[Federal Register Volume 61, Number 131 (Monday, July 8, 1996)]
[Rules and Regulations]
[Pages 35595-35597]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-17198]


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DEPARTMENT OF AGRICULTURE
7 CFR Part 1106

[DA-96-05]


Milk in the Southwest Plains 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 a portion of the supply plant shipping 
requirement and the touch-base requirement of the Southwest Plains 
Federal milk marketing order (Order 106) for the period of September 
1996 through August 1998. The action was requested by Kraft Foods, Inc. 
(Kraft), which contends the suspension is necessary to prevent the 
uneconomical and inefficient movement of milk and to ensure that 
producers historically associated with the market will continue to have 
their milk pooled under Order 106.

EFFECTIVE DATE: September 1, 1996, through August 31, 1998.

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: Prior document in this proceeding:
    Notice of Proposed Suspension: Issued April 9, 1996; published 
April 22, 1996 (61 FR 17588).
    The Regulatory Flexibility Act (5 U.S.C. 601-612) requires the 
Agency to examine the impact of a rule on small entities. Pursuant to 5 
U.S.C. 605(b), 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 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 the 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 Southwest Plains marketing area.
    Notice of proposed rulemaking was published in the Federal Register 
on April 22, 1996 (61 FR 17588) concerning a proposed suspension of 
certain provisions of the order. Interested persons were afforded 
opportunity to file written data, views and arguments thereon. One 
comment supporting the proposed suspension was received.
    After consideration of all relevant material, including the 
proposal in the notice, the comment received, and other available 
information, it is hereby found and determined that for the period of 
September 1996 through August 1998 the following provisions of the 
order do not tend to effectuate the declared policy of the Act:
    In Sec. 1106.6, the words ``during the month''.
    In Sec. 1106.7(b)(1), beginning with the words ``of February 
through August'' and continuing to the end of the paragraph.
    In Sec. 1106.13, paragraph (d)(1) in its entirety.

Statement of Consideration

    This rule suspends the requirement that producers ``touch- base'' 
at a pool plant with at least one day's production during the month 
before their milk is eligible for diversion to a nonpool plant. By 
suspending the touch-base provision, producer milk will not be required 
to be delivered to pool plants before going to unregulated 
manufacturing plants.
    The suspension will allow a supply plant that has been associated 
with the Southwest Plains order during the months of September 1995 
through January 1996 to qualify as a pool plant without shipping any 
milk to a pool distributing plant during the months of September 1996 
through August 1998. Without the suspension, a supply plant would be 
required to ship 50 percent of its producer receipts to pool 
distributing plants during the months of September through January and 
20 percent of its producer receipts to pool distributing plants during 
the months of February through August to qualify as a pool plant under 
the order.
    According to Kraft's letter requesting the suspension, supplemental 
milk supplies will not be needed to meet the fluid needs of 
distributing plants. Kraft anticipates that there will be an adequate 
supply of direct-ship producer milk located in the general area of 
distributing plants available to meet the Class I needs of the market. 
Consequently, it states, there is no need to require producers located 
some distance from pool distributing plants to touch-base when their 
milk can more economically be diverted directly to manufacturing plants 
in the production area.
    One comment letter was received in support of the suspension 
request; none were received in opposition to it. A letter submitted by 
Associated Milk Producers, Inc. (AMPI), Southern Region, states that it 
supports continuation of the proposed suspension. AMPI agrees with 
Kraft that more than sufficient supplies of local milk are readily 
available to meet the fluid needs of the market.
    The suspension is found to be necessary for the purpose of assuring 
that producers' milk will not have to be moved in an uneconomic and 
inefficient manner, and to assure that producers whose milk has long 
been associated with the Southwest Plains marketing area will continue 
to benefit from pooling and pricing under the order.

List of Subjects in 7 CFR Part 1106

    Milk marketing orders.

    For the reasons set forth in the preamble, 7 CFR Part 1106 is 
amended as follows:

PART 1106--MILK IN THE SOUTHWEST PLAINS MARKETING AREA

    1. The authority citation for 7 CFR Part 1106 continues to read as 
follows:

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


Sec. 1106.6  [Suspended in part]

    2. In Sec. 1106.6, the words, ``during the month'' are suspended.

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Sec. 1106.7  [Suspended in part]

    3. In Sec. 1106.7(b)(1), beginning with the words ``of February 
through August'' and continuing until the end of the paragraph are 
suspended.


Sec. 1106.13  [Suspended in part]

    4. In Sec. 1106.13, paragraph (d)(1) in its entirety is suspended.

    Dated: June 28, 1996.
Michael V. Dunn,
Assistant Secretary, Marketing and Regulatory Programs.
[FR Doc. 96-17198 Filed 7-5-96; 8:45 am]
BILLING CODE 3410-02-P