[Federal Register Volume 62, Number 124 (Friday, June 27, 1997)]
[Proposed Rules]
[Pages 34676-34677]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-16790]
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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. 124 / Friday, June 27, 1997 /
Proposed Rules
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DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 1126
[DA-97-06]
Milk in the Texas Marketing Area; Notice of Revised Proposed
Suspension of Certain Provisions of the Order
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Proposed rule; revised suspension.
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SUMMARY: This notice invites written comments on a revised proposed
suspension that would increase the diversion limitation applicable to
cooperatives from one-third to an amount equal to the amount of
producer milk the cooperative association delivered to pool plants
under the Texas order for the months of August 1997 through July 1999.
As originally noticed in a proposed suspension the diversion limitation
would be suspended completely. Associated Milk Producers, Inc., a
cooperative association that represents producers who supply milk to
the market and the proponent of the proposed suspension, requested
modification to the suspension of diversion limitation to achieve
orderly marketing conditions within the Texas marketing area. Written
comments are invited regarding this modification, as well as on the
other segments of the pool plant and producer milk definitions
previously noticed.
DATES: Comments are due no later than July 11, 1997.
ADDRESSES: Comments (two copies) should be sent to USDA/AMS/Dairy
Division, Order Formulation Branch, Room 2968, South Building, PO Box
96456, Washington, DC 20090-6456.
FOR FURTHER INFORMATION CONTACT: Clifford M. Carman, Marketing
Specialist, USDA/AMS/Dairy Division, Order Formulation Branch, Room
2968, South Building, PO Box 96456, Washington, DC 20090-6456, (202)
720-9368, e-mail address: Clifford__M__Carman@usda.gov.
SUPPLEMENTARY INFORMATION: Prior document in this proceeding:
Notice of Proposed Suspension: Issued May 7, 1997; published May
13, 1997 (62 FR 26255).
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 1,805 producers was pooled
on the Texas Federal milk order. Of these producers, 1,350 producers
were below the 326,000-pound production guideline and are considered
small businesses. During this same period, there were 24 handlers
operating pool plants under the Texas order. Five of these handlers
would be considered small businesses.
This rule would lessen the regulatory impact of the order on
certain milk handlers by increasing diversion limitations applicable to
cooperatives 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.
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.
Preliminary Statement
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 Texas marketing area are being considered for
the months of August 1, 1997, through July 31, 1999:
1. In Sec. 1126.7(d) introductory text, the words ``during the
months of February through July'' and the words ``under paragraph (b)
or (c) of this section''.
2. In Sec. 1126.7(e) introductory text, the words ``and 60 percent
or more of the producer milk of members of the cooperative association
(excluding such milk that is received at or diverted from pool plants
described in paragraphs (b), (c), and (d) of this section) is
physically received during the month in the form
[[Page 34677]]
of a bulk fluid milk product at pool plants described in paragraph (a)
of this section either directly from farms or by transfer from plants
of the cooperative association for which pool plant status under this
paragraph has been requested''.
3. In Sec. 1126.13(e)(1), the words ``and further, during each of
the months of September through January not less than 15 percent of the
milk of such dairy farmer is physically received as producer milk at a
pool plant''.
4. In Sec. 1126.13(e)(2), the words ``one-third of'' and the words
``(a), (b), (c), and (d)''.
5. In Sec. 1126.13(e)(3), the sentence ``The total quantity of milk
so diverted during the month shall not exceed one-third of the producer
milk physically received at such pool plant during the month that is
eligible to be diverted by the plant operator;''.
All persons who desire to submit written data, views or arguments
about the revised proposed suspension should send two copies to USDA/
AMS/Dairy Division, Order Formulation Branch, Room 2968, South
Building, P.O. Box 96456, Washington, DC 20090-6456, by the 14th day
after publication of this notice in the Federal Register. Comments
filed in response to the proposed suspension will be considered and do
not need to be resubmitted unless amended due to the revision addressed
in this docket.
The period for filing comments is limited to 14 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
This action revises the proposed suspension of Sec. 1126.13(e)(2)
as noticed in the May 13, 1997, Federal Register (62 FR 26255). The
proposed suspension requested the suspension of paragraph
Sec. 1126.13(e)(2) which would remove the diversion limitation
applicable to cooperative associations. The revised proposed suspension
of portions of Sec. 1126.13(e)(2) would increase the diversion
limitation applicable to cooperatives from one-third to an amount equal
to the amount of producer milk the cooperative association delivered to
pool plants.
Associated Milk Producers, Inc. (AMPI), a cooperative association
that represents a substantial number of dairy farmers who supply the
Texas market and the proponent of the proposed suspension of paragraph
Sec. 1126.13(e)(2), requested the modification. AMPI stated that the
modification is necessary to achieve orderly marketing conditions in
the Texas market. AMPI asserts that changes have occurred in the
marketplace caused by a continued increase in production accompanied by
a decrease in the number of dairy farms since the suspension was first
granted. AMPI believes that the revised proposed suspension will
maintain a balance of milk within the production area while allowing
reserve supplies to move to the most efficient alternative market. AMPI
contends that this will assure a more distinct association with the
Class I market and limit sharing in the uniform price by cooperative
associations that do not make milk available for fluid use.
Accordingly, it may be appropriate to suspend the aforesaid
provision from August 1, 1997, through July 31, 1999.
List of Subjects in 7 CFR Part 1126
Milk marketing orders.
The authority citation for 7 CFR Part 1126 continues to read as
follows:
Authority: 7 U.S.C. 601-674.
Dated: June 23, 1997.
Kenneth C. Clayton,
Acting Administrator, Agricultural Marketing Service.
[FR Doc. 97-16790 Filed 6-26-97; 8:45 am]
BILLING CODE 3410-02-P
