[Federal Register Volume 60, Number 26 (Wednesday, February 8, 1995)]
[Proposed Rules]
[Pages 7466-7467]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-3146]
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DEPARTMENT OF AGRICULTURE
7 CFR Part 1131
[DA-95-11]
Milk in the Central Arizona Marketing Area; Proposed Suspension
of Certain Provisions of the Order
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 certain provisions of the Central Arizona Federal milk
marketing order for an indefinite period beginning March 1, 1995. The
proposed suspension would eliminate the requirement that a cooperative
association ship at least 50 percent of its receipts to other handler
pool plants to maintain pool status of a manufacturing plant operated
by the cooperative. United Dairymen of Arizona, a cooperative
association that represents nearly all of the producers who supply milk
to the market, has requested the suspension. The cooperative asserts
that the suspension is necessary to prevent uneconomical and
inefficient movements of milk.
DATES: Comments are due no later than February 23, 1995.
ADDRESSES: Comments (two copies) should be filed with the USDA/AMS/
Dairy Division, Order Formulation Branch, Room 2971, South Building,
P.O. Box 96456, Washington, DC 20090-6456.
FOR FURTHER INFORMATION CONTACT:Clifford M. Carman, Marketing
Specialist, USDA/AMS/Dairy Division, Order Formulation Branch, Room
2971, South Building, P.O. Box 96456, Washington, DC 20090-6456, (202)
720-9368.
SUPPLEMENTARY INFORMATION: The Regulatory Flexibility Act (5 U.S.C.
601-612) requires the Agency to examine the impact of a proposed rule
on small entities. Pursuant to 5 U.S.C. 605(b), the Administrator of
the Agricultural Marketing Service has certified that this proposed
rule would not have a significant economic impact on a substantial
number of small entities. This rule 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.
The Department is issuing this proposed rule in conformance with
Executive Order 12866.
This proposed rule has been reviewed under Executive Order 12778,
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 file with
the Secretary a petition stating that the order, any provisions of the
order, or any obligation imposed in connection with the order is not in
accordance with law and request a modification of an order or to be
exempted from the order. 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, had 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.
Notice is hereby given that, pursuant to the provisions of the
Agricultural Marketing Agreement Act, the suspension of the following
provision of the order regulating the handling of milk in the Central
Arizona marketing area is being considered for an indefinite period
beginning March 1, 1995:
In Sec. 1131.7(c), the words ``50 percent or more of its member
producer milk (including the skim milk and butterfat in fluid milk
products transferred from its own plant pursuant to this paragraph that
is not in excess of the skim milk and butterfat contained in member
producer milk actually received at such plant) received at the pool
plants of other handlers during the current month or the previous 12-
month period ending with the current month.''
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 Division, Order Formulation Branch, Room 2971, South
Building, P.O. Box 96456, Washington, DC 20090-6456, by the 15th day
after publication of this notice in the Federal Register. The period
for filing comments is limited to 15 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 Division during regular
business hours (7 CFR 1.27(b)).
Statement of Consideration
The proposed rule would suspend certain provisions of the Central
Arizona order for an indefinite period beginning March 1, 1995. The
proposed suspension would remove the requirement that a cooperative
association that operates a manufacturing plant in the marketing area
must ship at least 50 percent of its milk supply during the current
month or the previous 12-month period ending with the current month to
other handlers' pool plants to maintain the pool status of its
manufacturing plant.
Currently the order permits a cooperative association's
manufacturing plant, located in the marketing area, to be a pool plant
if at least 50 percent of the producer milk of members of the
cooperative association is physically received at pool plants of other
handlers during the current month or the previous 12-month period
ending with the current month.
The proposed suspension of this shipping requirement was requested
by United Dairymen of Arizona (UDA), a cooperative association that
represents nearly all of the dairy farmers who supply the Central
Arizona market. UDA contends that the continued pool status of their
manufacturing plant is threatened by an increase in milk production
combined with a drop in Class I sales. UDA states that in 1994 its
member production increased 17 percent over the previous year. In 1994,
monthly deliveries to distributing plants also increased sufficiently
to ensure UDA a safe margin over the minimum 50 percent shipping
requirement to maintain pool status of its manufacturing plant.
According to UDA, the increase in distributing plant demand reflected a
significant increase in Class I sales in the Mexico market by Central
Arizona handlers. The recent collapse of the Mexican peso has curtailed
these sales and thus reduced handler requirements for bulk milk
deliveries from UDA. Absent a [[Page 7467]] suspension, UDA projects
that costly and inefficient movements of milk would have to be made to
maintain pool status of producers who have historically supplied the
market and to prevent disorderly marketing in the Central Arizona
marketing area.
Accordingly, it may be appropriate to suspend the aforesaid
provisions beginning March 1, 1995, for an indefinite period.
List of Subjects in 7 CFR Part 1131
Milk marketing orders.
The authority citation for 7 CFR Part 1131 continues to read as
follows:
Authority: Secs. 1-19, 48 Stat 31, as amended; 7 U.S.C. 601-674.
Dated: February 2, 1995.
Lon Hatamiya,
Administrator.
[FR Doc. 95-3146 Filed 2-7-95; 8:45 am]
BILLING CODE 3410-02-M
