[Federal Register Volume 59, Number 135 (Friday, July 15, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-17243]
[[Page Unknown]]
[Federal Register: July 15, 1994]
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DEPARTMENT OF AGRICULTURE
7 CFR Part 1030
[DA-94-16]
Milk in the Chicago Regional Marketing Area; Proposed Temporary
Revision of Certain Provisions of the Order
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Proposed revision of rule.
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SUMMARY: This document invites written comments on a proposal to revise
the supply plant shipping standards under the Chicago Regional order
for the months of August and September, 1994. The proposal would reduce
shipping percentages for individual supply plants and units of supply
plants to zero for these two months. The reductions were requested by
Central Milk Producers Cooperative, a federation of cooperatives that
represents producers who supply the market. The organization contends
that the action is necessary to prevent uneconomic and inefficient
movements of milk to qualify plants for pooling.
DATES: Comments are due no later than July 22, 1994.
ADDRESSES: Comments (two copies) should be sent to USDA/AMS/Dairy
Division, Order Formulation Branch, Room 2971, South Building, P.O. Box
96456, Washington, DC 20090-6456.
FOR FURTHER INFORMATION CONTACT: Constance M. Brenner, Marketing
Specialist, USDA/AMS/Dairy Division, Order Formulation Branch, Room
2971, South Building, P.O. Box 96456, Washington, DC 20090-6456 (202)
720-2357.
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 would continue to have their milk priced under the order
and thereby receive the benefits that accrue from such pricing.
The Department of Agriculture (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 and the provisions of
Sec. 1030.7(b)(5) of the order, the temporary revision of certain
provisions of the order regulating the handling of milk in the Chicago
Regional marketing area is being considered for the months of August 1,
1994, through September 30, 1994.
All persons who desire to submit written data, views or arguments
about the proposed revision should send two copies of their views to
USDA/AMS/Dairy Division, Order Formulation Branch, Room 2971, South
Building, P.O. Box 96456, Washington, DC 20090-6456 by the 7th day
after publication of this notice in the Federal Register. The period
for filing comments is limited to 7 days because a longer period would
not provide the time needed to complete the required procedures and
include August 1994 in the temporary revision period.
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 provisions proposed to be revised are the supply plant shipping
percentages for the months of August and September, 1994. For an
individual supply plant, the proposed action would reduce the shipping
percentage by 3 percentage points (from 3 to zero percent of receipts)
in August 1994 and by 5 percentage points (from 5 to zero percent of
receipts) in September 1994. For a unit of supply plants, the proposed
action would reduce the shipping percentage by 6 percentage points
(from 6 to zero percent of receipts) in August 1994 and by 10
percentage points (from 10 to zero percent of receipts) in September
1994.
Currently, the order provides that from January through August,
individual supply plants must ship at least 3 percent of milk receipts
to distributing plants to qualify as pool plants while a unit of supply
plants must ship at least 6 percent of total receipts for pooling
purposes. From September through December, individual supply plants
must ship at least 5 percent of milk receipts to distributing plants to
qualify as pool plants while a unit of supply plants must ship at least
10 percent of total receipts for pooling purposes.
The Chicago order provides that the Market Administrator may adjust
the shipping standards for individual plants and units of plants by up
to 2 percentage points for up to 3 months. The order also provides that
the Director of the Dairy Division may increase the shipping standards
by up to 5 percentage points or decrease the shipping standards by up
to 10 percentage points. The adjustments can be made to encourage
additional milk shipments or to prevent uneconomic shipments.
The revision was requested by Central Milk Producers Cooperative
(CMPC), a federation of cooperative associations that represents a
substantial number of the producers who supply the market. CMPC
contends that the most recent supply and demand estimates, and their
commitments to the market, substantiate that there will be more than
sufficient fluid milk supplies from close-in sources available for the
fluid market. Current projections indicate that supply will remain
constant while demand will decrease. Based on these projections, CMPC
asserts that it is impractical and unnecessary to require qualifying
shipments from distant unit plants, while forcing the milk from nearby
unit plants to be hauled to distant plants for manufacturing, merely
for pooling purposes. CMPC states that this double hauling of milk will
put a financial burden on handlers who operate pool units. Thus, CMPC
contends that a reduction of shipping percentages is necessary to
prevent uneconomic and inefficient shipments of milk from distant
supply plants solely for pooling purposes.
Based on supply and demand estimates, CMPC has requested that the
market administrator reduce the shipping percentages by 2 percentage
points for the months of August and September 1994. A reduction of the
shipping percentages for these two months is being considered by the
Market Administrator.
Based on the most recent supply and demand projections, CMPC
contends a further reduction of shipping percentages, beyond the
request to the Market Administrator, will be necessary.
CMPC contends that in order to make the most efficient use of
available milk supplies, as much as possible of nearby milk supplies
will have to be utilized with reliance on distant supplies only on days
when nearer milk supplies have been exhausted. For the months of August
and September, 1994, CMPC contends that such efficiencies can only be
realized if the shipping standards for individual plants and units of
supply plants are reduced to zero percent of receipts, respectively.
In view of the current supply and demand relationship, it may be
necessary to reduce the supply plant shipping percentages as proposed
to provide for the efficient and economic marketing of milk during the
months of August 1, 1994, through September 30, 1994.
List of Subjects in 7 CFR Part 1030
Milk marketing orders.
The authority citation for 7 CFR Part 1030 continues to read as
follows:
Authority: Secs. 1-19, 48 Stat 31, as amended; 7 U.S.C. 601-674.
Dated: July 11, 1994.
Silvio Capponi,
Acting Director, Dairy Division.
[FR Doc. 94-17243 Filed 7-14-94; 8:45 am]
BILLING CODE 3410-02-P
