[Federal Register Volume 62, Number 87 (Tuesday, May 6, 1997)]
[Proposed Rules]
[Pages 24610-24611]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-11745]


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 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. 87 / Tuesday, May 6, 1997 / Proposed 
Rules  

[[Page 24610]]


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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 1137

[DA-97-05]


Milk in the Eastern Colorado 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 notice invites written comments on a proposal to suspend 
certain performance standards of the Eastern Colorado Federal milk 
order. The suspension was requested by Mid-America Dairymen, Inc., a 
cooperative association that supplies milk for the market's fluid 
needs. The suspension was requested to prevent the uneconomic movement 
of milk that otherwise would be required in order to maintain the 
pooling status of milk that has been historically associated with the 
order.

DATES: Comments are due no later than June 5, 1997.

ADDRESSES: Comments (two copies) should be filed with the USDA/AMS/
Dairy Division, Order Formulation Branch, Room 2968, South Building, 
P.O. Box 96456, Washington, DC 20090-6456. 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 
2968, South Building, P.O. Box 96456, Washington, DC 20090-6456, (202) 
720-9368, e-mail address: Clifford__M__C[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.
    For the month of March 1997, the milk of 415 producers was pooled 
on the Eastern Colorado Federal milk order. Of these producers, 308 
producers were below the 326,000-pound production guideline and are 
considered small businesses. During this same period, there were 10 
handlers operating 11 pool plants under the Eastern Colorado order. 
Five of these handlers would be considered small businesses.
    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. This proposed suspension 
will not result in any additional regulatory burden on handlers in the 
Eastern Colorado marketing area since this suspension has been 
continually in effect since 1985.
    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.

Proposed Rule

    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 Eastern Colorado marketing area is being 
considered:
    1. For the months of September 1, 1997, through February 28, 1998: 
In the second sentence of Sec. 1137.7(b), the words ``plant which has 
qualified as a'' and ``of March through August''; and
    2. For the months of September 1, 1997, through August 31, 1998: In 
the first sentence of Sec. 1137.12(a)(1), the words ``from whom at 
least three deliveries of milk are received during the month at a 
distributing pool plant''; and in the second sentence ``30 percent in 
the months of March, April, May, June, July, and December and 20 
percent in other months of'', and the word ``distributing''.
    All persons who want to send written data, views or arguments about 
the proposed suspension should send two copies of them to the USDA/AMS/
Dairy Division, Order Formulation Branch, Room 2971, South Building, 
P.O. Box 96456, Washington, DC 20090-6456, by

[[Page 24611]]

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 normal 
business hours (7 CFR 1.27(b)).

Statement of Consideration

    The proposed rule would suspend certain portions of the pool plant 
and producer definitions of the Eastern Colorado order. The proposed 
suspension would make it easier for handlers to qualify milk for 
pooling under the order.
    The proposed suspension was requested by Mid-America Dairyman, Inc. 
(Mid-Am), a cooperative association that has pooled milk of dairy 
farmers on the Eastern Colorado order for several years. Mid-Am has 
requested the suspension to prevent the uneconomic and inefficient 
movement of milk for the sole purpose of pooling the milk of producers 
historically associated with the Eastern Colorado order.
    Mid-Am requests, for the months of September 1997 through February 
1998, that the limit on the period of automatic pool plant status for a 
supply plant that met pool shipping standards during the previous 
September through February period be suspended. This provision has been 
suspended annually for several years. Mid-Am also requests the 
suspension of the touch-base and diversion limitation requirements 
during the months of September 1997 through August 1998. These 
requirements have been suspended since September 1985.
    These provisions have been suspended previously in order to 
maintain the pool status of producers who have historically supplied 
the fluid needs of Eastern Colorado distributing plants. Mid-Am asserts 
that they have made a commitment to meet the fluid requirements of 
fluid distributing plants if the suspension request is granted. Without 
the suspension action, Mid-Am contends that it will be necessary to 
ship milk from distant areas to Denver area bottling plants. This will 
displace locally produced milk that would then have to be shipped from 
the Denver area to surplus handling plants.
    In addition, Mid-Am maintains that ample supplies of locally 
produced milk will be available to meet fluid needs without requiring 
that each producer's milk be received at least three times each month 
at a pool distributing plant or by restricting the amount of milk that 
can be diverted to nonpool plants.

List of Subjects in 7 CFR Part 1137

    Milk marketing orders.

    The authority citation for 7 CFR Part 1137 continues to read as 
follows:

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

    Dated: April 30, 1997.
Aggie Thompson,
Acting Director, Dairy Division.
[FR Doc. 97-11745 Filed 5-5-97; 8:45 am]
BILLING CODE 3410-02-P