Dairy Assistance Program
NY-ADR
8/1/07 N.Y. St. Reg. AAM-31-07-00002-EP
NEW YORK STATE REGISTER
VOLUME XXIX, ISSUE 31
August 01, 2007
RULE MAKING ACTIVITIES
DEPARTMENT OF AGRICULTURE AND MARKETS
EMERGENCY/PROPOSED RULE MAKING
NO HEARING(S) SCHEDULED
I.D No. AAM-31-07-00002-EP
Filing No. 707
Filing Date. Jul. 12, 2007
Effective Date. Jul. 14, 2007
Dairy Assistance Program
PURSUANT TO THE PROVISIONS OF THE State Administrative Procedure Act, NOTICE is hereby given of the following action:
Action taken:
Addition of Part 23 to Title 1 NYCRR.
Statutory authority:
Agriculture and Markets Law, sections 18(6) and 258-pp
Finding of necessity for emergency rule:
Preservation of general welfare.
Specific reasons underlying the finding of necessity:
The rule is being adopted as an emergency measure because of the April 9, 2007 enactment of Article 21-D of the Agriculture and Markets Law by Chapter 57 of the Laws of 2007. Said Article establishes a Dairy Assistance Program within the Department of Agriculture and Markets, directs that payment be made to milk producers no later than thirty days following the effective date of the Article and authorizes the Commissioner to promulgate any additional rules and regulations necessary to implement the provisions of the Article. The Article further directs that payments be made to milk producers until such time as $30 million in State funding is expended pursuant to section 16-h of the New York State Urban Development Corporation Act. This rule establishes a definition for “eligible producer” and includes provisions relating to payment limit, target prices and the verification of production data and is necessary to implement the provisions of Agriculture and Markets Law Article 21-D so that payment may continue to be made to milk producers as directed by said Article.
Subject:
Payment of milk producers pursuant to the Dairy Assistance Program.
Purpose:
To implement the provisions of Agriculture and Markets Law Article 21-D
Text of emergency/proposed rule:
Part 23
Dairy Assistance Program
23.1 Eligible producer. For the purposes of the Dairy Assistance Program established pursuant to Agriculture and Markets Law § 258-pp, “eligible producer” means a New York State producer who was in operation on April 1, 2007 and who produced milk during the 2006 calendar year.
23.2 Payment limit. For purposes of administering the payment limitations prescribed by Agriculture and Markets Law § 258-pp, the following shall apply:
(a) For producers who participate in the federal Milk Income Loss Contract Extension (MILCX) Program, determinations under that Program as to whether the producer is a combined or separate dairy operation shall be used in applying the four million eight hundred thousand pounds of milk reimbursement limit established by subdivision four of Agriculture and Markets Law § 258-pp.
(b) For producers who operate multiple farms and do not participate in the MILCX Program, any producer using the same tax identification or Social Security number for such farms shall be considered to be one producer for purposes of applying the four million eight hundred thousand pounds of milk reimbursement limit established by subdivision four of Agriculture and Markets Law § 258-pp.
23.3 Target Price. For purposes of distributing the State funding provided by Chapter 57 of the Laws of 2007, the target price shall be the price that results in the payment rate to eligible producers in accordance with the formula set forth in subdivision one of Agriculture and Markets Law § 258-pp.
23.4 Verification of production data. For the purposes of verifying production data pursuant to subdivision two of Agriculture and Markets Law § 258-pp:
(a) the production data for producers who participate in the MILCX Program shall be the production information provided to the Department by the United States Department of Agriculture's Farm Service Agency (FSA) as requested by the Department pursuant to such subdivision; provided, however, if the required data is not available from the FSA, the data may be obtained from the producers' milk cooperative, processor or handler. In the event production data is not available from any of the foregoing sources, the data shall be obtained directly from producers in accordance with subdivision (b) of this section;
(b) the production data for producers who do not participate in the MILCX Program shall be milk marketing payment stubs, bulk tank records, milk handler records, daily milk marketing records and such other evidence of monthly milk marketing as the Commissioner may deem acceptable.
This notice is intended
to serve as both a notice of emergency adoption and a notice of proposed rule making. The emergency rule will expire September 9, 2007.
Text of rule and any required statements and analyses may be obtained from:
Will Francis, Director of Milk Control, Department of Agriculture and Markets, 10B Airline Dr., Albany, NY 12235, (518) 457-1772
Data, views or arguments may be submitted to:
Same as above.
Public comment will be received until:
45 days after publication of this notice.
Regulatory Impact Statement
1. Statutory Authority:
Section 18(6) of the Agriculture and Markets Law provides, in part, that the Commissioner may enact, amend and repeal necessary rules which shall provide generally for the exercise of the powers and performance of the duties of the Department.
Section 258-pp of the Agriculture and Markets Law provides that the Commissioner is authorized to promulgate any additional rules and regulations necessary to implement the provisions of Agriculture and Markets Law Article 21-D.
2. Legislative Objectives:
Agriculture and Markets Law section 258-oo sets forth the Legislative intent of the Dairy Assistance Program. Said Section states that the Legislature finds that the State's dairy farmers continue to labor under a combination of extremely low milk prices well below those of twenty-five years ago, along with very high fuel, feed, energy, fertilizer and other operating costs. It further indicates that these conditions have resulted in unprecedented losses for dairy farmers, that the price of milk continues to be well below the cost of production, and that the vendors and service industries serving dairy farmers have had to provide an increasing amount of credit to such farmers.
The Legislative intent states that Agriculture and Markets Law Article 21-D is intended to assist the dairy farmers of this State and their industry in a time of great need and to prevent further loss in the dairy industry and its infrastructure which are critical to the State's agricultural economy.
The adoption of 1 NYCRR Part 23 will further these goals by implementing the provisions of Agriculture and Markets Law Article 21-D so that payment may continue to be made to milk producers as directed by said Article.
3. Needs and Benefits:
As set forth in Legislative Objectives herein, Agriculture and Markets Law Article 21-D is intended to assist the dairy farmers of this State and their industry in a time of great need and to prevent further loss in the dairy industry and to the infrastructure which are critical to the State's agricultural economy. Said article directs that payment be made to milk producers no later than thirty days following the effective date of the Article and authorizes the Commissioner to promulgate any additional rules and regulations necessary to implement the provisions of the Article. The Article further directs that payments be made to milk producers until such time as $30 million in State funding is expended pursuant to section 16-h of the New York State Urban Development Corporation Act. This rule implements the provisions of Agriculture and Markets Law Article 21-D so that payment may continue to be made to New York State milk producers as directed by said Article.
The definition of “eligible producer” establishes, within the statutory framework of Chapter 57 of the Laws of 2007, which producers are eligible to participate in the Dairy Assistance Program. The provision relating to payment limit provides for the application of the statutory reimbursement limit. The provision relating to target prices provides for the target prices referred to in Agriculture and Markets Law § 258-pp. The provision relating to verification of production data provides for the means of determining milk production for producers.
4. Costs:
(a) Costs to regulated parties: None.
(b) Costs to agency, state and local governments: None.
5. Local Government Mandates:
None.
6. Paperwork:
The regulation provides that for purposes of subdivision two of Agriculture and Markets Law § 258-pp the production data for producers who do not participate in the MILCX Program shall be milk marketing payment stubs, bulk tank records, milk handler records, daily milk marketing records and such other evidence of monthly milk marketing as the Commissioner may deem acceptable.
7. Duplication:
None
8. Alternatives:
The alternative of not promulgating a regulation was considered, but it was determined that the proposed regulation was necessary to implement Article 21-D of the Agriculture and Markets Law so that payment may continue to be made to milk producers as directed by said Article.
9. Federal Standards:
None.
10. Compliance Schedule:
It is anticipated that regulated parties can immediately comply with the rule.
Regulatory Flexibility Analysis
1. Effect of Rule:
There are approximately 6,000 dairy farms in New York State, most of which are small businesses. The rule would have no effect on local governments.
2. Compliance Requirements:
The rule provides that for purposes of subdivision two of Agriculture and Markets Law § 258-pp, the production data for producers who do not participate in the MILCX Program shall be milk marketing payment stubs, bulk tank records, milk handler records, dairy milk marketing records and such other evidence of monthly milk marketing as the Commissioner may deem acceptable.
3. Professional Services:
It is not anticipated that regulated parties will have to secure any professional services in order to comply with this rule.
4. Compliance Costs:
(a) Costs to regulated parties: None.
(b) Costs to the agency, state and local governments: None.
5. Economic and Technological Feasibility:
The economic and technological feasibility of complying with the proposed regulation has been assessed. The rule is economically feasible. The regulation will implement the provisions of Agriculture and Markets Law Article 21-D so that payment may continue to be made to milk producers as directed by said Article. The rule is technologically feasible. The recordkeeping requirements of the rule involve records that are already being kept and existing technologies that are already in use.
6. Minimizing Adverse Impact:
In conformance with State Administrative Procedure Act section 202-b(1), the rule was drafted to minimize economic impact and reporting requirements for all regulated parties, including small businesses by limiting the requirements to those necessary to implement the provisions of Agriculture and Markets Law Article 21-D.
The rule would have no impact on local governments.
7. Small Businesses and Local Government Participation:
In developing the rule, the Department has taken into consideration the concerns of small businesses. The rule is being adopted on an emergency basis in order to implement Agriculture and Markets Law Article 21-D so that payment may continue to be made to milk producers as directed by said Article. During the rule making process the Department will receive input from small businesses and the organizations that represent them.
Rural Area Flexibility Analysis
1. Types and Estimated Numbers of Rural Areas:
The approximately 6,000 dairy farms in New York State are located throughout the rural areas of the State.
2. Reporting, Recordkeeping and Other Compliance Requirements and Professional Services:
The rule provides that for purpose of subdivision two of Agriculture and Markets Law § 258-pp, the production data for producers who do not participate in the MILCX Program shall be milk marketing payment stubs, bulk tank records, milk handler records, dairy milk marketing records and such other evidence of monthly milk marketing as the Commissioner may deem acceptable. It is not anticipated that regulated parties will have to secure any professional services in order to comply with this rule.
3. Costs:
(a) Costs to regulated parties: None.
(b) Costs to agency, state and local governments: None.
4. Minimizing Adverse Impact:
In conformance with State Administrative Procedure Act section 202-b(1), the rule was drafted to minimize economic impact and reporting requirements for all regulated parties, including small businesses by limiting the requirements to those necessary to implement the provisions of Agriculture and Markets Law Article 21-D.
5. Rural Area Participation:
In developing the rule, the Department took into consideration the concerns of the New York State dairy farmers who reside in rural areas throughout the State. The rule is being adopted on an emergency basis in order to implement Agriculture and Markets Law Article 21-D so that payment may continue to be made to producers as directed by said Article.
Job Impact Statement
1. Nature of Impact:
It is anticipated that the rule will have a positive impact on jobs and employment opportunities by helping New York State dairy farms remain economically viable.
2. Categories and Numbers Affected:
New York State's approximately 6,000 dairy farms provide employment for thousands of persons.
3. Regions of Adverse Impact:
The approximately 6,000 dairy farms in New York State are located throughout the rural areas of the State.
4. Minimizing Adverse Impact:
By implementing Agriculture and Markets Law Article 21-D so that payment may continue to be made to milk producers as directed by said Article this rule will help to preserve the jobs of those employed in this agricultural industry.
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