[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: 94-21084]


[[Page Unknown]]

[Federal Register: August 26, 1994]


-----------------------------------------------------------------------


DEPARTMENT OF AGRICULTURE
7 CFR Part 1030

[DA-94-16]

 

Milk in the Chicago Regional Marketing Area; Revision of Rule

agency: Agricultural Marketing Service, USDA.

action: Revision of rule.

-----------------------------------------------------------------------

summary: This document temporarily revises the supply plant shipping 
standards under the Chicago Regional order for the month of September 
1994. Shipping percentages for individual supply plants and units of 
supply plants are reduced to 1 percent and 4 percent, respectively, for 
the month of September. The action is necessary to prevent uneconomic 
and inefficient movements of milk to qualify plants for pooling. A 
proposed reduction for the month of August was found to be not 
necessary.

effective date: Amendment number 1 is effective September 1, 1994.
    Amendment number 2 is effective September 1, 1994, through 
September 30, 1994.
    Amendment number 3 is effective October 1, 1994.

for further information contact: Constance M. Brenner, Marketing 
Specialist, USDA/AMS/Division, Order Formulation Branch, Room 2971, 
South Building, P.O. Box 96456, Washington, DC 20090-6456, (202) 720-
2357.

supplementary information: Prior document in this proceeding:
    Notice of Proposed Temporary Revision: Issued July 11, 1994; 
published July 15, 1994 (59 FR 36094).
    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 rule will not have a 
significant economic impact on a substantial number of small entities. 
This rule lessens the regulatory impact of the order on certain milk 
handlers and tends 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 final rule in conformance with 
Executive Order 12866.
    This final rule has been reviewed under Executive Order 12778, 
Civil Justice Reform. This rule is not intended to have a retroactive 
effect. This rule will not preempt any state or local laws, 
regulations, or policies, unless they present an irreconcilable 
conflict with this 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 the law and requesting 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.
    This revision is issued pursuant to the provisions of the 
Agricultural Marketing Agreement Act and the provisions of 
Sec. 1030.7(b)(5) of the Chicago Regional milk order.
    Notice of proposed rulemaking was published in the Federal Register 
(59 FR 36094) concerning a proposed temporary relaxation of the supply 
plant shipping percentages under the Chicago Regional milk order. The 
revisions were proposed to be effective for the months of August and 
September 1994. The public was afforded the opportunity to comment on 
the proposed notice by submitting written data, views and arguments by 
July 22, 1994.
    Two comments supporting the proposed revision for the month of 
September were received. The comments agreed that the degree of 
adjustment that the order allows the market administrator to make in 
supply plant shipping requirements would be sufficient for the month of 
August. No opposing comments were received.

Statement of Consideration

    For the month of September 1994 this rule revises from 5 percent to 
1 percent the requirements of the Chicago Regional order that pool 
supply plants ship to distributing plants a minimum percentage of 
receipts. For a unit of supply plants, the action reduces the required 
shipping percentage from 10 percent of the supply plants' receipts to 4 
percent. A proposed revision for the month of August is found to be 
unnecessary because the order authorizes the market administrator to 
reduce the supply plant shipping percentages to a great enough degree 
to meet current market needs. The degree to which the market 
administrator is authorized to revise shipping requirements is, 
however, not great enough to meet the needs of the market for 
September.
    The temporary revision was requested by Central Milk Producers 
Cooperative (CMPC), a federation of cooperative associations that 
represent a substantial number of the producers who supply the market. 
CMPC contends that a reduction of the shipping percentages is necessary 
to prevent uneconomic shipments of milk from distant supply plants 
solely for pooling purposes.
    CMPC originally requested that the required supply plant shipping 
percentages be eliminated for September for both individual supply 
plants and supply plant units. After having the opportunity to see data 
for further months, however, the cooperative federation stated that the 
revision originally requested would be excessive in view of recent 
increases in production over the volume CMPC had projected and recent 
increased demand for milk for manufacturing uses. CMPC therefore 
recommended that the proposed reduction be modified to establish 
shipping standards of 1 percent for individual supply plants and 4 
percent for units. Dean Foods, a large fluid milk handler regulated 
under the Chicago Regional order, supported CMPC's request for 
September.
    In view of the supply/demand relationship for the market the supply 
plant shipping percentages should be reduced for September 1994. A 
reduction of the shipping percentages will contribute to orderly 
marketing in that costly and inefficient shipments of milk from distant 
supply plants will not be necessary. Thus, dairy farmers who have 
supplied the market will continue to have their milk pooled under the 
order.
    The revision needed for September is greater than the market 
administrator is authorized to accomplish under the order. Therefore, 
it must be effectuated by the Director of the Dairy Division.
    After consideration of all relevant material, including the 
proposal set forth in the aforesaid notice, and other available 
information, it is hereby found and determined that the pool supply 
plant shipping percentage set forth in Sec. 1030.7(b) should be reduced 
for the month of September to 1 percent of individual supply plant 
receipts and 4 percent of supply plant unit receipts.
    It is hereby found and determined that 30 days' notice of the 
effective date hereof is impractical, unnecessary, and contrary to the 
public interest in that:
    (a) This revision is necessary to reflect current marketing 
conditions and to maintain orderly marketing conditions in the 
marketing area for the month of September;
    (b) This revision does not require of persons affected substantial 
or extensive preparation prior to the effective date; and
    (c) Notice of the proposed revision was given interested parties 
and they were afforded opportunity to file written data, views, or 
arguments concerning this revision.
    Two comments supporting the proposed revision were received, with 
no comments opposing.
    Therefore, good cause exists for making this revision effective 
less than 30 days from the date of publication in the Federal Register.

List of Subjects in 7 CFR Part 1030

    Milk marketing orders.

    For the reasons set forth in the preamble, the following provisions 
in Title 7, Part 1030, are amended as follows:

PART 1030--MILK IN THE CHICAGO REGIONAL MARKETING AREA

    1. The authority 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.


Sec. 1030.7  [Amended]

    2. In Sec. 1030.7(b), the introductory text is amended by changing 
the ``5 percent'' to ``1 percent'', and by changing the ``10 percent'' 
to ``4 percent'' for the period September 1, 1994, through September 
30, 1994.
    3. In Sec. 1030.7(b), the introductory text is amended by changing 
the ``1 percent'' to ``5 percent'', and by changing the ``4 percent'' 
to ``10 percent'', effective October 1, 1994.

    Dated: August 22, 1994.
Silvio Capponi, Jr.,
Acting Director, Dairy Division.
[FR Doc. 94-21084 Filed 8-25-94; 8:45 am]
BILLING CODE 3410-02-M