[Federal Register Volume 64, Number 181 (Monday, September 20, 1999)]
[Proposed Rules]
[Pages 50777-50778]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-24435]
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DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 1137
[DA-99-07]
Milk in the Eastern Colorado Marketing Area; Proposed Suspension
of Certain Provisions of the Order
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Proposed rule; suspension.
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SUMMARY: This document invites written comments on a proposal to
suspend certain sections of the Eastern Colorado Federal milk marketing
order until implementation of Federal milk order reform on October 1,
1999. The proposed rule would reinstate a suspension that expired on
August 31, 1999, which makes it easier for cooperative associations to
qualify milk for pooling under the order. Dairy Farmers of America,
Inc. (DFA), a cooperative association that represents nearly all of the
producers who supply milk to the Eastern Colorado market, has requested
continuation of the suspension. DFA asserts that the suspension is
necessary to prevent uneconomical and inefficient movements of milk.
DATES: Comments must be submitted on or before September 27, 1999.
ADDRESSES: Comments (two copies) should be filed with USDA/AMS/Dairy
Division, Order Formulation Branch, Room 2971, South Building, PO Box
96456, Washington, DC 20090-6456. Advance, unofficial copies of such
comments may be faxed to (202) 690-0552. Reference should be given to
the title of the action and its docket number.
FOR FURTHER INFORMATION CONTACT: Clifford M. Carman, Marketing
Specialist, USDA/AMS/Dairy Programs, Order Formulation Branch, Room
2971, South Building, PO Box 96456, Washington, DC 20090-6456, (202)
720-9368, e-mail address: clifford.carman@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 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 1999, the milk of 203 producers was pooled on
the Eastern Colorado milk order. Of these producers, 105 were below the
326,000-pound production guideline and are considered small businesses.
For June 1999, there were eight handlers operating pool plants
under the Eastern Colorado milk order. Of these handlers, five are
considered small businesses.
This rule would lessen the regulatory impact of the order on
certain milk
[[Page 50778]]
handlers and would tend to ensure that dairy farmers would 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 Eastern
Colorado marketing area is being considered until Federal milk order
reform is implemented October 1, 1999:
In 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
USDA/AMS/Dairy Programs, Order Formulation Branch, Room 2971, South
Building, PO 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
start of the next marketing period.
All written submissions made pursuant to this notice will be made
available for public inspection in Dairy Programs during regular
business hours (7 CFR 1.27(b)).
Statement of Consideration
The proposed rule would suspend certain provisions of the Eastern
Colorado order until implementation of Federal Order Reform. The
proposed suspension would make it easier for a cooperative association
to qualify milk for pooling under the order.
Continuation of the suspension that expired on August 31, 1999, was
requested by DFA, a cooperative association which represents nearly all
of the dairy farmers who supply the Eastern Colorado market. DFA
contends that milk from some producers is required every day of the
month in order to meet market demands, while milk from some other
producers is required most days of the month and milk from a few
producers is required only a few days each month to meet market
demands. DFA asserts that with the suspension in place the market can
be served in the most efficient manner possible because milk required
by the market only a few days each month can maintain association with
the market without being required to be delivered to pool distributing
plants each month. DFA projects that, without the suspension,
inefficient and costly movements of milk would have to be made to
maintain the pool status of producers who historically have supplied
the market.
Accordingly, it may be appropriate to suspend the aforesaid
provisions until completion of Federal Order Reform.
List of Subjects in 7 CFR Part 1137
Milk marketing orders.
The authority citation for 7 CFR part 1137 continues to read as
follows:
Authority: 7 U.S.C. 601-674.
Dated: September 13, 1999.
Richard M. McKee,
Deputy Administrator, Dairy Programs.
[FR Doc. 99-24435 Filed 9-17-99; 8:45 am]
BILLING CODE 3410-02-P
