[Federal Register Volume 59, Number 99 (Tuesday, May 24, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-12590]


[[Page Unknown]]

[Federal Register: May 24, 1994]


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DEPARTMENT OF AGRICULTURE
7 CFR Part 1126

[DA-94-10]

 

Milk in the Texas Marketing Area; Suspension of Certain 
Provisions of the Order

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Suspension of rule.

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SUMMARY: This document suspends the ``dairy farmer for other markets'' 
provisions of the Texas Federal milk marketing order. The action was 
requested by Associated Milk Producers, Inc. (AMPI), a cooperative 
association that represents dairy farmers whose milk is pooled under 
the order. The suspension will give supply organizations, like AMPI, 
the flexibility they need to market their milk supplies efficiently 
under today's marketing conditions.

EFFECTIVE DATE: May 24, 1994.

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: Prior document in this proceeding:

    Notice of Proposed Suspension: Issued April 6, 1994; published 
April 13, 1994 (59 FR 17498).

    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 rule will not have a 
significant economic impact on a substantial number of small entities. 
This rule lessens the regulatory impact of the order on certain milk 
handlers and tends to ensure that dairy farmers will have their milk 
priced under the order and thereby receive the benefits that accrue 
from such pricing.

    The Department is issuing this final rule in conformance with 
Executive Order 12866.

    This final rule has been reviewed under Executive Order 12778, 
Civil Justice Reform. This rule is not intended to have a retroactive 
effect. This 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 the law and requesting 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.

    This order of suspension is issued pursuant to the provisions of 
the Agricultural Marketing Agreement Act and of the order regulating 
the handling of milk in the Texas marketing area.

    Notice of proposed rulemaking was published in the Federal Register 
on April 13, 1994 (59 FR 17498) concerning a proposed suspension of 
certain provisions (or sections) of the order. Interested persons were 
afforded opportunity to file written data, views and arguments thereon. 
No opposing views were received.

    After consideration of all relevant material, including the 
proposal in the notice and other available information, it is hereby 
found and determined that from the date this order is published in the 
Federal Register the following provisions (or sections) of the order do 
not tend to effectuate the declared policy of the Act:

    In Sec. 1126.12, paragraph (b)(5) in its entirety.

Statement of Consideration

    The suspension order makes inoperative 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 in some instances these provisions prevent 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. Also, 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.
    The market's supply/demand relationship has changed dramatically 
since these provisions were adopted. Because of these circumstances, as 
proponent requested, the ``dairy farmer for other markets'' provisions 
should be suspended indefinitely.
    It is hereby found and determined that thirty days' notice of the 
effective date hereof is impractical, unnecessary and contrary to the 
public interest in that:
    (a) The suspension is necessary to reflect current marketing 
conditions and to assure orderly marketing conditions in the marketing 
area, in that such rule is necessary to permit the pooling of the milk 
of dairy farmers without the need for making costly and inefficient 
movements of milk;
    (b) This suspension does not require of persons affected 
substantial or extensive preparation prior to the effective date; and
    (c) Notice of proposed rulemaking was given interested parties and 
they were afforded opportunity to file written data, views or arguments 
concerning this suspension. No opposing views were filed.
    Therefore, good cause exists for making this order effective upon 
publication of this document in the Federal Register.

List of Subjects in 7 CFR Part 1126

    Milk marketing orders.

    For the reasons set forth in the preamble, the following provisions 
in 7 CFR, part 1126 are amended as follows:

PART 1126--MILK IN THE TEXAS MARKETING AREA

    1. 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.


Sec. 1126.12  [Suspended in part]

    2. Sec. 1126.12, paragraph (b)(5) is suspended in its entirety 
effective May 24, 1994.

    Dated: May 24, 1994.
Patricia Jensen,
Acting Assistant Secretary, Marketing and Inspection Services.
[FR Doc. 94-12590 Filed 5-23-94; 8:45 am]
BILLING CODE 3410-02-P