[Federal Register Volume 62, Number 41 (Monday, March 3, 1997)]
[Proposed Rules]
[Pages 9381-9382]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-5114]


 ========================================================================
 Proposed Rules
                                                 Federal Register
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 This section of the FEDERAL REGISTER contains notices to the public of 
 the proposed issuance of rules and regulations. The purpose of these 
 notices is to give interested persons an opportunity to participate in 
 the rule making prior to the adoption of the final rules.
 
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 

  Federal Register / Vol. 62, No. 41 / Monday, March 3, 1997 / Proposed 
Rules  

[[Page 9381]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 1131

[DA-97-01]


Milk in the Central Arizona Marketing Area; Proposed Suspension 
of Certain Provisions of the Order

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Proposed rule; suspension.

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SUMMARY: This document invites written comments on a proposal to 
suspend indefinitely certain provisions of the Central Arizona Federal 
milk marketing order. This rule would continue a suspension that 
eliminates the requirement that a cooperative association that operates 
a manufacturing plant ship at least 50 percent of its receipts to other 
handler pool plants to maintain pool status of its manufacturing plant. 
United Dairymen of Arizona, a cooperative association that represents 
nearly all of the producers who supply milk to the Central Arizona 
market, has requested continuation of the suspension. The cooperative 
association asserts that the suspension is necessary to prevent the 
uneconomical and inefficient movement of milk.

DATES: Comments must be submitted on or before March 18, 1997.

ADDRESSES: Comments (two copies) should be filed with the USDA/AMS/
Dairy Division, Order Formulation Branch, Room 2971, South Building, 
P.O. Box 96456, Washington, DC 20090-6456. Advance, unofficial copies 
of such comments may be faxed to (202) 690-0552 or e-mailed to 
OFB__FMMO__C[email protected]. Reference should be given to the title of 
action and docket number.

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, e-mail address: CMC[email protected].

SUPPLEMENTARY INFORMATION: The Department is issuing this proposed rule 
in conformance with Executive Order 12866.
    This proposed rule has been reviewed under Executive Order 12988, 
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 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 request 
modification or exemption from such order by filing 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 law. 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.

Small Business Consideration

    In accordance with the Regulatory Flexibility Act (5 U.S.C. 601 et 
seq.), the Agricultural Marketing Service has considered the economic 
impact of this action on small entities and has certified that this 
proposed rule will not have a significant economic impact on a 
substantial number of small entities. For the purpose of the Regulatory 
Flexibility Act, a dairy farm is considered 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. For the purposes of determining which dairy farms are 
``small businesses,'' the $500,000 per year criterion was used to 
establish a production guideline of 326,000 pounds per month. Although 
this guideline does not factor in additional monies that may be 
received by dairy producers, it should be an inclusive standard for 
most ``small'' dairy farmers. For purposes of determining a handler's 
size, if the plant is part of a larger company operating multiple 
plants that collectively exceed the 500 employee limit, the plant will 
be considered a large business even if the local plant has fewer than 
500 employees. This rule would lessen the regulatory impact of the 
order on certain milk handlers and would tend to ensure that dairy 
farmers would continue to have their milk priced under the order and 
thereby receive the benefits that accrue from such pricing.
    Interested parties are invited to submit comments on the probable 
regulatory and informational impact of this proposed rule on small 
entities. Also, parties may suggest modifications of this proposal for 
the purpose of tailoring their applicability to small businesses.
    Notice is hereby given that, pursuant to the provisions of the 
Agricultural Marketing Agreement Act, the suspension of the following 
provision of the order regulating the handling of milk in the Central 
Arizona marketing area is being considered for an indefinite period 
beginning April 1, 1997:
    In Sec. 1131.7(c), the words ``50 percent or more of'', 
``(including the skim milk and butterfat in fluid milk products 
transferred from its own plant pursuant to this paragraph that is not 
in excess of the skim milk and butterfat contained in member producer 
milk actually received at such plant)'', and ``or the previous 12-month 
period ending with the current month.''
    All persons who want to submit written data, views or arguments 
about the proposed suspension should send two copies of their views to 
the USDA/AMS/Dairy Division, Order Formulation Branch, Room 2971, South 
Building, P.O. Box 96456, Washington, DC 20090-6456, by the 15th day 
after publication of this notice in the Federal Register. The period 
for filing comments is limited to 15 days because a longer period would 
not provide the time needed to complete the required procedures before 
the requested suspension is to be effective.
    All written submissions made pursuant to this notice will be made

[[Page 9382]]

available for public inspection in the Dairy Division during regular 
business hours (7 CFR 1.27(b)).

Statement of Consideration

    The proposed rule would continue to suspend certain provisions of 
the Central Arizona order for an indefinite period beginning April 1, 
1997. The proposed suspension would continue to remove the requirement 
that a cooperative association which operates a manufacturing plant in 
the marketing area must ship at least 50 percent of its milk supply 
during the current month or the previous 12-month period ending with 
the current month to other handlers' pool plants to maintain the pool 
status of its manufacturing plant.
    The order permits a cooperative association's manufacturing plant, 
located in the marketing area, to be a pool plant if at least 50 
percent of the producer milk of members of the cooperative association 
is physically received at pool plants of other handlers during the 
current month or the previous12-month period ending with the current 
month.
    Continuation of the current suspension was requested by United 
Dairymen of Arizona (UDA), a cooperative association that represents 
nearly all of the dairy farmers who supply the Central Arizona market. 
UDA contends that the continued pool status of their manufacturing 
plant would be threatened if the suspension is not continued. UDA 
states that the same marketing conditions that warranted the suspension 
for the past two years still exist. UDA maintains that members who 
increased their milk production to meet the projected demands of fluid 
handlers for distribution into Mexico continue to suffer the adverse 
impact of the collapse of the Mexican peso. Absent a suspension, UDA 
projects that costly and inefficient movements of milk would have to be 
made to maintain pool status of producers who have historically 
supplied the market and to prevent disorderly marketing in the Central 
Arizona marketing area.
    Accordingly, it may be appropriate to suspend the aforesaid 
provisions beginning April 1, 1997, for an indefinite period.

List of Subjects in 7 CFR Part 1131

    Milk marketing orders.

    The authority citation for 7 CFR Part 1131 continues to read as 
follows:

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

    Dated: February 24, 1997.
Richard M. McKee,
Director, Dairy Division.
[FR Doc. 97-5114 Filed 2-28-97; 8:45 am]
BILLING CODE 3410-02-P