[Federal Register Volume 59, Number 37 (Thursday, February 24, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-4119]


[[Page Unknown]]

[Federal Register: February 24, 1994]


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


DEPARTMENT OF AGRICULTURE
7 CFR Parts 1001 and 1002

[DA-94-09]

 

Milk in the New England and New York-New Jersey Marketing Areas; 
Proposed Termination or Suspension of Certain Provisions of the Orders

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Proposed termination or suspension of rules.

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

SUMMARY: This document invites written comments on a proposal to either 
terminate or for 1994 suspend the seasonal incentive plans for paying 
producers under the New England and New York-New Jersey Federal milk 
orders. This was requested by cooperative associations that represent 
about one-half of the milk supply for each market. The cooperatives 
contend that the payment plans, which have been suspended since 1991, 
are no longer effective in altering producer seasonal milk production 
patterns.

DATES: Comments are due on or before March 11, 1994.

ADDRESSES: Comments (two copies) should be filed with the USDA/AMS/
Dairy Division, Order Formulation Branch, room 2971, South Building, 
P.O. Box 96456, Washington, DC 20090-6456.

FOR FURTHER INFORMATION CONTACT: Gino M. Tosi, Marketing Specialist, 
USDA/AMS/Dairy Division, Order Formulation Branch, room 2971, South 
Building, P.O. Box 96456, Washington, DC 20090-6456 (202) 690-1366.

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 the proposed 
actions would not have a significant economic impact on a substantial 
number of small entities. Such actions would lessen the regulatory 
impact of the order on dairy farmers and would have no impact on 
regulated handlers.
    The Department is issuing this proposed rule in conformance with 
Executive Order 12866.
    This proposed rule has been reviewed under Executive Order 12778, 
Civil Justice Reform. This rule is not intended to have a retroactive 
effect. If adopted, this proposed rule will not preempt any state or 
local laws, regulations, or policies, unless they present an 
irreconcilable conflict with this rule.
    The Agricultural Marketing Agreement Act of 1937, as amended (7 
U.S.C. 601-674), provides that administrative proceedings must be 
exhausted before parties may file suit in court. Under section 
608c(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 an 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, the termination, or as an 
alternative the suspension for the months of March through June 1994 
and August through November 1994, of the following provisions of the 
order regulating the handling of milk in the New England and New York-
New Jersey marketing areas are being considered:
    1. In Sec. 1001.62, paragraphs (c) and (d).
    2. In Sec. 1002.61, paragraphs (d) and (e).
    All persons who want to send written data, views, or arguments 
about the proposed termination or suspension of provisions should send 
two copies of them to the USDA/AMS/Dairy Division, Order Formulation 
Branch, room 2971, South Building, P.O. Box 96456, Washington, DC 
20090-6456, not later than 30 days after the publication of this notice 
in the Federal Register. The period for filing comments is limited to 
15 days because a longer period would not provide the time needed to 
complete the required procedures before the requested termination or 
suspension is to be effective.
    The comments that are received 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 actions would either terminate, or as an alternative 
suspend for the months of March through June 1994 and August through 
November 1994, the seasonal incentive plans for paying producers under 
the New England and New York-New Jersey Federal milk orders. The 
seasonal payment plans provide for making deductions from prices paid 
to producers during the normal flush-production months of March through 
June. The deducted amounts are returned to producers during the normal 
short-production months of August through November. The plan is 
intended to provide an incentive for dairy farmers to level out the 
seasonal milk production pattern.
    The actions were requested by several cooperative associations 
representing dairy farmers who supply handlers regulated by the Federal 
milk marketing orders for the New England and New York-New Jersey 
marketing areas. Collectively, these cooperatives represent about 51 
percent of the producers associated with the New England marketing area 
and about 48 percent of the producers associated with the New York-New 
Jersey marketing area.
    The cooperatives maintain that the ``Louisville'' seasonal payment 
plans have not had the effect of reducing the large seasonal spring-to-
fall swings in milk production as was intended when they were first 
provided for in these orders some 25 years ago. They maintain that the 
seasonality of milk production in the Northeast has not been reduced 
significantly. The cooperatives assert that the seasonal payment plans 
are largely ineffective because of a general lack of awareness about 
the plan in the dairy farming community. They also contend that the 
price differentials are too low to provide an incentive for dairy 
farmers to modify their seasonal production patterns. The cooperatives 
also expressed concern about the impact of reducing returns to 
producers during the spring months when producer milk prices are 
already generally lower than during other times of the year.
     The cooperatives seeking actions noted that the seasonal incentive 
payment plans have been repeatedly suspended since 1991. They contend 
that the prior suspension actions are further evidence that the plans 
are no longer necessary or effective. These past suspensions, according 
to the cooperatives, were supported by the need for dairy farmers to 
have additional monies available during the spring months in which 
prices to producers declined precipitously. The cooperatives expect 
that milk prices will decline in the spring of 1994, which will 
continue to put a cash flow pressure on dairy farmers during a time of 
increased cash needs for spring planting.
    Therefore, comments are sought to determine whether the 
aforementioned provisions should be terminated or, in the alternative, 
suspended for the months of March through June 1994 and August through 
November 1994.

List of Subjects in 7 CFR Parts 1001 and 1002

    Milk marketing orders.

    The authority citation for 7 CFR part 1001 and 1002 continues to 
read as follows:

    Authority: Secs. 1-19, 48 Stat. 31, as amended; 7 U.S.C. 601-
675.

    Dated: February 15, 1994.
L.P. Massaro,
Acting Administrator.
[FR Doc. 94-4119 Filed 2-23-94; 8:45 am]
BILLING CODE 3410-02-P