[Federal Register Volume 61, Number 174 (Friday, September 6, 1996)]
[Rules and Regulations]
[Pages 47038-47039]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-22786]


-----------------------------------------------------------------------

DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service

7 CFR Part 1075

[DA-96-12]


Milk in the Black Hills, South Dakota, Marketing Area; 
Termination of the Order

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Final rule; termination order.

-----------------------------------------------------------------------

SUMMARY: This document terminates all but certain administrative 
sections of the order regulating the handling of milk in the Black 
Hills, South Dakota, marketing area. Termination of this order was 
requested by Black Hills Milk Producers, a cooperative association that 
represents all of the producers whose milk is pooled under the order. 
Thus, termination of the order is required under the Agricultural 
Marketing Agreement Act of 1937, as amended.

EFFECTIVE DATE: October 1, 1996.

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: The Department is issuing this rule in 
conformance with Executive Order 12866.
    This termination order has been reviewed under Executive Order 
12988, Civil Justice Reform. This action is not intended to have 
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 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.
    This order of termination is issued pursuant to the provisions of 
the Agricultural Marketing Agreement Act and of the order regulating 
the handling of milk in the Black Hills, South Dakota, marketing area.

Small Business Consideration

    During June 1996, the representative period determined for this 
action, 58 producers (all members of the Black Hills Milk Producers 
cooperative association) had their milk pooled under the Black Hills 
order. The Small Business Administration (SBA) criterion of $500,000 in 
annual receipts, adjusted to reflect the information for one month 
($500,000 divided by 12, divided by the 1995 average order blend price 
of $13.95 per hundredweight) was used to determine that dairy farmers 
marketing less than 300,000 pounds of milk meet the description of a 
small dairy farm. On the basis of the pounds of milk marketed during 
the representative period, 54 of the 58 dairy farmers would be small 
businesses. Of these, 27 marketed less than 100,000 pounds during June, 
20 marketed between 100,000 and 200,000 pounds, and 7 marketed between 
200,000 and 300,000 pounds.
    In addition to the cooperative, there is one other milk handler 
regulated under the Black Hills order in South Dakota. Under SBA 
criterion, this handler would be considered a small business. 
Consequently, nearly all of the parties affected by the Black Hills 
milk order would be classified as small entities.
    The current reporting, recordkeeping and other compliance 
requirements of the rule would cease with termination of the order. 
None of the currently-affected entities would be subject to any 
additional reporting or recordkeeping requirements for purposes of the 
Federal milk order program as a result of the

[[Page 47039]]

order's termination. However, a handler would continue to be required 
to maintain records of milk receipts and sales into another Federal 
order marketing area and report them to the market administrator of the 
other marketing area. In addition, if a handler's sales into another 
Federal order marketing area become a large enough percentage of a 
handler's milk receipts, a handler would be pooled under another order 
and incur the same reporting, recordkeeping and payment obligations it 
currently has under the Black Hills order.
    Termination of the order will remove government enforcement of 
minimum prices to handlers and to producers that are determined by 
supply and demand conditions. It will also remove other stabilizing 
features of the regulatory program such as: an impartial audit of 
handler records to insure payment to dairy farmers and to verify the 
reported uses of milk; the assurance to farmers of accurate weighing, 
testing, classification and accounting for milk; and the existence of 
marketing information to evaluate market performance. Thus, it is 
likely that market conditions would tend to become less orderly or 
stable. However, it must be assumed that the consequences of the 
removal of the regulatory program have been considered by the 
cooperative association that has requested the action, and that 
possibly other approaches have or will be made to replace the 
stabilizing influence of the order.
    Regardless of the possible economic effects of the order 
termination on the small entities involved, a termination is required 
by the Agricultural Marketing Agreement Act of 1937, as amended, 
whenever a termination is requested by a majority of the producers 
engaged in the production of milk for sale in the marketing area in a 
representative period determined by the Secretary. Black Hills Milk 
Producers, as the cooperative association representing all of the 
producers whose milk is pooled under the Black Hills milk order, has 
requested that the order be terminated.

Determination

    It is hereby determined that termination of the Black Hills, South 
Dakota, order, Part 1075, is favored by a majority of the producers 
engaged in the production of milk for sale in the marketing area in the 
representative period, determined to be June 1996, and that such 
producers produced more than 50 percent of the milk produced for sale 
in the Black Hills, South Dakota, milk marketing area in such 
representative period.
    It is also determined that notice of proposed rule making and 
public procedure thereon is impracticable, unnecessary and contrary to 
the public interest. Section 608(c)(16)(B) of the Agricultural 
Marketing Agreement Act of 1937, as amended, requires that if a 
majority of the producers engaged in the production of milk for sale in 
the marketing area in a representative period determined by the 
Secretary favor termination of the order, and such producers produced 
more than 50 percent of the milk produced for sale in the marketing 
area in the representative period, that such order shall be terminated. 
It is therefore necessary that the provisions of the order, as amended, 
subject to specific exceptions, be terminated effective October 1, 
1996.

List of Subjects in 7 CFR Part 1075

    Milk marketing orders.

Order

    Pursuant to the provisions of the Agricultural Marketing Agreement 
Act of 1937, as amended (7 U.S.C. 601 et seq.) it is hereby ordered 
that all provisions of the order, as amended, regulating the handling 
of milk in the Black Hills, South Dakota, marketing area (7 CFR Part 
1075) except Sec. 1075.1, which incorporates the General Provisions in 
Part 1000, are hereby terminated effective October 1, 1996.
    Milk marketing orders.
    For the reason set forth in the preamble, 7 CFR Part 1075 is 
amended as follows:

PART 1075--MILK IN THE BLACK HILLS, SOUTH DAKOTA, MARKETING AREA

    1. The authority citation for 7 CFR Part 1075 continues to read as 
follows:

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


Secs. 1075.2 through 1075.85  [Removed]

    2. In part 1075 Secs. 1075.2 through 1075.85 and their undesignated 
center headings are removed effective October 1, 1996.

    Dated: August 30, 1996.
Michael V. Dunn,
Assistant Secretary, Marketing and Regulatory Programs.
[FR Doc. 96-22786 Filed 9-5-96; 8:45 am]
BILLING CODE 3410-02-P