[Federal Register Volume 60, Number 119 (Wednesday, June 21, 1995)]
[Proposed Rules]
[Pages 32282-32287]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-15105]
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DEPARTMENT OF AGRICULTURE
7 CFR Parts 1124 and 1135
[Docket Nos. AO-368-A25, AO-380-A15; DA-95-01]
Milk in the Pacific Northwest and Southwestern Idaho-Eastern
Oregon Marketing Areas; Notice of Hearing on Proposed Amendments to
Tentative Marketing Agreements and Orders
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Notice of public hearing on proposed rulemaking.
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SUMMARY: The hearing is being held to consider proposals to modify the
pooling standards in the Pacific Northwest and Southwestern Idaho-
Eastern Oregon Federal milk orders. The hearing will also consider
proposals to amend the Pacific Northwest order by expanding the
marketing area to include two additional counties, modifying the
multiple component pricing plan, providing the market administrator
with authority to revise pooling standards and issue a ``call'' for
milk if needed, and modifying the producer-handler definition. The
hearing was requested by Darigold Farms, a cooperative association that
represents a large portion of the producers on the two orders.
DATES: The hearing will convene at 9 a.m. on July 11, 1995.
ADDRESSES: The hearing will be held at the Red Lion Hotel, Lloyd
Center, 1000 N.E. Multnomah, Portland, Oregon 97232 (503) 281-6111.
FOR FURTHER INFORMATION CONTACT: Clifford M. Carman, Order Formulation
Branch, USDA/AMS/Dairy Division, Room 2968, South Building, P.O. Box
96456, Washington, DC 20090-6456, (202) 720-9368.
SUPPLEMENTARY INFORMATION: This administrative action is governed by
the provisions of sections 556 and 557 of Title 5 of the United States
Code and, therefore, is excluded from the requirements of Executive
Order 12866.
Notice is hereby given of a public hearing to be held at the Red
Lion Hotel, Lloyd Center, 1000 N.E. Multnomah, Portland, Oregon 97232,
beginning at 9 a.m., on Tuesday, July 11, 1995, with respect to
proposed amendments to the tentative marketing agreements and to the
orders regulating the handling of milk in the Pacific Northwest and
Southwestern Idaho-Eastern Oregon marketing areas.
The hearing is called pursuant to the provisions of the
Agricultural Marketing Agreement Act of 1937, as amended (7 U.S.C. 601-
674), and the applicable rules of practice and procedure governing the
formulation of marketing agreements and marketing orders (7 CFR part
900).
The purpose of the hearing is to receive evidence with respect to
the economic and marketing conditions which relate to the proposed
amendments, hereinafter set forth, and any appropriate modifications
thereof, to the tentative marketing agreements and to the orders.
Actions under the Federal milk order program are subject to the
Regulatory Flexibility Act (Pub. L. 96-354). This Act seeks to ensure
that, within the statutory authority of a program, the regulatory and
informational requirements are tailored to the size and nature of small
businesses. For the purpose of the Act, a dairy farm is a ``small
business'' if it has an annual gross revenue of less than $500,000, and
a dairy products manufacturer is a ``small business'' if it has fewer
than 500 employees. Most parties subject to a milk order are considered
as a small business. Accordingly, interested parties are invited to
present evidence on the probable regulatory and informational impact of
the hearing proposals on small businesses. Also, parties may suggest
modifications of these proposals for the purpose of tailoring their
applicability to small businesses.
The information collection requirements in the order provisions
proposed to be amended in this notice of hearing have been previously
approved by the Office of Management and Budget (OMB) under the
provisions of Title 44 U.S.C. chapter 35 and have been assigned OMB
control number 0581-0032.
The amendments to the rules proposed herein have been reviewed
under Executive Order 12778, Civil Justice Reform. They are not
intended to have a retroactive effect. If adopted, the proposed
amendments would not preempt any state or local laws, regulations, or
policies, unless they present an irreconcilable conflict with this
rule.
The Agricultural Marketing Agreement Act provides that
administrative proceedings must be exhausted before parties may file
suit in court. Under section 8c(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 the date of the entry of the ruling.
Interested parties who wish to introduce exhibits should provide
the Presiding Officer at the hearing with six copies of such exhibits
for the Official Record. Also, it would be helpful if additional copies
are available for the use of other participants at the hearing.
List of Subjects in 7 CFR Parts 1124 and 1135
Milk marketing orders.
The authority citation for 7 CFR Parts 1124 and 1135 continue to
read as follows:
Authority: 7 U.S.C. 601-674.
The proposed amendments, as set forth below, have not received the
approval of the Secretary of Agriculture.
[[Page 32283]]
Proposed by Darigold Farms
Proposal No. 1
1. Amend Sec. 1135.7 by adding a new paragraph (d) to read as
follows:
Sec. 1135.7 Pool plant.
* * * * *
(d) The market administrator may increase or decrease the shipping
requirements if the market administrator finds that such revision is
necessary to encourage needed shipments or to prevent uneconomic
shipments. Before making such a finding, the market administrator shall
investigate the need for revision either on the market administrator's
own initiative or at the request of interested parties. If the
investigation shows that a revision of the shipping requirements might
be appropriate, the market administrator shall issue a notice stating
that the revision is being considered and invite data, views, and
arguments. Any request for revision of shipping percentages shall be
filed with the market administrator no later than the 15th day of the
month prior to the month for which the requested revision is desired to
be effective.
2. Amend Sec. 1135.13 by revising paragraphs (f)(2) and (f)(3),
revising the first sentence of paragraph (f)(4), revising the second
sentence of paragraph (f)(5) and by adding a new paragraph (f)(7) to
read as follows:
Sec. 1135.13 Producer milk.
* * * * *
(f) * * *
(2) During each of the months of September through November milk of
a dairy farmer shall not be eligible for diversion unless during the
month one day's production of milk of such dairy farmer is physically
received as producer milk at a pool plant.
(3) The total quantity of milk diverted by a cooperative
association during any month may not exceed 80 percent during the
months of September through April and 90 percent during the months of
May through August of the producer milk that the cooperative
association causes to be delivered to or diverted from pool plants
during the month. * * *
(4) The total quantity of milk diverted during the month by a
proprietary bulk tank handler described in Sec. 1135.9(d) may not
exceed 80 percent during the months of September through April and 90
percent during the months of May through August of the producer milk
that the handler causes to be delivered to or diverted from pool plants
during the month;
(5) * * * The total quantity so diverted during any month may not
exceed 80 percent during the months of September through April and 90
percent during the months of May through August of the producer milk
received at or diverted from such pool plant during the month that is
eligible to be diverted by the plant operator; and
(6) * * *
(7) The market administrator may increase or decrease the diversion
limitations in paragraphs (f)(3), (f)(4) and (f)(5) of this section if
the market administrator finds that such revision is necessary to
prevent uneconomic handling or shipments of milk. Before making such a
finding the market administrator shall investigate the need for
revision either on the market administrator's own initiative or at the
request of interested parties. If the investigation shows that a
revision might be appropriate, the market administrator shall issue a
notice stating that the revision is being considered and invite data,
views, and arguments. Any request for revision of diversion limitations
shall be filed with the market administrator no later than the 15th day
of the month prior to the month for which the requested revision is
desired effective.
Proposed by Darigold Farms
Proposal No. 2
1. Amend Sec. 1124.2, Pacific Northwest marketing area, to include
the two additional Washington counties of Clallam and Jefferson.
2. Amend Sec. 1124.7 by revising paragraph (c) to read as follows:
Sec. 1124.7 Pool plant.
* * * * *
(c) The market administrator may increase or decrease the shipping
requirements if the market administrator finds that such revision is
necessary to encourage needed shipments or to prevent uneconomic
shipments. Before making such a finding the market administrator shall
investigate the need for revision either on the market administrator's
own initiative or at the request of interested parties. If the
investigation shows that a revision of the shipping requirements might
be appropriate, the market administrator shall issue a notice stating
that the revision is being considered and invite data, views, and
arguments. Any request for revision of shipping percentages shall be
filed with the market administrator no later than the 15th day of the
month prior to the month for which the requested revision is desired
effective.
* * * * *
3. Amend Sec. 1124.13 by revising paragraph (c) and adding a new
paragraph (e) to read as follows:
Sec. 1124.13 Producer milk.
* * * * *
(c) The following conditions shall apply to diverted producer milk:
(1) A cooperative association or its agent may divert for its
account the milk of any producer. The total quantity of milk diverted
may not exceed 80 percent during the months of September through April
and 90 percent during the months of May through August of the total
quantity of producer milk which the association or its agent causes to
be delivered to pool distributing plants or diverted. The percentage
limits on diversions specified in this paragraph shall not apply to a
cooperative reserve supply unit defined in Sec. 1124.11;
(2) A handler other than a cooperative association that operates a
pool plant may divert milk for its account to other plants or pursuant
to Sec. 1124.40(b)(3). The total quantity of milk so diverted may not
exceed 80 percent during the months of September through April and 90
percent during the month of May through August of the milk received at
such handler's pool plant or diverted by such handler from any producer
other than a member of a cooperative association which markets milk
under paragraph (c)(1) of this section and for which the operator of
such plant is the handler during the month;
* * * * *
(e) The market administrator may increase or decrease the diversion
limitations (c)(1) and (c)(2) of this section if the market
administrator finds that such revision is necessary to prevent
uneconomic handling or shipments of milk. Before making such a finding
the market administrator shall investigate the need for revision either
on the market administrator's own initiative or at the request of
interested parties. If the investigation shows that a revision might be
appropriate, the market administrator shall issue a notice stating that
the revision is being considered and invite data, views, and arguments.
Any request for revision of diversion limitations shall be filed with
the market administrator no later than the 15th day of the month prior
to the month for which the requested revision is desired to be
effective.
4. Amend Sec. 1124.30 by revising paragraphs (a)(1)(i), (a)(1)(ii)
and (c)(1) through (c)(3) as follows: [[Page 32284]]
Sec. 1124.30 Reports of receipts and utilization.
* * * * *
(a) * * *
(1) * * *
(i) Milk received directly from producers (including such handler's
own production) and the pounds of protein and pounds of nonfat milk
solids other than protein (other solids) contained therein;
(ii) Milk received from a cooperative association pursuant to
Sec. 1124.9(c) and the pounds of protein and of nonfat milk solids
other than protein (other solids) contained therein;
* * * * *
(c) * * *
(1) The pounds of skim milk, butterfat, protein, and nonfat milk
solids other than protein (other solids) received from producers;
(2) The utilization of skim milk, butterfat, protein, and nonfat
milk solids other than protein (other solids) for which it is the
handler pursuant to Sec. 1124.9(b); and
(3) The quantities of skim milk, butterfat, protein, and nonfat
milk solids other than protein (other solids) delivered to each pool
plant pursuant to Sec. 1124.9(c).
* * * * *
5. Amend Sec. 1124.31 by revising paragraphs (a)(1) and (b)(1) to
read as follows:
Sec. 1124.31 Payroll reports.
* * * * *
(a) * * *
(1) The total pounds of milk received from each producer, the
pounds of butterfat, the pounds of protein, and nonfat milk solids
other than protein (other solids) contained in such milk, and the
number of days on which milk was delivered by the producer during the
month;
* * * * *
(b) * * *
(1) The total pounds of milk received from each producer and the
pounds of butterfat, pounds of protein, and nonfat milk solids other
than protein (other solids) contained in such milk;
* * * * *
6. Amend Sec. 1124.50 by revising paragraph (g) and adding a new
paragraph (h) to read as follows:
Sec. 1124. 50 Class and component prices.
* * * * *
(g) Protein price. The protein price per pound, rounded to the
nearest one-hundredth cent, shall be 1.32 times the average monthly
price per pound for 40-pound block Cheddar cheese on the National
Cheese Exchange as reported by the Department.
(h) Other solids price. Other solids are herein defined as nonfat
milk solids other than protein. The other solids price per pound,
rounded to the nearest one-hundredth cent, shall be the skim milk price
times .965, less the average protein test of the basic formula price as
reported by the Department for the month times the protein price, and
dividing the resulting amount by the market average nonfat milk solids
other than protein (other solids) test of producer milk. If the
resulting price is less than zero, then the protein price will be
reduced so that the other solids price equals zero.
7. Revise Sec. 1124.53 to read as follows:
Sec. 1124.53 Announcement of class and component prices.
On or before the 5th day of each month, the market administrator
shall announce publicly the following prices:
(a) The Class I price for the following month.
(b) The Class II price for the following month.
(c) The Class III price for the preceding month.
(d) The Class III-A price for the preceding month.
(e) The skim milk price for the preceding month.
(f) The butterfat price for the preceding month.
(g) The protein price for the preceding month.
(h) The butterfat differential price for the preceding month.
8. Amend Sec. 1124.60 by revising paragraph (e), renaming
paragraphs (f) through (m) as paragraphs (g) through (n), adding a new
paragraph (f), changing the reference in the introductory text of
paragraph (g) from (f)(6) to (g)(6), revising paragraph (g)(3),
renumbering paragraphs (g)(4) through (g)(6) as (g)(5) through (g)(7),
adding a new paragraph (g)(4), revising paragraph (h)(3), renumbering
paragraphs (h)(4) through (h)(6) as paragraphs (h)(5) through (h)(7),
adding a new paragraph (h)(4), and revising paragraph (h)(7), to read
as follows:
Sec. 1124.60 Computation of handler's obligations to pool.
* * * * *
(e) Multiply the protein price for the month by the pounds of
protein associated with the pounds of producer skim milk in Class II
and Class III during the month. The pounds of protein shall be computed
by multiplying the producer skim milk pounds so assigned by the
percentage of protein in the handler's receipts of producer skim milk
during the month for each report filed separately;
(f) Multiply the other solids price for the month by the pounds of
nonfat milk solids other than protein (other solids) associated with
the pounds of producer skim milk in Class II and Class III during the
month. The pounds of nonfat milk solids other than protein (other
solids) shall be computed by multiplying the producer skim milk pounds
so assigned by the percentage of nonfat milk solids other than protein
(other solids) in the handler's receipts of producer skim milk during
the month for each report filed separately;
(g) * * *
(3) Multiply the pounds of protein associated with the skim milk
pounds assigned to Class II and III by the protein price;
(4) Multiply the pounds of nonfat milk solids other than protein
(other solids) associated with the skim milk pounds assigned to Class
II and III by the other solids price;
* * * * *
(h) * * *
(3) Multiply the pounds of protein associated with the skim milk
pounds assigned to Class II and III by the protein price;
(4) Multiply the pounds of nonfat milk solids other than protein
(other solids) associated with the skim milk pounds assigned to Class
II and III by the other solids price;
* * * * *
(7) Subtract the Class III value of the milk at the previous
month's protein, other milk solids, and butterfat prices;
* * * * *
9. Revise Sec. 1124.61 to read as follows:
Sec. 1124.61 Computation of statistical uniform price.
A statistical uniform price for each month shall be computed by the
market administrator as follows:
(a) Multiply the butterfat price computed pursuant to
Sec. 1124.50(f) times 3.50;
(b) Multiply the protein price computed pursuant to Sec. 1124.50(g)
times the market average protein test;
(c) Multiply the producer other solids price computed pursuant to
Sec. 1124.62 times the market average other solids test; and
(d) Add paragraphs (a) through (c) of this section. The result
shall be the statistical uniform price for milk containing 3.50 percent
butterfat and market average protein and other solids.
10. Revise Sec. 1124.62 to read as follows: [[Page 32285]]
Sec. 1124.62 Computation of producer other solids price.
The producer other solids price shall be computed by the market
administrator each month as follows:
(a) Combine into one total the value computed pursuant to
Sec. 1124.60 (a) through (c) and (f) through (n) for all handlers who
filed the reports prescribed by Sec. 1124.30 for the month and who made
the payments pursuant to Sec. 1124.71 for the preceding month;
(b) Add an amount equal to not less than one-half of the
unobligated balance in the producer-settlement fund;
(c) Divide the resulting amount by the total pounds of other solids
in producer milk; and
(d) Subtract not less than 4 cents per hundredweight nor more than
5 cents per hundredweight of the total pounds of milk used in
Sec. 1124.61(c).
11. Revise Sec. 1124.63 to read as follows:
Sec. 1124.63 Announcement of producer prices.
On or before the 14th day after the end of each month, the market
administrator shall announce the following prices and information:
(a) The protein price;
(b) The other solids price;
(c) The producer other solids price;
(d) The butterfat price;
(e) The average protein test and other solids test of producer
milk; and
(f) The statistical uniform price for milk containing 3.5 percent
butterfat.
12. Amend Sec. 1124.71 by revising paragraph (b)(3) to read as
follows:
Sec. 1124.71 Payments to the producer-settlement fund.
* * * * *
(b) * * *
(3) The value at the statistical uniform price adjusted for the
location of the plant(s) at which received (not to be less than zero)
with respect to the total hundredweight of skim milk and butterfat in
other source milk for which a value was computed or such handler
pursuant to Sec. 1124.60(k); and
* * * * *
13. Amend Sec. 1124.73 by revising paragraphs (a)(2)(ii),
(a)(2)(iii), (c), (c)(1), and (f)(2)to read as follows:
Sec. 1124.73 Payments to producers and to cooperative associations.
(a) * * *
(2) * * *
(ii) Add the amount that results from multiplying the protein price
for the month by the total pounds of protein in the milk received from
the producer;
(iii) Add the amount that results from multiplying the producer
other solids price for the month by the total pounds of other solids in
the milk received from the producer;
* * * * *
(c) Each handler shall pay to each cooperative association which
operates a pool plant, or the cooperative's duly authorized agent, for
butterfat, protein, and other milk solids received from such plant in
the form of fluid milk products as follows:
(1) On or before the second day prior to the date specified in
paragraph (a)(1) of this section, for butterfat, protein, and other
milk solids received during the first 15 days of the month at not less
than the butterfat, protein, and other milk solids prices, respectively
for the preceding month; and
* * * * *
(f) * * *
(2) The total pounds of milk delivered by the producer, the pounds
of butterfat, protein, and other milk solids contained therein, and,
unless previously provided, the pounds of milk in each delivery;
* * * * *
14. Amend Sec. 1124.75 by revising paragraphs (a)(1)(i) to read as
follows:
Sec. 1124.75 Payments by a handler operating partially regulated
distributing plant.
* * * * *
(a) * * *
(1)(i) The obligation that would have been computed pursuant to
Sec. 1124.60 at such plant shall be determined as though such plant
were a pool plant. For purposes of such computation, receipts at such
nonpool plant from a pool plant or an other order plant shall be
assigned to the utilization at which classified at the pool plant or
other order plant and transfers from such nonpool plant to a pool plant
or an other order plant shall be classified as Class II or Class III
milk if allocated to such class at the pool plant or other order plant
and be valued at the uniform price, estimated uniform price or
statistical uniform price of the respective order if so allocated to
Class I milk, except that reconstituted skim milk in filled milk shall
be valued at the Class III price. No obligation shall apply to Class I
milk transferred to a pool plant or another order plant if such Class I
utilization is assigned to receipts at the partially regulated
distributing plant from pool plants and other order plants at which an
equivalent amount of milk was classified and priced as Class I milk.
There shall be included in the obligation so computed a charge in the
amount specified in Sec. 1124.60(k) and a credit in the amount
specified in Sec. 1124.71(b)(3) with respect to receipts from an
unregulated supply plant, except that the credit for receipts of
reconstituted skim milk in filled milk shall be at the Class III price,
unless an obligation with respect to such plant is computed as
specified in paragraph (a)(1)(ii) of this section; and
* * * * *
Proposed by Farmers Cooperative Creamery
Proposal No. 3
Amend Sec. 1124.7 by revising paragraph (b)(1) to read as follows:
Sec. 1124.7 Pool plant.
* * * * *
(b) * * *
(1) With respect to a supply plant operated by a cooperative
association, the producer milk of its members which it caused to be
delivered directly from their farms to pool distributing plants, for
the purpose of this paragraph, may, upon written request to the market
administrator prior to the month in which it is effective, have such
deliveries considered as a receipt at the cooperative's supply plant
and a shipment from the supply plant to pool distributing plants;
Proposed by National All-Jersey Inc.
Proposal No. 4
Modify the multiple component pricing plan in Order 1124 from the
current two components (fat and solids-not-fat) to a three component
plan (fat, protein, and other solids) as follows:
1. Butterfat. The butterfat price per pound, rounded to the nearest
one-hundredth cent, is the Class II price plus an amount computed by
multiplying the butterfat differential by 965 and dividing the
resulting amount by one hundred.
2. Protein. The protein price per pound, rounded to the nearest
one-hundredth cent, is 1.32 times the average monthly price per pound
for 40-pound block Cheddar cheese on the National Cheese Exchange as
reported by the Department plus 1.95 times the average monthly price
per pound for whey powder (West) as reported by Dairy Market News.
3. Other solids price. This is a residual price. The other solids
price per pound, rounded to the nearest one-hundredth cent, is computed
by subtracting from the basic formula price, 3.5 times the butterfat
price per pound and the protein price per pound times the M-W average
protein content. The result is divided by Order 124 other solids
content. [[Page 32286]]
4. Weighted average differential per hundredweight. The weighted
average differential includes each producer's share of the Class I, II,
and III-A differentials. Any differences in component levels of milk
used in Class I versus Class II and III will be reconciled in the
weighted average differential price. The result is that both the
handler protein and other solids prices would be identical. There would
be no need for a protein or other solids pool.
5. Handler obligations. Handler obligations only change for milk
allocated to Class II, III, and III-A. There is no change in a
handler's obligation for milk allocated to Class I. Handlers'
obligations are as follows:
Class I Handler Obligations
A. Skim milk price per cwt. x total cwt. of skim purchased.
B. Butterfat price per pound x total pounds of butterfat purchased.
C. Class I differential price per cwt. x total cwt of milk
purchased.
Class II Handler Obligations
A. Protein price per pound x total pounds of protein purchased.
B. Other solids price per pound x total pounds of other solids
purchased.
C. Butterfat price per pound x total pounds of butterfat purchased.
D. Class II differential price per cwt. x total cwt. of milk
purchased.
Class III Handler Obligations
A. Protein price per pounds x total pounds of protein purchased.
B. Other solids price per pound x total pounds of other solids
purchased.
C. Butterfat price per pound x total pounds of butterfat purchased.
Class III-A Handler Obligations
A. Protein price per pound x total pounds of protein purchased.
B. Other solids price per pound x total pounds of other solids
purchased.
C. Butterfat price per pound x total pounds of butterfat purchased.
D. The difference between the Class III price and the Class III-A
price x the total cwt. of milk purchased.
6. Producer payments. Producers would be paid for their milk
production based on four factors as follows:
A. Protein price per pound x the total pounds of protein
production.
B. Other solids price per pound x total pounds of other solids
production.
C. Butterfat price per pound x total pounds of butterfat
production.
D. Weighted average differential per cwt. (each producer's share of
Class I, II, and III-A differentials) x total cwt. of milk production.
7. Change any other order provisions needed to implement this MCP
plan.
Proposed by Oregon Washington Dairy Processors Association
Proposal No. 5
1. Amend Sec. 1124.7 by adding a new paragraph (d)(7) to read as
follows:
Sec. 1124.7 Pool plant.
* * * * *
(d) * * *
(7) A government agency plant.
2. Amend Sec. 1124.8 by adding a new paragraph (f) to read as
follows:
Sec. 1124.8 Nonpool plant.
* * * * *
(f) Governmental Agency plant means a plant owned and operated by a
government institution from which fluid milk products are distributed
as route dispositions to state institutions not for resale. Such plants
shall be exempt from all provisions of this part regarding dispositions
to state correctional institutions not for resale. All other fluid milk
products shall be subject to Sec. 1124.76(b).
3. Amend Sec. 1124.10 by removing the last sentence from the
introductory text, revising paragraphs (c)(2) and (c)(2)(i), and
deleting paragraph (c)(2)(ii) to read as follows:
Sec. 1124.10 Producer-handler.
* * * * *
(c) * * *
(2) The producer-handler handles fluid milk products derived from
sources other than the milk production and resources specified in
paragraph (b) of this section, except as specified below:
(i) A producer-handler may receive fluid milk products from pool
plants if such receipts do not exceed a daily average of 100 pounds
during the month.
* * * * *
4. Amend Sec. 1124.12 by adding a new paragraph (b)(6) to read as
follows:
Sec. 1124.12 Producer.
* * * * *
(b) * * *
(6) Any government institution which produces milk in conjunction
with the operation of a plant exempt from provisions of this part
pursuant to Sec. 1124.8(f).
5. A new Sec. 1124.19 is added under the title ``Definitions'' to
read as follows:
Sec. 1124.19 Call for milk.
Call for milk means the response undertaken by any cooperative
association, including one qualified as a cooperative reserve supply
unit pursuant to Sec. 1124.11, to supply producer milk to a
distribution plant in accordance with a request made by the market
administrator. The market administrator may issue a request for
specific cooperatives to supply bulk fluid milk to one or more
distributing plants whenever he finds that such supplies are needed at
such plant(s) to fulfill their needs for milk for Class I purposes:
(a) Before making a finding that additional supplies are needed for
Class I purposes the market administrator shall investigate such need
in accordance with the procedures set forth in Sec. 1124.11(b)(1).
(b) Any cooperative with an adequate supply of producer milk within
125 miles of distribution plants included in the call may be requested
by the market administrator to respond on a timely basis. Producer milk
being directed to other plants for manufacturing purposes will be
considered to constitute an appropriate alternative supply for Class I
use.
(1) Failure of a cooperative reserve supply unit to comply with any
announced shipping requirements, including making any significant
change in the unit's marketing operation that the market administrator
determines has the impact of evading or forcing such an announcement,
shall result in immediate loss of cooperative reserve supply unit
status until such time as the unit has been a handler pursuant to
Sec. 1124.9 (b) and (c) for at least 12 consecutive months.
(2) Failure of other cooperatives to comply with a call for milk
will result in a loss of producer milk status for an equivalent volume
of milk that is delivered to manufacturing plants during the period
when the call is effective.
(3) Cooperatives, other than cooperative reserve supply units,
notified of a loss of producer milk status for violation of this
provision shall identify those producers and the amount of their milk
not eligible for diversion during the call period. Failure of the
cooperative to designate such producers and the respective amounts of
milk shall result in the forfeiture of producer milk status for all
milk diverted to nonpool manufacturing plants during the month.
Proposed by Dairy Division, Agricultural Marketing Service
Proposal No. 6
Make such changes as may be necessary to make the entire marketing
agreements and the orders conform with [[Page 32287]] any amendments
thereto that may result from this hearing.
Copies of this notice of hearing and the orders may be procured
from the Market Administrator of the aforesaid marketing areas, or from
the Hearing Clerk, Room 1083, South Building, United States Department
of Agriculture, Washington, DC 20250, or may be inspected there.
Copies of the transcript of testimony taken at the hearing will not
be available for distribution through the Hearing Clerk's Office. If
you wish to purchase a copy, arrangements may be made with the reporter
at the hearing.
From the time that a hearing notice is issued and until the
issuance of a final decision in a proceeding, Department employees
involved in the decisional process are prohibited from discussing the
merits of the hearing issues on an ex parte basis with any person
having an interest in the proceeding. For this particular proceeding,
the prohibition applies to employees in the following organizational
units:
Office of the Secretary of Agriculture
Office of the Administrator, Agricultural Marketing Service
Office of the General Counsel
Dairy Division, Agricultural Marketing Service (Washington office) and
the Offices of all Market Administrators.
Procedural matters are not subject to the above prohibition and may
be discussed at any time.
Dated: June 15, 1995.
Lon Hatamiya,
Administrator.
[FR Doc. 95-15105 Filed 6-20-95; 8:45 am]
BILLING CODE 3410-02-P