[Federal Register Volume 64, Number 74 (Monday, April 19, 1999)]
[Proposed Rules]
[Pages 19071-19072]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-9850]
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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. 64, No. 74 / Monday, April 19, 1999 /
Proposed Rules
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DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 1079
[DA-99-02]
Milk in the Iowa Marketing Area; Proposed Revision of Supply
Plant Shipping Percentage
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Proposed 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 20 percent to 10 percent for the months of April
through August 1999. The action was requested by Beatrice Cheese, Inc.,
a proprietary manufacturer of dairy products in Fredericksburg, Iowa.
The proponent contends that the action would allow the milk of dairymen
who historically have supplied the market to continue to be pooled
under the Federal order and is needed to prevent uneconomic milk
movements.
DATES: Comments must be submitted on or before April 26, 1999.
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 February 1999, 3,788 dairy farmers were producers
under the Iowa order. Of these, 3,714 producers (i.e., 98 percent) were
considered small businesses, having monthly milk production under
326,000 pounds. A further breakdown of the monthly milk production of
the producers on the order during February 1999 was as follows: 2,804
produced less than 100,000 pounds of milk; 776 produced between 100,000
and 200,000; 134 produced between 200,000 and 326,000; and 74 produced
over 326,000 pounds. During the same month, 11 handlers were pooled
under the order. Five were considered small businesses.
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 April through August 1999 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 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 order regulating the handling of
milk in the Iowa marketing area is being considered for the months of
April through August 1999.
All persons who desire to submit written data, views or arguments
about the proposed revision should send two
[[Page 19072]]
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 April 26, 1999. 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 April 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 20 percent to 10
percent, for the period April 1, 1999, through August 31, 1999.
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 April through August
1999. The handler's request states that this decrease is warranted due
to the fact that current raw milk supplies available for fluid use from
outside of Iowa's traditional procurement area exceed the needs of the
fluid milk plants in Federal Order 79 and that these available supplies
have replaced milk shipped to distributing plants by Beatrice. Beatrice
states that if the pool supply shipping percentages remain unchanged,
the milk of dairymen who historically have supplied the Iowa market
will not be able to continue to be pooled under the Federal Order, and
Beatrice will be forced to move milk uneconomically.
In view of the current supply and demand relationship, it may be
necessary to decrease the shipping percentage requirements for pool
supply plants as proposed to provide for the efficient and economic
marketing of milk during the months of April through August 1999.
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: April 14, 1999.
Richard M. McKee,
Deputy Administrator, Dairy Programs.
[FR Doc. 99-9850 Filed 4-16-99; 8:45 am]
BILLING CODE 3410-02-P
