[Federal Register Volume 62, Number 87 (Tuesday, May 6, 1997)]
[Proposed Rules]
[Pages 24610-24611]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-11745]
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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. 62, No. 87 / Tuesday, May 6, 1997 / Proposed
Rules
[[Page 24610]]
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DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 1137
[DA-97-05]
Milk in the Eastern Colorado Marketing Area; Notice of Proposed
Suspension of Certain Provisions of the Order
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Proposed suspension of rule.
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SUMMARY: This notice invites written comments on a proposal to suspend
certain performance standards of the Eastern Colorado Federal milk
order. The suspension was requested by Mid-America Dairymen, Inc., a
cooperative association that supplies milk for the market's fluid
needs. The suspension was requested to prevent the uneconomic movement
of milk that otherwise would be required in order to maintain the
pooling status of milk that has been historically associated with the
order.
DATES: Comments are due no later than June 5, 1997.
ADDRESSES: Comments (two copies) should be filed with the USDA/AMS/
Dairy Division, Order Formulation Branch, Room 2968, South Building,
P.O. Box 96456, Washington, DC 20090-6456. Reference should be given to
the title of action and docket number.
FOR FURTHER INFORMATION CONTACT: Clifford M. Carman, Marketing
Specialist, USDA/AMS/Dairy Division, Order Formulation Branch, Room
2968, South Building, P.O. Box 96456, Washington, DC 20090-6456, (202)
720-9368, e-mail address: Clifford__M__Carman@usda.gov.
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 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 March 1997, the milk of 415 producers was pooled
on the Eastern Colorado Federal milk order. Of these producers, 308
producers were below the 326,000-pound production guideline and are
considered small businesses. During this same period, there were 10
handlers operating 11 pool plants under the Eastern Colorado order.
Five of these handlers would be 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. This proposed suspension
will not result in any additional regulatory burden on handlers in the
Eastern Colorado marketing area since this suspension has been
continually in effect since 1985.
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.
Proposed Rule
Notice is hereby given that, pursuant to the provisions of the Act,
the suspension of the following provisions of the order regulating the
handling of milk in the Eastern Colorado marketing area is being
considered:
1. For the months of September 1, 1997, through February 28, 1998:
In the second sentence of Sec. 1137.7(b), the words ``plant which has
qualified as a'' and ``of March through August''; and
2. For the months of September 1, 1997, through August 31, 1998: In
the first sentence of 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 send written data, views or arguments about
the proposed suspension should send two copies of them to the USDA/AMS/
Dairy Division, Order Formulation Branch, Room 2971, South Building,
P.O. Box 96456, Washington, DC 20090-6456, by
[[Page 24611]]
the 30th day after publication of this notice in the Federal Register.
All written submissions made pursuant to this notice will be made
available for public inspection in the Dairy Division during normal
business hours (7 CFR 1.27(b)).
Statement of Consideration
The proposed rule would suspend certain portions of the pool plant
and producer definitions of the Eastern Colorado order. The proposed
suspension would make it easier for handlers to qualify milk for
pooling under the order.
The proposed suspension was requested by Mid-America Dairyman, Inc.
(Mid-Am), a cooperative association that has pooled milk of dairy
farmers on the Eastern Colorado order for several years. Mid-Am has
requested the suspension to prevent the uneconomic and inefficient
movement of milk for the sole purpose of pooling the milk of producers
historically associated with the Eastern Colorado order.
Mid-Am requests, for the months of September 1997 through February
1998, that the limit on the period of automatic pool plant status for a
supply plant that met pool shipping standards during the previous
September through February period be suspended. This provision has been
suspended annually for several years. Mid-Am also requests the
suspension of the touch-base and diversion limitation requirements
during the months of September 1997 through August 1998. These
requirements have been suspended since September 1985.
These provisions have been suspended previously in order to
maintain the pool status of producers who have historically supplied
the fluid needs of Eastern Colorado distributing plants. Mid-Am asserts
that they have made a commitment to meet the fluid requirements of
fluid distributing plants if the suspension request is granted. Without
the suspension action, Mid-Am contends that it will be necessary to
ship milk from distant areas to Denver area bottling plants. This will
displace locally produced milk that would then have to be shipped from
the Denver area to surplus handling plants.
In addition, Mid-Am maintains that ample supplies of locally
produced milk will be available to meet fluid needs without requiring
that each producer's milk be received at least three times each month
at a pool distributing plant or by restricting the amount of milk that
can be diverted to nonpool plants.
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: April 30, 1997.
Aggie Thompson,
Acting Director, Dairy Division.
[FR Doc. 97-11745 Filed 5-5-97; 8:45 am]
BILLING CODE 3410-02-P
