[Federal Register Volume 60, Number 65 (Wednesday, April 5, 1995)]
[Rules and Regulations]
[Pages 17191-17192]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-8354]



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 Rules and Regulations
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  Federal Register / Vol. 60, No. 65 / Wednesday, April 5, 1995 / Rules 
and Regulations  
[[Page 17191]]

DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 1126

[DA-95-12]


Milk in the Texas Marketing Area; Suspension of Certain 
Provisions of the Order

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Suspension of rule.

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SUMMARY: This document suspends certain provisions of the Texas Federal 
milk marketing order from March 1, 1995, through July 31, 1995. The 
suspension removes the diversion limitation applicable to cooperative 
associations. The suspension was requested by Associated Milk 
Producers, Inc., a cooperative association representing a substantial 
number of producers who supply milk to the market. The suspension is 
necessary to prevent uneconomical and inefficient movements of milk.

EFFECTIVE DATE: March 1, 1995, through July 31, 1995.

FOR FURTHER INFORMATION CONTACT: Clifford M. Carman, Marketing 
Specialist, USDA/AMS/Dairy Division, Order Formulation Branch, Room 
2971, South Building, P.O. Box 96456, Washington, DC 20090-6456, (202) 
720-9368.

SUPPLEMENTARY INFORMATION: Prior document in this proceeding:
    Notice of Proposed Suspension: Issued February 2, 1995; published 
February 8, 1995 (60 FR 7465).
    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 order of suspension is issued pursuant to the provisions of 
the Agricultural Marketing Agreement Act and of the order regulating 
the handling of milk in the Texas marketing area.
    Notice of proposed rulemaking was published in the Federal Register 
on February 8, 1995 (60 FR 7465) concerning a proposed suspension of a 
certain provision of the order. Interested persons were afforded 
opportunity to file written data, views and arguments thereon. No 
comments were received.
    After consideration of all relevant material, including the 
proposal in the notice and other available information, it is hereby 
found and determined that for the months of March 1, 1995, through July 
31, 1995, the following provision of the order does not tend to 
effectuate the declared policy of the Act:
    In Sec. 1126.13, paragraph (e)(2).

Statement of Consideration

    This rule suspends certain provisions of the producer milk 
definition in the Texas order for the months of March through July 
1995. The suspension removes the limitation on the amount of producer 
milk that a cooperative may divert to a nonpool plant.
    Currently the order permits a cooperative association to divert up 
to one-third of the amount of producer milk that the cooperative causes 
to be physically received during the month at handlers' pool plants to 
nonpool plants. The diversion provisions provide an efficient means to 
move milk that is in excess of fluid milk needs directly from farms to 
nonpool plants for manufacturing and still be priced under the order.
    Associated Milk Producers, Inc. (AMPI), a cooperative association 
representing a substantial number of producers who supply milk to the 
market, requested the suspension. AMPI stated that during recent months 
the cooperative had reached maximum pooling capability because of the 
diversion limitations to nonpool plants. AMPI contends that during the 
flush season (March through July) the cooperative will be adversely 
impacted as local production expands and the cooperative exceeds the 
one-third diversion limitation.
    Current projections indicate that there will be ample supplies of 
milk to meet the fluid demand of the market during the months of March 
through July 1995. It is impractical to require that more milk be 
shipped by cooperative associations to other pool plants than is needed 
at such plants merely to gain eligibility for pooling and diversion 
status. Absent this suspension, costly and inefficient movements of 
milk will be made to maintain pool status of producers who have 
historically supplied the fluid milk needs of the market.
    Accordingly, it is appropriate to suspend the aforesaid provision 
beginning March 1, 1995, through July 31, 1995.
    It is hereby found and determined that thirty days' notice of the 
effective date hereof is impractical, unnecessary [[Page 17192]] and 
contrary to the public interest in that:
    (a) The suspension is necessary to reflect current marketing 
conditions and to assure orderly marketing conditions in the marketing 
area, in that such rule is necessary to permit the continued pooling of 
the milk of dairy farmers who have historically supplied the market 
without the need for making costly and inefficient movements of milk;
    (b) This suspension does not require of persons affected 
substantial or extensive preparation prior to the effective date; and
    (c) Notice of proposed rulemaking was given interested parties and 
they were afforded opportunity to file written data, views or arguments 
concerning this suspension. No comments were received.
    Therefore, good cause exists for making this order effective less 
than 30 days from the date of publication in the Federal Register.

List of Subjects in 7 CFR Part 1126

    Milk marketing orders.

    For the reasons set forth in the preamble, the following provision 
in Title 7, Part 1126, is amended as follows:

PART 1126--MILK IN THE TEXAS MARKETING AREA

    1. The authority citation for 7 CFR Part 1126 continues to read as 
follows:

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


Sec. 1126.13  [Suspended in part]

    2. In Sec. 1126.13, paragraph (e)(2) is suspended for the months of 
March 1, 1995, through July 31, 1995.

    Dated: March 27, 1995.
Patricia Jensen,
Acting Assistant Secretary, Marketing and Regulatory Programs.
[FR Doc. 95-8354 Filed 4-4-95; 8:45 am]
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