[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: 94-17244]


[[Page Unknown]]

[Federal Register: July 15, 1994]


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DEPARTMENT OF AGRICULTURE
7 CFR Part 1106

[DA-94-17]

 

Milk in the Southwest Plains Marketing Area; Proposed Temporary 
Revision of Certain Provisions of the Order

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Proposed temporary revision of rule.

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SUMMARY: This document invites written comments on a proposal to reduce 
the shipping requirement for a cooperative association that operates a 
balancing plant under the Southwest Plains Federal milk order (Order 
106) for a 12-month period, beginning October 1, 1994. The proposed 
action was requested by Associated Milk Producers, Inc. (AMPI), which 
contends the action is necessary to prevent the uneconomic and 
inefficient movement of producer milk regularly associated with the 
market.

DATES: Comments are due no later than August 15, 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: Nicholas Memoli, Marketing Specialist, 
USDA/AMS/Dairy Division, Order Formulation Branch, Room 2971, South 
Building, P.O. Box 96456, Washington, DC 20090-6456 (202) 690-1932.

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 wih 
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. 1106.7 
(c) and (d) of the order, the temporary revision of certain provisions 
of the order regulating the handling of milk in the Southwest Plains 
marketing area is being considered for the months of October 1, 1994, 
through September 30, 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 proposed revision would reduce from 45 to 35 percent the 
shipping requirement for a cooperative association that operates a 
balancing plant for the period of October 1994 through September 1995. 
In order for a cooperative association's plant that is located in the 
marketing area or in a county adjacent to the marketing area to be a 
pool plant, the Southwest Plains order requires that the cooperative 
deliver to pool distributing plants a minimum of 45 percent of the 
total quantity of milk marketed by the cooperative, either during the 
month or during the 12-month period ending with the immediately 
preceding month. The order also authorizes the Director of the Dairy 
Division to increase or decrease this requirement by up to 10 
percentage points if such a revision is necessary to obtain needed 
shipments or prevent uneconomic shipments of milk.
    According to AMPI, Mid-America Dairymen (Mid-Am) and AMPI have 
formed an agency for the purpose of pooling member-producers' milk. 
These two cooperatives represented about 73 percent of the producers 
and 77 percent of the milk pooled on Order 106 in May 1994. AMPI states 
that the agency has shipped approximately 40 percent of its total 
receipts to pool distributing plants during the past 12 months and 
anticipates a similar demand for milk during the next 12 months. It 
concludes, therefore, that the 45 percent cooperative association 
shipping requirement, which was reduced to 35 percent for the period of 
October 1, 1992, through September 30, 1994, should remain at that 
level for the 12-month period commencing on October 1, 1994.
    AMPI contends that, without the continuation of the reduced 
shipping requirements, milk normally pooled under the Southwest Plains 
order would become ineligible for pooling unless the cooperative made 
uneconomic, inefficient, and unnecessary shipments of milk of fluid 
handlers.
    Accordingly, it may be necessary to reduce from 45 to 35 percent 
the delivery requirement as proposed to provide for the efficient and 
economic marketing of milk during the months of October 1, 1994, 
through September 30, 1995.

List of Subjects in 7 CFR Part 1106

    Milk marketing orders.

    The authority citation for 7 CFR Part 1106 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, Jr.,
Acting Director, Dairy Division
[FR Doc. 94-17244 Filed 7-14-94; 8:45 am]
BILLING CODE 3410-02-M