[Federal Register Volume 77, Number 31 (Wednesday, February 15, 2012)]
[Rules and Regulations]
[Pages 8717-8721]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-3566]



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Rules and Regulations
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Federal Register / Vol. 77, No. 31 / Wednesday, February 15, 2012 / 
Rules and Regulations

[[Page 8717]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 1170

[Doc. AMS-DA-10-0089; DA-11-01]
RIN 0581-AD12


Dairy Product Mandatory Reporting

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: This final rule adopts changes to Agricultural Marketing 
Service (AMS) regulations as required by section 273(d) of the 
Agricultural Marketing Act of 1946 (the Act) as amended by the 
Mandatory Price Reporting Act of 2010. The amendment to the Act 
requires the Secretary of Agriculture (Secretary) to establish an 
electronic reporting system for certain manufacturers of dairy products 
to report sales information for a mandatory dairy product reporting 
program. The amendment further states that the Secretary shall publish 
the information obtained for the preceding week not later than 3 p.m. 
Eastern Time on Wednesday of each week.

DATES: This rule is effective April 1, 2012.

FOR FURTHER INFORMATION CONTACT: For information relevant to this final 
rule, contact Clifford M. Carman, Assistant to the Deputy 
Administrator, USDA/AMS/Dairy Programs, Office of the Deputy 
Administrator, STOP 0225--Room 2968, 1400 Independence Ave. SW., 
Washington, DC 20250-0225, clifford.carman@ams.usda.gov.

SUPPLEMENTARY INFORMATION: This final rule is a statutory requirement 
pursuant to the Agricultural Marketing Act of 1946 [7 U.S.C. 1621-1627, 
1635-1638], as amended November 22, 2000, by Public Law 106-532, 114 
Stat. 2541; May 13, 2002, by Public Law 107-171, 116 Stat. 207; and 
September 27, 2010, by Public Law 111-239, 124 Stat. 2502.
    The proposed rule was published in the Federal Register on June 10, 
2011 (76 FR 112), with comments to be submitted on or before August 9, 
2011. The U.S. Department of Agriculture (USDA) has reviewed and 
considered all of the comments submitted in a timely manner for this 
final rule.
    Background: The Dairy Product Mandatory Reporting Program, 7 CFR 
part 1170, was established on August 2, 2007, on an interim final basis 
(72 FR 36341). A final rule associated with implementation of the 
program (73 FR 34175) became effective June 22, 2008. The National 
Agricultural Statistics Service (NASS) has collected information for 
the program, and the Agricultural Marketing Service (AMS) has provided 
verification and enforcement functions for the program. NASS has 
published sales information for cheddar cheese, butter, dry whey, and 
nonfat dry milk (NFDM) on a weekly basis. NASS began publishing cheddar 
cheese sales information in 1997 and butter, nonfat dry milk (NFDM), 
and dry whey sales information in 1998. Information was collected on a 
voluntary basis before the Dairy Product Mandatory Reporting Program 
became effective. Any manufacturer that processes and markets less than 
1 million pounds of the applicable dairy products per calendar year has 
been exempt from these reporting requirements.
    AMS is responsible for verifying the sales information submitted by 
reporting entities to NASS. To verify information submitted, AMS visits 
larger entities that account for 80 percent of the yearly reported 
product volume, based on the previous year, of each specified dairy 
product at least once annually. AMS visits one-half of entities that 
account for the remaining 20 percent each year, visiting each such 
entity at least once every other year. During each visit, AMS reviews 
applicable sales transactions records for at least the 4 most recent 
weeks. In some cases, AMS may review sales records for up to 2 years. 
AMS verifies that sales transactions match the information reported to 
NASS and that there have been no applicable sales transactions that 
have not been reported to NASS. Noncompliance, appeals, and enforcement 
procedures are administered by AMS.
    The Mandatory Price Reporting Act of 2010 (Pub. L. 111-239, Sept. 
27, 2010) amended section 273(d) of the Act (7 U.S.C. 1637b) to require 
that the Secretary establish an electronic reporting system for 
manufacturers of dairy products to report certain market information 
for the mandatory dairy product reporting program. The amendment 
further states that the Secretary shall publish the information 
obtained under this section for the preceding week not later than 3 
p.m. Eastern Time on Wednesday of each week. This final rule, in 
accordance with the Act, includes regulatory changes for implementing 
these provisions. This rule also transfers applicable data collection 
responsibilities from NASS to AMS and includes conforming changes.
    AMS requested comments on the proposed rule. AMS has reviewed all 
comments received within the 60-day comment period and has considered 
these comments in developing this final rule.

Executive Order 12866

    This final rule has been determined not to be significant for 
purposes of Executive Order 12866 and therefore has not been reviewed 
by the Office of Management and Budget with respect to this Executive 
Order.

Executive Order 12988 Civil Justice Reform

    This final rule has been reviewed under Executive Order 12988, 
Civil Justice Reform. The amendments contained in this final rule are 
not intended to have a retroactive effect.

Regulatory Flexibility Act

    Pursuant to requirements set forth in the Regulatory Flexibility 
Act (RFA) (5 U.S.C. 601-612), AMS has considered the economic impact of 
this final rule on small entities and has determined that this rule 
would not have a significant economic impact on a substantial number of 
small entities. The purpose of the RFA is to fit regulatory actions to 
the scale of businesses subject to such actions in order that small 
businesses will not be unduly or disproportionately burdened.

[[Page 8718]]

    Small businesses in the dairy product manufacturing \1\ industry 
have been defined by the Small Business Administration (SBA) as those 
processors employing not more than 500 employees. For purposes of 
determining a processor's size, if the plant is part of a larger 
company operating multiple plants that collectively exceed the 500-
employee limit, the plant will be considered a large business even if 
the local plant has fewer than 500 employees. According to U.S. Census 
Bureau Statistics of U.S. Businesses, there were 1,583 dairy 
manufacturing establishments in the United States in 2008. Of these 
businesses, 1,039 establishments had fewer than 500 employees, and 544 
establishments had greater than 500 employees (U.S. Census Bureau, 2008 
County Business Patterns, http://www.census.gov/econ/susb/).
---------------------------------------------------------------------------

    \1\ North American Industry Classification System (NAICS) code 
3115.
---------------------------------------------------------------------------

    The dairy manufacturing establishments included in U.S. Census 
Bureau statistics include manufacturers of all types of dairy products. 
The number of plants that produce butter, cheese, NFDM, and dry whey 
with the precise specifications included in the mandatory reporting 
requirements is much lower than this. Furthermore, those manufacturers 
that process and market less than 1 million pounds of the applicable 
dairy products annually are exempt from reporting sales data. NASS has 
conducted an annual validation survey that serves to determine which 
plants are required to report. In 2011, this survey included 181 
plants. The annual cost for plants to complete this survey is estimated 
at approximately $9 per plant. AMS will continue to conduct the 
validation survey annually. For 2011 there were 94 dairy product plants 
subject to mandatory reporting of sales data. There are 51 reporting 
entities that report data for one or more plants. (Plant numbers and 
numbers of reporting entities have been updated from the 2010 numbers 
that were reported in the proposed rule.) Based upon company profile 
information available on the Internet, AMS estimates that almost half 
of the reporting entities are considered small businesses under the 
criteria established by the SBA.
    AMS estimates that the annual cost per plant for reporting sales 
information for products included in the surveys will be approximately 
$586. (The change from $511 shown in the proposed rule is due to 
recognition of greater costs associated with plants that must report 
sales information for both 40-pound blocks and 500-pound barrel cheddar 
cheese.) The majority of reporting entities have already been 
submitting data to NASS through a secure Web-based application. Less 
than three plants have been regularly faxing their information, and it 
is believed that these plants do have Internet access. Therefore, there 
would be no significant start-up costs anticipated for the reporting 
entities as a result of implementing this final rule.
    Under the current Dairy Product Mandatory Reporting Program, dairy 
manufacturers are required to maintain records for verification 
purposes for a 2-year period. This final rule makes no changes to this 
requirement. These records are maintained as part of the normal course 
of business. Thus, there is no additional burden or cost associated 
with the maintenance of these records. Therefore, in total, this final 
rule will not have a significant economic impact on a substantial 
number of small entities.

Paperwork Reduction Act

    In accordance with the Paperwork Reduction Act (44 U.S.C. Chapter 
35), reporting and recordkeeping requirements that are utilized to 
collect the information required by the Act have been reviewed by the 
Office of Management and Budget (OMB). OMB has assigned a reference 
number of 0581-0274.
    Abstract: The information collection requirements in the request 
are essential to carry out the intent of the Agricultural Marketing Act 
of 1946 as amended (the Act).
    The Act requires each manufacturer to report to the Secretary 
information concerning the price, quantity, and moisture content (where 
applicable) of dairy products sold by the manufacturer. Dairy products 
reported include cheddar cheese, butter, dry whey, and NFDM. Dairy 
manufacturers report information for these products if the products 
meet certain product specifications.
    The collection and reporting of sales information, as required by 
the Act, have been the responsibility of NASS. NASS has collected the 
information as part of the information collection package OMB 0535-
0020. NASS has allowed manufacturers to submit information through a 
secure Web-based application, by email, or by fax. Manufacturers have 
been required to submit information to NASS by 12 noon on Wednesday on 
all applicable sales of products during the 7 days ending 12 midnight 
of the previous Saturday, local time of the plant or storage facility 
where the sales are made. NASS has compiled and aggregated the 
information reported by the reporting entities and has published the 
information each Friday morning. When a Federal holiday has fallen on a 
Tuesday or Wednesday, NASS has contacted manufacturers via email or 
phone concerning the applicable report deadline.
    Manufacturers that process and market less than 1 million pounds of 
applicable dairy products annually are exempt from reporting 
requirements. Each year, dairy manufacturers have completed an Annual 
Validation Worksheet for NASS to determine which dairy manufacturers 
are exempt and to ascertain if valid information has been supplied.
    The Mandatory Price Reporting Act of 2010 amended subsection 
273(d), of the Act, requiring the Secretary to establish an electronic 
reporting system to collect certain information. Using this reporting 
system, AMS will publish, not later than 3 p.m. Eastern Time on 
Wednesday of each week, a report containing the preceding week's 
information. The information collection and reporting requirements have 
been the responsibility of NASS. Under this final rule, AMS will assume 
this responsibility. NASS will no longer collect price, quantity, or 
moisture content (where applicable) information for cheddar cheese, 
butter, NFDM, or dry whey, and NASS will no longer collect the 
associated annual validation information. The forms associated with 
this data collection will be removed from NASS collection package, OMB 
0535-0020, and will be replaced by forms in AMS collection package, OMB 
0581-0274.
    Every effort has been made to minimize any unnecessary 
recordkeeping costs or requirements. The electronic submission forms 
will require the minimum information necessary to carry out the 
requirements of the program effectively, and their use is necessary to 
fulfill the intent of the Act. It is expected that no outside technical 
expertise will be needed. The forms are simple, easy to understand, and 
place as small a burden as possible on respondents.
    To assist the industry in achieving compliance, educational and 
outreach sessions will be held prior to implementation. AMS will assist 
reporting entities in understanding requirements for submitting data 
through electronic means. In addition, AMS will beta test the 
electronic-submission technology before implementation, and all 
entities required to report will be encouraged to participate in the 
beta-testing program. Any feedback received during this

[[Page 8719]]

outreach and testing period will be used to correct technical problems.
    Collecting the information will coincide with normal industry 
business practices. The timing and frequency of collecting information 
are intended to meet the needs of the program while minimizing the 
amount of work necessary to submit the required reports. The 
information to be collected by AMS is almost identical to the 
information that has been collected by NASS. While NASS has required 
either the total sales dollars or the dollars per pound in addition to 
the total pounds of products sold to be reported, AMS will require both 
the total sales dollars and the dollars per pound to be reported along 
with the total pounds of products sold in order to provide an 
additional validation check. NASS has permitted manufacturers to submit 
information through a secure web-based application, by email, or by 
fax. This final rule, however, requires manufacturers to submit 
information only by electronic means specified by AMS. AMS has 
specified that each manufacturer submit the information using a secure 
Internet connection that includes a user name and password. The 
requirement that reporting entities submit information electronically 
is in accordance with the Act.
    The frequency of data collection will not change. Reporting 
entities have been required to report information to NASS on a weekly 
basis by 12 noon local time on Wednesday. This final rule requires 
reporting entities to report information to AMS on a weekly basis by 12 
noon, local time of the reporting entities, on Tuesday. This change is 
necessary to allow AMS personnel time to review and compile data and to 
publish the information by 3 p.m. Eastern Time on Wednesday as required 
by the Act. If a Federal holiday falls on Monday through Wednesday of a 
particular week, the due date for report submission may be adjusted. 
Prior to the beginning of each calendar year, AMS shall inform 
reporting entities of the times and dates that reports are due.
    The first date reporting entities shall provide information to AMS 
will be Tuesday, April 3, 2012, of sales data for the week ending 
Saturday, March 31, 2012. The first publication by AMS will be on 
Wednesday, April 4, 2012, by 3 p.m. Eastern Time. The last publication 
by NASS will be on March 30, 2012, of sales data through the week 
ending March 24, 2012.
    Information collection requirements included in this final rule are 
listed below. There have been minor changes to the number of 
respondents compared to the proposed rule due to updated information 
and the separation of cheddar cheese surveys into two types: blocks and 
barrels.
(1) Dairy Products Sales, Cheddar Cheese, 40-Pound Blocks
    Estimate of Burden: Public reporting burden for this collection of 
information is estimated to average 20 minutes per week for each report 
submitted.
    Respondents: Cheddar cheese manufacturers of 40-pound blocks. Each 
reporting entity may report for a single cheddar cheese plant or it may 
report for more than one cheddar cheese plant, depending upon how the 
business is structured.
    Estimated Number of Respondents: 18.
    Estimated Total Annual Burden on Respondents: 312 hours.
(2) Dairy Products Sales, Cheddar Cheese, 500-Pound Barrels
    Estimate of Burden: Public reporting burden for this collection of 
information is estimated to average 20 minutes per week for each report 
submitted.
    Respondents: Cheddar cheese manufacturers of 500-pound barrels. 
Each reporting entity may report for a single cheddar cheese plant or 
it may report for more than one cheddar cheese plant, depending upon 
how the business is structured.
    Estimated Number of Respondents: 14.
    Estimated Total Annual Burden on Respondents: 243 hours.
(3) Dairy Products Sales, Butter
    Estimate of Burden: Public reporting burden for this collection of 
information is estimated to average 20 minutes per week for each report 
submitted.
    Respondents: Butter manufacturers. Each reporting entity may report 
for a single butter plant or it may report for more than one butter 
plant, depending upon how the business is structured.
    Estimated Number of Respondents: 19.
    Estimated Total Annual Burden on Respondents: 329 hours.
(4) Dairy Products Sales, Nonfat Dry Milk
    Estimate of Burden: Public reporting burden for this collection of 
information is estimated to average 20 minutes per week for each report 
submitted.
    Respondents: NFDM manufacturers. Each reporting entity may report 
for a single NFDM plant or it may report for more than one NFDM plant, 
depending upon how the business is structured.
    Estimated Number of Respondents: 28.
    Estimated Total Annual Burden on Respondents: 485 hours.
(5) Dairy Products Sales, Dry Whey
    Estimate of Burden: Public reporting burden for this collection of 
information is estimated to average 20 minutes per week for each report 
submitted.
    Respondents: Dry whey manufacturers. Each reporting entity may 
report for a single dry whey plant or it may report for more than one 
dry whey plant, depending upon how the business is structured.
    Estimated Number of Respondents: 20.
    Estimated Total Annual Burden on Respondents: 347 hours.
(6) Annual Validation Survey
    Estimate of Burden: Public reporting burden for this collection of 
information is estimated to average 20 minutes per year for each report 
submitted.
    Respondents: Dairy manufacturers. Each reporting entity may report 
for a single plant or it may report for more than one plant, depending 
upon how the business is structured.
    Estimated Number of Respondents: 181.
    Estimated Total Annual Burden on Respondents: 60 hours.
(7) Survey Follow-Up, Verification
    Estimate of Burden: Public reporting burden for this collection of 
information is estimated to average 5 minutes for each contact from 
AMS.
    Respondents: Dairy manufacturers. Each reporting entity may report 
for a single plant or it may report for more than one plant, depending 
upon how the business is structured.
    Estimated Number of Respondents: 7 per week.
    Estimated Total Annual Burden on Respondents: 30 hours.
    Copies of this information collection and related instructions can 
be obtained without charge from Clifford M. Carman, Assistant to the 
Deputy Administrator, Dairy Programs, AMS, USDA, 
clifford.carman@ams.usda.gov, phone: (202) 690-2998.
    Except as otherwise directed by the Secretary of Agriculture or the 
U.S. Attorney General for enforcement purposes, no officer, employee, 
or agent of the United States shall provide the public any information, 
statistics, or documents obtained from or submitted by any person under 
the Act that does not ensure preservation of confidentiality regarding 
the identity of persons, including parties to contracts and proprietary 
business information. All report forms include a statement that 
individual reports are kept confidential.
    With respect to the application of the Privacy Act of 1974 (5 
U.S.C. 552a) to

[[Page 8720]]

the maintenance of records required by the Act, the Dairy Products 
Sales survey population consists of dairy product manufacturers. Data 
collected by this survey relates to manufacturers' operations and 
transactions and not to those of individuals. Records maintained at 
business sites for verification of information that would be reported 
to AMS include contracts, agreements, receipts, and other materials 
related to sales of specific dairy products. No records about 
individuals would be maintained by AMS for this survey, and AMS 
believes that none would be part of these maintained business papers.

Discussion of Comments

    The proposed rule solicited comments to be submitted to USDA on or 
before August 9, 2011. During this 60-day comment period, seven comment 
submissions were received: Three from dairy cooperative associations, 
two from cooperative federations, one from a dairy producer 
association, and one from a dairy manufacturer/processor trade 
association. Six of the commenters expressed overall support for the 
mandatory electronic reporting system and one commenter specifically 
expressed support for AMS to beta test the electronic submission 
technology.
    Two commenters asked that AMS initiate a second rule and comment 
period so that the industry can address issues on product 
specifications, data collection, and publication. AMS will consider 
soliciting public comments through the Federal Register on related 
issues for mandatory reporting, such as product specifications.
    One commenter stated that, although the Mandatory Price Reporting 
Act of 2010 sets timing for mandatory electronic reporting, they 
believe congressional authority exists for daily reporting, citing that 
the 2008 Farm Bill authorizes ``more frequent reporting.'' AMS 
considered this comment, however, the Act does not permit a requirement 
for reporting entities to report at any frequency other than weekly. 
Paragraph (b)(2)(C) of section 273 of the Act provides a condition that 
``the frequency of the required reporting * * * does not exceed the 
frequency used to establish minimum prices for Class III or Class IV 
milk under a Federal milk marketing order.'' The Federal milk marketing 
orders establish minimum prices for Class III and Class IV milk based 
upon weekly dairy products prices reported (7 CFR 1000.50). Although 
the 2008 Farm Bill amended subsection (d) of section 273 of the Act to 
require more frequent reporting, subject to the availability of funds, 
the Mandatory Price Reporting Act of 2010 further amended the Act, 
deleting the requirement for more frequent reporting. One reporting 
entity specifically opposed any reporting period that is more frequent 
than weekly, citing time needed to receive warehouse bills of lading 
and preparation time for reporting information.
    Three commenters expressed concern about the proposed change to 
move the weekly manufacturers' submission of reports from Wednesday 12 
noon local time to Tuesday 12 noon local time, stating that this change 
would result in increased regulatory costs and increased revisions. AMS 
acknowledges that the change in reporting date by one day may cause 
manufacturers to change their methods of data collection and reporting, 
adding some additional reporting burden. However, AMS must publish 
sales reports by 3 p.m. Eastern Time on Wednesday whereas NASS has 
published sales reports on Friday morning. USDA, therefore, must change 
the weekly reporting day in order to complete validation checks and 
data analysis before weekly publication.
    Three commenters had concerns about increased burdens and revisions 
for weeks that include an intervening holiday. AMS plans to allow 
reporting later in the week than Tuesday at noon when holidays 
intervene with reporting dates. USDA will provide the public an annual 
reporting schedule prior to the beginning of each calendar year.
    One commenter requested that reporting flexibility be extended to 
accommodate situations that arise outside the control of the reporting 
facility. Barring any unforeseen circumstances which would make timely 
reporting impossible (such as an extreme natural disaster), AMS plans 
to hold the Tuesday noon submission deadline steadfast each week (other 
than a week with an intervening holiday). This will facilitate AMS in 
fulfilling its obligation to report by Wednesday at 3 p.m. Eastern Time 
each week (other than a week with an intervening holiday).
    One commenter asked for guidance on how revisions would be 
submitted with the new electronic reporting system. Although revision 
procedures are not specifically spelled out in this rule, AMS will 
provide instructions for reporting requirements, including reporting of 
revisions, to all parties that must report. These instructions will be 
available to respondents during the reporting process. In addition, the 
procedures will be covered in educational and outreach sessions that 
will be provided to respondents prior to implementation of the 
amendments.
    One commenter encouraged AMS to provide weekly notices to dairy 
manufacturers reminding them of the reporting deadlines for the 
following week. AMS does not plan to send weekly reminders concerning 
the due dates of reports. This final rule states that a schedule shall 
be provided to reporting entities prior to the beginning of each 
calendar year; AMS plans to post the scheduled reporting due dates on 
the Internet. This does not preclude AMS from providing other reminders 
to reporting entities throughout the year, such as for weeks with 
upcoming holidays.
    Two commenters requested that reporting requirements be expanded 
beyond the current four commodities: Cheddar cheese, butter, nonfat dry 
milk, and dry whey. One commenter asked for reporting requirements to 
include yogurt, sour cream, cottage cheese, and other types of cheeses 
with a large sales volume. Another commenter asked that other products 
be added to the reporting list, including mozzarella (low or high 
moisture), Monterey Jack, Grade A Swiss, skim milk powder, buttermilk 
powder, whole milk powder, whey protein concentrate, and soft products 
or spot cream. The Act does not permit expanding the list of mandatory 
reported commodities beyond the four products historically reported. 
Paragraph (b)(2) of section 273 of the Act provides a condition that 
``the information * * * is required only to the extent that the 
information is actually used to establish minimum prices for Class III 
or Class IV milk under a Federal milk marketing order.'' The Federal 
milk marketing orders establish minimum prices for Class III and Class 
IV milk based upon prices reported for butter, cheddar cheese, nonfat 
dry milk, and dry whey (7 CFR 1000.50).
    One of the commenters requested that AMS expand the required 
reporting plants by reducing the 1 million pounds per year threshold to 
500,000 pounds per year production or sales. Paragraph (b)(2)(D) of 
section 273 of the Act states, ``the Secretary may exempt from all 
reporting requirements any manufacturer that processes and markets less 
than 1,000,000 pounds of dairy products per year.'' The Act does not 
permit AMS to establish a reporting exemption threshold for 
manufacturers at any level other than 1 million pounds of dairy 
products processed and marketed per year.
    One commenter asked that cheese committed for sale, but not yet 
sold (delivered), be designated as such for

[[Page 8721]]

mandatory storage reporting. Mandatory dairy product storage reporting 
is the responsibility of NASS, and this final rule makes no changes 
with respect to mandatory storage reporting.
    AMS has made one change in this final rule from the proposed rule. 
The reporting requirements in Sec.  1170.7(a) have been modified to 
indicate that reporting entities must report both the total sales 
dollars and dollars per pound for the applicable products. NASS has 
required either the total sales dollars or dollars per pound for the 
applicable products to be reported, and the proposed rule would have 
continued this requirement without change. However, the requirement to 
report both the total sales dollars and dollars per pound will provide 
AMS with a validation check to insure that, in each instance, the total 
sales dollars reported equals the dollars per pound times the reported 
quantity. Since this is a de minimus change in reporting burden, it has 
no effect on the estimated reporting burden for each survey.

List of Subjects in 7 CFR Part 1170

    Dairy products, Reporting and recordkeeping requirements, Cheese, 
Butter, Dry whey, Nonfat dry milk.

    Accordingly, 7 CFR part 1170 is amended as follows:

PART 1170--DAIRY PRODUCT MANDATORY REPORTING

0
1. The authority citation for part 1170 is revised to read as follows:

    Authority:  7 U.S.C. 1637-1637b, as amended by Pub. L. 106-532, 
114 Stat. 2541; Pub. L. 107-171, 116 Stat. 207; and Pub. L. 111-239, 
124 Stat. 2501.


0
2. Revise Sec.  1170.2 to read as follows:


Sec.  1170.2  Act.

    Act means the Agricultural Marketing Act of 1946, 7 U.S.C. 1621 et 
seq., as amended by the Dairy Market Enhancement Act of 2000, Pub. L. 
106-532, 114 Stat. 2541; the Farm Security and Rural Investment Act of 
2002, Pub. L. 107-171, 116 Stat. 207; and the Mandatory Price Reporting 
Act of 2010, Pub. L. 111-239, 124 Stat. 2501.
0
3. Revise Sec.  1170.7 to read as follows:


Sec.  1170.7  Reporting requirements.

    (a) All dairy product manufacturers, with the exception of those 
who are exempt as described in Sec.  1170.9, shall submit a report 
weekly to the Agricultural Marketing Service (AMS) by Tuesday, 12 noon 
local time of reporting entities, on all products sold as specified in 
Sec.  1170.8 during the 7 days ending 12 midnight of the previous 
Saturday, local time of the plant or storage facility where the sales 
are made. If a Federal holiday falls on Monday through Wednesday of a 
particular week, the due date for report submission may be adjusted. 
Prior to the beginning of each calendar year, AMS shall release, to 
manufacturers that are required to report, the times and dates that 
reports are due. For the applicable products, the report shall be 
submitted by electronic means specified by AMS and shall indicate the 
name, address, plant location(s), quantities sold, total sales dollars, 
dollars per pound, and the moisture content where applicable. Each sale 
shall be reported for the time period when the transaction is 
completed, i.e. the product is ``shipped out'' and title transfer 
occurs. Each sale shall be reported either f.o.b. plant if the product 
is ``shipped out'' from the plant or f.o.b. storage facility location 
if the product is ``shipped out'' from a storage facility. In 
calculating the total dollars received and dollars per pound, the 
reporting entity shall neither add transportation charges incurred at 
the time the product is ``shipped out'' or after the product is 
``shipped out'' nor deduct transportation charges incurred before the 
product is ``shipped out.'' In calculating the total dollars received 
and dollars per pound, the reporting entity shall not deduct brokerage 
fees or clearing charges paid by the manufacturer.
    (b) Manufacturers or other persons storing dairy products are 
required to report, on a monthly basis, stocks of dairy products (as 
defined in Sec.  1170.4) on hand, on the appropriate forms supplied by 
the National Agricultural Statistic Service. The report shall indicate 
the name, address, and stocks on hand at the end of the month for each 
storage location.

0
4. Revise Sec.  1170.8 (a)(3)(ii) to read as follows:


Sec.  1170.8  Price reporting specifications.

* * * * *
    (a) * * *
    (3) * * *
    (ii) 500-pound barrels: Report weighted average moisture content of 
cheese sold. AMS will adjust price to a benchmark of 38.0 percent based 
on standard moisture adjustment formulas. Exclude cheese with moisture 
content exceeding 37.7 percent.
* * * * *

0
5. Add Sec.  1170.17 to read as follows:


Sec.  1170.17  Publication of statistical information.

    Not later than 3 p.m. Eastern Time on the Wednesday of each week, 
AMS shall publish aggregated information obtained from manufacturers or 
other persons of all products sold as specified in Sec.  1170.8. If a 
Federal holiday falls on Monday through Wednesday of a particular week, 
the due date for report publication may be adjusted. The public shall 
be notified of report times prior to the beginning of the calendar 
year.

    Dated: February 9, 2012.
Robert C. Keeney,
Acting Administrator, Agricultural Marketing Service.
[FR Doc. 2012-3566 Filed 2-14-12; 8:45 am]
BILLING CODE 3410-02-P