Beef Promotion and Research; Reapportionment

 
CONTENT
Federal Register, Volume 84 Issue 249 (Monday, December 30, 2019)
[Federal Register Volume 84, Number 249 (Monday, December 30, 2019)]
[Proposed Rules]
[Pages 71829-71832]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-28057]
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Proposed Rules
                                                Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains notices to the public of
the proposed issuance of rules and regulations. The purpose of these
notices is to give interested persons an opportunity to participate in
the rule making prior to the adoption of the final rules.
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Federal Register / Vol. 84, No. 249 / Monday, December 30, 2019 /
Proposed Rules
[[Page 71829]]
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 1260
[No. AMS-LP-19-0012]
Beef Promotion and Research; Reapportionment
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Proposed rule.
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SUMMARY: This proposed rule would adjust representation on the
Cattlemen's Beef Promotion and Research Board (Board), established
under the Beef Promotion and Research Act of 1985 (Act), to reflect
changes in domestic cattle inventories as well as changes in levels of
imported cattle, beef, and beef products that have occurred since the
Board was last reapportioned in July 2017. These adjustments are
required by the Beef Promotion and Research Order (Order) and, if
adopted, would result in an increase in Board membership from 99 to
101, effective with the Secretary of Agriculture's (Secretary)
appointments for terms beginning early in the year 2021.
DATES: Submit comments on or before February 28, 2020.
ADDRESSES: Comments should be posted online at www.regulations.gov.
Comments received will be posted without change, including any personal
information provided. All comments should reference the docket number
AMS-LP-19-0012, the date of submission, and the page number of this
issue of the Federal Register. Comments may also be sent to Kahl
Sesker, Agricultural Marketing Specialist; Research and Promotion
Division; Livestock and Poultry Program, AMS, USDA; Room 2610-S, STOP
0251, 1400 Independence Avenue SW; Washington, DC 20250-0251; or via
fax to (202) 720-1125. Comments will be made available for public
inspection at the above address during regular business hours or via
the internet at www.regulations.gov.
FOR FURTHER INFORMATION CONTACT: Kahl Sesker, Research and Promotion
Division, at (202) 253-8253; fax (202) 720-1125; or by email at
[email protected].
SUPPLEMENTARY INFORMATION:
Executive Orders 12866, 13563, and 13771
    Executive Orders 12866 and 13563 direct agencies to assess all
costs and benefits of available regulatory alternatives and, if
regulation is necessary, to select regulatory approaches that maximize
net benefits (including potential economic, environmental, public
health, and safety effects; distributive impacts; and equity).
Executive Order 13563 emphasizes the importance of quantifying both
costs and benefits, reducing costs, harmonizing rules, and promoting
flexibility. This rule does not meet the definition of a significant
regulatory action contained in section 3(f) of Executive Order 12866
and therefore, the Office of Management and Budget (OMB) has waived
review of this action. Additionally, because this rule does not meet
the definition of a significant regulatory action, it does not trigger
the requirements contained in Executive Order 13771. See OMB's
Memorandum titled ``Interim Guidance Implementing Section 2 of the
Executive Order of January 30, 2017, titled `Reducing Regulation and
Controlling Regulatory Costs' '' (February 2, 2017).
Executive Order 12988
    This proposed rule has been reviewed under Executive Order 12988,
Civil Justice Reform. This rule is not intended to have retroactive
effect.
    Section 11 of the Act (7 U.S.C. 2910) provides that nothing in the
Act may be construed to preempt or supersede any other program relating
to beef promotion organized and operated under the laws of the U.S. or
any State. There are no administrative proceedings that must be
exhausted prior to any judicial challenge to the provisions of this
rule.
Executive Order 13175
    This action has been reviewed in accordance with the requirements
of Executive Order 13175, Consultation and Coordination with Indian
Tribal Governments. The review reveals that this regulation would not
have substantial and direct efforts on Tribal governments or
significant Tribal implications.
Paperwork Reduction Act
    In accordance with OMB regulations (5 CFR 1320) that implement the
Paperwork Reduction Act of 1995 (44 U.S.C. part 35), the information
collection and recordkeeping requirements contained in the Order and
accompanying Rules and Regulations have previously been approved by OMB
and were assigned OMB control number 0581-0093.
Background and Proposed Action
    The Board was initially appointed on August 4, 1986, pursuant to
the provisions of the Act (7 U.S.C. 2901-2911), and the Order issued
thereunder. Domestic representation on the Board is based on cattle
inventory numbers, while importer representation is based on the
conversion of the volume of imported cattle, beef, and beef products
into live animal equivalencies.
Reapportionment
    Section 1260.141(b) of the Order provides that the Board shall be
composed of cattle producers and importers appointed by the Secretary
from nominations submitted by certified producer and importer
organizations. A producer may only be nominated to represent the State
or unit in which that producer is a resident.
    Section 1260.141(c) of the Order provides that at least every 3
years, but not more than every 2 years, the Board shall review the
geographic distribution of cattle inventories throughout the United
States and the volume of imported cattle, beef, and beef products and,
if warranted, shall reapportion units and/or modify the number of Board
members from units in order to reflect the geographic distribution of
cattle production volume in the United States and the volume of cattle,
beef, or beef products imported into the United States.
    Section 1260.141(d) of the Order authorizes the Board to recommend
to the Secretary modifications to the number of cattle per unit
necessary for representation on the Board.
    Section 1260.141(e)(1) provides that each geographic unit or State
that includes a total cattle inventory equal to or greater than 500,000
head of cattle shall be entitled to one representative on the Board.
Section 1260.141(e)(2)
[[Page 71830]]
provides that States that do not have total cattle inventories equal to
or greater than 500,000 head shall be grouped, to the extent
practicable, into geographically-contiguous units, each of which have a
combined total inventory of not less than 500,000 head. Such grouped
units are entitled to at least one representative on the Board. Each
unit is entitled to an additional Board member for each additional 1
million head of cattle within the unit, as provided in Sec.
1260.141(e)(4). Further, as provided in Sec.  1260.141(e)(3), importers
are represented by a single unit, with their number of Board members
based on a conversion of the total volume of imported cattle, beef, or
beef products into live animal equivalencies.
    The proposed producer representation is based on an average of the
inventory of cattle in the various States on January 1 in 2017, 2018,
and 2019 as reported by USDA's National Agricultural Statistics Service
(NASS). The proposed importer representation is based on a combined
total average of the 2016, 2017, and 2018 live cattle imports as
published by USDA's Economic Research Service (ERS) and the average of
the 2016, 2017, and 2018 live animal equivalents for imported beef and
beef products.
    In considering reapportionment, the Board reviewed cattle
inventories as of January 1 in 2017, 2018, and 2019, as well as cattle,
beef, and beef product import data for the period of January 1, 2016,
to December 31, 2018. The Board determined that an average of the
inventory of cattle on January 1 in 2017, 2018, and 2019 best reflect
the number of cattle in each State or unit since publication of the
last reapportionment rule in 2017 (82 FR 27611). The Board reviewed
data published by ERS to determine proper importer representation. The
Board recommended the use of the average of a combined total of the
2016, 2017, and 2018 cattle import data and the average of the 2016,
2017, and 2018 live animal equivalents for imported beef products. The
method used to calculate the total number of live animal equivalents
was the same as that used in the previous reapportionment of the Board.
The live animal equivalent weight was changed in 2006 from 509 pounds
to 592 pounds (71 FR 47074).
    The Board's recommended reapportionment plan, if adopted, would
increase the number of representatives on the Board from 99 to 101.
From the Board's analysis of USDA cattle inventories and import
equivalencies, Nebraska would gain one Board seat, Texas would gain one
Board seat, and Wisconsin would gain one Board seat. Geographic changes
would include dissolving the Southeast Unit so that Alabama and Georgia
would be stand-alone States that have enough inventory to each qualify
for a position on the Board. South Carolina would be added to the Mid-
Atlantic Unit. Maryland would move from the Mid-Atlantic Unit to the
Northeast Unit, leaving South Carolina and West Virginia to make up the
new Mid-Atlantic Unit, which would qualify for one member. The new
Northeast Unit would qualify for one member and be composed of
Connecticut, Delaware, Maine, Maryland, Massachusetts, New Hampshire,
New Jersey, Rhode Island, and Vermont. Importer representation would
remain at seven.
    The States and units affected by the reapportionment plan and the
current and proposed member representation per unit are as follows:
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                                                                                      Current         Revised
                  State/unit                            Increase/decrease         representation  representation
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Alabama.......................................  +1 (moved from Southeast Unit)..               0               1
Georgia.......................................  +1 (moved from Southeast Unit)..               0               1
Nebraska......................................  +1..............................               6               7
Texas.........................................  +1..............................              12              13
Wisconsin.....................................  +1..............................               3               4
Mid-Atlantic Unit.............................  No change.......................               1               1
Northeast Unit................................  No change.......................               1               1
Southeast Unit................................  -3..............................               3               0
Net Change....................................  +2..............................  ..............  ..............
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Note: The Southeast Unit would dissolve. Alabama and Georgia, formerly of SE Unit will each have one member on
  the Board. South Carolina, formerly of SE Unit, moves to Mid-Atlantic Unit. Maryland moves from the Mid-
  Atlantic Unit and to the Northeast Unit leaving South Carolina and West Virginia to make up the new Mid-
  Atlantic Unit and qualify for one member. The new Northeast Unit continues to qualify for one member. In
  summary, the Board will be composed of 101 members (99-3 + 5 = 101).
    The Board reapportionment as proposed by this rulemaking would take
effect, if adopted, with the Secretary's appointments to fill positions
early in the year 2021.
    A 60-day comment period is provided to allow interested persons to
respond to this proposal.
Initial Regulatory Flexibility Act
    Pursuant to the requirements set forth in the Regulatory
Flexibility Act (RFA) (5 U.S.C. 601 et seq.), AMS considered the
economic effect of this action on small entities and determined that
this proposed rule would not have a significant economic impact on a
substantial number of small entities. The purpose of RFA is to fit
regulatory actions to the scale of businesses subject to such actions
in order that small businesses will not be unduly burdened.
    Effective August 19, 2019, the SBA published an interim final rule
(RIN 3245-AH17) that adjusts the monetary-based size standards for
inflation. As a result of this rule, the size classification for small
beef, veal, and cattle importing firms changed from sales of $750,000
or less to sales of $1,000,000 or less.
[[Page 71831]]
    According to the NASS 2017 Census of Agriculture, the number of
operations in the United States with cattle totaled 882,692.\1\ The
most recent (2017) Census of Agriculture data show that roughly 4
percent of producers with cattle, or 31,601 operations, have annual
receipts of $1,000,000 or more.\2\ Therefore, the vast majority of
cattle producers, 96 percent, would be considered small businesses with
the new SBA guidance. It should be noted that producers are only
indirectly impacted by the proposed rule.
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    \1\ https://www.nass.usda.gov/AgCensus/index.php.
    \2\ https://quickstats.nass.usda.gov/results/EC7DF8E2-6791-347F-BC4F-3F81988D7DDB.
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    Cattle, beef, and veal importers are directly impacted by the
proposed rule. The original number of importing firms was determined in
consultation with the Meat Import Council of America. AMS estimates
that approximately 270 firms import beef or beef products, and veal and
veal products into the United States, and about 198 firms import live
cattle into the United States. The 2012 Economic Census, produced by
the U.S. Commerce Department, and accessible through the American Fact
Finder website, provides the most recent data on firm size by sales
revenue.\3\ However, data on the firm size of beef, veal, and cattle
importers are not available in this or other economic databases, as
there is no NAICS code specific enough for this industry segment.
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    \3\ https://factfinder.census.gov.
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    The 2012 Economic Census does have information on the broader
marketing chain, specifically the size distribution of meat and meat
product wholesalers (NAICS 42447).\4\ These data show that 18 percent
of firms in the industry classification of meat and meat product
wholesalers are considered small businesses.
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    \4\ Source: U.S. Census Bureau, 2012 Economic Census, Search
code EC1242SSSZ1_with_ann.
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    Recent import trade data was also considered for understanding the
overall dynamics of this industry segment. The USDA Foreign
Agricultural Service reports monthly trade data for traded agricultural
products by product type. An analysis of these data over a five-year
period show only minor changes in the annual import values for both
beef and veal importers and cattle importers, suggesting little change
in the sector overall.
    The proposed rule imposes no new burden on the industry, as it only
adjusts representation on the Board to reflect changes in domestic
cattle inventory, as well as in cattle and beef imports. The
adjustments are required by the Order and would result in an increase
in Board membership from 99 to 101.
    AMS is committed to complying with the E-Government Act of 2002 to
promote the use of the internet and other information technologies to
provide increased opportunities for citizen access to government
information and services, and for other purposes.
    USDA has not identified any relevant Federal rules that duplicate,
overlap, or conflict with this rule.
List of Subjects in 7 CFR Part 1260
    Administrative practice and procedure, Advertising, Agricultural
research, Imports, Meat and meat products, Reporting and recordkeeping
requirements.
    For the reasons set forth in the preamble, AMS proposes to amend 7
CFR part 1260 as follows:
PART 1260--BEEF PROMOTION AND RESEARCH
0
1. The authority citation for 7 CFR part 1260 continues to read as
follows:
    Authority:  7 U.S.C. 2901-2911 and 7 U.S.C. 7401.
0
2. Revise Sec.  1260.141 paragraph (a) to read as follows:
Sec.  1260.141  Membership of Board.
    (a) Beginning with the 2020 Board nominations and the associated
appointments effective early in the year 2021, the United States shall
be divided into 38 geographical units and 1 unit representing
importers, for a total of 39 units. The number of Board members from
each unit shall be as follows:
             Table 1 to Paragraph (a): Cattle and Calves \1\
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               State/unit                  (1,000 Head)      Directors
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1. Alabama..............................           1,313               1
2. Arizona..............................           1,003               1
3. Arkansas.............................           1,763               2
4. Colorado.............................           2,850               3
5. Florida..............................           1,670               2
6. Georgia..............................           1,080               1
7. Idaho................................           2,430               2
8. Illinois.............................           1,190               1
9. Indiana..............................             877               1
10. Iowa................................           3,950               4
11. Kansas..............................           6,350               6
12. Kentucky............................           2,153               2
13. Louisiana...........................             800               1
14. Michigan............................           1,163               1
15. Minnesota...........................           2,360               2
16. Mississippi.........................             907               1
17. Missouri............................           4,317               4
18. Montana.............................           2,567               3
19. Nebraska............................           6,683               7
20. New Mexico..........................           1,473               1
21. New York............................           1,477               1
22. North Carolina......................             810               1
23. North Dakota........................           1,837               2
24. Ohio................................           1,303               1
25. Oklahoma............................           5,133               5
26. Oregon..............................           1,303               1
27. Pennsylvania........................           1,613               2
[[Page 71832]]

28. South Dakota........................           3,967               4
29. Tennessee...........................           1,820               2
30. Texas...............................          12,600              13
31. Utah................................             807               1
32. Virginia............................           1,480               1
33. Wisconsin...........................           3,500               4
34. Wyoming.............................           1,317               1
35. Northwest Unit......................  ..............  ..............
     Alaska.....................              15  ..............
     Hawaii.....................             143  ..............
     Washington.................           1,163  ..............
        Total...........................           1,321               1
  36. Northeast Unit....................  ..............  ..............
     Connecticut................              48  ..............
     Delaware...................              16  ..............
     Maine......................              81  ..............
     Maryland...................             192  ..............
     Massachusetts..............              38  ..............
     New Hampshire..............              35  ..............
     New Jersey.................              29  ..............
     Rhode Island...............               5  ..............
     Vermont....................             260  ..............
        Total...........................             702               1
  37. Mid-Atlantic Unit.................  ..............  ..............
     South Carolina.............             342  ..............
     West Virginia..............             397  ..............
        Total...........................             738               1
  38. Southwest Unit....................  ..............  ..............
     California.................           5,167  ..............
     Nevada.....................             460  ..............
        Total...........................           5,627               6
  39. Importers Unit \2\................           6,874               7
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\1\ 2017, 2018, and 2019 average of January 1 cattle inventory data.
\2\ 2016, 2017, and 2018 average of annual import data.
* * * * *
    Dated: December 20, 2019.
Bruce Summers,
Administrator, Agricultural Marketing Service.
[FR Doc. 2019-28057 Filed 12-27-19; 8:45 am]
 BILLING CODE 3410-02-P