95-18593. Milk in the Eastern Colorado Marketing Area; Notice of Proposed Suspension of Certain Provisions of the Order  

  • [Federal Register Volume 60, Number 145 (Friday, July 28, 1995)]
    [Proposed Rules]
    [Pages 38767-38768]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 95-18593]
    
    
    
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    DEPARTMENT OF AGRICULTURE
    Agricultural Marketing Service
    
    7 CFR Part 1137
    
    [DA-95-21]
    
    
    Milk in the Eastern Colorado Marketing Area; Notice of 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 certain performance standards of the Eastern Colorado Federal 
    milk order. The suspension was requested by Mid-America Dairymen, Inc., 
    a cooperative association that supplies milk for the market's fluid 
    needs. The suspension was requested to prevent uneconomic milk 
    movements that otherwise would be required to maintain pool status for 
    milk of producers who have been historically associated with the order.
    
    DATES: Comments are due no later than August 17, 1995.
    
    ADDRESSES: Comments (two copies) should be filed with the USDA/AMS/
    Dairy Division, Order Formulation Branch, Room 2968, South Building, 
    P.O. Box 96456, Washington, DC 20090-6456.
    
    FOR FURTHER INFORMATION CONTACT: Clifford M. Carman, Marketing 
    Specialist, USDA/AMS/Dairy Division, Order Formulation Branch, Room 
    2968, South Building, P.O. Box 96456, Washington, DC 20090-6456, (202) 
    720-9368.
    
    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 
    action would not have a significant economic impact on a substantial 
    number of small entities. Such action 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. 
    
    [[Page 38768]]
    
        The Department is issuing this proposed rule in conformance with 
    Executive Order 12866.
        This proposed suspension 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, 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 
    requesting a modification of the 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 Act, 
    the suspension of the following provisions of the order regulating the 
    handling of milk in the Eastern Colorado marketing area is being 
    considered:
        1. For the months of September 1, 1995, through February 29, 1996: 
    In Sec. 1137.7(b), the second sentence is amended by suspending the 
    words ``plant which has qualified as a'' and ``of March through 
    August''; and
        2. For the months of September 1, 1995, through August 31, 1996: In 
    Sec. 1137.12(a)(1), the first sentence is amended by suspending 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 send written data, views or arguments about 
    the proposed suspension should send two copies to USDA/AMS/Dairy 
    Division, Order Formulation Branch, Room 2971, South Building, P.O. Box 
    96456, Washington, DC 20090-6456, by the 20th day after publication of 
    this notice in the Federal Register. The period for filing comments is 
    limited to 20 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 Division during normal 
    business hours (7 CFR 1.27(b)).
    
    Statement of Consideration
    
        The proposed rule would suspend certain portions of the pool plant 
    and producer definitions of the Eastern Colorado order. The proposed 
    suspension would make it easier for handlers to qualify milk for 
    pooling under the order.
        The proposed suspension was requested by Mid-America Dairyman, Inc. 
    (Mid-Am), a cooperative association that has pooled milk of dairy 
    farmers on the Eastern Colorado order for several years. Mid-Am has 
    requested the suspension to prevent the uneconomic and inefficient 
    movement of milk for the sole purpose of pooling the milk of producers 
    who have been historically associated with the Eastern Colorado order.
        Mid-Am requests, for the months of September 1995 through February 
    1996, the removal of the restriction on the months when automatic pool 
    plant status applies for supply plants. Mid-Am also proposes that, for 
    the months of September 1995 through August 1996, the touch-base 
    requirement not apply and the diversion allowance for cooperatives be 
    raised.
        These provisions have been suspended previously in order to 
    maintain the pool status of producers who have historically supplied 
    the fluid needs of Eastern Colorado distributing plants. Mid-Am states 
    that the marketing conditions that justified the prior suspensions 
    continue to exist.
        Mid-Am asserts that they have made a commitment to meet the fluid 
    milk requirements of distributing plants if the suspension request is 
    granted. Without the suspension, Mid-Am contends that it will be 
    necessary to ship milk from distant farms to Denver-area bottling 
    plants to qualify milk for pooling. The distant milk will displace 
    locally-produced milk that would then have to be shipped from the 
    Denver area to manufacturing plants located in outlying areas.
        In addition, Mid-Am maintains that ample supplies of locally-
    produced milk that can be delivered directly to distributing plants 
    will be available to meet the market's fluid needs without requiring 
    shipments from supply plants. Mid-Am also claims that neither the 
    elimination of the touch-base requirement for producers nor the 
    increase in the amount of milk that can be diverted to nonpool plants 
    by a cooperative should jeopardize the needs of the market's fluid 
    processors.
        Accordingly, it may be appropriate to suspend the aforesaid 
    provisions for the time periods stated.
    
    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: July 24, 1995.
    Lon Hatamiya,
    Administrator.
    [FR Doc. 95-18593 Filed 7-27-95; 8:45 am]
    BILLING CODE 3410-02-P
    
    

Document Information

Published:
07/28/1995
Department:
Agricultural Marketing Service
Entry Type:
Proposed Rule
Action:
Proposed suspension of rule.
Document Number:
95-18593
Dates:
Comments are due no later than August 17, 1995.
Pages:
38767-38768 (2 pages)
Docket Numbers:
DA-95-21
PDF File:
95-18593.pdf
CFR: (1)
7 CFR 1137.12(a)(1)