Beef Promotion and Research; Reapportionment

DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 1260

[No. LS-98-002]

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 (Act) of 1985, to reflect

changes in cattle inventories and cattle and beef imports that have

occurred since the most recent Board reapportionment rule became

effective in 1996. These adjustments are required by the Beef Promotion

and Research Order (Order) and would result in a decrease in Board

membership from 111 to 110, effective with the Secretary's appointments

for terms beginning early in the year 2000.

DATES: Comments must be received by October 27, 1998.

ADDRESSES: Send two copies of comments to Ralph L. Tapp, Chief;

Marketing Programs Branch, STOP 0251; Livestock and Seed Program;

Agricultural Marketing Service (AMS), USDA, Room 2606-S; P.O. Box

96456; Washington, DC 20090-6456. Comments will be available for public

inspection during regular business hours at the above office in Room

2606-South Building, 14th and Independence Avenue, SW., Washington,

D.C.

FOR FURTHER INFORMATION CONTACT: Ralph L. Tapp, Chief, Marketing

Programs Branch, on 202/720-1115.

SUPPLEMENTARY INFORMATION:

Executive Orders 12866 and 12778 and the Regulatory Flexibility Act

The Department of Agriculture (Department) is issuing this rule in

conformance with Executive Order 12866.

This proposed rule has been reviewed under Executive Order 12778,

Civil Justice Reform. It is not intended to have retroactive effect.

Section 11 of the Act 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 United States or any

State. There are no administrative proceedings that must be exhausted

prior to any judicial challenge to the provisions of this rule.

Pursuant to the requirements set forth in the Regulatory

Flexibility Act (RFA) (5 United States Code (U.S.C.) 601 et seq.). The

Administrator of AMS has considered the economic effect of this action

on small entities and has determined that this proposed rule will 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.

In the January 30, 1998, issue of ``Cattle,'' the Department's

National Agricultural Statistics Service (NASS) estimates that in 1997

the number of cattle operations in the United States totaled about 1.17

million. The majority of these operations subject to the Order are

considered small businesses under the criteria established by the Small

Business Administration.

The proposed rule imposes no new burden on the industry. It only

adjusts representation on the Board to reflect changes in domestic

cattle inventory and cattle and beef imports. This action would adjust

representation on the Board, established under the Act. The adjustments

are required by the Order and would result in a decrease in Board

membership from 111 to 110.

The Board was initially appointed August 4, 1986, pursuant to the

provisions of the Act (7 U.S.C. 2901 et seq.) and the Order issued

thereunder (7 CFR 1260.101 et seq.). Domestic representation on the

Board is based on cattle inventory numbers, and importer representation

is based on the conversion of the volume of imported cattle, beef, or

beef products into live animal equivalencies.

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 organizations. A

producer may only be nominated to represent the unit in which that

producer is a resident.

Section 1260.141(c) of the Order provides that at least every 3

years and 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 in 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) 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 that has an additional one

million head of cattle within a unit qualifies for additional

representation on the Board as provided in Sec. 1260.141(e)(4). As

provided in Sec. 1260.141(e)(3), importers are represented by a single

unit, with the number of Board members based on a conversion of the

total volume of imported cattle, beef, or beef products into live

animal equivalencies.

The initial Board appointed in 1986 was composed of 113 members.

Reapportionment based on a 3-year average of cattle inventory numbers

and import data, reduced the Board to 111 members in 1990 and 107

members in 1993 before the Board was increased to 111 members with

appointments for terms effective early in 1997.

The current Board representation by States or units has been based

on an

[[Page 45970]]

average of the January 1, 1993, 1994, and 1995 inventory of cattle in

the various States as reported by NASS of the Department. Importer

representation has been based on a combined total average of the 1992,

1993, and 1994 live cattle imports as published by the Foreign

Agricultural Service (FAS) of the Department and the average of the

1992, 1993, and 1994 live animal equivalents for imported beef

products.

Recommendations concerning Board reapportionment were approved by

the Board at its July 19, 1998, meeting. In considering

reapportionment, the Board reviewed cattle inventories as well as

cattle, beef, and beef product import data for the period January 1,

1995, to January 1, 1998. The Board recommended that a 3-year average

of cattle inventories and import numbers should be continued. The Board

determined that an average of the January 1, 1996, 1997, and 1998

Department cattle inventory numbers would best reflect the number of

cattle in each State or unit since publication of the 1996

reapportionment rule.

The Board reviewed the March 1998 FAS circular, ``U.S. Trade and

Prospects, Dairy, Livestock, and Poultry,'' to determine proper

importer representation. The Board recommended the use of a combined

total of the average of the 1995, 1996, and 1997 cattle import data and

the average of the 1995, 1996, and 1997 live animal equivalents for

imported beef products. The method used to calculate the total number

of live cattle equivalents was the same as that used in the previous

reapportionment of the Board. The recommendation for importer

representation is based on the most recent 3-year average of data

available to the Board at its July 19, 1998, meeting to be consistent

with the procedures used for domestic representation.

The Board's recommended reapportionment plan would decrease the

number of representatives on the Board from 111 to 110. Two States and

one unit--Missouri, Texas, and the Northwest unit--lose one member

each; two States--Kansas and Nebraska--gain one member each. The Board

also recommends that the two member Western unit, composed of Nevada

and Oregon which was formed in the most recent reapportionment because

Nevada did not have sufficient cattle inventory to qualify

independently for a position on the Board, be dissolved. Since Nevada

and Oregon each qualify for a Board member based on the 1996-98

inventory numbers, the Board recommends that Nevada and Oregon again be

listed separately with one member each. The States and units affected

by the reapportionment plan and the current and revised member

representation per unit are as follows:

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Current Proposed

States representation representation

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1. Kansas............................... 6 7

2. Missouri............................. 5 4

3. Nebraska............................. 6 7

4. Texas................................ 15 14

5. Northwest unit....................... 2 1

6. Western unit......................... 2 0

7. Nevada............................... 0 1

8. Oregon............................... 0 1

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The 1998 nomination and appointment process was in progress while

the Board was developing its recommendations. Thus, the Board

reapportionment as proposed by this rulemaking would be effective, if

adopted, with 1999 nominations and appointments which will be effective

early in the year 2000.

List of Subjects in 7 CFR Part 1260

Administrative practice and procedure, Advertising, Agricultural

research, Imports, Marketing agreement, Meat and meat products,

Reporting and recordkeeping requirements.

For reasons set forth in the preamble, it is proposed that 7 CFR

part 1260 be amended as follows:

PART 1260--BEEF PROMOTION AND RESEARCH

1. The authority citation for 7 CFR part 1260 continues to read as

follows:

Authority: 7 U.S.C. 2901 et seq.

2. In Sec. 1260.141, paragraph (a) and the table immediately

following it, are revised to read as follows:

Sec. 1260.141 Membership of Board.

(a) Beginning with the 1999 Board nominations and the associated

appointments effective early in the year 2000, the United States shall

be divided into 40 geographical units and one unit representing

importers, and the number of Board members from each unit shall be as

follows:

Cattle and Calves \1\

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State/unit (1,000 head) Directors

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1. Alabama.............................. 1,627 2

2. Arizona.............................. 810 1

3. Arkansas............................. 1,870 2

4. California........................... 4,600 5

5. Colorado............................. 3,117 3

6. Florida.............................. 1,937 2

7. Georgia.............................. 1,497 1

8. Idaho................................ 1,763 2

9. Illinois............................. 1,720 2

10. Indiana............................. 1,103 1

11. Iowa................................ 3,867 4

12. Kansas.............................. 6,550 7

13. Kentucky............................ 2,550 3

14. Louisiana........................... 1,010 1

[[Page 45971]]

15. Michigan............................ 1,133 1

16. Minnesota........................... 2,767 3

17. Mississippi......................... 1,343 1

18. Missouri............................ 4,450 4

19. Montana............................. 2,683 3

20. Nebraska............................ 6,517 7

21. Nevada.............................. 510 1

22. New Mexico.......................... 1,480 1

23. New York............................ 1,527 2

24. North Carolina...................... 1,160 1

25. North Dakota........................ 1,857 2

26. Ohio................................ 1,483 1

27. Oklahoma............................ 5,467 5

28. Oregon.............................. 1,440 1

29. Pennsylvania........................ 1,770 2

30. South Carolina...................... 517 1

31. South Dakota........................ 3,733 4

32. Tennessee........................... 2,460 2

33. Texas............................... 14,467 14

34. Utah................................ 903 1

35. Virginia............................ 1,797 2

36. Wisconsin........................... 3,700 4

37. Wyoming............................. 1,477 1

38. Northwest........................... .............. 1

Alaska.............................. 11 ..............

Hawaii.............................. 167 ..............

Washington.......................... 1,230 ..............

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Total........................... 1,408 ..............

39. Northeast........................... .............. 1

Connecticut......................... 70 ..............

Delaware............................ 29 ..............

Maine............................... 113 ..............

Massachusetts....................... 63 ..............

New Hampshire....................... 41 ..............

New Jersey.......................... 68 ..............

Rhode Island........................ 7 ..............

Vermont............................. 302 ..............

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Total........................... 693 ..............

40. Mid-Atlantic........................ .............. 1

District of Columbia................ 0 ..............

Maryland............................ 275 ..............

West Virginia....................... 447 ..............

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Total........................... 722 ..............

41. Importer \2\........................ 6535 7

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1 1996, 1997, and 1998 average of January 1 cattle inventory data.

2 1995, 1996, and 1997 average of annual import data.

* * * * *

Dated: August 24, 1998.

Barry L. Carpenter,

Deputy Administrator, Livestock and Seed Program.

[FR Doc. 98-23227 Filed 8-27-98; 8:45 am]

BILLING CODE 3410-02-P