[Federal Register Volume 60, Number 107 (Monday, June 5, 1995)]
[Rules and Regulations]
[Pages 29465-29467]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-13688]
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Rules and Regulations
Federal Register
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Federal Register / Vol. 60, No. 107 / Monday, June 5, 1995 / Rules
and Regulations
[[Page 29465]]
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 1099
[Docket No. AO-183-A47; DA-92-11]
Milk in the Paducah, Kentucky, Marketing Area; Order Amending the
Order
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Final rule.
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SUMMARY: This final rule amends the Paducah, Kentucky, Federal milk
order based on final decisions issued by the Acting Assistant Secretary
on December 2, 1994 (59 FR 64524) and on January 27, 1995 (60 FR 7290).
The amendments to the order provide a new formula to price Class II
milk and implement the base month Minnesota-Wisconsin (M-W) price
updated with a butter/powder/cheese formula as the replacement for the
M-W price series.
EFFECTIVE DATE: June 5, 1995.
FOR FURTHER INFORMATION CONTACT: John F. Borovies, Chief, Order
Formulation Branch, USDA/AMS/Dairy Division, Room 2968, South Building,
P.O. Box 96456, Washington, D.C. 20090-6456, (202) 720-6274.
SUPPLEMENTARY INFORMATION: This administrative rule is governed by the
provisions of Sections 556 and 557 of Title 5 of the United States Code
and therefore is excluded from the requirements of Executive Order
12866.
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 action will not have a
significant economic impact on a substantial number of small entities.
The amended order will promote more orderly marketing of milk by
producers and regulated handlers.
This final rule has been reviewed under Executive Order 12778,
Civil Justice Reform. This action is not intended to have 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) (the Act), 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 provision 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 has
his or her 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 date of the entry of the
ruling.
Prior documents in this proceeding:
Notice of Hearing (M-W price): Issued May 12, 1992; published May
15, 1992 (57 FR 20790).
Notice of Hearing (Class II price): Issued December 14, 1993;
published December 21, 1993 (58 FR 67380).
Recommended Decision (M-W price): Issued August 3, 1994; published
August 8, 1994 (59 FR 40418).
Recommended Decision (Class II price): Issued August 22, 1994;
published August 26, 1994 (59 FR 44074).
Final Decision (Class II price): Issued December 2, 1994; published
December 14, 1994 (59 FR 64524).
Final Rule (Class II price): Issued January 27, 1995; published
February 2, 1995 (60 FR 6606).
Final Decision (M-W price): Issued January 27, 1995; published
February 7, 1995 (60 FR 7290).
Proposed Termination of Order: Issued March 3, 1995; published
March 9, 1995 (60 FR 12907).
Extension of Time for Filing Comments on Proposed Termination of
Order: Issued March 27, 1995; published March 31, 1995 (60 FR 16589).
Final Rule (M-W price): Issued April 6, 1995; published April 14,
1995 (60 FR 18952).
Referendum Order: Issued May 8, 1995; published May 12, 1995 (60 FR
25628).
Findings and Determinations
The proceeding on the proposed termination of the Paducah,
Kentucky, milk marketing order, issued March 3, 1995 (60 FR 12907), is
hereby terminated.
When producer approval of the order, as proposed to be amended, was
not indicated in a referendum conducted in the Class II proceeding,
comments were sought concerning possible termination of the order. The
number of comments received from producers indicated that there was
support for the order and provided a sufficient basis for conducting
another referendum. Thus, another referendum was conducted to determine
if producers approved of the order as amended by the Class II
proceeding and by the M-W proceeding. The order, as proposed to be
amended, was subsequently approved. Therefore, it is appropriate at
this time to terminate the proposed termination proceeding issued March
3, 1995, and to proceed to amend the order as approved by producers.
The following findings and determinations hereinafter set forth
supplement those that were made when the Paducah, Kentucky, order was
first issued and when it was amended. The previous findings and
determinations are hereby ratified and confirmed, except where they may
conflict with those set forth herein.
The following findings are hereby made with respect to the
aforesaid order:
(a) Findings upon the basis of the hearing records. Pursuant to the
provisions of the Agricultural Marketing Agreement Act of 1937, as
amended (7 U.S.C. 601-674), and the applicable rules of practice and
procedure governing the formulation of marketing agreements and
marketing orders (7 CFR Part 900), public hearings were held upon
certain proposed amendments to the tentative marketing agreements and
to the orders regulating the handling of [[Page 29466]] milk in all
Federal milk order marketing areas.
Upon the basis of the evidence introduced at such hearings and the
records thereof, it is found that:
(1) The Paducah, Kentucky, order as hereby amended, and all of the
terms and conditions thereof, will tend to effectuate the declared
policy of the Act;
(2) The parity prices of milk, as determined pursuant to section 2
of the Act, are not reasonable in view of the price of feeds, available
supplies of feeds, and other economic conditions which affect market
supply and demand for milk in the marketing area, and the minimum
prices specified in the order, as hereby amended, are such prices as
will reflect the aforesaid factors, insure a sufficient quantity of
pure and wholesome milk, and be in the public interest; and
(3) The said order, as hereby amended, regulates the handling of
milk in the same manner as, and is applicable only to persons in the
respective classes of industrial and commercial activity specified in,
marketing agreements upon which a hearing has been held.
(b) Additional findings. It is necessary in the public interest to
make this order amending the Paducah, Kentucky, order effective June 5,
1995. Any delay beyond that date would disrupt the orderly marketing of
milk in the marketing area because there would be no pricing
constituent available to use to establish minimum prices of milk.
The provisions of this order are known to handlers. The final
decisions of the Acting Assistant Secretary containing proposed
amendments to the order were issued on December 2, 1994, and January
27, 1995, and were published in the Federal Register on December 14,
1994 (59 FR 64524), and February 7, 1995 (60 FR 7290), respectively.
The changes effected by this order will not require extensive
preparation or substantial alteration in method of operation for
handlers. In view of the foregoing, it is hereby found and determined
that good cause exists for making this order amending the Paducah,
Kentucky, order effective June 5, 1995, and that it would be contrary
to the public interest to delay the effective date of this order for 30
days after its publication in the Federal Register. (Sec. 553(d),
Administrative Procedure Act, 5 U.S.C. 551-559.)
(c) Determinations. It is hereby determined that:
(1) The refusal or failure of handlers (excluding cooperative
associations specified in Section 8c(9) of the Act) of more than 50
percent of the milk which is marketed within the marketing area to sign
a proposed marketing agreement tends to prevent the effectuation of the
declared policy of the Act;
(2) The issuance of this order amending the order is the only
practical means pursuant to the declared policy of the Act of advancing
the interests of producers as defined in the order as hereby amended;
and
(3) The issuance of the order amending the order is approved or
favored by producers of at least two-thirds of the milk produced for
sale in the marketing area who participated in a referendum and who
during the determined representative period were engaged in the
production of milk for sale in the marketing area.
List of Subjects in 7 CFR Part 1099
Milk marketing orders.
Order Relative to Handling
It is therefore ordered, that on and after June 5, 1995, the
handling of milk in the Paducah, Kentucky, marketing area shall be in
conformity to and in compliance with the terms and conditions of the
order, as amended, and as hereby further amended, as follows:
PART 1099--MILK IN THE PADUCAH, KENTUCKY, MARKETING AREA
1. The authority citation for 7 CFR Part 1099 continues to read as
follows:
Authority: 7 U.S.C. 601-674.
2. Section 1099.20 is removed.
3. Section 1099.50 is amended by revising paragraph (b) to read as
follows:
Sec. 1099.50 Class prices.
* * * * *
(b) Class II price. The Class II price shall be the basic formula
price for the second preceding month plus $0.30.
* * * * *
4. Section 1099.51 is revised to read as follows:
Sec. 1099.51 Basic formula price.
The basic formula price shall be the preceding month's average pay
price for manufacturing grade milk in Minnesota and Wisconsin using the
``base month'' series, as reported by the Department, adjusted to a 3.5
percent butterfat basis using the butterfat differential for the
preceding month computed pursuant to Sec. 1099.74 and rounded to the
nearest cent, plus or minus the change in gross value yielded by the
butter-nonfat dry milk and Cheddar cheese product price formula
computed pursuant to paragraphs (a) through (e) of this section.
(a) The gross values of per hundredweight of milk used to
manufacture butter-nonfat dry milk and Cheddar cheese shall be
computed, using price data determined pursuant to paragraph (b) of this
section and annual yield factors, for the preceding month and
separately for the current month as follows:
(1) The gross value of milk used to manufacture butter-nonfat dry
milk shall be the sum of the following computations:
(i) Multiply the Grade AA butter price by 4.27;
(ii) Multiply the nonfat dry milk price by 8.07; and
(iii) Multiply the dry buttermilk price by 0.42.
(2) The gross value of milk used to manufacture Cheddar cheese
shall be the sum of the following computations:
(i) Multiply the Cheddar cheese price by 9.87; and
(ii) Multiply the Grade A butter price by 0.238.
(b) The following product prices shall be used pursuant to
paragraph (a) of this section:
(1) Grade AA butter price. Grade AA butter price means the simple
average for the month of the Chicago Mercantile Exchange, Grade AA
butter price, as reported by the Department.
(2) Nonfat dry milk price. Nonfat dry milk price means the simple
average for the month of the Western Nonfat Dry Milk Low/Medium Heat
price, as reported by the Department.
(3) Dry buttermilk price. Dry buttermilk price means the simple
average for the month of the Western Dry Buttermilk price, as reported
by the Department.
(4) Cheddar cheese price. Cheddar cheese price means the simple
average for the month of the National Cheese Exchange 40-pound block
Cheddar cheese price, as reported by the Department.
(5) Grade A butter price. Grade A butter price means the simple
average for the month of the Chicago Mercantile Exchange Grade A butter
price, as reported by the Department.
(c) Determine the amounts by which the gross value per
hundredweight of milk used to manufacture butter-nonfat dry milk and
the gross value per hundredweight of milk used to manufacture Cheddar
cheese for the current month exceed or are less than the respective
gross values for the preceding month.
(d) Compute weighting factors to be applied to the changes in gross
values determined pursuant to paragraph (c) of this section by
determining the relative proportion that the data included in each of
the following paragraphs is of the total of the data represented in
[[Page 29467]] paragraphs (d)(1) and (d)(2) of this section:
(1) Combine the total nonfat dry milk production for the States of
Minnesota and Wisconsin, as reported by the Department, for the most
recent preceding period, and divide by the annual yield factor for
nonfat dry milk, 8.07, to determine the quantity (in hundredweights) of
milk used in the production of butter-nonfat dry milk; and
(2) Combine the total American cheese production for the States of
Minnesota and Wisconsin, as reported by the Department, for the most
recent preceding period, and divide by the annual yield factor for
Cheddar cheese, 9.87, to determine the quantity (in hundredweights) of
milk used in the production of American cheese.
(e) Compute a weighted average of the changes in gross values per
hundredweight of milk determined pursuant to paragraph (c) of this
section in accordance with the relative proportions of milk determined
pursuant to paragraph (d) of this section.
5. Section 1099.51a is removed.
6. Section 1099.53 is revised to read as follows:
Sec. 1099.53 Announcement of class prices.
The market administrator shall announce publicly on or before the
fifth day of each month the Class I price and the Class II price for
the following month, and the Class III and Class III-A prices for the
preceding month.
7. Section 1099.74 is revised to read as follows:
Sec. 1099.74 Butterfat differential.
For milk containing more or less than 3.5 percent butterfat, the
uniform price shall be increased or decreased, respectively, for each
one-tenth percent butterfat variation from 3.5 percent by a butterfat
differential, rounded to the nearest one-tenth cent, which shall be
0.138 times the current month's butter price less 0.0028 times the
preceding month's average pay price per hundredweight, at test, for
manufacturing grade milk in Minnesota and Wisconsin, using the ``base
month'' series, adjusted pursuant to Sec. 1099.51 (a) through (e), as
reported by the Department. The butter price means the simple average
for the month of the Chicago Mercantile Exchange, Grade A butter price
as reported by the Department.
Dated: May 31, 1995.
Patricia Jensen,
Acting Assistant Secretary, Marketing and Regulatory Programs.
[FR Doc. 95-13688 Filed 6-2-95; 8:45 am]
BILLING CODE 3410-02-P
