[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]


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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.

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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