[Federal Register Volume 59, Number 135 (Friday, July 15, 1994)] [Unknown Section] [Page 0] From the Federal Register Online via the Government Publishing Office [www.gpo.gov] [FR Doc No: 94-17243] [[Page Unknown]] [Federal Register: July 15, 1994] ----------------------------------------------------------------------- DEPARTMENT OF AGRICULTURE 7 CFR Part 1030 [DA-94-16] Milk in the Chicago Regional Marketing Area; Proposed Temporary Revision of Certain Provisions of the Order AGENCY: Agricultural Marketing Service, USDA. ACTION: Proposed revision of rule. ----------------------------------------------------------------------- SUMMARY: This document invites written comments on a proposal to revise the supply plant shipping standards under the Chicago Regional order for the months of August and September, 1994. The proposal would reduce shipping percentages for individual supply plants and units of supply plants to zero for these two months. The reductions were requested by Central Milk Producers Cooperative, a federation of cooperatives that represents producers who supply the market. The organization contends that the action is necessary to prevent uneconomic and inefficient movements of milk to qualify plants for pooling. DATES: Comments are due no later than July 22, 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 would continue to have their milk priced under the order and thereby receive the benefits that accrue from such pricing. The Department of Agriculture (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. 1030.7(b)(5) of the order, the temporary revision of certain provisions of the order regulating the handling of milk in the Chicago Regional marketing area is being considered for the months of August 1, 1994, through September 30, 1994. 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 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 and include August 1994 in the temporary revision period. 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 provisions proposed to be revised are the supply plant shipping percentages for the months of August and September, 1994. For an individual supply plant, the proposed action would reduce the shipping percentage by 3 percentage points (from 3 to zero percent of receipts) in August 1994 and by 5 percentage points (from 5 to zero percent of receipts) in September 1994. For a unit of supply plants, the proposed action would reduce the shipping percentage by 6 percentage points (from 6 to zero percent of receipts) in August 1994 and by 10 percentage points (from 10 to zero percent of receipts) in September 1994. Currently, the order provides that from January through August, individual supply plants must ship at least 3 percent of milk receipts to distributing plants to qualify as pool plants while a unit of supply plants must ship at least 6 percent of total receipts for pooling purposes. From September through December, individual supply plants must ship at least 5 percent of milk receipts to distributing plants to qualify as pool plants while a unit of supply plants must ship at least 10 percent of total receipts for pooling purposes. The Chicago order provides that the Market Administrator may adjust the shipping standards for individual plants and units of plants by up to 2 percentage points for up to 3 months. The order also provides that the Director of the Dairy Division may increase the shipping standards by up to 5 percentage points or decrease the shipping standards by up to 10 percentage points. The adjustments can be made to encourage additional milk shipments or to prevent uneconomic shipments. The revision was requested by Central Milk Producers Cooperative (CMPC), a federation of cooperative associations that represents a substantial number of the producers who supply the market. CMPC contends that the most recent supply and demand estimates, and their commitments to the market, substantiate that there will be more than sufficient fluid milk supplies from close-in sources available for the fluid market. Current projections indicate that supply will remain constant while demand will decrease. Based on these projections, CMPC asserts that it is impractical and unnecessary to require qualifying shipments from distant unit plants, while forcing the milk from nearby unit plants to be hauled to distant plants for manufacturing, merely for pooling purposes. CMPC states that this double hauling of milk will put a financial burden on handlers who operate pool units. Thus, CMPC contends that a reduction of shipping percentages is necessary to prevent uneconomic and inefficient shipments of milk from distant supply plants solely for pooling purposes. Based on supply and demand estimates, CMPC has requested that the market administrator reduce the shipping percentages by 2 percentage points for the months of August and September 1994. A reduction of the shipping percentages for these two months is being considered by the Market Administrator. Based on the most recent supply and demand projections, CMPC contends a further reduction of shipping percentages, beyond the request to the Market Administrator, will be necessary. CMPC contends that in order to make the most efficient use of available milk supplies, as much as possible of nearby milk supplies will have to be utilized with reliance on distant supplies only on days when nearer milk supplies have been exhausted. For the months of August and September, 1994, CMPC contends that such efficiencies can only be realized if the shipping standards for individual plants and units of supply plants are reduced to zero percent of receipts, respectively. In view of the current supply and demand relationship, it may be necessary to reduce the supply plant shipping percentages as proposed to provide for the efficient and economic marketing of milk during the months of August 1, 1994, through September 30, 1994. List of Subjects in 7 CFR Part 1030 Milk marketing orders. The authority citation for 7 CFR Part 1030 continues to read as follows: Authority: Secs. 1-19, 48 Stat 31, as amended; 7 U.S.C. 601-674. Dated: July 11, 1994. Silvio Capponi, Acting Director, Dairy Division. [FR Doc. 94-17243 Filed 7-14-94; 8:45 am] BILLING CODE 3410-02-P