[Federal Register Volume 63, Number 155 (Wednesday, August 12, 1998)]
[Proposed Rules]
[Pages 43125-43126]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-21579]
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DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 1106
[DA-98-08]
Milk in the Southwest Plains 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 a portion of the supply plant shipping standard and the touch-
base requirement of the Southwest Plains Federal milk marketing order
(Order 106) for the period of September 1998 through August 1999. The
action was requested by Kraft Foods, Inc. (Kraft), which contends the
suspension is necessary to prevent the uneconomical and inefficient
movement of milk and to ensure that producers historically associated
with the market will continue to have their milk pooled under Order
106.
DATES: Comments must be submitted on or before August 19, 1998.
ADDRESSES: Comments (two copies) should be filed with the USDA/AMS/
Dairy Programs, Order Formulation Branch, Room 2971, South Building,
P.O. Box 96456, Washington, DC 20090-6456. Comments may be faxed to
(202) 690-0552 or e-mailed to OFB__FMMO__Comments@usda.gov. Reference
should be given to the title of action and docket number.
FOR FURTHER INFORMATION CONTACT: Nicholas Memoli, Marketing Specialist,
USDA/AMS/Dairy Programs, Order Formulation Branch, Room 2971, South
Building, P.O. Box 96456, Washington, DC 20090-6456, (202) 690-1932, e-
mail address Nicholas__Memoli@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 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 June 1998, 2,187 dairy farmers were producers
under Order 106. Of these producers, 2,138 producers (i.e., 98%) were
considered small businesses. For the same month, 16 handlers were
pooled under Order 106, of which, two were considered small businesses.
The supply plant shipping standard and the touch-base requirement
are designed to attract an adequate supply of milk to the market to
meet fluid needs. Kraft, the proponent of this proposal, anticipates
that there will be an adequate supply of milk available within the
general area to meet the needs to the Order 106 market and states
supplemental milk supplies will not be needed.
The proposal would allow a supply plant that has been associated
with the Southwest Plains market during the months of September 1997
through January 1998 to qualify as a pool plant without shipping any
milk to a pool distributing plant during the following months of
September 1998 through August 1999. The proposed action would also
suspend the requirement that producers touch-base at a pool
distributing plant with at least one day of production during the month
before their milk is eligible to be diverted to nonpool plants. Thus,
this rule would lessen the regulatory impact of the order on certain
milk handlers and would
[[Page 43126]]
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.
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
Southwest Plains marketing area is being considered for the months of
September 1, 1998, through August 31, 1999:
In Sec. 1106.6, the words ``during the month''.
In Sec. 1106.7(b)(1), beginning with the words ``of February
through August'' and continuing to the end of the paragraph.
In Sec. 1106.13, paragraph (d)(1) in its entirety.
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 Programs, 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 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 Programs during regular
business hours (7 CFR 1.27(b)).
Statement of Consideration
The proposed rule would suspend a portion of the supply plant
shipping standard and the touch-base requirement of the Southwest
Plains order for the period of September 1998 through August 1999. The
proposed suspension would allow a supply plant that has been associated
with the Southwest Plains order during the months of September 1997
through January 1998 to qualify as a pool plant without shipping any
milk to a pool distributing plant during the months of September 1998
through August 1999. Without the suspension, a supply plant would be
required to ship 50 percent of its producer receipts to pool
distributing plants during the months of September through January and
20 percent of its producer receipts to pool distributing plants during
the months of February through August to qualify as a pool plant under
the order.
The proposed rule would also suspend the requirement that producers
``touch-base'' at a pool plant with at least one day's production
during the month before their milk is eligible for diversion to a
nonpool plant. By suspending the touch-base provision, producer milk
would not be required to be delivered to pool plants before going to
unregulated manufacturing plants.
According to Kraft's letter requesting the suspension, supplemental
milk supplies will not be needed to meet the fluid needs of
distributing plants. Kraft anticipates that there will be an adequate
supply of direct-ship producer milk located in the general area of
distributing plants available to meet the Class I needs of the market.
The handler notes that the supply plant shipping provision and the
touch-base requirement have been suspended since 1993 and 1992,
respectively.
Kraft states there is no need to require producers located some
distance from pool distributing plants to touch-base when their milk
can more economically be diverted directly to manufacturing plants in
the production area. Thus, the handler contends the proposed suspension
is necessary to prevent the uneconomical and inefficient movement of
milk and to ensure producers historically associated with the Order 106
will continue to have their milk pooled under the order.
Accordingly, it may be appropriate to suspend the aforesaid
provisions from September 1, 1998 through August 31, 1999.
List of Subjects in 7 CFR Part 1106
Milk marketing orders.
The authority citation for 7 CFR Part 1106 continues to read as
follows:
Authority: 7 U.S.C. 601-674.
Dated: August 6, 1998.
Richard M. McKee,
Deputy Administrator, Dairy Programs.
[FR Doc. 98-21579 Filed 8-11-98; 8:45 am]
BILLING CODE 3410-02-P
