[Federal Register Volume 63, Number 143 (Monday, July 27, 1998)]
[Proposed Rules]
[Pages 40068-40069]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-19908]


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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. 63, No. 143 / Monday, July 27, 1998 / 
Proposed Rules  

[[Page 40068]]


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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 1079

[DA-98-07]


Milk in the Iowa Marketing Area; Proposed Temporary Revision of 
Pool Supply Plant Shipping Percentage

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Proposed temporary revision of rule.

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SUMMARY: This document invites written comments on a proposal to reduce 
the percentage of a supply plant's receipts that must be delivered to 
fluid milk plants to qualify a supply plant for pooling under the Iowa 
Federal milk order. The applicable percentage would be decreased by 10 
percentage points, from 35 percent of plant receipts to 25 percent of 
such receipts for the months of September through November 1998. The 
action is requested by Beatrice Cheese, Inc., a proprietary 
manufacturer of dairy products in Fredericksburg, Iowa. The proponent 
contends that the action is needed to prevent uneconomic milk 
movements.

DATES: Comments must be submitted on or before August 26, 1998.

ADDRESSES: Comments (two copies) should be sent to USDA/AMS/Dairy 
Programs, 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 made to the title of action and 
docket number.

FOR FURTHER INFORMATION CONTACT: Constance M. Brenner, Marketing 
Specialist, USDA/AMS/Dairy Programs, Order Formulation Branch, Room 
2971, South Building, P.O. Box 96456, Washington, DC 20090-6456 (202) 
720-2357, e-mail address: [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 the 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 1998, 3,768 dairy farmers were producers 
under the Iowa Order. Of these, all but 68 would be considered small 
businesses, having under 326,000 pounds of production for the month. Of 
the dairy farmers in the small business category, 2,682 produced under 
100,000 pounds of milk, 876 produced between 100,000 and 200,000, and 
142 produced between 200,000 and 326,000 pounds during March 1998.
    Generally, the reports filed on behalf of the slightly more than 20 
milk plants pooled, or regulated, under the Iowa Order in March 1998 
were filed for establishments that would meet the SBA definition of a 
small business on an individual basis, having less than 500 employees. 
However, all but four of the milk handlers represented in the market 
are part of larger businesses that operate multiple plants at which 
their collective size exceeds the SBA definition of a small business 
entity.
    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.
    The reduction of the required supply plant shipping percentage for 
the months of September through November 1998 would allow the milk of 
producers traditionally associated with the Iowa market to continue to 
be pooled and priced under the order. The revision would lessen the 
likelihood that more milk shipments to pool plants might be required 
under the order than are actually needed to supply the fluid milk needs 
of the market and would result in savings in hauling costs for handlers 
and producers.

Notice of Proposed Revision and Opportunity to File Comments

    Notice is hereby given that, pursuant to the provisions of the 
Agricultural Marketing Agreement Act and the provisions of 
Sec. 1079.7(b)(1) of the Iowa Federal milk order, the temporary 
revision of certain provisions of the

[[Page 40069]]

order regulating the handling of milk in the Iowa marketing area is 
being considered for September 1, 1998, through November 30, 1998.
    All persons who desire to submit written data, views or arguments 
about the proposed revision should send two copies of their views to 
USDA/AMS/Dairy Programs, Order Formulation Branch, Room 2971, South 
Building, P.O. Box 96456, Washington, DC 20090-6456 by the 30th day 
after publication of this notice in the Federal Register. The filing 
period is limited to 30 days because a longer period would not provide 
the time needed to complete the required procedures and include 
September in the temporary revision period.
    All written submissions made pursuant to this notice will be made 
available for public inspection in the Dairy Programs offices during 
regular business hours (7 CFR 1.27(b)).

Statement of Consideration

    The provision proposed to be revised is the percentage of a supply 
plant's receipts required to be shipped to pool distributing plants 
pursuant to Sec. 1079.7(b) of the Iowa Federal milk marketing order 
(Order 79). As proposed, the percentage of a supply plant's receipts 
that must be shipped to pool distributing plants (fluid milk plants) if 
the supply plant is to be considered a pool plant would be decreased by 
the maximum allowable 10 percentage points, from 35 percent to 25 
percent for the period September 1, 1998, through November 30, 1998.
    Section 1079.7(b)(1) of the Iowa milk marketing order allows the 
Deputy Administrator, Dairy Programs, to reduce or increase a pool 
supply plant's minimum shipping requirement by up to 10 percentage 
points to prevent uneconomic milk shipments or to assure an adequate 
supply of milk for fluid use.
    Beatrice Cheese, Inc. (Beatrice), a proprietary manufacturer of 
dairy products in Fredericksburg, Iowa, is regulated under Order 79 as 
a pool supply plant. Beatrice requested that the shipping percentage be 
reduced by 10 percentage points for the months of September through 
November 1998. The handler's request states that this decrease is 
warranted due to the fact that current raw milk supplies available for 
fluid use exceed the needs of the fluid milk plants in Order 79. 
Beatrice states that if the pool supply shipping percentages remain 
unchanged, Beatrice will be forced to move milk uneconomically or 
unfairly depool some milk produced by Iowa dairymen, denying them 
participation in the Order 79 pool.
    In view of the current supply and demand relationship, it may be 
necessary to decrease the shipping percentage requirements for pool 
supply plants to provide for the efficient and economic marketing of 
milk during the period September 1, 1998, through November 30, 1998.

List of Subjects in 7 CFR Part 1079

    Milk marketing orders.

    The authority citation for 7 CFR part 1079 continues to read as 
follows:

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

    Dated: July 21, 1998.
Richard M. McKee,
Deputy Administrator, Dairy Programs.
[FR Doc. 98-19908 Filed 7-24-98; 8:45 am]
BILLING CODE 3410-02-P