[Federal Register Volume 64, Number 181 (Monday, September 20, 1999)]
[Proposed Rules]
[Pages 50777-50778]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-24435]


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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 1137

[DA-99-07]


Milk in the Eastern Colorado 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 certain sections of the Eastern Colorado Federal milk marketing 
order until implementation of Federal milk order reform on October 1, 
1999. The proposed rule would reinstate a suspension that expired on 
August 31, 1999, which makes it easier for cooperative associations to 
qualify milk for pooling under the order. Dairy Farmers of America, 
Inc. (DFA), a cooperative association that represents nearly all of the 
producers who supply milk to the Eastern Colorado market, has requested 
continuation of the suspension. DFA asserts that the suspension is 
necessary to prevent uneconomical and inefficient movements of milk.

DATES: Comments must be submitted on or before September 27, 1999.

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

FOR FURTHER INFORMATION CONTACT: Clifford M. Carman, Marketing 
Specialist, USDA/AMS/Dairy Programs, Order Formulation Branch, Room 
2971, South Building, PO Box 96456, Washington, DC 20090-6456, (202) 
720-9368, 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 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 June 1999, the milk of 203 producers was pooled on 
the Eastern Colorado milk order. Of these producers, 105 were below the 
326,000-pound production guideline and are considered small businesses.
    For June 1999, there were eight handlers operating pool plants 
under the Eastern Colorado milk order. Of these handlers, five are 
considered small businesses.
    This rule would lessen the regulatory impact of the order on 
certain milk

[[Page 50778]]

handlers and would tend to ensure that dairy farmers would 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 
provisions of the order regulating the handling of milk in the Eastern 
Colorado marketing area is being considered until Federal milk order 
reform is implemented October 1, 1999:
    In 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 submit written data, views or arguments 
about the proposed suspension should send two copies of their views to 
USDA/AMS/Dairy Programs, Order Formulation Branch, Room 2971, South 
Building, PO 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 
start of the next marketing period.
    All written submissions made pursuant to this notice will be made 
available for public inspection in Dairy Programs during regular 
business hours (7 CFR 1.27(b)).

Statement of Consideration

    The proposed rule would suspend certain provisions of the Eastern 
Colorado order until implementation of Federal Order Reform. The 
proposed suspension would make it easier for a cooperative association 
to qualify milk for pooling under the order.
    Continuation of the suspension that expired on August 31, 1999, was 
requested by DFA, a cooperative association which represents nearly all 
of the dairy farmers who supply the Eastern Colorado market. DFA 
contends that milk from some producers is required every day of the 
month in order to meet market demands, while milk from some other 
producers is required most days of the month and milk from a few 
producers is required only a few days each month to meet market 
demands. DFA asserts that with the suspension in place the market can 
be served in the most efficient manner possible because milk required 
by the market only a few days each month can maintain association with 
the market without being required to be delivered to pool distributing 
plants each month. DFA projects that, without the suspension, 
inefficient and costly movements of milk would have to be made to 
maintain the pool status of producers who historically have supplied 
the market.
    Accordingly, it may be appropriate to suspend the aforesaid 
provisions until completion of Federal Order Reform.

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: September 13, 1999.
Richard M. McKee,
Deputy Administrator, Dairy Programs.
[FR Doc. 99-24435 Filed 9-17-99; 8:45 am]
BILLING CODE 3410-02-P