This section of the FEDERAL REGISTER

contains regulatory documents having general

applicability and legal effect, most of which

are keyed to and codified in the Code of

Federal Regulations, which is published under

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

The Code of Federal Regulations is sold by

the Superintendent of Documents. Prices of

new books are listed in the first FEDERAL

REGISTER issue of each week.

Rules and Regulations Federal Register

11517 

Vol. 73, No. 43 

Tuesday, March 4, 2008 

1With the increase, the reserve would be $14 

million. However a six month reserve is needed for 

all program contingencies, including shutdown. 

DEPARTMENT OF AGRICULTURE 

Agricultural Marketing Service 

7 CFR Parts 56 and 70 

[Docket No. AMS–PY–07–0065] 

RIN 0581–AC73 

Multi Year Increase in Fees and 

Charges for Egg, Poultry, and Rabbit 

Grading and Audit Services 

AGENCY: Agricultural Marketing Service, 

USDA. 

ACTION: Final rule. 

SUMMARY: The Agricultural Marketing 

Service (AMS) is increasing the fees and 

charges for Federal voluntary egg, 

poultry, and rabbit grading, 

certification, and audit services for the 

next two fiscal years, FY 2008 and FY 

2009. The fees and charges are being 

increased by 2.76% to 7.74% to cover 

the increase in salaries of Federal 

employees, salary increases of State 

employees cooperatively utilized in 

administering the programs, and other 

increased Agency costs. AMS is 

required to collect fees from users of 

these services to cover the costs of 

services rendered. 

EFFECTIVE DATE: March 30, 2008. 

FOR FURTHER INFORMATION CONTACT: 

David Bowden, Jr., Chief, USDA, AMS, 

PY, Standards, Promotions and 

Technology Branch, (202) 690–3148. 

SUPPLEMENTARY INFORMATION: 

Background and Proposed Changes 

The Agricultural Marketing Act of 

1946 (AMA), as amended, (7 U.S.C. 

1621–1627), gives AMS the authority to 

provide services so that agricultural 

products may be marketed to their best 

advantage, that global marketing and 

trade may be facilitated, and that 

consumers may be able to ascertain 

characteristics involved in the 

production and processing of products 

and obtain the quality of product they 

desire. The AMA also provides for the 

collection of fees from users of these 

services that are reasonable and cover 

the cost of providing services. Voluntary 

grading and certification of eggs, 

poultry, and rabbits and verification and 

conformance audits, fall within this 

authorization. 

A recent review determined that the 

existing fee schedule, effective April 1, 

2007, will not generate sufficient 

revenue to cover program costs while 

maintaining an adequate trust fund 

reserve balance in FY 2008 and FY 

2009. Revenue, investment income and 

other adjustments in FY 2006 were $36 

million while expenses were $35 

million, resulting in a trust fund reserve 

balance increase from $12.3 million to 

$13.3 million.1

FY 2007 revenue, investment income 

and other adjustments are currently 

projected at $35.9 million and expenses 

in FY 2007 are projected at $35.8 

million. This will result in a trust fund 

reserve balance of $13.4 million. 

Without a fee increase, FY 2008 

revenue is projected to be $35 million. 

Expenses are projected to be $37.4 

million, which would leave a reserve of 

$11 million. With a fee increase, FY 

2008 revenue is projected at $37.5 

million. The fee increase will result in 

a trust fund reserve balance of $13.5 

million. 

Without a fee increase, FY 2009 

revenue is projected at $34.9 million. 

Expenses are projected at $38.2 million, 

which would leave a reserve of $7.7 

million. With a fee increase in FY 2009, 

revenue is projected at $38.8 million. 

The fee increase will result in a trust 

fund reserve balance of $14 million. 

Employee salaries and benefits 

account for approximately 85 percent of 

the total operating budget. The last 

general and locality salary increase for 

Federal employees became effective on 

January 1, 2007, and it materially 

affected program costs. Projected cost 

estimates for that increase were based 

on a salary increase of 1.7 percent; 

however, the increase was actually 1.81 

to 3.02 percent, depending on locality. 

The average annual increase in salary 

over the past five years has been 3.71 

percent and was used for the projected 

salary increase for January 2008 and 

January 2009. Also, from October 2007 

through September 2009, salaries and 

fringe benefits of federally-licensed 

State employees are estimated to 

increase by about 6.0 percent. 

The hourly rate for resident and nonresident service covers graders’ salaries 

and benefits. The current hourly rates of 

$39.04, $69.68, and $80.12 for the 

resident and fee service cover graders’ 

salaries and benefits, plus the cost of 

travel and supervision. The minimum 

monthly administrative volume charge 

for resident poultry, shell egg, and 

rabbit grading remains at $275, because 

the fee analysis determined that raising 

the minimum monthly administrative 

charge would not generate additional 

reserve. 

For FY 2008 the resident fee rate will 

be $40.88 for regular hours and $64.44 

for holiday hours, an increase of 

approximately 5 percent from the 

previous year. Beginning in January 

2009, the resident fees rates will be 

$42.68 for regular hours and $67.28 for 

holiday hours, an increase of 

approximately 4 percent from the 

previous year. 

For FY 2008 the non-resident fee rates 

will be $74.08 for regular hours and 

$86.68 for weekend and holiday hours, 

an increase of approximately 7 percent 

from the previous year. Beginning in 

January 2009, the non-resident fee rates 

will be $77.28 for regular hours and 

$93.24 for weekend and holiday hours, 

an increase of approximately 6 percent 

from the previous year. 

Current rates for auditing services are 

$82.16 and $102.84. In FY 2008 they 

will be $87.56 for regular hours and 

$112.00 for weekend and holiday hours, 

an increase of approximately 8 percent 

from the previous year. Beginning in 

January 2009, the audit rates will be 

$89.20 for regular hours and $116.08 for 

weekend and holiday hours, an increase 

of approximately 3 percent. 

The inauguration charge of $310, 

when an application for service has 

been received, has been eliminated. By 

restructuring the inauguration charge, 

expenses incurred for plant surveys and 

billed to applicants will reflect a more 

accurate accounting for the services 

rendered. Since a plant survey still is 

required, the fee for the survey will be 

borne by the applicant at rates set forth 

for shell eggs in § 56.46 (a)-(c) and for 

poultry and rabbits in § 70.71 (a)-(c), 

plus any travel and additional expenses. 


rwilkins on PROD1PC63 with RULES
11518 Federal Register / Vol. 73, No. 43 / Tuesday, March 4, 2008 / Rules and Regulations 

The following table compares current 

and new fees. The fee rate will be 

increased by approximately 7.0 percent. 

The hourly rate for resident and 

nonresident service covers graders’

salaries and benefits. 

Service Current 2008 2009 

Resident Service (egg, poultry, and rabbit grading) 

Inauguration of service ........................................................................................ 310 0 0 

Hourly charges: 

Regular hours ............................................................................................... 39 .04 40 .88 42 .68 

Holiday hours ................................................................................................ 61 .44 64 .44 67 .28 

Administrative charges—Poultry grading ............................................................ .00043 .00045 .00047 

Per pound of poultry ..................................................................................... 275 275 275 

Minimum per month ...................................................................................... 3,075 3,150 3,225 

Maximum per month ..................................................................................... ................................ ................................ ................................

Administrative charges—Shell egg grading ........................................................ .053 .055 .058 

Per 30-dozen case of shell eggs ................................................................. 275 275 275 

Minimum per month ...................................................................................... 3,075 3,150 3,225 

Maximum per month ..................................................................................... ................................ ................................ ................................

Administrative charges—Rabbit grading: 

Based on 25% of grader’s salary, minimum per month .............................. 275 275 275 

Non-resident Service (egg, poultry, and rabbit grading) 

Hourly charges: 

Regular hours ............................................................................................... 39 .04 40 .88 42 .68 

Administrative charges: 

Based on 25% of grader’s salary, minimum per month .............................. 275 275 275 

Nonresident Fee and Appeal Service (egg, poultry, and rabbit grading) 

Hourly charges: 

Regular hours ............................................................................................... 69 .68 74 .08 77 .28 

Weekend and holiday hours ......................................................................... 80 .12 86 .68 93 .24 

Audit Fee (Plant Systems, Animal Welfare, QSVP) 

Hourly charges: 

Regular hours ............................................................................................... 82 .16 87 .56 89 .20 

Weekend and holiday hours ......................................................................... 102 .84 112 .00 116 .08 

Comments 

Based on the analysis of costs to 

provide these services, a proposed rule 

to increase fees for these services was 

published in the Federal Register (72 

FR 62591) on November 6, 2007. 

Comments on the proposed rule were 

solicited from interested parties until 

December 6, 2007. No comments were 

received. 

Executive Order 12866 

This action has been determined to be 

not significant for purposes of Executive 

Order 12866 and therefore, has not been 

reviewed by the Office of Management 

and Budget (OMB). 

Regulatory Flexibility Act 

Pursuant to the requirements set forth 

in the Regulatory Flexibility Act 

(RFA)(5 U.S.C. 601–674), AMS has 

considered the economic impact of this 

action on small entities. It is determined 

that its provisions will not have a 

significant economic impact on a 

substantial number of small entities. 

There are about 390 users of Poultry 

Programs’ services. These official plants 

can pack eggs, poultry, and rabbits in 

packages bearing the USDA grade shield 

when AMS graders are present to certify 

that the products meet the grade 

requirements as labeled. Many of these 

users are small entities under the 

criteria established by the Small 

Business Administration (13 CFR 

121.201). These entities are under no 

obligation to use program services as 

authorized under the Agricultural 

Marketing Act of 1946. 

AMS regularly reviews its user fee 

financed programs to determine if fees 

are adequate and if costs are reasonable. 

A recent review determined that the 

existing fee schedule, effective April 1, 

2007, will not generate sufficient 

revenue to cover program costs while 

maintaining an adequate reserve balance 

in FY 2008 and FY 2009. 

Expenses in FY 2008 are projected at 

$37.4 million. Without a fee increase, 

FY 2008 revenue is projected at $35 

million. With a fee increase, FY 2008 

revenues are projected at $37.5 million. 

Expenses in FY 2009 are projected at 

$38.2 million. Without a fee increase, 

FY 2009 revenues are projected at $34.9 

million. With a fee increase, FY 2009 

revenues are projected at $38.8 million. 

This action will raise the fees charged 

to users of grading and auditing 

services. AMS estimates that, overall, 

this rule will yield about $2.4 million 

during FY 2008 and an additional $1.3 

million for FY 2009. The hourly rate for 

resident and nonresident service will 

increase by approximately 4.71 percent 

in FY 2008 and 4.4 percent in FY 2009. 

The fee rate will increase by 

approximately 7 percent in FY 2008 and 

approximately 6 percent in FY 2009. 

The audit fee will increase by 

approximately 8 percent in FY 2008 and 

approximately 3 percent in FY 2009. 

The impact of these rate changes in a 

poultry plant will range from about 

$0.000078 to $0.000952 per pound of 

poultry handled in FY 2008 and 

$0.000085 to $0.001068 in FY 2009. In 

a shell egg plant, the range will be 

$0.000273 to $0.003499 per dozen eggs 

handled in FY 2008 and $0.000410 to 

$0.004870 per dozen eggs handled in FY 

2009. 

Civil Justice Reform 

This action has been reviewed under 

Executive Order 12988, Civil Justice 

Reform. This action is not intended to 


rwilkins on PROD1PC63 with RULES
Federal Register / Vol. 73, No. 43 / Tuesday, March 4, 2008 / Rules and Regulations 11519 

have retroactive effect. This rule will 

not preempt any State or local laws, 

regulations, or policies, unless they 

present an irreconcilable conflict with 

this rule. There are no administrative 

procedures which must be exhausted 

prior to any judicial challenge to the 

provisions of this rule. 

Paperwork Reduction 

The information collection 

requirements that appear in the sections 

to be amended by this action have been 

previously approved by OMB and 

assigned OMB Control Numbers under 

the Paperwork Reduction Act (44 U.S.C. 

Chapter 35) as follows: § 56.52(a)(4)—

No. 0581–0128; and § 70.77(a)(4)—No. 

0581–0127. 

Pursuant to 5 U.S.C. 533, it is found 

and determined that good cause exists 

for not postponing the effective date 

until 30 days after publication in the 

Federal Register. The revised fees need 

to be implemented on an expedited 

basis in order to avoid further financial 

losses in the grading program. The 

effective date of the fee increase is 

March 30, 2008. 

List of Subjects 

7 CFR Part 56 

Eggs and egg products, Food grades 

and standards, Food labeling, Reporting 

and recordkeeping requirements. 

7 CFR Part 70 

Food grades and standards, Food 

labeling, Poultry and poultry products, 

Rabbits and rabbit products, Reporting 

and recordkeeping requirements. 

■ For reasons set forth in the preamble, 

Title 7, Code of Federal Regulations, 

parts 56 and 70 is amended as follows: 

PART 56—VOLUNTARY GRADING OF 

SHELL EGGS 

■ 1. The authority citation for part 56 

continues to read as follows: 

Authority: 7 U.S.C. 1621–1627. 

§ 56.46 [Amended] 

■ 2. Section 56.46 is amended by: 

■ A. Removing in paragraph (b), 

‘‘$69.68’’ and adding ‘‘$74.08, beginning 

March 30, 2008, and $77.28 on or after 

January 25, 2009,’’ in its place. 

■ B. Removing in paragraph (c), ‘‘$80.12 

per hour’’ and adding ‘‘$86.68 per hour, 

beginning March 30, 2008, and $93.24 

per hour on or after January 25, 2009,’’

in its place. 

■ C. Removing in paragraph (d), 

‘‘$82.16’’ and adding ‘‘$87.56 beginning 

March 30, 2008, and $89.20 on or after 

January 25, 2009,’’ in its place. 

■ D. Removing in paragraph (e), 

‘‘$102.84 per hour’’ and adding 

‘‘$112.00 per hour beginning March 30, 

2008, and $116.08 per hour on or after 

January 25, 2009,’’ in its place. 

■ 3. Section 56.52 is amended by: 

■ A. Removing the first sentence of 

paragraph (a)(1), and adding three 

sentences to read as set forth below; and 

■ B. Removing in paragraph (a)(4), 

‘‘$0.053’’ and adding ‘‘$0.055 beginning 

March 30, 2008, and $0.058 on or after 

January 25, 2009,’’ in its place, and 

removing ‘‘$3,075’’ and adding ‘‘$3,150 

beginning March 30, 2008, and $3,225 

on or after January 25, 2009,’’ in its 

place. 

§ 56.52 Charges for continuous grading 

performed on a resident basis. 

* * * * * 

(a) * * * 

(1) When a signed application for 

service has been received, the State 

supervisor or the supervisor’s assistant 

shall complete a plant survey pursuant 

to § 56.30. The costs for completing the 

plant survey shall be borne by the 

applicant on a fee basis at rates set forth 

in § 56.46 (a) through(c), plus any travel 

and additional expenses. No charges 

will be assessed when the application is 

required because of a change in name or 

ownership. * * * 

* * * * * 

PART 70—VOLUNTARY GRADING OF 

POULTRY PRODUCTS AND RABBIT 

PRODUCTS 

■ 4. The authority citation for part 70 

continues to read as follows: 

Authority: 7 U.S.C. 1621–1627. 

§ 70.71 [Amended] 

■ 5. Section 70.71 is amended by: 

■ A. Removing in paragraph (b) 

‘‘$69.68’’ and adding ‘‘$74.08 beginning 

March 30, 2008, and $77.28 on or after 

January 25, 2009,’’ in its place. 

■ B. Removing in paragraph (c) ‘‘$80.12 

per hour’’ and adding ‘‘$86.68 per hour 

beginning March 30, 2008, and $93.24 

per hour on or after January 25, 2009,’’

in its place. 

■ C. Removing in paragraph (d), 

‘‘$82.16’’ and adding ‘‘$87.56 beginning 

March 30, 2008, and $89.20 on or after 

January 25, 2009,’’ in its place. 

■ D. Removing in paragraph (e), 

‘‘$102.84 per hour’’ and adding 

‘‘$112.00 per hour beginning March 30, 

2008, and $116.08 per hour on or after 

January 25, 2009,’’ in its place. 

■ 6. Section 70.77 is amended by: 

■ A. Removing the first sentence of 

paragraph (a)(1), and adding three 

sentences to read as set forth below; and 

■ B. Removing in paragraph (a)(4), 

‘‘$0.00043’’ and adding ‘‘$0.00045 

beginning March 30, 2008, and $0.00047 

on or after January 25, 2009,’’ in its 

place, and removing ‘‘$3,075’’ and 

adding ‘‘$3,150 beginning March 30, 

2008, and $3,225 on or after January 25, 

2009,’’ in its place. 

§ 70.77 Charges for continuous poultry or 

rabbit grading performed on a resident 

basis. 

* * * * * 

(a) * * * 

(1) When a signed application for 

service has been received, the State 

supervisor or the supervisor’s assistant 

shall complete a plant survey pursuant 

to § 70.34. The costs for completing the 

plant survey shall be borne by the 

applicant on a fee basis at rates set forth 

in § 70.71 (a) through (c), plus any travel 

and additional expenses. No charges 

will be assessed when the application is 

required because of a change in name or 

ownership. * * * 

* * * * * 

Dated: February 28, 2008. 

Lloyd C. Day, 

Administrator, Agricultural Marketing 

Service. 

[FR Doc. 08–928 Filed 2–28–08; 11:26 am] 

BILLING CODE 3410–02–P 

DEPARTMENT OF AGRICULTURE 

Farm Service Agency 

7 CFR Part 786 

RIN 0560–AH74 

Dairy Disaster Assistance Payment 

Program III 

AGENCY: Farm Service Agency, USDA. 

ACTION: Final rule. 

SUMMARY: This final rule establishes a 

new program, the Dairy Disaster 

Assistance Payment Program III, as 

authorized by the U.S. Troop Readiness, 

Veterans’ Care, Katrina Recovery, and 

Iraq Accountability Appropriations Act, 

2007. The program will provide $16 

million in assistance for producers in 

counties designated as a major disaster 

or emergency area by the President, or 

those declared a natural disaster area by 

the Secretary of Agriculture. Counties 

declared disasters by the President may 

be eligible, even though agricultural loss 

was not covered by the declaration, if 

there has been a Farm Service Agency 

Administrator’s Physical Loss Notice 

covering such losses. The natural 

disaster declarations by the Secretary or 

the President must have been issued 

between January 1, 2005 and December 

31, 2007, that is, after January 1, 2005, 

and before December 31, 2007. Counties 


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