[Federal Register Volume 59, Number 30 (Monday, February 14, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-3327]


[[Page Unknown]]

[Federal Register: February 14, 1994]


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DEPARTMENT OF AGRICULTURE
7 CFR Part 1106

[DA-94-08]

 

Milk in the Southwest Plains Marketing Area; Proposed Suspension 
of Certain Provisions of the Order

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Proposed suspension of rule.

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SUMMARY: This document invites written comments on a proposal to 
suspend certain provisions of the Southwest Plains Federal milk 
marketing order (Order 106) for the months of February 1994 through 
August 1996. The proposal would suspend a portion of the supply plant 
shipping requirement and the touch-base requirement during the months 
of February through August of each year. The action was requested by 
Kraft General Foods (Kraft), which contends the suspension is necessary 
to prevent the uneconomical and inefficient movement of milk and to 
ensure that producers historically associated with the market will 
continue to have their milk pooled under Order 106.

DATES: Comments are due no later than February 22, 1994.

ADDRESSES: Comments (two copies) should be filed with the USDA/AMS/
Dairy Division, Order Formulation Branch, room 2968, South Building, 
P.O. Box 96456, Washington, DC 20090-6456.

FOR FURTHER INFORMATION CONTACT: Nicholas Memoli, Marketing Specialist, 
USDA/AMS/Dairy Division, Order Formulation Branch, Room 2968, South 
Building, P.O. Box 96456, Washington, DC 20090-6456, (202) 690-1932.

SUPPLEMENTARY INFORMATION: The Regulatory Flexibility Act (5 U.S.C. 
601-612) requires the Agency to examine the impact of a proposed rule 
on small entities. Pursuant to 5 U.S.C. 605(b), the Administrator of 
the Agricultural Marketing Service has certified that this proposed 
action would not have a significant economic impact on a substantial 
number of small entities. Such action would lessen the regulatory 
impact of the order on certain milk handlers and would tend to ensure 
that dairy farmers would continue to have their milk priced under the 
order and thereby receive the benefits that accrue from such pricing.
    The Department is issuing this rule in conformance with Executive 
Order 12866.
    This proposed suspension has been reviewed under Executive Order 
12778, Civil Justice Reform. This action is not intended to have a 
retroactive effect. If adopted, this proposed action will not preempt 
any state or local laws, regulations, or policies, unless they present 
an irreconcilable conflict with the rule.
    The Agricultural Marketing Agreement Act, as amended (7 U.S.C. 601-
674), provides that administrative proceedings must be exhausted before 
parties may file suit in court. Under section 8c(15)(A) of the Act, any 
handler subject to an order may file with the Secretary a petition 
stating that the order, any provisions of the order, or any obligation 
imposed in connection with the order is not in accordance with law and 
request a modification of the order or to be exempted from the order. A 
handler is afforded the opportunity for a hearing on the petition. 
After a hearing, the Secretary would rule on the petition. The Act 
provides that the district court of the United States in any district 
in which the handler is an inhabitant, or has its principal place of 
business, has jurisdiction in equity to review the Secretary's ruling 
on the petition, provided a bill in equity is filed not later than 20 
days after the date of the entry of the ruling.
    Notice is hereby given that, pursuant to the provisions of the 
Agricultural Marketing Agreement Act of 1937, suspension of the 
following provisions of the order regulating the handling of milk in 
the Southwest Plains marketing area is being considered for the months 
of February through August of 1994 through 1996, effective upon 
publication in the Federal Register:
    In Sec. 1106.6, the words ``during the month''.
    In Sec. 1106.7(b)(1), beginning with the words ``of February 
through August'' and continuing to the end of the paragraph.
    In Sec. 1106.13, paragraph (d)(1) in its entirety.
    All persons who wish to send written data, views or arguments about 
the proposed suspension should send two copies of them to the USDA/AMS/
Dairy Division, Order Formulation Branch, room 2968, South Building, 
P.O. Box 96456, Washington, DC 20090-6456, by the 7th day after 
publication of this notice in the Federal Register. The period for 
filing comments is limited to 7 days because a longer period would not 
provide the time needed to complete the required procedures before the 
requested suspension is to be effective.
    The comments that are sent will be made available for public 
inspection in the Dairy Division during normal business hours (7 CFR 
1.27(b)).

Statement of Consideration

    The proposed suspension would suspend the requirement that 
producers ``touch-base'' at a pool plant with at least one day's 
production during the month before their milk is eligible for diversion 
to a nonpool plant. By suspending the touch-base provision, producer 
milk would not be required to be delivered to pool plants before going 
to unregulated manufacturing plants.
    Additionally, the proposed suspension would allow a supply plant 
that has been associated with the Southwest Plains order during the 
months of September through January of each year to qualify as a pool 
plant without shipping any milk to a pool distributing plant during the 
following months of February through August. Without the suspension, a 
supply plant would be required to ship 20 percent of its producer 
receipts to pool distributing plants to qualify as a pool plant during 
each of the months of February through August.
    According to Kraft's letter requesting the suspension, supplemental 
milk supplies will not be needed to meet the fluid needs of 
distributing plants. Kraft anticipates that there will be an adequate 
supply of direct-ship producer milk located in the general area of 
distributing plants available to meet the Class I needs of the market. 
Consequently, it states, there is no need to require producers located 
some distance from pool distributing plants to touch-base when their 
milk can more economically be diverted directly to manufacturing plants 
in the production area.

List of Subjects in 7 CFR Part 1106

    Milk marketing orders.

    The authority citation for 7 CFR part 1106 continues to read as 
follows:

    Authority: Secs. 1-19, 48 Stat. 31, as amended; 7 U.S.C. 601-
674.

    Dated: February 7, 1994.
Lon Hatamiya,
Administrator.
[FR Doc. 94-3327 Filed 2-11-94; 8:45 am]
BILLING CODE 3410-02-P