall down-allocate the 

volumes of own-farm produced milk to 

the plant’s lowest value use before 

calculating the plant’s value of milk and 

any obligations to the producersettlement fund. 

PART 1006—MILK IN THE FLORIDA 

MARKETING AREA 

98. Revise § 1006.10 to read as 

follows: 

§ 1006.10 Exemption for own-farm 

production of handlers. 

Any operator of a pool plant or 

partially regulated distributing plant: 

(a) From which there is route 

disposition in the marketing area during 

the month; and 

(b) That receives fluid milk from the 

own-farm production of a farm under 

the ownership and control of the 

operator; and 

(c) Who provides proof satisfactory to 

the market administrator that the care 

and management of the dairy animals 

and other resources necessary to 

produce the volume of milk processed 

under paragraph (b) of this section and 

the processing and packaging operations 

are the operator’s own enterprise and at 

its own risk; 

(d) Shall have such the volumes of 

own-farm production treated as exempt 

volumes for the purposes of calculating 

any obligation of the handler under 

§§ll.71 and ll.72 of the order. For 

handlers also purchasing producer milk 

for use at its plant, the market 

administrator shall down-allocate the 

volumes of own-farm produced milk to 

the plant’s lowest value use before 

calculating the plant’s value of milk and 

any obligations to the producersettlement fund. 

PART 1007—MILK IN THE SOUTHEAST 

MARKETING AREA 

99. Revise § 1007.10 to read as 

follows: 

§ 1007.10 Exemption for own-farm 

production of handlers. 

Any operator of a pool plant or 

partially regulated distributing plant: 

(a) From which there is route 

disposition in the marketing area during 

the month; and 

(b) That receives fluid milk from the 

own-farm production of a farm under 

the ownership and control of the 

operator; and 

(c) Who provides proof satisfactory to 

the market administrator that the care 

and management of the dairy animals 

and other resources necessary to 

produce the volume of milk processed 

under paragraph (b) of this section and 

the processing and packaging operations 

are the operator’s own enterprise and at 

its own risk; 

(d) Shall have such the volumes of 

own-farm production treated as exempt 

volumes for the purposes of calculating 

any obligation of the handler under 

§§ll.71 and ll.72 of the order. For 

handlers also purchasing producer milk 

for use at its plant, the market 

administrator shall down-allocate the 

volumes of own-farm produced milk to 

the plant’s lowest value use before 

calculating the plant’s value of milk and 

any obligations to the producersettlement fund. 

PART 1030—MILK IN THE UPPER 

MIDWEST MARKETING AREA 

100. Revise § 1030.10 to read as 

follows: 

§ 1030.10 Exemption for own-farm 

production of handlers. 

Any operator of a pool plant or 

partially regulated distributing plant: 

(a) From which there is route 

disposition in the marketing area during 

the month; and 

(b) That receives fluid milk from the 

own-farm production of a farm under 

the ownership and control of the 

operator; and 

(c) Who provides proof satisfactory to 

the market administrator that the care 

and management of the dairy animals 

and other resources necessary to 

produce the volume of milk processed 

under paragraph (b) of this section and 

the processing and packaging operations 

are the operator’s own enterprise and at 

its own risk; 

(d) Shall have such the volumes of 

own-farm production treated as exempt 

volumes for the purposes of calculating 

any obligation of the handler under 

§§ll.71 and ll.72 of the order. For 

handlers also purchasing producer milk 

for use at its plant, the market 

administrator shall down-allocate the 

volumes of own-farm produced milk to 

the plant’s lowest value use before 

calculating the plant’s value of milk and 

any obligations to the producersettlement fund. 

PART 1032—MILK IN THE CENTRAL 

MARKETING AREA 

101. Revise § 1032.10 to read as 

follows: 

§ 1032.10 Exemption for own-farm 

production of handlers. 

Any operator of a pool plant or 

partially regulated distributing plant: 

(a) From which there is route 

disposition in the marketing area during 

the month; and 

(b) That receives fluid milk from the 

own-farm production of a farm under 

the ownership and control of the 

operator; and 

(c) Who provides proof satisfactory to 

the market administrator that the care 

and management of the dairy animals 


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and other resources necessary to 

produce the volume of milk processed 

under paragraph (b) of this section and 

the processing and packaging operations 

are the operator’s own enterprise and at 

its own risk; 

(d) Shall have such the volumes of 

own-farm production treated as exempt 

volumes for the purposes of calculating 

any obligation of the handler under 

§§ll.71 and ll.72 of the order. For 

handlers also purchasing producer milk 

for use at its plant, the market 

administrator shall down-allocate the 

volumes of own-farm produced milk to 

the plant’s lowest value use before 

calculating the plant’s value of milk and 

any obligations to the producersettlement fund. 

PART 1033—MILK IN THE MIDEAST 

MARKETING AREA 

102. Revise § 1033.10 to read as 

follows: 

§ 1033.10 Exemption for own-farm 

production of handlers. 

Any operator of a pool plant or 

partially regulated distributing plant: 

(a) From which there is route 

disposition in the marketing area during 

the month; and 

(b) That receives fluid milk from the 

own-farm production of a farm under 

the ownership and control of the 

operator; and 

(c) Who provides proof satisfactory to 

the market administrator that the care 

and management of the dairy animals 

and other resources necessary to 

produce the volume of milk processed 

under paragraph (b) of this section and 

the processing and packaging operations 

are the operator’s own enterprise and at 

its own risk; 

(d) Shall have such the volumes of 

own-farm production treated as exempt 

volumes for the purposes of calculating 

any obligation of the handler under 

§§ll.71 and ll.72 of the order. For 

handlers also purchasing producer milk 

for use at its plant, the market 

administrator shall down-allocate the 

volumes of own-farm produced milk to 

the plant’s lowest value use before 

calculating the plant’s value of milk and 

any obligations to the producersettlement fund. 

PART 1124—MILK IN THE PACIFIC 

NORTHWEST MARKETING AREA 

103. Revise § 1124.10 to read as 

follows: 

§ 1124.10 Exemption for own-farm 

production of handlers. 

Any operator of a pool plant or 

partially regulated distributing plant: 

(a) From which there is route 

disposition in the marketing area during 

the month; and 

(b) That receives fluid milk from the 

own-farm production of a farm under 

the ownership and control of the 

operator; and 

(c) Who provides proof satisfactory to 

the market administrator that the care 

and management of the dairy animals 

and other resources necessary to 

produce the volume of milk processed 

under paragraph (b) of this section and 

the processing and packaging operations 

are the operator’s own enterprise and at 

its own risk; 

(d) Shall have such the volumes of 

own-farm production treated as exempt 

volumes for the purposes of calculating 

any obligation of the handler under 

§§ll.71 and ll.72 of the order. For 

handlers also purchasing producer milk 

for use at its plant, the market 

administrator shall down-allocate the 

volumes of own-farm produced milk to 

the plant’s lowest value use before 

calculating the plant’s value of milk and 

any obligations to the producersettlement fund. 

PART 1126—MILK IN THE 

SOUTHWEST MARKETING AREA 

104. Revise § 1126.10 to read as 

follows: 

§ 1126.10 Exemption for own-farm 

production of handlers. 

Any operator of a pool plant or 

partially regulated distributing plant: 

(a) From which there is route 

disposition in the marketing area during 

the month; and 

(b) That receives fluid milk from the 

own-farm production of a farm under 

the ownership and control of the 

operator; and 

(c) Who provides proof satisfactory to 

the market administrator that the care 

and management of the dairy animals 

and other resources necessary to 

produce the volume of milk processed 

under paragraph (b) of this section and 

the processing and packaging operations 

are the operator’s own enterprise and at 

its own risk; 

(d) Shall have such the volumes of 

own-farm production treated as exempt 

volumes for the purposes of calculating 

any obligation of the handler under 

§§ll.71 and ll.72 of the order. For 

handlers also purchasing producer milk 

for use at its plant, the market 

administrator shall down-allocate the 

volumes of own-farm produced milk to 

the plant’s lowest value use before 

calculating the plant’s value of milk and 

any obligations to the producersettlement fund. 

PART 1131—MILK IN THE ARIZONA 

MARKETING AREA 

105. Revise § 1131.10 to read as 

follows: 

§ 1131.10 Exemption for own-farm 

production of handlers. 

Any operator of a pool plant or 

partially regulated distributing plant: 

(a) From which there is route 

disposition in the marketing area during 

the month; and 

(b) That receives fluid milk from the 

own-farm production of a farm under 

the ownership and control of the 

operator; and 

(c) Who provides proof satisfactory to 

the market administrator that the care 

and management of the dairy animals 

and other resources necessary to 

produce the volume of milk processed 

under paragraph(b) of this section and 

the processing and packaging operations 

are the operator’s own enterprise and at 

its own risk; 

(d) Shall have such the volumes of 

own-farm production treated as exempt 

volumes for the purposes of calculating 

any obligation of the handler under 

§§ll.71 and ll.72 of the order. For 

handlers also purchasing producer milk 

for use at its plant, the market 

administrator shall down-allocate the 

volumes of own-farm produced milk to 

the plant’s lowest value use before 

calculating the plant’s value of milk and 

any obligations to the producersettlement fund. 

Proposal No. 24 

This proposal would exempt from 

regulation milk sold by producerhandlers through ‘‘handler controlled 

retail channels’’ including homedelivery and handler controlled retail 

outlets, regardless of volume of sales. 

PART 1001—MILK IN THE 

NORTHEAST MARKETING AREA 

106. Amend § 1001.10 by adding a 

new paragraph (g) to read as follows: 

§ 1001.10 Producer-handler. 

* * * * * 

(g) Any producer-handler with route 

disposition through retail channels, 

either by sales direct to consumers, 

through home delivery, or to 

distribution outlets owned or controlled 

by the producer-handler, shall have 

such retail sales volumes treated as 

exempt volumes for the purposes of 

calculating any obligation of the 

producer-handler under § 1001.71 and 

§ 1001.72. The producer-handler shall 

provide proof satisfactory to the market 

administrator that the retail dispositions 

are made by the producer-handler direct 


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to consumers, through home delivery, or 

to distribution outlets owned or 

controlled by the producer-handler. 

* * * * * 

PART 1005—MILK IN THE 

APPALACHIAN MARKETING AREA 

107. Amend § 1005.10 by adding a 

new paragraph (f) to read as follows: 

§ 1005.10 Producer-handler. 

* * * * * 

(f) Any producer-handler with route 

disposition through retail channels, 

either by sales direct to consumers, 

through home delivery, or to 

distribution outlets owned or controlled 

by the producer-handler, shall have 

such retail sales volumes treated as 

exempt volumes for the purposes of 

calculating any obligation of the 

producer-handler under § 1005.71 and 

§ 1005.72. The producer-handler shall 

provide proof satisfactory to the market 

administrator that the retail dispositions 

are made by the producer-handler direct 

to consumers, through home delivery, or 

to distribution outlets owned or 

controlled by the producer-handler. 

PART 1006—MILK IN THE FLORIDA 

MARKETING AREA 

108. Amend § 1006.10 by adding a 

new paragraph (f) to read as follows: 

§ 1006.10 Producer-handler. 

* * * * * 

(f) Any producer-handler with route 

disposition through retail channels, 

either by sales direct to consumers, 

through home delivery, or to 

distribution outlets owned or controlled 

by the producer-handler, shall have 

such retail sales volumes treated as 

exempt volumes for the purposes of 

calculating any obligation of the 

producer-handler under § 1006.71 and 

§ 1006.72. The producer-handler shall 

provide proof satisfactory to the market 

administrator that the retail dispositions 

are made by the producer-handler direct 

to consumers, through home delivery, or 

to distribution outlets owned or 

controlled by the producer-handler. 

PART 1007—MILK IN THE SOUTHEAST 

MARKETING AREA 

109. Amend § 1007.10 by adding a 

new paragraph (f) to read as follows: 

§ 1007.10 Producer-handler. 

* * * * * 

(f) Any producer-handler with route 

disposition through retail channels, 

either by sales direct to consumers, 

through home delivery, or to 

distribution outlets owned or controlled 

by the producer-handler, shall have 

such retail sales volumes treated as 

exempt volumes for the purposes of 

calculating any obligation of the 

producer-handler under § 1007.71 and 

§ 1007.72. The producer-handler shall 

provide proof satisfactory to the market 

administrator that the retail dispositions 

are made by the producer-handler direct 

to consumers, through home delivery, or 

to distribution outlets owned or 

controlled by the producer-handler. 

* * * * * 

PART 1030—MILK IN THE UPPER 

MIDWEST MARKETING AREA 

110. Amend § 1030.10 by adding a 

new paragraph (g) to read as follows: 

§ 1030.10 Producer-handler. 

* * * * * 

(g) Any producer-handler with route 

disposition through retail channels, 

either by sales direct to consumers, 

through home delivery, or to 

distribution outlets owned or controlled 

by the producer-handler, shall have 

such retail sales volumes treated as 

exempt volumes for the purposes of 

calculating any obligation of the 

producer-handler under § 1030.71 and 

§ 1030.72. The producer-handler shall 

provide proof satisfactory to the market 

administrator that the retail dispositions 

are made by the producer-handler direct 

to consumers, through home delivery, or 

to distribution outlets owned or 

controlled by the producer-handler. 

PART 1032—MILK IN THE CENTRAL 

MARKETING AREA 

111. Amend § 1032.10 by adding a 

new paragraph (g) to read as follows: 

§ 1032.10 Producer-handler. 

* * * * * 

(g) Any producer-handler with route 

disposition through retail channels, 

either by sales direct to consumers, 

through home delivery, or to 

distribution outlets owned or controlled 

by the producer-handler, shall have 

such retail sales volumes treated as 

exempt volumes for the purposes of 

calculating any obligation of the 

producer-handler under § 1032.71 and 

§ 1032.72. The producer-handler shall 

provide proof satisfactory to the market 

administrator that the retail dispositions 

are made by the producer-handler direct 

to consumers, through home delivery, or 

to distribution outlets owned or 

controlled by the producer-handler. 

PART 1033—MILK IN THE MIDEAST 

MARKETING AREA 

112. Amend § 1033.10 by adding a 

new paragraph (g) to read as follows: 

§ 1033.10 Producer-handler. 

* * * * * 

(g) Any producer-handler with route 

disposition through retail channels, 

either by sales direct to consumers, 

through home delivery, or to 

distribution outlets owned or controlled 

by the producer-handler, shall have 

such retail sales volumes treated as 

exempt volumes for the purposes of 

calculating any obligation of the 

producer-handler under § 1033.71 and 

§ 1033.72. The producer-handler shall 

provide proof satisfactory to the market 

administrator that the retail dispositions 

are made by the producer-handler direct 

to consumers, through home delivery, or 

to distribution outlets owned or 

controlled by the producer-handler. 

PART 1124—MILK IN THE PACIFIC 

NORTHWEST MARKETING AREA 

113. Amend 1124.10 by adding a new 

paragraph (g) to read as follows: 

§ 1124.10 Producer-handler. 

* * * * * 

(g) Any producer-handler with route 

disposition through retail channels, 

either by sales direct to consumers, 

through home delivery, or to 

distribution outlets owned or controlled 

by the producer-handler, shall have 

such retail sales volumes treated as 

exempt volumes for the purposes of 

calculating any obligation of the 

producer-handler under § 1124.71 and 

§ 1124.72. The producer-handler shall 

provide proof satisfactory to the market 

administrator that the retail dispositions 

are made by the producer-handler direct 

to consumers, through home delivery, or 

to distribution outlets owned or 

controlled by the producer-handler. 

PART 1126—MILK IN THE 

SOUTHWEST MARKETING AREA 

114. Amend § 1126.10 by adding a 

new paragraph (g) to read as follows: 

§ 1126.10 Producer-handler. 

* * * * * 

(g) Any producer-handler with route 

disposition through retail channels, 

either by sales direct to consumers, 

through home delivery, or to 

distribution outlets owned or controlled 

by the producer-handler, shall have 

such retail sales volumes treated as 

exempt volumes for the purposes of 

calculating any obligation of the 

producer-handler under § 1126.71 and 

§ 1126.72. The producer-handler shall 

provide proof satisfactory to the market 

administrator that the retail dispositions 

are made by the producer-handler direct 

to consumers, through home delivery, or 


dwashington3 on PROD1PC60 with PROPOSALS3
16310 Federal Register / Vol. 74, No. 67 / Thursday, April 9, 2009 / Proposed Rules 

to distribution outlets owned or 

controlled by the producer-handler. 

PART 1131—MILK IN THE ARIZONA 

MARKETING AREA 

115. Amend § 1131.10 by adding a 

new paragraph (g) to read as follows: 

§ 1131.10 Producer-handler. 

* * * * * 

(g) Any producer-handler with route 

disposition through retail channels, 

either by sales direct to consumers, 

through home delivery, or to 

distribution outlets owned or controlled 

by the producer-handler, shall have 

such retail sales volumes treated as 

exempt volumes for the purposes of 

calculating any obligation of the 

producer-handler under § 1131.71 and 

§ 1131.72. The producer-handler shall 

provide proof satisfactory to the market 

administrator that the retail dispositions 

are made by the producer-handler direct 

to consumers, through home delivery, or 

to distribution outlets owned or 

controlled by the producer-handler. 

Proposal No. 25 

This proposal would establish 

‘‘individual handler’’ pools for all 

handlers across all orders. 

PART 1001—MILK IN THE 

NORTHEAST MARKETING AREA 

116. Amend § 1001.61 by revising the 

introductory text and paragraphs (a) and 

(b) to read as follows: 

§ 1001.61 Computation of producer price 

differential. 

For each month, the market 

administrator shall compute a producer 

price differential per hundredweight for 

each handler required to file a report 

prescribed by § 1001.30 and for the 

order in aggregate. 

(a) Subject to the conditions in this 

paragraph, the market administrator 

shall compute the producer price 

differential for the order in aggregate in 

the following manner: 

(1) Combine into one total the values 

computed pursuant to § 1001.60 for all 

handlers required to file reports 

prescribed in § 1001.30; 

(2) Subtract the total of the values 

obtained by multiplying each handler’s 

total pounds of protein, other solids, 

and butterfat contained in the milk for 

which an obligation was computed 

pursuant to § 1001.60 by the protein 

price, other solids price, and the 

butterfat price, respectively; 

(3) Add an amount equal to the minus 

location adjustments and subtract an 

amount equal to the plus location 

adjustments computed pursuant to 

§ 1001.75; 

(4) Add an amount equal to not less 

than one-half of the unobligated balance 

in the producer-settlement fund; 

(5) Divide the resulting amount by the 

sum of the following for all handlers 

included in these computations: 

(i) The total hundredweight of 

producer milk; and 

(ii) The total hundredweight for 

which a value is computed pursuant to 

§ 1001.60(h); and 

(6) Subtract not less than 4 cents nor 

more than 5 cents from the price 

computed pursuant to paragraph (e) of 

this section. The result, rounded to the 

nearest cent, shall be known as the 

orders’ producer price differential for 

the month and shall be calculated for 

purposes of statistical comparison. 

(b) For each handler required to file 

a report prescribed by § 1001.30, the 

market administrator shall calculate the 

handler’s producer price differential in 

the following manner: 

(1) Subtract the total of the values 

obtained by multiplying the handler’s 

total pounds of protein, other solids, 

and butterfat contained in the milk for 

which an obligation was computed 

pursuant to § 1001.60 by the protein 

price, other solids price, and the 

butterfat price, respectively; 

(2) Add or subtract an amount equal 

to the location adjustments computed 

pursuant to § 1001.75; 

(3) Divide the resulting amount by the 

handler’s total hundredweight of 

producer milk; and 

(4) Subtract not less than 4 cents nor 

more than 5 cents from the price 

computed pursuant to paragraph (b)(3) 

of this section. The result, rounded to 

the nearest cent, shall be known as the 

handler’s producer price differential for 

the month and shall be utilized for 

determining the pay prices for 

producers and cooperative associations 

shipping to that handler. 

* * * * * 

117. Revise § 1001.62 to read as 

follows: 

§ 1001.62 Announcement of producer 

prices. 

On or before the 14th day after the 

end of the month, the market 

administrator shall announce the 

following prices and information: 

(a) The producer price differentials for 

the order in aggregate and for each 

handler; 

(b) The protein price; 

(c) The nonfat solids price; 

(d) The other solids price; 

(e) The butterfat price; 

(f) The average butterfat, protein, 

nonfat solids, and other solids content 

of producer milk; and 

(g) The statistical uniform price for 

milk containing 3.5 percent butterfat 

computed by combining the Class III 

price and the producer price 

differential. 

(h) If the 14th falls on a Saturday, 

Sunday, or national holiday, the market 

administrator may have up to two 

additional business days to announce 

the producer price differentials and the 

statistical uniform price. 

§§ 1001.70, 1001.71 and 1001.72 

[Removed] 

118. Remove and reserve §§ 1001.70, 

1001.71 and 1001.72. 

119. Amend § 1001.73 by: 

a. Revising paragraph (a)(2)(i); 

b. Removing paragraph (c); 

c. Redesignating paragraphs (d) and 

(e) as (c) and (d); and 

d. Revising newly redesignated 

paragraph(c). 

The revisions read as follows: 

§ 1001.73 Payments to producers and 

cooperative associations. 

(a) * * * 

(2) * * * 

(i) Multiply the hundredweight of 

producer milk received by the handler’s 

producer price differential for the 

month as adjusted pursuant to 

§ 1001.75; 

* * * * * 

(c) If a handler claims that a required 

payment to a producer cannot be made 

because the producer is deceased or 

cannot be located, or because the 

cooperative association or its lawful 

successor or assignee is no longer in 

existence, the payment shall be made in 

trust to the market administrator to the 

producer-settlement fund, and in the 

event that the handler subsequently 

locates and pays the producer or a 

lawful claimant, or in the event that the 

handler no longer exists and a lawful 

claim is later established, the market 

administrator shall make the required 

payment from the producer-settlement 

fund to the handler or to the lawful 

claimant as the case may be. 

* * * * * 

PART 1005—MILK IN THE 

APPALACHIAN MARKETING AREA 

120. Revise § 1005.61 to read as 

follows: 

§ 1005.61 Computation of uniform prices. 

On or before the 11th day of each 

month, the market administrator shall 

compute a uniform butterfat price, a 

uniform skim milk price, and a uniform 

price for producer milk receipts 

reported for the prior month for each 

handler required to file a report 

prescribed by § 1005.30 and for the 

order in aggregate. 


dwashington3 on PROD1PC60 with PROPOSALS3
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(a) Uniform butterfat price. The 

uniform butterfat price per pound, 

rounded to the nearest one-hundredth 

cent, shall be computed by: 

(1) Multiplying the pounds of 

butterfat in producer milk allocated to 

each class pursuant to § 1000.44(b) by 

the respective class butterfat prices; 

(2) Adding the butterfat value 

calculated in § 1005.60(e) for other 

source milk allocated to Class I pursuant 

to § 1000.43(d) and the steps of 

§ 1000.44(b) that correspond to 

§ 1000.44(a)(3)(i) and § 1000.44(a)(8) by 

the Class I price; and 

(3) Dividing the sum of paragraphs 

(a)(1) and (a)(2) of this section by the 

sum of the pounds of butterfat in 

producer milk and other source milk 

used to calculate the values in 

paragraphs (a)(1) and (a)(2) of this 

section. 

(b) Uniform skim milk price. The 

uniform skim milk price per 

hundredweight, rounded to the nearest 

cent, shall be computed as follows: 

(1) Combine into one total the values 

computed pursuant to § 1005.60 for all 

handlers; 

(2) Add an amount equal to the minus 

location adjustments and subtract an 

amount equal to the plus location 

adjustments computed pursuant to 

§ 1005.75; 

(3) Add an amount equal to not less 

than one-half of the unobligated balance 

in the producer-settlement fund; 

(4) Subtract the value of the total 

pounds of butterfat for all handlers. The 

butterfat value shall be computed by 

multiplying the sum of the pounds of 

butterfat in producer milk and other 

source milk used to calculate the values 

in paragraphs (a)(1) and (a)(2) of this 

section by the butterfat price computed 

in paragraph (a) of this section; 

(5) Divide the resulting amount by the 

sum of the following for all handlers 

included in these computations: 

(i) The total skim pounds of producer 

milk; and 

(ii) The total skim pounds for which 

a value is computed pursuant to 

§ 1005.60(e); and 

(6) Subtract not less than 4 cents and 

not more than 5 cents. 

(c) Uniform price. The uniform price 

per hundredweight, rounded to the 

nearest cent, shall be the sum of the 

following: 

(1) Multiply the uniform butterfat 

price for the month pursuant to 

paragraph (a) of this section times 3.5 

pounds of butterfat; and 

(2) Multiply the uniform skim milk 

price for the month pursuant to 

paragraph (b) of this section times 96.5 

pounds of skim milk. 

(d) Handler’s uniform butterfat price. 

The uniform butterfat price per pound, 

rounded to the nearest one-hundredth 

cent, shall be computed by: 

(1) Multiplying the pounds of 

butterfat in producer milk allocated to 

each class pursuant to § 1000.44(b) by 

the respective class butterfat prices; 

(2) Adding the butterfat value 

calculated in § 1005.60(e) for other 

source milk allocated to Class I pursuant 

to § 1000.43(d) and the steps of 

§ 1000.44(b) that correspond to 

§ 1000.44(a)(3)(i) and § 1000.44(a)(8) by 

the Class I price; and 

(3) Dividing the sum of paragraphs 

(a)(1) and (a)(2) of this section by the 

sum of the pounds of butterfat in 

producer milk and other source milk 

reported by the handler used to 

calculate the values in paragraphs (a)(1) 

and (a)(2) of this section. 

(e) Handler’s uniform skim milk price. 

The uniform skim milk price per 

hundredweight, rounded to the nearest 

cent, shall be computed as follows: 

(1) Begin with the handler’s values 

computed pursuant to § 1005.60; 

(2) Add or subtract an amount equal 

to location adjustments computed 

pursuant to § 1005.75; 

(3) Subtract the value of the total 

pounds of butterfat for the handler. The 

butterfat value shall be computed by 

multiplying the sum of the pounds of 

butterfat in producer milk and other 

source milk used to calculate the values 

in paragraphs (d)(1) and (d)(2) of this 

section by the butterfat price computed 

in paragraph (a) of this section; 

(4) Divide the resulting amount by the 

sum of the following for the handler: 

(i) The total skim pounds of producer 

milk; and 

(ii) The total skim pounds for which 

a value is computed pursuant to 

§ 1005.60(e); and 

(5) Subtract not less than 4 cents and 

not more than 5 cents. 

(f) Handler’s uniform price. The 

handler’s uniform price per 

hundredweight, rounded to the nearest 

cent, shall be the sum of the following: 

(1) Multiply the handler’s uniform 

butterfat price for the month pursuant to 

paragraph (a) of this section times 3.5 

pounds of butterfat; and 

(2) Multiply the handler’s uniform 

skim milk price for the month pursuant 

to paragraph (b) of this section times 

96.5 pounds of skim milk. 

121. Section 1005.62 is revised to read 

as follows: 

§ 1005.62 Announcement of uniform 

prices. 

On or before the 14th day after the 

end of the month, the market 

administrator shall announce the 

following prices and information: 

(a) The producer price differentials for 

the order in aggregate and for each 

handler; 

(b) The protein price; 

(c) The nonfat solids price; 

(d) The other solids price; 

(e) The butterfat price; 

(f) The average butterfat, protein, 

nonfat solids, and other solids content 

of producer milk; and 

(g) The statistical uniform price for 

milk containing 3.5 percent butterfat 

computed by combining the Class III 

price and the producer price 

differential. 

(h) If the 14th falls on a Saturday, 

Sunday, or national holiday, the market 

administrator may have up to two 

additional business days to announce 

the producer price differentials and the 

statistical uniform price. 

§§ 1005.70, 1005.71 and 1005.72 

[Removed] 

122. Remove and reserve § 1005.70, 

§ 1005.71 and § 1005.72. 

123. Amend § 1005.73 by: 

a. Revising paragraphs (a)(2)(i) and 

(ii); 

b. Removing paragraph (c); 

c. Redesignating paragraphs (d) and 

(e) as (c) and (d); and 

d. Revising newly redesignated 

paragraph (c). 

The revisions read as follows: 

§ 1005.73 Payments to producers and 

cooperative associations. 

(a) * * * 

(2) * * * 

(i) Multiply the hundredweight of 

producer skim milk received times the 

handler’s uniform skim milk price for 

the month; 

(ii) Multiply the pounds of butterfat 

received times the handler’s uniform 

butterfat price for the month; 

* * * * * 

(c) If a handler claims that a required 

payment to a producer cannot be made 

because the producer is deceased or 

cannot be located, or because the 

cooperative association or its lawful 

successor or assignee is no longer in 

existence, the payment shall be made in 

trust to the market administrator, and in 

the event that the handler subsequently 

locates and pays the producer or a 

lawful claimant, or in the event that the 

handler no longer exists and a lawful 

claim is later established, the market 

administrator shall make the required 

payment to the handler or to the lawful 

claimant as the case may be. 

* * * * * 

PART 1006—MILK IN THE FLORIDA 

MARKETING AREA 

124. Section 1006.61 is revised to read 

as follows: 


dwashington3 on PROD1PC60 with PROPOSALS3
16312 Federal Register / Vol. 74, No. 67 / Thursday, April 9, 2009 / Proposed Rules 

§ 1006.61 Computation of uniform prices. 

On or before the 11th day of each 

month, the market administrator shall 

compute a uniform butterfat price, a 

uniform skim milk price, and a uniform 

price for producer milk receipts 

reported for the prior month for each 

handler required to file a report 

prescribed by § 1005.30 and for the 

order in aggregate. 

(a) Uniform butterfat price. The 

uniform butterfat price per pound, 

rounded to the nearest one-hundredth 

cent, shall be computed by: 

(1) Multiplying the pounds of 

butterfat in producer milk allocated to 

each class pursuant to § 1000.44(b) by 

the respective class butterfat prices; 

(2) Adding the butterfat value 

calculated in § 1005.60(e) for other 

source milk allocated to Class I pursuant 

to § 1000.43(d) and the steps of 

§ 1000.44(b) that correspond to 

§ 1000.44(a)(3)(i) and § 1000.44(a)(8) by 

the Class I price; and 

(3) Dividing the sum of paragraphs 

(a)(1) and (a)(2) of this section by the 

sum of the pounds of butterfat in 

producer milk and other source milk 

used to calculate the values in 

paragraphs (a)(1) and (a)(2) of this 

section. 

(b) Uniform skim milk price. The 

uniform skim milk price per 

hundredweight, rounded to the nearest 

cent, shall be computed as follows: 

(1) Combine into one total the values 

computed pursuant to § 1005.60 for all 

handlers; 

(2) Add an amount equal to the minus 

location adjustments and subtract an 

amount equal to the plus location 

adjustments computed pursuant to 

§ 1005.75; 

(3) Add an amount equal to not less 

than one-half of the unobligated balance 

in the producer-settlement fund; 

(4) Subtract the value of the total 

pounds of butterfat for all handlers. The 

butterfat value shall be computed by 

multiplying the sum of the pounds of 

butterfat in producer milk and other 

source milk used to calculate the values 

in paragraphs (a)(1) and (a)(2) of this 

section by the butterfat price computed 

in paragraph (a) of this section; 

(5) Divide the resulting amount by the 

sum of the following for all handlers 

included in these computations: 

(i) The total skim pounds of producer 

milk; and 

(ii) The total skim pounds for which 

a value is computed pursuant to 

§ 1005.60(e); and 

(6) Subtract not less than 4 cents and 

not more than 5 cents. 

(c) Uniform price. The uniform price 

per hundredweight, rounded to the 

nearest cent, shall be the sum of the 

following: 

(1) Multiply the uniform butterfat 

price for the month pursuant to 

paragraph (a) of this section times 3.5 

pounds of butterfat; and 

(2) Multiply the uniform skim milk 

price for the month pursuant to 

paragraph (b) of this section times 96.5 

pounds of skim milk. 

(d) Handler’s uniform butterfat price. 

The uniform butterfat price per pound, 

rounded to the nearest one-hundredth 

cent, shall be computed by: 

(1) Multiplying the pounds of 

butterfat in producer milk allocated to 

each class pursuant to § 1000.44(b) by 

the respective class butterfat prices; 

(2) Adding the butterfat value 

calculated in § 1005.60(e) for other 

source milk allocated to Class I pursuant 

to § 1000.43(d) and the steps of 

§ 1000.44(b) that correspond to 

§ 1000.44(a)(3)(i) and § 1000.44(a)(8) by 

the Class I price; and 

(3) Dividing the sum of paragraphs 

(a)(1) and (a)(2) of this section by the 

sum of the pounds of butterfat in 

producer milk and other source milk 

reported by the handler used to 

calculate the values in paragraphs (a)(1) 

and (a)(2) of this section. 

(e) Handler’s uniform skim milk price. 

The uniform skim milk price per 

hundredweight, rounded to the nearest 

cent, shall be computed as follows: 

(1) Begin with the handler’s values 

computed pursuant to § 1005.60; 

(2) Add or subtract an amount equal 

to location adjustments computed 

pursuant to § 1005.75; 

(3) Subtract the value of the total 

pounds of butterfat for the handler. The 

butterfat value shall be computed by 

multiplying the sum of the pounds of 

butterfat in producer milk and other 

source milk used to calculate the values 

in paragraphs (d)(1) and (d)(2) of this 

section by the butterfat price computed 

in paragraph (a) of this section; 

(4) Divide the resulting amount by the 

sum of the following for the handler: 

(i) The total skim pounds of producer 

milk; and 

(ii) The total skim pounds for which 

a value is computed pursuant to 

§ 1005.60(e); and 

(5) Subtract not less than 4 cents and 

not more than 5 cents. 

(f) Handler’s uniform price. The 

handler’s uniform price per 

hundredweight, rounded to the nearest 

cent, shall be the sum of the following: 

(1) Multiply the handler’s uniform 

butterfat price for the month pursuant to 

paragraph (a) of this section times 3.5 

pounds of butterfat; and 

(2) Multiply the handler’s uniform 

skim milk price for the month pursuant 

to paragraph 

(b) of this section times 96.5 pounds 

of skim milk. 

125. Section 1006.62 is revised to read 

as follows: 

§ 1006.62 Announcement of uniform 

prices. 

On or before the 14th day after the 

end of the month, the market 

administrator shall announce the 

following prices and information: 

(a) The producer price differentials for 

the order in aggregate and for each 

handler; 

(b) The protein price; 

(c) The nonfat solids price; 

(d) The other solids price; 

(e) The butterfat price; 

(f) The average butterfat, protein, 

nonfat solids, and other solids content 

of producer milk; and 

(g) The statistical uniform price for 

milk containing 3.5 percent butterfat 

computed by combining the Class III 

price and the producer price 

differential. 

(h) If the 14th falls on a Saturday, 

Sunday, or national holiday, the market 

administrator may have up to two 

additional business days to announce 

the producer price differentials and the 

statistical uniform price. 

§§ 1006.70, 1006.71 and 1006.72 

[Removed] 

126. Remove and reserve §§ 1006.70, 

1006.71 and 1006.72. 

127. Amend § 1006.73 by: 

a. Revising paragraphs (a)(2)(i) and 

(ii); 

b. Removing paragraph (c); 

c. Redesignating paragraphs (d) and 

(e) as (c) and (d); and 

d. Revising newly redesignated 

paragraph (c). 

The revisions read as follows: 

§ 1006.73 Payments to producers and 

cooperative associations. 

(a) * * * 

(2) * * * 

(i) Multiply the hundredweight of 

producer skim milk received times the 

handler’s uniform skim milk price for 

the month; 

(ii) Multiply the pounds of butterfat 

received times the handler’s uniform 

butterfat price for the month; 

* * * * * 

(c) If a handler claims that a required 

payment to a producer cannot be made 

because the producer is deceased or 

cannot be located, or because the 

cooperative association or its lawful 

successor or assignee is no longer in 

existence, the payment shall be made in 

trust to the market administrator, and in 

the event that the handler subsequently 

locates and pays the producer or a 


dwashington3 on PROD1PC60 with PROPOSALS3
Federal Register / Vol. 74, No. 67 / Thursday, April 9, 2009 / Proposed Rules 16313 

lawful claimant, or in the event that the 

handler no longer exists and a lawful 

claim is later established, the market 

administrator shall make the required 

payment to the handler or to the lawful 

claimant as the case may be. 

* * * * * 

PART 1007—MILK IN THE SOUTHEAST 

MARKETING AREA 

128. Revise § 1007.61 to read as 

follows: 

§ 1007.61 Computation of uniform prices. 

On or before the 11th day of each 

month, the market administrator shall 

compute a uniform butterfat price, a 

uniform skim milk price, and a uniform 

price for producer milk receipts 

reported for the prior month for each 

handler required to file a report 

prescribed by § 1005.30 and for the 

order in aggregate. 

(a) Uniform butterfat price. The 

uniform butterfat price per pound, 

rounded to the nearest one-hundredth 

cent, shall be computed by: 

(1) Multiplying the pounds of 

butterfat in producer milk allocated to 

each class pursuant to § 1000.44(b) by 

the respective class butterfat prices; 

(2) Adding the butterfat value 

calculated in § 1005.60(e) for other 

source milk allocated to Class I pursuant 

to § 1000.43(d) and the steps of 

§ 1000.44(b) that correspond to 

§ 1000.44(a)(3)(i) and § 1000.44(a)(8) by 

the Class I price; and 

(3) Dividing the sum of paragraphs 

(a)(1) and (a)(2) of this section by the 

sum of the pounds of butterfat in 

producer milk and other source milk 

used to calculate the values in 

paragraphs (a)(1) and (a)(2) of this 

section. 

(b) Uniform skim milk price. The 

uniform skim milk price per 

hundredweight, rounded to the nearest 

cent, shall be computed as follows: 

(1) Combine into one total the values 

computed pursuant to § 1005.60 for all 

handlers; 

(2) Add an amount equal to the minus 

location adjustments and subtract an 

amount equal to the plus location 

adjustments computed pursuant to 

§ 1005.75; 

(3) Add an amount equal to not less 

than one-half of the unobligated balance 

in the producer-settlement fund; 

(4) Subtract the value of the total 

pounds of butterfat for all handlers. The 

butterfat value shall be computed by 

multiplying the sum of the pounds of 

butterfat in producer milk and other 

source milk used to calculate the values 

in paragraphs (a)(1) and (a)(2) of this 

section by the butterfat price computed 

in paragraph (a) of this section; 

(5) Divide the resulting amount by the 

sum of the following for all handlers 

included in these computations: 

(i) The total skim pounds of producer 

milk; and 

(ii) The total skim pounds for which 

a value is computed pursuant to 

§ 1005.60(e); and 

(6) Subtract not less than 4 cents and 

not more than 5 cents. 

(c) Uniform price. The uniform price 

per hundredweight, rounded to the 

nearest cent, shall be the sum of the 

following: 

(1) Multiply the uniform butterfat 

price for the month pursuant to 

paragraph (a) of this section times 3.5 

pounds of butterfat; and 

(2) Multiply the uniform skim milk 

price for the month pursuant to 

paragraph (b) of this section times 96.5 

pounds of skim milk. 

(d) Handler’s uniform butterfat price. 

The uniform butterfat price per pound, 

rounded to the nearest one-hundredth 

cent, shall be computed by: 

(1) Multiplying the pounds of 

butterfat in producer milk allocated to 

each class pursuant to § 1000.44(b) by 

the respective class butterfat prices; 

(2) Adding the butterfat value 

calculated in § 1005.60(e) for other 

source milk allocated to Class I pursuant 

to § 1000.43(d) and the steps of 

§ 1000.44(b) that correspond to 

§ 1000.44(a)(3)(i) and § 1000.44(a)(8) by 

the Class I price; and 

(3) Dividing the sum of paragraphs 

(a)(1) and (a)(2) of this section by the 

sum of the pounds of butterfat in 

producer milk and other source milk 

reported by the handler used to 

calculate the values in paragraphs (a)(1) 

and (a)(2) of this section. 

(e) Handler’s uniform skim milk price. 

The uniform skim milk price per 

hundredweight, rounded to the nearest 

cent, shall be computed as follows: 

(1) Begin with the handler’s values 

computed pursuant to § 1005.60; 

(2) Add or subtract an amount equal 

to location adjustments computed 

pursuant to § 1005.75; 

(3) Subtract the value of the total 

pounds of butterfat for the handler. The 

butterfat value shall be computed by 

multiplying the sum of the pounds of 

butterfat in producer milk and other 

source milk used to calculate the values 

in paragraphs (d)(1) and (d)(2) of this 

section by the butterfat price computed 

in paragraph (a) of this section; 

(4) Divide the resulting amount by the 

sum of the following for the handler: 

(i) The total skim pounds of producer 

milk; and 

(ii) The total skim pounds for which 

a value is computed pursuant to 

§ 1005.60(e); and 

(5) Subtract not less than 4 cents and 

not more than 5 cents. 

(f) Handler’s uniform price. The 

handler’s uniform price per 

hundredweight, rounded to the nearest 

cent, shall be the sum of the following: 

(1) Multiply the handler’s uniform 

butterfat price for the month pursuant to 

paragraph (a) of this section times 3.5 

pounds of butterfat; and 

(2) Multiply the handler’s uniform 

skim milk price for the month pursuant 

to paragraph (b) of this section times 

96.5 pounds of skim milk. 

129. Revise § 1007.62 to read as 

follows: 

§ 1007.62 Announcement of uniform 

prices. 

On or before the 14th day after the 

end of the month, the market 

administrator shall announce the 

following prices and information: 

(a) The producer price differentials for 

the order in aggregate and for each 

handler; 

(b) The protein price; 

(c) The nonfat solids price; 

(d) The other solids price; 

(e) The butterfat price; 

(f) The average butterfat, protein, 

nonfat solids, and other solids content 

of producer milk; and 

(g) The statistical uniform price for 

milk containing 3.5 percent butterfat 

computed by combining the Class III 

price and the producer price 

differential. 

(h) If the 14th falls on a Saturday, 

Sunday, or national holiday, the market 

administrator may have up to two 

additional business days to announce 

the producer price differentials and the 

statistical uniform price. 

§§ 1007.70, 1007.71 and 1007.72 

[Removed] 

130. Remove and reserve § 1007.70, 

§ 1007.71 and § 1007.72. 

131. Amend § 1007.73 by: 

a. Revising paragraphs (a)(2)(i) and 

(ii); 

b. Removing paragraph (c); 

c. Redesignating paragraphs (d) and 

(e) as (c) and (d); and 

d. Revising newly redesignated 

paragraph (c). 

The revisions read as follows: 

§ 1007.73 Payments to producers and 

cooperative associations. 

(a) * * * 

(2) * * * 

(i) Multiply the hundredweight of 

producer skim milk received times the 

handler’s uniform skim milk price for 

the month; 

(ii) Multiply the pounds of butterfat 

received times the handler’s uniform 

butterfat price for the month; 

* * * * * 


dwashington3 on PROD1PC60 with PROPOSALS3
16314 Federal Register / Vol. 74, No. 67 / Thursday, April 9, 2009 / Proposed Rules 

(c) If a handler claims that a required 

payment to a producer cannot be made 

because the producer is deceased or 

cannot be located, or because the 

cooperative association or its lawful 

successor or assignee is no longer in 

existence, the payment shall be made in 

trust to the market administrator, and in 

the event that the handler subsequently 

locates and pays the producer or a 

lawful claimant, or in the event that the 

handler no longer exists and a lawful 

claim is later established, the market 

administrator shall make the required 

payment to the handler or to the lawful 

claimant as the case may be. 

* * * * * 

PART 1030—MILK IN THE UPPER 

MIDWEST MARKETING AREA 

132. Section 1030.61 is revised to read 

as follows: 

§ 1030.61 Computation of producer price 

differential. 

For each month, the market 

administrator shall compute a producer 

price differential per hundredweight for 

each handler required to file a report 

prescribed by § 1001.30 and for the 

order in aggregate. 

(a) Subject to the conditions in this 

paragraph, the market administrator 

shall compute the producer price 

differential for the order in aggregate in 

the following manner: 

(1) Combine into one total the values 

computed pursuant to § 1030.60 for all 

handlers required to file reports 

prescribed in § 1030.30; 

(2) Subtract the total of the values 

obtained by multiplying each handler’s 

total pounds of protein, other solids, 

and butterfat contained in the milk for 

which an obligation was computed 

pursuant to § 1030.60 by the protein 

price, other solids price, and the 

butterfat price, respectively; 

(3) Add an amount equal to the minus 

location adjustments and subtract an 

amount equal to the plus location 

adjustments computed pursuant to 

§ 1030.75; 

(4) Add an amount equal to not less 

than one-half of the unobligated balance 

in the producer-settlement fund; 

(5) Divide the resulting amount by the 

sum of the following for all handlers 

included in these computations: 

(a) The total hundredweight of 

producer milk; and 

(b) The total hundredweight for which 

a value is computed pursuant to 

§ 1030.60(h); and 

(6) Subtract not less than 4 cents nor 

more than 5 cents from the price 

computed pursuant to paragraph (e) of 

this section. The result, rounded to the 

nearest cent, shall be known as the 

orders’ producer price differential for 

the month and shall be calculated for 

purposes of statistical comparison. 

(b) For each handler required to file 

a report prescribed by § 1030.30, the 

market administrator shall calculate the 

handler’s producer price differential in 

the following manner: 

(1) Subtract the total of the values 

obtained by multiplying the handler’s 

total pounds of protein, other solids, 

and butterfat contained in the milk for 

which an obligation was computed 

pursuant to § 1030.60 by the protein 

price, other solids price, and the 

butterfat price, respectively; 

(2) Add or subtract an amount equal 

to the location adjustments computed 

pursuant to § 1030.75; 

(3) Divide the resulting amount by the 

handler’s total hundredweight of 

producer milk; and 

(4) Subtract not less than 4 cents nor 

more than 5 cents from the price 

computed pursuant to paragraph (b)(3) 

of this section. The result, rounded to 

the nearest cent, shall be known as the 

handler’s producer price differential for 

the month and shall be utilized for 

determining the pay prices for 

producers and cooperative associations 

shipping to that handler. 

133. Section 1030.62 is revised to read 

as follows: 

§ 1030.62 Announcement of uniform 

prices. 

On or before the 14th day after the 

end of the month, the market 

administrator shall announce the 

following prices and information: 

(a) The producer price differentials for 

the order in aggregate and for each 

handler; 

(b) The protein price; 

(c) The nonfat solids price; 

(d) The other solids price; 

(e) The butterfat price; 

(f) The average butterfat, protein, 

nonfat solids, and other solids content 

of producer milk; and 

(g) The statistical uniform price for 

milk containing 3.5 percent butterfat 

computed by combining the Class III 

price and the producer price 

differential. 

(h) If the 14th falls on a Saturday, 

Sunday, or national holiday, the market 

administrator may have up to two 

additional business days to announce 

the producer price differentials and the 

statistical uniform price. 

§§ 1030.70, 1030.71 and 1030.72 

[Removed] 

134. Remove and reserve §§ 1030.70, 

1030.71 and 1030.72. 

135. Amend § 1030.73 by: 

a. Revising paragraph (a)(2)(i); 

b. Removing paragraph (c); 

c. Redesignating paragraphs (d) and 

(e) as (c) and (d); and 

d. Revising newly redesignated 

paragraph (c). 

The revisions read as follows: 

§ 1030.73 Payments to producers and 

cooperative associations. 

(a) * * * 

(2) * * * 

(i) Multiply the hundredweight of 

producer milk received by the handler’s 

producer price differential for the 

month as adjusted pursuant to 

§ 1001.75; 

* * * * * 

(c) If a handler claims that a required 

payment to a producer cannot be made 

because the producer is deceased or 

cannot be located, or because the 

cooperative association or its lawful 

successor or assignee is no longer in 

existence, the payment shall be made in 

trust to the market administrator to the 

producer-settlement fund, and in the 

event that the handler subsequently 

locates and pays the producer or a 

lawful claimant, or in the event that the 

handler no longer exists and a lawful 

claim is later established, the market 

administrator shall make the required 

payment from the producer-settlement 

fund to the handler or to the lawful 

claimant as the case may be. 

* * * * * 

PART 1032—MILK IN THE CENTRAL 

MARKETING AREA 

136. Amend § 1032.61 by revising the 

introductory text and paragraphs (a) and 

(b) to read as follows: 

§ 1032.61 Computation of producer price 

differential. 

For each month, the market 

administrator shall compute a producer 

price differential per hundredweight for 

each handler required to file a report 

prescribed by § 1032.30 and for the 

order in aggregate. 

(a) Subject to the conditions in this 

paragraph, the market administrator 

shall compute the producer price 

differential for the order in aggregate in 

the following manner: 

(1) Combine into one total the values 

computed pursuant to § 1032.60 for all 

handlers required to file reports 

prescribed in § 1032.30; 

(2) Subtract the total of the values 

obtained by multiplying each handler’s 

total pounds of protein, other solids, 

and butterfat contained in the milk for 

which an obligation was computed 

pursuant to § 1032.60 by the protein 

price, other solids price, and the 

butterfat price, respectively; 


dwashington3 on PROD1PC60 with PROPOSALS3
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(3) Add an amount equal to the minus 

location adjustments and subtract an 

amount equal to the plus location 

adjustments computed pursuant to 

§ 1032.75; 

(4) Add an amount equal to not less 

than one-half of the unobligated balance 

in the producer-settlement fund; 

(5) Divide the resulting amount by the 

sum of the following for all handlers 

included in these computations: 

(i) The total hundredweight of 

producer milk; and 

(ii) The total hundredweight for 

which a value is computed pursuant to 

§ 1032.60(h); and 

(6) Subtract not less than 4 cents nor 

more than 5 cents from the price 

computed pursuant to paragraph (e) of 

this section. The result, rounded to the 

nearest cent, shall be known as the 

orders’ producer price differential for 

the month and shall be calculated for 

purposes of statistical comparison. 

(b) For each handler required to file 

a report prescribed by § 1032.30, the 

market administrator shall calculate the 

handler’s producer price differential in 

the following manner: 

(1) Subtract the total of the values 

obtained by multiplying the handler’s 

total pounds of protein, other solids, 

and butterfat contained in the milk for 

which an obligation was computed 

pursuant to § 1032.60 by the protein 

price, other solids price, and the 

butterfat price, respectively; 

(2) Add or subtract an amount equal 

to the location adjustments computed 

pursuant to § 1032.75; 

(3) Divide the resulting amount by the 

handler’s total hundredweight of 

producer milk; and 

(4) Subtract not less than 4 cents nor 

more than 5 cents from the price 

computed pursuant to paragraph (b)(3) 

of this section. The result, rounded to 

the nearest cent, shall be known as the 

handler’s producer price differential for 

the month and shall be utilized for 

determining the pay prices for 

producers and cooperative associations 

shipping to that handler. 

* * * * * 

137. Section 1032.62 is revised to read 

as follows: 

§ 1032.62 Announcement of uniform 

prices. 

On or before the 14th day after the 

end of the month, the market 

administrator shall announce the 

following prices and information: 

(a) The producer price differentials for 

the order in aggregate and for each 

handler; 

(b) The protein price; 

(c) The nonfat solids price; 

(d) The other solids price; 

(e) The butterfat price; 

(f) The average butterfat, protein, 

nonfat solids, and other solids content 

of producer milk; and 

(g) The statistical uniform price for 

milk containing 3.5 percent butterfat 

computed by combining the Class III 

price and the producer price 

differential. 

(h) If the 14th falls on a Saturday, 

Sunday, or national holiday, the market 

administrator may have up to two 

additional business days to announce 

the producer price differentials and the 

statistical uniform price. 

§§ 1032.70, 1032.71 and 1032.72 

[Removed] 

138. Remove and reserve §§ 1032.70, 

1032.71 and 1032.72. 

139. Revise § 1032.73 by: 

a. Revising paragraph (a)(2)(i); 

b. Removing paragraph (c); 

c. Redesignating paragraphs (d) and 

(e) as (c) and (d); and 

d. Revising newly redesignated 

paragraph(c). 

The revisions read as follows: 

§ 1032.73 Payments to producers and 

cooperative associations. 

(a) * * * 

(2) * * * 

(i) Multiply the hundredweight of 

producer milk received by the handler’s 

producer price differential for the 

month as adjusted pursuant to 

§ 1032.75; 

* * * * * 

(c) If a handler claims that a required 

payment to a producer cannot be made 

because the producer is deceased or 

cannot be located, or because the 

cooperative association or its lawful 

successor or assignee is no longer in 

existence, the payment shall be made in 

trust to the market administrator to the 

producer-settlement fund, and in the 

event that the handler subsequently 

locates and pays the producer or a 

lawful claimant, or in the event that the 

handler no longer exists and a lawful 

claim is later established, the market 

administrator shall make the required 

payment from the producer-settlement 

fund to the handler or to the lawful 

claimant as the case may be. 

* * * * * 

PART 1033—MILK IN THE MIDEAST 

MARKETING AREA 

140. Amend § 1032.61 by revising the 

introductory text and paragraphs (a) and 

(b) to read as follows: 

§ 1033.61 Computation of producer price 

differential. 

For each month, the market 

administrator shall compute a producer 

price differential per hundredweight for 

each handler required to file a report 

prescribed by § 1033.30 and for the 

order in aggregate. 

(a) Subject to the conditions in this 

paragraph, the market administrator 

shall compute the producer price 

differential for the order in aggregate in 

the following manner: 

(1) Combine into one total the values 

computed pursuant to § 1033.60 for all 

handlers required to file reports 

prescribed in § 1033.30; 

(2) Subtract the total of the values 

obtained by multiplying each handler’s 

total pounds of protein, other solids, 

and butterfat contained in the milk for 

which an obligation was computed 

pursuant to § 1033.60 by the protein 

price, other solids price, and the 

butterfat price, respectively; 

(3) Add an amount equal to the minus 

location adjustments and subtract an 

amount equal to the plus location 

adjustments computed pursuant to 

§ 1033.75; 

(4) Add an amount equal to not less 

than one-half of the unobligated balance 

in the producer-settlement fund; 

(5) Divide the resulting amount by the 

sum of the following for all handlers 

included in these computations: 

(i) The total hundredweight of 

producer milk; and 

(ii) The total hundredweight for 

which a value is computed pursuant to 

§ 1033.60(h); and 

(6) Subtract not less than 4 cents nor 

more than 5 cents from the price 

computed pursuant to paragraph (e) of 

this section. The result, rounded to the 

nearest cent, shall be known as the 

orders’ producer price differential for 

the month and shall be calculated for 

purposes of statistical comparison. 

(b) For each handler required to file 

a report prescribed by § 1033.30, the 

market administrator shall calculate the 

handler’s producer price differential in 

the following manner: 

(1) Subtract the total of the values 

obtained by multiplying the handler’s 

total pounds of protein, other solids, 

and butterfat contained in the milk for 

which an obligation was computed 

pursuant to § 1033.60 by the protein 

price, other solids price, and the 

butterfat price, respectively; 

(2) Add or subtract an amount equal 

to the location adjustments computed 

pursuant to § 1033.75; 

(3) Divide the resulting amount by the 

handler’s total hundredweight of 

producer milk; and 

(4) Subtract not less than 4 cents nor 

more than 5 cents from the price 

computed pursuant to paragraph (b)(3) 

of this section. The result, rounded to 

the nearest cent, shall be known as the 


dwashington3 on PROD1PC60 with PROPOSALS3
16316 Federal Register / Vol. 74, No. 67 / Thursday, April 9, 2009 / Proposed Rules 

handler’s producer price differential for 

the month and shall be utilized for 

determining the pay prices for 

producers and cooperative associations 

shipping to that handler. 

* * * * * 

141. § 1033.62 is revised to read as 

follows: 

§ 1033.62 Announcement of uniform 

prices. 

On or before the 14th day after the 

end of the month, the market 

administrator shall announce the 

following prices and information: 

(a) The producer price differentials for 

the order in aggregate and for each 

handler; 

(b) The protein price; 

(c) The nonfat solids price; 

(d) The other solids price; 

(e) The butterfat price; 

(f) The average butterfat, protein, 

nonfat solids, and other solids content 

of producer milk; and 

(g) The statistical uniform price for 

milk containing 3.5 percent butterfat 

computed by combining the Class III 

price and the producer price 

differential. 

(h) If the 14th falls on a Saturday, 

Sunday, or national holiday, the market 

administrator may have up to two 

additional business days to announce 

the producer price differentials and the 

statistical uniform price. 

§§ 1033.70, 1033.71 and 1033.72 

[Removed] 

142. Remove and reserve §§ 1033.70, 

1033.71 and 1033.72. 

143. Amend § 1033.73 by: 

a. Revising paragraph (a)(2)(i); 

b. Removing paragraph (c); 

c. Redesignating paragraphs (d) and 

(e) as (c) and (d); and 

d. Revising newly redesignated 

paragraph (c). 

The revisons read as follows: 

§ 1033.73 Payments to producers and 

cooperative associations. 

(a) * * * 

(2) * * * 

(i) Multiply the hundredweight of 

producer milk received by the handler’s 

producer price differential for the 

month as adjusted pursuant to 

§ 1001.75; 

* * * * * 

(c) If a handler claims that a required 

payment to a producer cannot be made 

because the producer is deceased or 

cannot be located, or because the 

cooperative association or its lawful 

successor or assignee is no longer in 

existence, the payment shall be made in 

trust to the market administrator to the 

producer-settlement fund, and in the 

event that the handler subsequently 

locates and pays the producer or a 

lawful claimant, or in the event that the 

handler no longer exists and a lawful 

claim is later established, the market 

administrator shall make the required 

payment from the producer-settlement 

fund to the handler or to the lawful 

claimant as the case may be. 

* * * * * 

PART 1124—MILK IN THE PACIFIC 

NORTHWEST MARKETING AREA 

144. Amend § 1124.61 by revising 

introductory text and paragraphs (a) and 

(b) to read as follows: 

§ 1124.61 Computation of producer price 

differential. 

For each month, the market 

administrator shall compute a producer 

price differential per hundredweight for 

each handler required to file a report 

prescribed by § 1124.30 and for the 

order in aggregate. 

(a) Subject to the conditions in this 

paragraph, the market administrator 

shall compute the producer price 

differential for the order in aggregate in 

the following manner: 

(1) Combine into one total the values 

computed pursuant to § 1124.60 for all 

handlers required to file reports 

prescribed in § 1124.30; 

(2) Subtract the total of the values 

obtained by multiplying each handler’s 

total pounds of protein, other solids, 

and butterfat contained in the milk for 

which an obligation was computed 

pursuant to § 1124.60 by the protein 

price, other solids price, and the 

butterfat price, respectively; 

(3) Add an amount equal to the minus 

location adjustments and subtract an 

amount equal to the plus location 

adjustments computed pursuant to 

§ 1124.75; 

(4) Add an amount equal to not less 

than one-half of the unobligated balance 

in the producer-settlement fund; 

(5) Divide the resulting amount by the 

sum of the following for all handlers 

included in these computations: 

(i) The total hundredweight of 

producer milk; and 

(ii) The total hundredweight for 

which a value is computed pursuant to 

§ 1124.60(h); and 

(6) Subtract not less than 4 cents nor 

more than 5 cents from the price 

computed pursuant to paragraph (e) of 

this section. The result, rounded to the 

nearest cent, shall be known as the 

orders’ producer price differential for 

the month and shall be calculated for 

purposes of statistical comparison. 

(b) For each handler required to file 

a report prescribed by § 1124.30, the 

market administrator shall calculate the 

handler’s producer price differential in 

the following manner: 

(1) Subtract the total of the values 

obtained by multiplying the handler’s 

total pounds of protein, other solids, 

and butterfat contained in the milk for 

which an obligation was computed 

pursuant to § 1124.60 by the protein 

price, other solids price, and the 

butterfat price, respectively; 

(2) Add or subtract an amount equal 

to the location adjustments computed 

pursuant to § 1124.75; 

(3) Divide the resulting amount by the 

handler’s total hundredweight of 

producer milk; and 

(4) Subtract not less than 4 cents nor 

more than 5 cents from the price 

computed pursuant to paragraph (b)(3) 

of this section. The result, rounded to 

the nearest cent, shall be known as the 

handler’s producer price differential for 

the month and shall be utilized for 

determining the pay prices for 

producers and cooperative associations 

shipping to that handler. 

* * * * * 

145. Section 1124.62 is revised to read 

as follows: 

§ 1124.62 Announcement of uniform 

prices. 

On or before the 14th day after the 

end of the month, the market 

administrator shall announce the 

following prices and information: 

(a) The producer price differentials for 

the order in aggregate and for each 

handler; 

(b) The protein price; 

(c) The nonfat solids price; 

(d) The other solids price; 

(e) The butterfat price; 

(f) The average butterfat, protein, 

nonfat solids, and other solids content 

of producer milk; and 

(g) The statistical uniform price for 

milk containing 3.5 percent butterfat 

computed by combining the Class III 

price and the producer price 

differential. 

(h) If the 14th falls on a Saturday, 

Sunday, or national holiday, the market 

administrator may have up to two 

additional business days to announce 

the producer price differentials and the 

statistical uniform price. 

§§ 1124.70, 1124.71 and 1124.72 

[Removed] 

146. Remove and reserve §§ 1124.70, 

1124.71 and 1124.72. 

147. Amend § 1124.73 by: 

a. Revising paragraph (a)(2)(i); 

b. Removing paragraph (c); 

c. Redesignating paragraphs (d) and 

(e) as (c) and (d); and 

d. Revising newly redesignated 

paragraph(c). 


dwashington3 on PROD1PC60 with PROPOSALS3
Federal Register / Vol. 74, No. 67 / Thursday, April 9, 2009 / Proposed Rules 16317 

The revisions read as follows: 

§ 1124.73 Payments to producers and 

cooperative associations. 

(a) * * * 

(2) * * * 

(i) Multiply the hundredweight of 

producer milk received by the handler’s 

producer price differential for the 

month as adjusted pursuant to 

§ 1001.75; 

* * * * * 

(c) If a handler claims that a required 

payment to a producer cannot be made 

because the producer is deceased or 

cannot be located, or because the 

cooperative association or its lawful 

successor or assignee is no longer in 

existence, the payment shall be made in 

trust to the market administrator to the 

producer-settlement fund, and in the 

event that the handler subsequently 

locates and pays the producer or a 

lawful claimant, or in the event that the 

handler no longer exists and a lawful 

claim is later established, the market 

administrator shall make the required 

payment from the producer-settlement 

fund to the handler or to the lawful 

claimant as the case may be. 

* * * * * 

PART 1126—MILK IN THE 

SOUTHWEST MARKETING AREA 

148. Amend § 1126.61 by revising the 

introductory text and paragraphs (a) and 

(b) to read as follows: 

§ 1126.61 Computation of producer price 

differential. 

For each month, the market 

administrator shall compute a producer 

price differential per hundredweight for 

each handler required to file a report 

prescribed by § 1126.30 and for the 

order in aggregate. 

(a) Subject to the conditions in this 

paragraph, the market administrator 

shall compute the producer price 

differential for the order in aggregate in 

the following manner: 

(1) Combine into one total the values 

computed pursuant to § 1126.60 for all 

handlers required to file reports 

prescribed in § 1126.30; 

(2) Subtract the total of the values 

obtained by multiplying each handler’s 

total pounds of protein, other solids, 

and butterfat contained in the milk for 

which an obligation was computed 

pursuant to § 1126.60 by the protein 

price, other solids price, and the 

butterfat price, respectively; 

(3) Add an amount equal to the minus 

location adjustments and subtract an 

amount equal to the plus location 

adjustments computed pursuant to 

§ 1126.75; 

(4) Add an amount equal to not less 

than one-half of the unobligated balance 

in the producer-settlement fund; 

(5) Divide the resulting amount by the 

sum of the following for all handlers 

included in these computations: 

(i) The total hundredweight of 

producer milk; and 

(ii) The total hundredweight for 

which a value is computed pursuant to 

§ 1126.60(h); and 

(6) Subtract not less than 4 cents nor 

more than 5 cents from the price 

computed pursuant to paragraph (e) of 

this section. The result, rounded to the 

nearest cent, shall be known as the 

orders’ producer price differential for 

the month and shall be calculated for 

purposes of statistical comparison. 

(b) For each handler required to file 

a report prescribed by § 1126.30, the 

market administrator shall calculate the 

handler’s producer price differential in 

the following manner: 

(1) Subtract the total of the values 

obtained by multiplying the handler’s 

total pounds of protein, other solids, 

and butterfat contained in the milk for 

which an obligation was computed 

pursuant to § 1126.60 by the protein 

price, other solids price, and the 

butterfat price, respectively; 

(2) Add or subtract an amount equal 

to the location adjustments computed 

pursuant to § 1126.75; 

(3) Divide the resulting amount by the 

handler’s total hundredweight of 

producer milk; and 

(4) Subtract not less than 4 cents nor 

more than 5 cents from the price 

computed pursuant to paragraph (b)(3) 

of this section. The result, rounded to 

the nearest cent, shall be known as the 

handler’s producer price differential for 

the month and shall be utilized for 

determining the pay prices for 

producers and cooperative associations 

shipping to that handler. 

* * * * * 

149. Section 1126.62 is revised to read 

as follows: 

§ 1126.62 Announcement of uniform 

prices. 

On or before the 14th day after the 

end of the month, the market 

administrator shall announce the 

following prices and information: 

(a) The producer price differentials for 

the order in aggregate and for each 

handler; 

(b) The protein price; 

(c) The nonfat solids price; 

(d) The other solids price; 

(e) The butterfat price; 

(f) The average butterfat, protein, 

nonfat solids, and other solids content 

of producer milk; and 

(g) The statistical uniform price for 

milk containing 3.5 percent butterfat 

computed by combining the Class III 

price and the producer price 

differential. 

(h) If the 14th falls on a Saturday, 

Sunday, or national holiday, the market 

administrator may have up to two 

additional business days to announce 

the producer price differentials and the 

statistical uniform price. 

§§ 1126.70, 1126.71 and 1126.72 

[Removed] 

150. Remove and reserve §§ 1126.70, 

1126.71 and 1126.72. 

151. Amend § 1126.73 by: 

a. Revising paragraph (a)(2)(i); 

b. Removing paragraph (c); 

c. Redesignating paragraphs (d) and 

(e) as (c) and (d); and 

d. Revising newly redesignated 

paragraph (c). 

The revisions read as follows: 

§ 1126.73 Payments to producers and 

cooperative associations. 

(a) * * * 

(2) * * * 

(i) Multiply the hundredweight of 

producer milk received by the handler’s 

producer price differential for the 

month as adjusted pursuant to 

§ 1001.75; 

* * * * * 

(c) If a handler claims that a required 

payment to a producer cannot be made 

because the producer is deceased or 

cannot be located, or because the 

cooperative association or its lawful 

successor or assignee is no longer in 

existence, the payment shall be made in 

trust to the market administrator to the 

producer-settlement fund, and in the 

event that the handler subsequently 

locates and pays the producer or a 

lawful claimant, or in the event that the 

handler no longer exists and a lawful 

claim is later established, the market 

administrator shall make the required 

payment from the producer-settlement 

fund to the handler or to the lawful 

claimant as the case may be. 

* * * * * 

PART 1131—MILK IN THE ARIZONA 

MARKETING AREA 

152. Section 1131.61 is revised to read 

as follows: 

§ 1131.61 Computation of uniform prices. 

On or before the 11th day of each 

month, the market administrator shall 

compute a uniform butterfat price, a 

uniform skim milk price, and a uniform 

price for producer milk receipts 

reported for the prior month for each 

handler required to file a report 

prescribed by § 1005.30 and for the 

order in aggregate. 


dwashington3 on PROD1PC60 with PROPOSALS3
16318 Federal Register / Vol. 74, No. 67 / Thursday, April 9, 2009 / Proposed Rules 

(a) Uniform butterfat price. The 

uniform butterfat price per pound, 

rounded to the nearest one-hundredth 

cent, shall be computed by: 

(1) Multiplying the pounds of 

butterfat in producer milk allocated to 

each class pursuant to § 1000.44(b) by 

the respective class butterfat prices; 

(2) Adding the butterfat value 

calculated in § 1005.60(e) for other 

source milk allocated to Class I pursuant 

to § 1000.43(d) and the steps of 

§ 1000.44(b) that correspond to 

§ 1000.44(a)(3)(i) and § 1000.44(a)(8) by 

the Class I price; and 

(3) Dividing the sum of paragraphs 

(a)(1) and (a)(2) of this section by the 

sum of the pounds of butterfat in 

producer milk and other source milk 

used to calculate the values in 

paragraphs (a)(1) and (a)(2) of this 

section. 

(b) Uniform skim milk price. The 

uniform skim milk price per 

hundredweight, rounded to the nearest 

cent, shall be computed as follows: 

(1) Combine into one total the values 

computed pursuant to § 1005.60 for all 

handlers; 

(2) Add an amount equal to the minus 

location adjustments and subtract an 

amount equal to the plus location 

adjustments computed pursuant to 

§ 1005.75; 

(3) Add an amount equal to not less 

than one-half of the unobligated balance 

in the producer-settlement fund; 

(4) Subtract the value of the total 

pounds of butterfat for all handlers. The 

butterfat value shall be computed by 

multiplying the sum of the pounds of 

butterfat in producer milk and other 

source milk used to calculate the values 

in paragraphs (a)(1) and (a)(2) of this 

section by the butterfat price computed 

in paragraph (a) of this section; 

(5) Divide the resulting amount by the 

sum of the following for all handlers 

included in these computations: 

(i) The total skim pounds of producer 

milk; and 

(ii) The total skim pounds for which 

a value is computed pursuant to 

§ 1005.60(e); and 

(6) Subtract not less than 4 cents and 

not more than 5 cents. 

(c) Uniform price. The uniform price 

per hundredweight, rounded to the 

nearest cent, shall be the sum of the 

following: 

(1) Multiply the uniform butterfat 

price for the month pursuant to 

paragraph (a) of this section times 3.5 

pounds of butterfat; and 

(2) Multiply the uniform skim milk 

price for the month pursuant to 

paragraph (b) of this section times 96.5 

pounds of skim milk. 

(d) Handler’s uniform butterfat price. 

The uniform butterfat price per pound, 

rounded to the nearest one-hundredth 

cent, shall be computed by: 

(1) Multiplying the pounds of 

butterfat in producer milk allocated to 

each class pursuant to § 1000.44(b) by 

the respective class butterfat prices; 

(2) Adding the butterfat value 

calculated in § 1005.60(e) for other 

source milk allocated to Class I pursuant 

to § 1000.43(d) and the steps of 

§ 1000.44(b) that correspond to 

§ 1000.44(a)(3)(i) and § 1000.44(a)(8) by 

the Class I price; and 

(3) Dividing the sum of paragraphs 

(a)(1) and (a)(2) of this section by the 

sum of the pounds of butterfat in 

producer milk and other source milk 

reported by the handler used to 

calculate the values in paragraphs (a)(1) 

and (a)(2) of this section. 

(e) Handler’s uniform skim milk price. 

The uniform skim milk price per 

hundredweight, rounded to the nearest 

cent, shall be computed as follows: 

(1) Begin with the handler’s values 

computed pursuant to § 1005.60; 

(2) Add or subtract an amount equal 

to location adjustments computed 

pursuant to § 1005.75; 

(3) Subtract the value of the total 

pounds of butterfat for the handler. The 

butterfat value shall be computed by 

multiplying the sum of the pounds of 

butterfat in producer milk and other 

source milk used to calculate the values 

in paragraphs (d)(1) and (d)(2) of this 

section by the butterfat price computed 

in paragraph (a) of this section; 

(4) Divide the resulting amount by the 

sum of the following for the handler: 

(i) The total skim pounds of producer 

milk; and 

(ii) The total skim pounds for which 

a value is computed pursuant to 

§ 1005.60(e); and 

(5) Subtract not less than 4 cents and 

not more than 5 cents. 

(f) Handler’s uniform price. The 

handler’s uniform price per 

hundredweight, rounded to the nearest 

cent, shall be the sum of the following: 

(1) Multiply the handler’s uniform 

butterfat price for the month pursuant to 

paragraph (a) of this section times 3.5 

pounds of butterfat; and 

(2) Multiply the handler’s uniform 

skim milk price for the month pursuant 

to paragraph 

(b) of this section times 96.5 pounds 

of skim milk. 

153. Section 1131.62 is revised to read 

as follows: 

§ 1131.62 Announcement of uniform 

prices. 

On or before the 14th day after the 

end of the month, the market 

administrator shall announce the 

following prices and information: 

(a) The producer price differentials for 

the order in aggregate and for each 

handler; 

(b) The protein price; 

(c) The nonfat solids price; 

(d) The other solids price; 

(e) The butterfat price; 

(f) The average butterfat, protein, 

nonfat solids, and other solids content 

of producer milk; and 

(g) The statistical uniform price for 

milk containing 3.5 percent butterfat 

computed by combining the Class III 

price and the producer price 

differential. 

(h) If the 14th falls on a Saturday, 

Sunday, or national holiday, the market 

administrator may have up to two 

additional business days to announce 

the producer price differentials and the 

statistical uniform price. 

§§ 1131.70, 1131.71 and 1131.72 

[Removed] 

154. Remove and reserve §§ 1131.70, 

1131.71 and 1131.72. 

155. Amend § 1131.73 by: 

a. Revising paragraphs (a)(2)(i) and 

(ii); 

b. Removing paragraph (c); 

c. Redesignating paragraphs (d) and 

(e) as (c) and (d); and 

d. Revising newly redesignated 

paragraph (c). 

The revisions read as follows: 

§ 1131.73 Payments to producers and 

cooperative associations. 

(a) * * * 

(2) * * * 

(i) Multiply the hundredweight of 

producer skim milk received times the 

handler’s uniform skim milk price for 

the month; 

(ii) Multiply the pounds of butterfat 

received times the handler’s uniform 

butterfat price for the month; 

* * * * * 

(c) If a handler claims that a required 

payment to a producer cannot be made 

because the producer is deceased or 

cannot be located, or because the 

cooperative association or its lawful 

successor or assignee is no longer in 

existence, the payment shall be made in 

trust to the market administrator, and in 

the event that the handler subsequently 

locates and pays the producer or a 

lawful claimant, or in the event that the 

handler no longer exists and a lawful 

claim is later established, the market 

administrator shall make the required 

payment to the handler or to the lawful 

claimant as the case may be. 

* * * * * 

Proposed by National Milk Producers 

Federation. 


dwashington3 on PROD1PC60 with PROPOSALS3
Federal Register / Vol. 74, No. 67 / Thursday, April 9, 2009 / Proposed Rules 16319 

Proposal No. 26 

This proposal seeks to allow current 

qualified producer-handlers an 

exemption from the pricing and pooling 

provisions of their respective order. 

Specifically, producer-handlers would 

be exempt from pricing and pooling 

provisions on the first 3,000,000 pounds 

of total route disposition and packaged 

sales of fluid milk products provided 

that the products distributed are 

uniquely branded. 

PART 1000—GENERAL PROVISIONS 

OF FEDERAL MILK MARKETING 

ORDERS 

156. Amend § 1000.8 by adding new 

paragraph (e)(5) to read as follows: 

§ 1000.8 Nonpool plant. 

* * * * * 

(e) * * * 

(5) A distributing plant that was 

operated during 2008 by a producerhandler in a Federal order market 

within the meaning of the Federal milk 

marketing order at that time, provided 

that the plant: 

(i) Has route disposition in all markets 

and packaged sales of fluid milk 

products to other plants in all markets 

that are uniquely branded and total 

3,000,000 pounds or less during the 

month. 

(ii) Receives no fluid milk products, 

and acquires no fluid milk products for 

route disposition, from sources other 

than own-farm production; 

(iii) The plant disposes of no other 

source milk as Class I milk except by 

increasing the nonfat milk solids 

content of the fluid milk products 

received from own-farm production; 

and 

(iv) Provides proof satisfactory to the 

market administrator that the care and 

management of the dairy animals and 

other resources necessary to produce all 

Class I milk handled, and the processing 

and packaging operations, are the plant 

owner’s own enterprise and are 

operated at the plant owner’s own risk, 

and that the plant owner has no interest 

in any other distributing plant (except 

through membership in a CapperVolstead cooperative association) or in 

any farms from which the plant does not 

receive milk. The burden rests upon the 

handler who is designated as exempt 

under this paragraph (e)(5) to establish 

through records required pursuant to 

§ 1000.27 that the requirements of such 

exemption are met. 

Proposed by New Hampshire 

Department of Agriculture, Markets and 

Food and Vermont Agency of 

Agriculture, Food and Markets. 

Proposal No. 27 

This proposal seeks to end the 

regulatory exemption of producerhandlers from the pooling and pricing 

provisions of their respective orders if 

their Class I route disposition and sales 

of packaged fluid milk products exceeds 

3,000,000 pounds of milk per month 

within the marketing area. 

PART 1000—GENERAL PROVISIONS 

OF FEDERAL MILK MARKETING 

ORDERS 

157. Revise § 1000.8(b) to read as 

follows: 

§ 1000.8 Nonpool plant. 

* * * * * 

(b) Producer-handler plant means a 

plant with route disposition and 

packaged sales of fluid milk products of 

3,000,000 pounds of milk per month or 

less in the marketing area that is 

operated by a producer-handler as 

defined under any Federal order. 

* * * * * 

Proposed by Weber’s Farm Store, Inc. 

Proposal No. 28 

This proposal seeks to end the 

regulatory exemption of producerhandlers from the pooling and pricing 

provisions of the Upper Midwest order 

if their Class I route disposition and 

sales of packaged fluid milk products 

exceeds 2,000,000 pounds of milk per 

month within the marketing area. 

PART 1030—MILK IN THE UPPER 

MIDWEST MARKETING AREA 

158. Amend § 1030.10 by revising 

paragraph (a) to read as follows: 

§ 1000.8 Nonpool plant. 

* * * * * 

(a) Operates a dairy farm and a 

distributing plant from which there is 

route disposition of 2,000,000 pounds of 

milk per month or less in the marketing 

area. 

* * * * * 

Proposed by Dairy Programs, 

Agricultural Marketing Service. 

Proposal No. 29 

For all Federal Milk Marketing 

Orders, make necessary changes to make 

the entire marketing agreements and the 

orders conform with any amendments 

thereto that may result from this 

hearing. 

Copies of this notice of hearing and 

the orders may be procured from the 

Market Administrator of each of the 

aforesaid marketing areas, Online at 

http://www.ams.usda.gov/dairy, or from 

the Hearing Clerk, United States 

Department of Agriculture, STOP 

9200—Room 1031, 1400 Independence 

Avenue, SW., Washington, DC 20250– 

9200, or may be inspected there. 

Copies of the transcript of testimony 

taken at the hearing will not be available 

for distribution through the Hearing 

Clerk’s Office. If you wish to purchase 

a copy, arrangements may be made with 

the reporter at the hearing. Copies of the 

transcript are also available Online at 

http://www.ams.usda.gov/dairy. 

From the time that a hearing notice is 

issued and until the issuance of a final 

decision, USDA employees are 

prohibited from discussing the merits of 

the hearing issues on an ex parte basis 

with any person. For this particular 

proceeding, the prohibition applies to 

employees in the following 

organizational units: 

Office of the Secretary of Agriculture; 

Office of the Administrator, Agricultural 

Marketing Service; 

Office of the General Counsel; and 

Dairy Programs, Agricultural Marketing 

Service (Washington office) and the 

Offices of all Market Administrators. 

Procedural matters are not subject to 

the above prohibition and may be 

discussed at any time. 

Dated: April 3, 2009. 

David R. Shipman, 

Acting Administrator. 

[FR Doc. E9–7982 Filed 4–6–09; 4:15 pm] 

BILLING CODE 3410–02–P 


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