[Federal Register Volume 60, Number 2 (Wednesday, January 4, 1995)]
[Proposed Rules]
[Pages 379-380]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-154]



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DEPARTMENT OF AGRICULTURE
7 CFR Part 1050

[DA-95-09]


Milk in the Central Illinois Marketing Area; Proposed Suspension 
of Certain Provisions of the Order

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Proposed suspension of rule.

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SUMMARY: This document invites written comments on a proposal to 
suspend the aggregate limits on the amount of producer milk that may be 
diverted [[Page 380]] from a pool plant under the Central Illinois 
Federal milk marketing order for an indefinite period beginning with 
the month of January 1995. The proposal was submitted by Prairie Farms 
Dairy, Inc., and Associated Milk Producers, Inc. Both cooperatives 
contend the suspension is necessary to ensure that producers 
historically associated with the market will continue to have their 
milk pooled under the order without having to move milk uneconomically.

DATES: Comments are due no later than January 11, 1995.

ADDRESSES: Comments (two copies) should be filed with the 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 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, the suspension of the following 
provision of the order regulating the handling of milk in the Central 
Illinois marketing area is being considered for an indefinite period 
commencing on January 1, 1995:
    In Sec. 1050.13(d)(2), the words ``: Provided, That the total 
quantity of producer milk diverted does not exceed 35 percent of the 
physical receipts of producer milk at the handler's pool plant during 
the month, exclusive of milk of producers who are members of a 
cooperative association that is diverting milk and the milk of other 
producers that is diverted pursuant to paragraph (d)(3) of this 
section''.
    All persons desiring to submit written data, views or arguments 
about the proposed suspension should send two copies of their views to 
the 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 before 
the requested suspension is to be effective.
    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 action would suspend the aggregate limit on the amount 
of milk that may be diverted from a pool plant during the months of 
August through April. At the present time, for each day's production of 
a producer's milk that is delivered to a pool plant during these 
months, another day's production may be diverted to a nonpool plant. 
However, in addition to this individual producer limit, there is an 
aggregate limit of 35 percent that applies to the total amount of milk 
that a pool plant operator may divert during the month. The language 
proposed to be suspended would remove this 35 percent aggregate limit, 
effectively increasing the aggregate limit to 50 percent of a pool 
plant operator's total producer receipts during the month.
    In their letter requesting the suspension, Prairie Farms Dairy, 
Inc. (Prairie Farms) and the Morning Glory Farms region of Associated 
Milk Producers, Inc. (AMPI), explained that Prairie Farms now operates 
the only distributing plant under the Central Illinois order (Order 50) 
and that both cooperatives supply milk to this plant, which is located 
in Peoria. For several reasons, including the availability of abundant 
quantities of good quality feed, milk production is up substantially in 
recent months compared to the same period of last year. This has 
resulted in both cooperatives having to divert additional milk to 
nearby unregulated manufacturing plants on weekends, holidays, and 
other days when the Peoria plant is not in operation.
    Prairie Farms and AMPI state that the proposed suspension would 
allow them to continue to balance the supply of milk needed at the 
Peoria plant while, at the same time, eliminating the need to haul milk 
in and out of the plant merely to keep their milk pooled under the 
order.
    Accordingly, it may be appropriate to suspend the aforesaid 
provision for an indefinite period commencing on January 1, 1995.

List of Subjects in 7 CFR Part 1032

    Milk marketing orders.

    The authority citation for 7 CFR Part 1050 continues to read as 
follows:

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

    Dated: December 28, 1994.
Lon Hatamiya,
Administrator, Agricultural Marketing Service.
[FR Doc. 95-154 Filed 1-3-95; 8:45 am]
BILLING CODE 3410-02-P