[Federal Register Volume 64, Number 74 (Monday, April 19, 1999)]
[Proposed Rules]
[Pages 19071-19072]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-9850]


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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. 64, No. 74 / Monday, April 19, 1999 / 
Proposed Rules  

[[Page 19071]]


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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 1079

[DA-99-02]


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

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Proposed 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 20 percent to 10 percent for the months of April 
through August 1999. The action was requested by Beatrice Cheese, Inc., 
a proprietary manufacturer of dairy products in Fredericksburg, Iowa. 
The proponent contends that the action would allow the milk of dairymen 
who historically have supplied the market to continue to be pooled 
under the Federal order and is needed to prevent uneconomic milk 
movements.

DATES: Comments must be submitted on or before April 26, 1999.

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 February 1999, 3,788 dairy farmers were producers 
under the Iowa order. Of these, 3,714 producers (i.e., 98 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 February 1999 was as follows: 2,804 
produced less than 100,000 pounds of milk; 776 produced between 100,000 
and 200,000; 134 produced between 200,000 and 326,000; and 74 produced 
over 326,000 pounds. During the same month, 11 handlers were pooled 
under the order. Five were considered small businesses.
    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 April through August 1999 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 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 order regulating the handling of 
milk in the Iowa marketing area is being considered for the months of 
April through August 1999.
    All persons who desire to submit written data, views or arguments 
about the proposed revision should send two

[[Page 19072]]

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 April 26, 1999. 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 and include April 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 20 percent to 10 
percent, for the period April 1, 1999, through August 31, 1999.
    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 April through August 
1999. The handler's request states that this decrease is warranted due 
to the fact that current raw milk supplies available for fluid use from 
outside of Iowa's traditional procurement area exceed the needs of the 
fluid milk plants in Federal Order 79 and that these available supplies 
have replaced milk shipped to distributing plants by Beatrice. Beatrice 
states that if the pool supply shipping percentages remain unchanged, 
the milk of dairymen who historically have supplied the Iowa market 
will not be able to continue to be pooled under the Federal Order, and 
Beatrice will be forced to move milk uneconomically.
    In view of the current supply and demand relationship, it may be 
necessary to decrease the shipping percentage requirements for pool 
supply plants as proposed to provide for the efficient and economic 
marketing of milk during the months of April through August 1999.

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: April 14, 1999.
Richard M. McKee,
Deputy Administrator, Dairy Programs.
[FR Doc. 99-9850 Filed 4-16-99; 8:45 am]
BILLING CODE 3410-02-P