[Federal Register Volume 59, Number 184 (Friday, September 23, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-23609]


[[Page Unknown]]

[Federal Register: September 23, 1994]


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DEPARTMENT OF AGRICULTURE
7 CFR Part 1106

[DA-94-17]

 

Milk in the Southwest Plains Marketing Area; Continued Revision 
of Pooling Standards

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Final rule.

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SUMMARY: This document continues the October 1, 1992, reduction of the 
shipping requirement for a cooperative association that operates a 
balancing plant under the Southwest Plains Federal milk order (Order 
106) through September 30, 1995. This action, which was requested by 
Associated Milk Producers, Inc. (AMPI), is necessary to prevent the 
uneconomic and inefficient movement of producer milk regularly 
associated with the market.

DATES: Effective September 23, 1994, the effective date of the 
amendment to Sec. 1106.7(c) introductory text which appeared at 57 FR 
48939, October 29, 1992, is extended through September 30, 1995.

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: Prior document in this proceeding: Notice of 
Proposed Temporary Revision: Issued July 11, 1994; published July 15, 
1994 (59 FR 36095).
    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 continues to lessen 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.
    Continuation of this revision is issued pursuant to the provisions 
of the Agricultural Marketing Agreement Act and the provisions of 
Sec. 1106.7(c) and (d) of the Southwest Plains order.
    Notice of proposed rulemaking was published in the Federal Register 
(59 FR 36095) concerning a proposed relaxation of the shipping 
requirement for a cooperative association that operates a balancing 
plant. The continuation of the revision was proposed to be effective 
for the months of October 1, 1994, through September 30, 1995. The 
public was afforded the opportunity to comment on the proposed notice 
by submitting written data, views and arguments by August 15, 1994. One 
comment supporting the proposed continuation of revision was received.

Statement of Consideration

    This rule continues to reduce, from 45 to 35 percent, the shipping 
requirement for a cooperative association that operates a balancing 
plant 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 the ``producer milk'' 
marketed under the Southwest Plains order 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 
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 to fluid 
handlers.
    Mid-America Dairymen, Inc. (Mid-Am), filed a comment in support of 
the proposed continuation of revision. Mid-Am and AMPI indicate 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. Mid-Am asserts that 
increased producer receipts and reduced sales to distributing plants 
warrant a continuation of the reduced shipping percentage for a 
cooperative association that operates a balancing plant. It states the 
reduction of sales to distributing plants is largely due to 
distributing plants procuring additional supplies from non-member 
producers.
    The marketing conditions that currently exist in the Southwest 
Plains Order are expected to continue through the next year. It is 
anticipated that during many months over the next year member milk 
deliveries will be significantly below the 45 percent shipping 
requirement, and, subsequently, the 12-month shipping percentage 
average will fall below 45 percent. Thus, continuation of the revision 
will allow producer milk historically associated with Order 106 to 
continue to be pooled under the order.
    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 shipping 
requirement set forth in Sec. 1106.7(c) should be maintained at 35 
percent through September 30, 1995.
    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 continued revision is necessary to reflect current 
marketing conditions and to maintain orderly marketing conditions in 
the marketing area through September 30, 1995;
    (b) This revision does not require of persons affected, substantial 
or extensive preparation prior to the effective date; and
    (c) Notice of the proposed temporary revision was given interested 
parties and they were afforded opportunity to file written data, views, 
or arguments concerning this continued revision. One comment supporting 
the continued revision was received.
    Therefore, good cause exists for continuing this revision effective 
less than 30 days from the date of publication in the Federal Register.

List of Subjects in 7 CFR Part 1106

    Milk marketing orders.

    For reasons set forth in the preamble, the following provision in 
Title 7, Part 1106, continues to read as follows:

PART 1106--MILK IN THE SOUTHWEST PLAINS MARKETING AREA

    1. Authority: Secs. 1-19, 48 Stat 31, as amended; 7 U.S.C. 601-
674.


Sec. 1106.7  Pool Plant.

    2. In Sec. 1106.7(c) introductory text, the provision ``35 
percent'' (57 FR 48939, Oct. 29, 1992) continues to read as such 
through September 30, 1995.

    Dated: September 19, 1994.
Richard M. McKee,
Director, Dairy Division.
[FR Doc. 94-23609 Filed 9-22-94; 8:45 am]
BILLING CODE 3410-02-P