[Federal Register Volume 59, Number 126 (Friday, July 1, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-16057]


[[Page Unknown]]

[Federal Register: July 1, 1994]


                                                   VOL. 59, NO. 126

                                               Friday, July 1, 1994

DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 1036

[DA-94-14]

 

Milk in the Eastern Ohio-Western Pennsylvania Marketing Area; 
Proposed Revision of Certain Provisions of the Order

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Proposed revision of rule.

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SUMMARY: This document invites written comments on a proposal to lower 
the percentage of a cooperative's milk that must be delivered to fluid 
milk plants to qualify a reserve processing plant operated by the 
cooperative as a pool plant under the Eastern Ohio-Western Pennsylvania 
Federal milk order. The applicable percentage would be reduced by 10 
percentage points, from 35 percent to 25 percent.

DATES: Comments are due no later than August 1, 1994.

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

FOR FURTHER INFORMATION CONTACT: Constance M. Brenner, Marketing 
Specialist, USDA/AMS/Dairy Division, Order Formulation Branch, room 
2971, South Building, P.O. Box 96456, Washington, DC 20090-6456, (202) 
720-2357.

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 will 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 and the provisions of 
Sec. 1036.7(f) of the order, the revision of certain provisions of the 
order regulating the handling of milk in the Eastern Ohio-Western 
Pennsylvania marketing area is being considered for the period 
September 1, 1994, through December 31, 1995.
    All persons who desire to submit written data, views or arguments 
about the proposed revision should send two copies of their views to 
USDA/AMS/Dairy Division, Order Formulation Branch, room 2971, South 
Building, P.O. Box 96456, Washington, DC 20090-6456 by the 30th day 
after publication of this notice in the Federal Register.
    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 provision proposed for revision is the delivery percentage 
required of a cooperative association operating a reserve processing 
pool plant pursuant to section 1036.7(d) of the Eastern Ohio-Western 
Pennsylvania order (Order 36). As proposed, the percentage of a 
cooperative's producer milk that must be delivered to fluid milk plants 
if the cooperative's plant is to be considered a pool plant would be 
decreased by the maximum allowable 10 percentage points, from 35 
percent to 25 percent, for the months of September 1994 through 
December 1995.
    Section 1036.7(f) allows the Director of the Dairy Division to 
reduce or increase a cooperative's minimum delivery requirement by up 
to 10 percentage points to prevent uneconomic milk shipments or to 
assure an adequate supply of milk for fluid use. The order also 
provides that the minimum pooling standard may be met on the basis of 
deliveries in the current month or during the preceding 12 months.
    Milk Marketing Inc. (MMI), a dairy farmer cooperative that supplies 
milk to Order 36 fluid milk plants, requested that an earlier reduction 
of the delivery requirement be continued. The cooperative states that 
milk production pooled under the order has increased markedly in recent 
months, while Class I use has declined. According to the cooperative, 
increases in production without corresponding increases in Class I 
usage create a greater-than-normal need to move reserve supplies of 
milk to manufacturing facilities. MMI points out that this problem has 
been exacerbated by the reduction in Class I use, creating a tremendous 
burden on the cooperative to maintain cooperative supply plant status 
under the order.
    In view of the current supply and demand relationship, it may be 
necessary to continue the reduction in delivery requirements for 
cooperative associations operating reserve processing plants under 
Order 36 as quickly as possible, as proposed, to provide for the 
efficient and economic marketing of milk during the period September 1, 
1994 through December 31, 1995.

List of Subjects in 7 CFR Part 1036

    Milk marketing orders.

    The authority citation for 7 CFR Part 1036 continues to read as 
follows:

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

    Dated: June 27, 1994.
Silvio Capponi, Jr.,
Acting Director, Dairy Division.
[FR Doc. 94-16057 Filed 6-30-94; 8:45 am]
BILLING CODE 3410-02-P