[Federal Register Volume 64, Number 51 (Wednesday, March 17, 1999)]
[Proposed Rules]
[Pages 13125-13126]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-6488]


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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 1065

[DA-99-01]


Milk in the Nebraska-Western Iowa Marketing Area; Proposed 
Suspension of Supply Plant Shipping Requirements

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Proposed suspension of rule.

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SUMMARY: This document invites written comments on a proposal to 
suspend portions of the supply plant shipping requirements for the 
Nebraska-Western Iowa order for the months of March through September 
1999. This action was requested by North Central Associated Milk 
Producers, Inc. (AMPI), a cooperative association that supplies milk 
for the market's fluid needs. Suspension would enable AMPI producers 
historically associated with the order to share in the Nebraska-Western 
Iowa Federal order pool for March through August 1999.

DATES: Comments must be submitted on or before March 24, 1999.

ADDRESSES: Comments (two copies) should be filed with the 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 given 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 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 purpose 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

[[Page 13126]]

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 January 1999, 1,248 dairy farmers were producers 
under Order 65. Of these producers, 1,176 producers (i.e., 94 percent) 
were considered small businesses having monthly milk production under 
326,000 pounds. A further breakdown of the monthly milk production of 
the producers on the order during January 1999 is as follows: 753 
produced less than 100,000 pounds of milk; 322 produced between 100,000 
and 200,000; 101 produced between 200,000 and 326,000; and 72 produced 
over 326,000 pounds. During the same month, 5 handlers were pooled 
under the order. None are 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.
    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.

Preliminary Statement

    Notice is hereby given that, pursuant to the provisions of the 
Agricultural Marketing Agreement Act, suspension for the months of 
March through September 1999 of the following language from the pool 
plant provisions of the order regulating the handling of milk in the 
Nebraska-Western Iowa marketing area is being considered:
    In the first sentence of Sec. 1065.7(b)(4), suspending the 
following language: ``each of the months of,'' ``through March,'' and 
``for the following months of April.''
    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 Programs, Order Formulation Branch, Room 2971, South 
Building, P.O. Box 96456, Washington, DC 20090-6456, by the 7th day 
after publication of this notice in the Federal Register. The period 
for filing comments is limited to 7 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 
available for public inspection in the Dairy Programs during regular 
business hours (7 CFR 1.27(b)).

Statement of Consideration

    The proposed suspension was requested by AMPI, a cooperative 
association that supplies milk for the market's fluid needs. AMPI 
requests that language be suspended from the Nebraska-Western Iowa 
order's pool supply plant definition for the purpose of allowing 
producers who have historically supplied the fluid needs of Nebraska-
Western Iowa distributing plants to maintain their pool status. AMPI 
contends that because a fluid milk plant operator reduced its purchase 
of fluid milk from AMPI by more than 50 percent, AMPI will not be able 
to pool milk historically associated with the Nebraska-Western Iowa 
order for March 1999, and thus will not qualify for the automatic 
qualification months of April through August.
    AMPI maintains that through discussions with other handlers in the 
order, it is certain that no additional milk is needed at this time.
    Accordingly, it may be appropriate to suspend the aforesaid 
regulatory language for the months of March through September 1999.

List of Subjects in 7 CFR Part 1065

    Milk marketing orders.

    The authority citation for 7 CFR Part 1065 continues to read as 
follows:

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

    Dated: March 11, 1999.
Richard M. McKee,
Deputy Administrator, Dairy Programs.
[FR Doc. 99-6488 Filed 3-16-99; 8:45 am]
BILLING CODE 3410-02-P