[Federal Register Volume 60, Number 106 (Friday, June 2, 1995)]
[Proposed Rules]
[Pages 28745-28747]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-13510]



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DEPARTMENT OF AGRICULTURE
7 CFR Part 1126

[DA-95-16]


Milk in the Texas Marketing Area; Notice of 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 that 
would continue the suspension of segments of the pool plant and 
producer milk definitions of the Texas order for a two-year period. 
Associated Milk Producers, Inc., a cooperative association that 
represents producers who supply milk to the market, has requested the 
continuation of the suspension. The cooperative asserts that 
continuation of this suspension is necessary to insure that dairy 
farmers who have historically supplied the Texas market will continue 
to have their milk priced under the Texas order without incurring 
costly and inefficient movements of milk.
DATES: Comments are due no later than July 3, 1995.
ADDRESSES: Comments (two copies) should be sent to USDA/AMS/Dairy 
Division, Order Formulation Branch, Room 2968, South Building, P.O. Box 
96456, Washington, DC 20090-6456, (202) 720-9368.
FOR FURTHER INFORMATION CONTACT: Clifford M. Carman, Marketing 
Specialist, USDA/AMS/Dairy Division, Order Formulation Branch, Room 
2968, South Building, P.O. Box 96456, Washington, DC 20090-6456, (202) 
720-9368.

 [[Page 28746]] 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 tend 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 proposed rule in conformance with 
Executive Order 12866.
    This proposed suspension of rules 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 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 provision 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 date of the entry of the ruling.
    Notice is hereby given that, pursuant to the provisions of the Act, 
the suspension of the following provisions of the order regulating the 
handling of milk in the Texas marketing area is being considered for 
the months of August 1, 1995, through July 31, 1997.
    1. In Sec. 1126.7(d) introductory text, the words ``during the 
months of February through July'' and the words ``under paragraph (b) 
or (c) of this section''.
    2. In Sec. 1126.7(e) introductory text, the words ``and 60 percent 
or more of the producer milk of members of the cooperative association 
(excluding such milk that is received at or diverted from pool plants 
described in paragraphs (b), (c), and (d) of this section) is 
physically received during the month in the form of a bulk fluid milk 
product at pool plants described in paragraph (a) of this section 
either directly from farms or by transfer from plants of the 
cooperative association for which pool plant status under this 
paragraph has been requested''.
    3. In Sec. 1126.13(e)(1), the words ``and further, during each of 
the months of September through January not less than 15 percent of the 
milk of such dairy farmer is physically received as producer milk at a 
pool plant''.
    4. In Sec. 1126.13, paragraph (e)(2).
    5. In Sec. 1126.13(e)(3), the sentence ``The total quantity of milk 
so diverted during the month shall not exceed one-third of the producer 
milk physically received at such pool plant during the month that is 
eligible to be diverted by the plant operator;''.
    All persons who desire to submit written data, views or arguments 
about the proposed suspension should send two copies to USDA/AMS/Dairy 
Division, Order Formulation Branch, Room 2968, South Building, P.O. Box 
96456, Washington, DC 20090-6456, by the 30th day after publication of 
this notice in the Federal Register.
    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 suspension would continue the current suspension of 
segments of the pool plant and producer milk definitions under the 
Texas order. This proposed suspension would be in effect from August 
1995 through July 1997. The current suspension will expire July 31, 
1995. The proposed action would continue the suspension of : (1) The 60 
percent delivery standard for pool plants operated by cooperatives; (2) 
the diversion limitation applicable to cooperative associations; (3) 
the limits on the amount of milk that a pool plant operator may divert 
to nonpool plants; (4) the shipping standards that must be met by 
supply plants to be pooled under the order; and (5) the individual 
producer performance standards that must be met in order for a 
producer's milk to be eligible for diversion to a nonpool plant.
    The order permits a cooperative association plant located in the 
marketing area to be a pool plant, if at least 60 percent of the 
producer milk of members of the cooperative association is physically 
received at pool distributing plants during the month. In addition, a 
cooperative association may divert to nonpool plants up to one-third of 
the amount of milk that the cooperative causes to be physically 
received during the month at handlers' pool plants. The order also 
provides that the operator of a pool plant may divert to nonpool plants 
not more than one-third of the milk that is physically received during 
the month at the handler's pool plant. The proposed action would 
continue to inactivate the 60 percent delivery standard for plants 
operated by a cooperative association and remove the diversion 
limitations applicable to a cooperative association and to the operator 
of a pool plant.
    The order also provides for regulating a supply plant each month in 
which it ships a sufficient percentage of its receipts to distributing 
plants. The order provides for pooling a supply plant that ships 15 
percent of its milk receipts during August and December and 50 percent 
of its receipts during September through November and January. A supply 
plant that is pooled during each of the immediately preceding months of 
September through January is pooled under the order during the 
following months of February through July without making qualifying 
shipments to distributing plants. The requested action would continue 
the current suspension of these performance standards for supply plants 
that were regulated under the Texas order during each of the 
immediately preceding months of September through January.
    The order also specifies that the milk of each producer must be 
physically received at a pool plant in order to be eligible for 
diversion to a nonpool plant. During the months of September through 
January, 15 percent of a producer's milk must be received at a pool 
plant for diversion eligibility. The proposed action would continue to 
suspend these requirements.
    The continuation of the current suspension was requested by 
Associated Milk Producers, Inc., a cooperative association that 
represents a substantial number of dairy farmers who supply the Texas 
market. The cooperative stated that marketing conditions have not 
changed since the provisions were suspended in 1993 or since March 1995 
when the suspension was expanded to include all of paragraph (e)(2), 
and therefore should be continued until restructuring of the order can 
be achieved through the formal rulemaking process.
    The cooperative states that the continuation of the current 
suspension is necessary to insure that dairy farmers who have 
historically supplied the [[Page 28747]] Texas market will continue to 
have their milk priced under the Texas order. In addition they maintain 
that the suspension would continue to provide handlers the flexibility 
needed to move milk supplies in the most efficient manner and to 
eliminate costly and inefficient movements of milk that would be made 
solely for the purpose of pooling the milk of dairy farmers who have 
historically supplied the market.

List of Subjects in 7 CFR Part 1126

    Milk marketing orders.

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

    Authority: 7 U.S.C. 601-674.

    Dated: May 26, 1995.
Lon Hatamiya,
Administrator.
[FR Doc. 95-13510 Filed 6-1-95; 8:45 am]
BILLING CODE 3410-02-P