[Federal Register Volume 59, Number 124 (Wednesday, June 29, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-15718]
[[Page Unknown]]
[Federal Register: June 29, 1994]
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DEPARTMENT OF AGRICULTURE
7 CFR Part 1137
[DA-94-13]
Milk in the Eastern Colorado 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 performance standards of the Eastern Colorado Federal
milk marketing order, which would make it easier for handlers to
qualify milk for pool status. The action was proposed by Mid-America
Dairymen, Inc., a cooperative association that supplies milk for the
market's fluid needs. The suspension was requested to prevent
uneconomic milk movements that otherwise would be required to maintain
pool status for milk of producers who have been historically associated
with the market.
DATES: Comments are due no later than July 29, 1994.
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 lessen the regulatory impact
of the order on certain milk handlers and would tend to ensure that
dairy farmers who have been historically associated with this market
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, 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.
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:
1. For the months of September 1994 through February 1995: 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 1994 through August 1995:
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 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 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 regular
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
(Order 137). It would be easier for handlers to qualify milk for
pooling under the order if the provisions were suspended.
The proposed suspension was requested by Mid-America Dairymen, Inc.
(Mid-Am), a cooperative association that has pooled milk of dairy
farmers under Order 137 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 who have been
historically associated with the order.
Mid-Am requests, for the months of September 1994 through February
1995, the removal of the restriction on the months when automatic pool
plant status applies for supply plants. Mid-Am also proposes that, for
the months of September 1994 through August 1995, the touch-base
requirement not apply and that the diversion allowance for cooperatives
be raised.
These provisions have been suspended in prior years to maintain the
pool status of producers who have historically supplied the fluid needs
of Order 137 distributing plants. The cooperative indicates that the
marketing conditions which justified the prior suspensions continue to
exist.
Mid-Am asserts that they have made a commitment to supply the fluid
milk requirements of distributing plants if their suspension request is
granted. Without the suspension, Mid-Am contends that to qualify
certain of its milk for pooling it will be necessary to ship milk from
distant farms to Denver-area bottling plants. The distant milk will
displace milk produced on nearby farms that would then have to be
shipped from the Denver area to manufacturing plants located in
outlying areas.
In addition, Mid-Am maintains that ample supplies of locally-
produced milk that can be delivered directly to distributing plants
will be available to meet the market's fluid needs without requiring
shipments from supply plants. Proponent also claims that neither the
elimination of the touch-base requirement for producers nor the
increase in the amount of milk that can be diverted to nonpool plants
by a cooperative, should jeopardize the needs of the market's fluid
processors.
Accordingly, it may be appropriate to suspend the aforesaid
provisions for the time periods stated.
List of Subjects in 7 CFR Part 1137
Milk marketing orders.
Authority: Secs. 1-19, 48 Stat. 31, as amended; 7 U.S.C. 601-
674.
Dated: June 23, 1994.
Lon Hatamiya,
Administrator.
[FR Doc. 94-15718 Filed 6-28-94; 8:45 am]
BILLING CODE 3410-02-P
