[Federal Register Volume 60, Number 56 (Thursday, March 23, 1995)]
[Proposed Rules]
[Pages 15262-15263]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-7105]




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DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service

7 CFR Part 1050

[DA-95-14]


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 a portion of the producer milk definition of the Central 
Illinois Federal milk marketing order (Order 50) for an indefinite 
period commencing April 1, 1995. The proposed suspension was requested 
by Prairie Farms Dairy, Inc., which contends the action is necessary to 
prevent uneconomic and inefficient movements of milk and to ensure that 
producer milk historically associated with Order 50 will continue to be 
pooled under the order.

DATES: Comments are due no later than March 30, 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, 
beginning April 1, 1995:
    In Sec. 1050.13(d)(2), the words ``not'' and ``it'' where they 
first appear.
    All persons who want 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 rule would suspend a portion of the producer milk 
definition under the Central Illinois order for an indefinite period of 
time, beginning April 1, 1995. The proposed suspension would suspend 
the diversion limits applicable to individual producers for a pool 
distributing plant regulated under the order. The aggregate limit of 35 
percent contained in the proviso of [[Page 15263]] Sec. 1050.13(d)(2) 
were suspended for an indefinite period on January 1, 1995.

    The Central Illinois order currently allows an operator of a 
distributing plant to divert to a nonpool plant up to 50 percent of a 
producer's milk that is physically received at the pool plant during 
the months of August through April. The proposed suspension would allow 
a distributing plant to divert an unlimited amount of a producer's milk 
to a nonpool plant during each of these months, provided that at least 
one day's production is physically received at a pool plant.

    Prairie Farms, which operates the only distributing plant regulated 
under Order 50, states that it represents over 90 percent of the 
producer milk pooled under Order 50. According to Prairie Farms, 
approximately 60 percent of its producer milk pooled under Order 50 was 
supplied to Beatrice Cheese, Inc., effective December 1, 1994. It 
contends the proposed suspension is necessary to permit it to keep its 
producers pooled under the order without the necessity of costly and 
inefficient movements of milk. It maintains that its proposal would not 
jeopardize the integrity of the order because at least one day's 
production would have to be physically received at a pool plant during 
each of the months of August through April to qualify the milk for 
diversion to a nonpool plant. Prairie Farms requests that the proposed 
action be handled on an emergency basis to allow the continuous pooling 
of producer milk historically associated with Order 50.

    Accordingly, it may be appropriate to suspend the aforesaid 
provision for an indefinite period beginning April 1, 1995.

List of Subjects in 7 CFR Part 1050

    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: March 17, 1995

Lon Hatamiya,

Administrator.

[FR Doc. 95-7105 Filed 3-22-95; 8:45 am]
BILLING CODE 3410-02-P