[Federal Register Volume 60, Number 26 (Wednesday, February 8, 1995)]
[Rules and Regulations]
[Pages 7434-7435]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-3149]
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DEPARTMENT OF AGRICULTURE
7 CFR Part 1050
[DA-95-09]
Milk in the Central Illinois Marketing Area; Suspension of
Certain Provisions of the Order
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Suspension of rule.
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SUMMARY: This document suspends the aggregate limits on the amount of
producer milk that may be diverted from a pool plant under the Central
Illinois Federal milk marketing order for an indefinite period
beginning with the month of January 1995. The proposal was submitted by
Prairie Farms Dairy, Inc., and Associated Milk Producers, Inc. Both
cooperatives contend the suspension is necessary to ensure that
producers historically associated with the market will continue to have
their milk pooled under the order without having to move milk
uneconomically.
EFFECTIVE DATE: February 8, 1995.
FOR FURTHER INFORMATION CONTACT: Nicholas Memoli, Marketing Specialist,
USDA/AMS/Dairy Division, Order Formulation Branch, Room 2971, South
Building, P.O. Box 96456, Washington, DC 20090-6456, (202) 690-1932.
SUPPLEMENTARY INFORMATION: Prior document in this proceeding:
Notice of Proposed Suspension: Issued December 28, 1994; published
January 4, 1995 (60 FR 379).
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 rule will not have a
significant economic impact on a substantial number of small entities.
This rule lessens the regulatory impact of the order on certain milk
handlers and tends to ensure that dairy farmers will continue to have
their milk priced under the order and thereby receive the benefits that
accrue from such pricing.
The Department is issuing this final rule in conformance with
Executive Order 12866.
This final rule has been reviewed under Executive Order 12778,
Civil Justice Reform. This rule is not intended to have a retroactive
effect. This rule will not preempt any state or local laws,
regulations, or policies, unless they present an irreconcilable
conflict with this 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 the law and requesting 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
[[Page 7435]] 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.
This order of suspension is issued pursuant to the provisions of
the Agricultural Marketing Agreement Act and of the order regulating
the handling of milk in the Central Illinois marketing area.
Notice of proposed rulemaking was published in the Federal Register
on January 4, 1995 (60 FR 379), concerning a proposed suspension of the
aggregate diversion limits for a pool distributing plant regulated
under Order 50. Interested persons were afforded opportunity to file
written data, views and arguments thereon. No comments were received.
After consideration of all relevant material, including the
proposal in the notice and other available information, it is hereby
found and determined that for an indefinite period beginning January 1,
1995, the following provision of the order does not tend to effectuate
the declared policy of the Act:
In Sec. 1050.13(d)(2), the words ``: Provided, That the total
quantity of producer milk diverted does not exceed 35 percent of the
physical receipts of producer milk at the handler's pool plant during
the month, exclusive of milk of producers who are members of a
cooperative association that is diverting milk and the milk of other
producers that is diverted pursuant to paragraph (d)(3) of this
section''.
Statement of Consideration
This rule suspends the aggregate limit on the amount of milk that
may be diverted from a pool plant during the months of August through
April. At the present time, for each day's production of a producer's
milk that is delivered to a pool plant during these months, another
day's production may be diverted to a nonpool plant. However, in
addition to this individual producer limit, there is an aggregate limit
of 35 percent that applies to the total amount of milk that a pool
plant operator may divert during the month. The suspension removes this
35 percent aggregate limit, effectively increasing the aggregate limit
to 50 percent of a pool plant operator's total producer receipts during
the month.
In their letter requesting the suspension, Prairie Farms Dairy,
Inc. (Prairie Farms) and the Morning Glory Farms region of Associated
Milk Producers, Inc. (AMPI), explained that Prairie Farms now operates
the only distributing plant under the Central Illinois order (Order 50)
and that both cooperatives supply milk to this plant, which is located
in Peoria. For several reasons, including the availability of abundant
quantities of good quality feed, milk production is up substantially in
recent months compared to the same period of last year. This has
resulted in both cooperatives having to divert additional milk to
nearby unregulated manufacturing plants on weekends, holidays, and
other days when the Peoria plant is not in operation.
Prairie Farms and AMPI state that the suspension will allow them to
continue to balance the supply of milk needed at the Peoria plant while
at the same time eliminate the need to haul milk in and out of the
plant merely to keep their milk pooled under the order.
Market statistics indicate that the average daily milk marketed per
farm in the Central Illinois marketing area during August through
November 1994 was about 300 pounds greater than for the same period in
1993. This increase in production, in conjunction with the single pool
plant outlet available in this market, supports a suspension of the
aggregate diversion limitations for an indefinite period so that
producers whose milk has long been associated with the Central Illinois
marketing area will continue to benefit from pooling and pricing under
the order.
It is hereby found and determined that thirty days' notice of the
effective date hereof is impractical, unnecessary and contrary to the
public interest in that:
(a) The suspension is necessary to reflect current marketing
conditions and to assure orderly marketing conditions in the marketing
area, in that such rule is necessary to permit the continued pooling of
the milk of dairy farmers who have historically supplied the market
without the need for making costly and inefficient movements of milk;
(b) This suspension does not require of persons affected
substantial or extensive preparation prior to the effective date; and
(c) Notice of proposed rulemaking was given interested parties and
they were afforded opportunity to file written data, views or arguments
concerning this suspension. No comments were received.
Therefore, good cause exists for making this order effective less
than 30 days from the date of publication in the Federal Register.
List of Subjects in 7 CFR Part 1050
Milk marketing orders.
For the reasons set forth in the preamble, the following provision
in Title 7, Part 1050, is amended as follows:
PART 1050--MILK IN THE CENTRAL ILLINOIS MARKETING AREA
1. The authority citation for 7 CFR Part 1050 continues to read as
follows:
Authority: Secs. 1-19, 48 Stat 31, as amended; 7 U.S.C. 601-674.
Sec. 1050.13 [Suspended in part]
Note: This amendment will not be published in the annual Code of
Federal Regulations.
2. In Sec. 1050.13(d)(2), the words ``: Provided, That the total
quantity of producer milk diverted does not exceed 35 percent of the
physical receipts of producer milk at the handler's pool plant during
the month, exclusive of milk of producers who are members of a
cooperative association that is diverting milk and the milk of other
producers that is diverted pursuant to paragraph (d)(3) of this
section'' are suspended for an indefinite period beginning January 1,
1995.
Dated: February 2, 1995.
Patricia Jensen,
Acting Assistant Secretary, Marketing and Regulatory Programs.
[FR Doc. 95-3149 Filed 2-7-95; 8:45 am]
BILLING CODE 3410-02-P
