[Federal Register Volume 63, Number 143 (Monday, July 27, 1998)]
[Proposed Rules]
[Pages 40068-40069]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-19908]
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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. 63, No. 143 / Monday, July 27, 1998 /
Proposed Rules
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DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 1079
[DA-98-07]
Milk in the Iowa Marketing Area; Proposed Temporary Revision of
Pool Supply Plant Shipping Percentage
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Proposed temporary revision of rule.
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SUMMARY: This document invites written comments on a proposal to reduce
the percentage of a supply plant's receipts that must be delivered to
fluid milk plants to qualify a supply plant for pooling under the Iowa
Federal milk order. The applicable percentage would be decreased by 10
percentage points, from 35 percent of plant receipts to 25 percent of
such receipts for the months of September through November 1998. The
action is requested by Beatrice Cheese, Inc., a proprietary
manufacturer of dairy products in Fredericksburg, Iowa. The proponent
contends that the action is needed to prevent uneconomic milk
movements.
DATES: Comments must be submitted on or before August 26, 1998.
ADDRESSES: Comments (two copies) should be sent to USDA/AMS/Dairy
Programs, Order Formulation Branch, Room 2971, South Building, P.O. Box
96456, Washington, DC 20090-6456. Advance, unofficial copies of such
comments may be faxed to (202) 690-0552 or e-mailed to OFB--FMMO--
Comments@usda.gov. Reference should be made to the title of action and
docket number.
FOR FURTHER INFORMATION CONTACT: Constance M. Brenner, Marketing
Specialist, USDA/AMS/Dairy Programs, Order Formulation Branch, Room
2971, South Building, P.O. Box 96456, Washington, DC 20090-6456 (202)
720-2357, e-mail address: connie__m__brenner@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 the 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 1998, 3,768 dairy farmers were producers
under the Iowa Order. Of these, all but 68 would be considered small
businesses, having under 326,000 pounds of production for the month. Of
the dairy farmers in the small business category, 2,682 produced under
100,000 pounds of milk, 876 produced between 100,000 and 200,000, and
142 produced between 200,000 and 326,000 pounds during March 1998.
Generally, the reports filed on behalf of the slightly more than 20
milk plants pooled, or regulated, under the Iowa Order in March 1998
were filed for establishments that would meet the SBA definition of a
small business on an individual basis, having less than 500 employees.
However, all but four of the milk handlers represented in the market
are part of larger businesses that operate multiple plants at which
their collective size exceeds the SBA definition of a small business
entity.
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.
The reduction of the required supply plant shipping percentage for
the months of September through November 1998 would allow the milk of
producers traditionally associated with the Iowa market to continue to
be pooled and priced under the order. The revision would lessen the
likelihood that more milk shipments to pool plants might be required
under the order than are actually needed to supply the fluid milk needs
of the market and would result in savings in hauling costs for handlers
and producers.
Notice of Proposed Revision and Opportunity to File Comments
Notice is hereby given that, pursuant to the provisions of the
Agricultural Marketing Agreement Act and the provisions of
Sec. 1079.7(b)(1) of the Iowa Federal milk order, the temporary
revision of certain provisions of the
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order regulating the handling of milk in the Iowa marketing area is
being considered for September 1, 1998, through November 30, 1998.
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 Programs, 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. The filing
period is limited to 30 days because a longer period would not provide
the time needed to complete the required procedures and include
September in the temporary revision period.
All written submissions made pursuant to this notice will be made
available for public inspection in the Dairy Programs offices during
regular business hours (7 CFR 1.27(b)).
Statement of Consideration
The provision proposed to be revised is the percentage of a supply
plant's receipts required to be shipped to pool distributing plants
pursuant to Sec. 1079.7(b) of the Iowa Federal milk marketing order
(Order 79). As proposed, the percentage of a supply plant's receipts
that must be shipped to pool distributing plants (fluid milk plants) if
the supply plant is to be considered a pool plant would be decreased by
the maximum allowable 10 percentage points, from 35 percent to 25
percent for the period September 1, 1998, through November 30, 1998.
Section 1079.7(b)(1) of the Iowa milk marketing order allows the
Deputy Administrator, Dairy Programs, to reduce or increase a pool
supply plant's minimum shipping requirement by up to 10 percentage
points to prevent uneconomic milk shipments or to assure an adequate
supply of milk for fluid use.
Beatrice Cheese, Inc. (Beatrice), a proprietary manufacturer of
dairy products in Fredericksburg, Iowa, is regulated under Order 79 as
a pool supply plant. Beatrice requested that the shipping percentage be
reduced by 10 percentage points for the months of September through
November 1998. The handler's request states that this decrease is
warranted due to the fact that current raw milk supplies available for
fluid use exceed the needs of the fluid milk plants in Order 79.
Beatrice states that if the pool supply shipping percentages remain
unchanged, Beatrice will be forced to move milk uneconomically or
unfairly depool some milk produced by Iowa dairymen, denying them
participation in the Order 79 pool.
In view of the current supply and demand relationship, it may be
necessary to decrease the shipping percentage requirements for pool
supply plants to provide for the efficient and economic marketing of
milk during the period September 1, 1998, through November 30, 1998.
List of Subjects in 7 CFR Part 1079
Milk marketing orders.
The authority citation for 7 CFR part 1079 continues to read as
follows:
Authority: 7 U.S.C. 601-674.
Dated: July 21, 1998.
Richard M. McKee,
Deputy Administrator, Dairy Programs.
[FR Doc. 98-19908 Filed 7-24-98; 8:45 am]
BILLING CODE 3410-02-P
