[Federal Register Volume 59, Number 165 (Friday, August 26, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-21080]


[[Page Unknown]]

[Federal Register: August 26, 1994]


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DEPARTMENT OF AGRICULTURE
7 CFR Part 1036

[DA-94-20]

 

Milk in the Eastern Ohio-Western Pennsylvania 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 revise 
the supply plant shipping standards under the Eastern Ohio-Western 
Pennsylvania order for the months of September 1994 through February 
1995. The proposal would reduce shipping percentages for pool supply 
plants by 10 percentage points for each month during the requested 
period. The temporary revision was requested by Brewster Dairy, Inc., a 
proprietary handler who operates a pool supply plant. The handler 
contends that the action is necessary to prevent inefficient and 
uneconomic movements of milk.

DATES: Comments are due no later than September 2, 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. 1036.7(f) of the order, the temporary 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 
months of September 1, 1994, through February 28, 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 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 September 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 September 1994 through February 1995. The 
proposed action would reduce the amount of milk that supply plants must 
ship to pool distributing plants by 10 percentage points.
    Currently, the order provides that for a supply plant to be 
considered a pool plant, a minimum percentage of the total quantity of 
milk received at the supply plant must be transferred or diverted to 
and physically received at pool distributing plants regulated under the 
order. The minimum percentages are: 40 percent for September, October, 
and November; 30 percent for December; and 35 percent for January and 
February.
    The Eastern Ohio-Western Pennsylvania order provides that the 
Director of the Dairy Division may increase or decrease the percentage 
delivery requirement by up to 10 percentage points if the Director 
finds that such revision is necessary to obtain needed shipments or to 
prevent uneconomic shipments.
    The revision was requested by Brewster Dairy, Inc. (Brewster), a 
proprietary handler who operates a pool supply plant regulated under 
the order. Brewster contends that in Fall 1993 the plant was unable to 
accept surplus distributing plant milk associated with Order 36 and 
still meet supply plant qualifications. Consequently, milk from a 
distributing plant located 10 miles from Brewster had to be diverted to 
a manufacturing facility 92 miles away. At the same time, Brewster had 
to procure surplus milk from greater distances to fulfill manufacturing 
obligations. Brewster contends that this situation represents 
inequitable and inefficient movements of milk for both supply and 
distributing plants, undertaken to meet order shipping requirements. 
Brewster asserts that the same inequitable and inefficient movements of 
milk are expected again for Fall 1994. Thus, Brewster contends, a 
reduction of supply plant shipping percentages is necessary to prevent 
uneconomic and inefficient shipments of milk.
    In view of the current supply and demand relationship, it may be 
necessary to reduce the supply plant shipping percentage requirements 
as proposed to provide for the efficient and economic marketing of milk 
during the months of September 1, 1994, through February 28, 1994.

List of Subjects in 7 CFR Part 1036

    Milk marketing orders.

PART 1036--[AMENDED]

    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: August 22, 1994.
Silvio Capponi, Jr.,
Deputy Director, Dairy Division.
[FR Doc. 94-21080 Filed 8-25-94; 8:45 am]
BILLING CODE 3410-02-P