[Federal Register Volume 59, Number 71 (Wednesday, April 13, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-8858]


[[Page Unknown]]

[Federal Register: April 13, 1994]


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DEPARTMENT OF AGRICULTURE
7 CFR Part 1126

[DA-94-10]

 

Milk in the Texas Milk 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 the ``dairy farmer for other markets'' provisions of the Texas 
milk marketing order. The proposal would suspend a portion of the 
producer definition until such time as this and other pooling 
provisions of the order can be reviewed at a public hearing. The action 
was requested by Associated Milk Producers, Inc., a cooperative that 
represents dairy farmers whose milk is pooled under the order. 
Proponent contends that these provisions prevent the cooperative from 
marketing its milk supplies efficently.

DATES: Comments are due no later than April 20, 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: Clifford M. Carman, Marketing 
Specialist, USDA/AMS/Dairy Division, Order Formulation Branch, room 
2971, South Building, P.O. Box 96456, Washington, DC 20090-6456, (202) 
720-9368.

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 
rule would not have a significant economic impact on a substantial 
number of small entities. This rule 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 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 the 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 suspension of the following 
provisions (or sections) of the order regulating the handling of milk 
in the Texas marketing area is being considered until this and other 
pooling provisions of the Texas order are reviewed at a public hearing:
    In Sec. 1126.12, paragraph (b)(5) in its entirety.
    All persons who want to submit written data, views or arguments 
about the proposed suspension should send two copies of their views to 
the USDA/AMS/Dairy Division, Order Formulation Branch, room 2971, 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 this action needs to 
be completed at the earliest practicable date.
    All written submissions made pursuant to this notice will be made 
available for public inspection in the Dairy Division during regular 
business hours (7 CFR 1.27(b)).

Statement of Consideration

    The proposed rule would suspend the ``dairy farmer for other 
markets'' provisions of the Texas milk order (Order 126). By suspending 
these provisions, the milk of dairy farmers who were not associated 
with the Texas market in September-November could be used to supply 
Order 126 distributing plants during the following months of February-
July.
    In its letter requesting the suspension, Associated Milk Producers, 
Inc. (AMPI), stated that these provisions are now preventing the 
cooperative from marketing its milk supplies efficiently. Because of 
the limitation on which dairy farmers can be producers under the Texas 
order during the months of February-July, AMPI was unable to pool more 
than two million pounds of milk it supplied to an Order 126 
distributing plant in Little Rock, Arkansas, during February 1994. The 
milk of these dairy farmers, who are more favorably located with 
respect to the Little Rock plant than are the cooperative's Texas 
producers, was not eligible for pool status because the dairy farmers 
had not been associated with the Texas market to the extent necessary 
during the preceding months of September-November. If AMPI supplies the 
Arkansas plant with milk of eligible Texas producers, the cooperative 
suffers an economic pooling loss because the Little Rock plant is 
subject to a minus 39-cent location adjustment, proponent states.
    Proponent also claims that the market's supply/demand relationship 
has changed dramatically since these provisions were adopted. Because 
of these circumstances, AMPI asks that the ``dairy farmer for other 
markets'' provisions be suspended until the appropriateness of this and 
other pooling provisions for this market can be explored at a public 
hearing.

List of Subjects in 7 CFR Part 1126

    Milk marketing orders.

    The authority citation for 7 CFR part 1126 continues to read as 
follows:

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

    Dated: April 6, 1994.
Lon Hatamiya,
Administrator.
[FR Doc. 94-8858 Filed 4-12-94; 8:45 am]
BILLING CODE 3410-02-P