[Federal Register Volume 59, Number 2 (Tuesday, January 4, 1994)] [Proposed Rules] [Pages 260-265] From the Federal Register Online via the Government Publishing Office [www.gpo.gov] [FR Doc No: 94-56] [[Page Unknown]] [Federal Register: January 4, 1994] VOL. 59, NO. 2 Tuesday, January 4, 1994 ======================================================================= ----------------------------------------------------------------------- DEPARTMENT OF AGRICULTURE Agricultural Marketing Service 7 CFR Parts 1030, 1065, 1068, 1076, and 1079 [Docket Nos. AO-361-A31, etc.; DA-92-27] Milk in the Chicago Regional and Other Marketing Areas; Notice of Hearing on Proposed Amendments to Tentative Marketing Agreements and Orders AGENCY: Agricultural Marketing Service, USDA. ACTION: Notice of public hearing on proposed rulemaking. ------------------------------------------------------------------------ 7 CFR Part Marketing Area AO Nos. ------------------------------------------------------------------------ 1030...................... Chicago Regional.......... AO-361-A31 1065...................... Nebraska-Western Iowa..... AO-86-A50 1068...................... Upper Midwest............. AO-178-A48 1076...................... Eastern South Dakota...... AO-260-A32 1079...................... Iowa...................... AO-295-A44 ------------------------------------------------------------------------ SUMMARY: This hearing is being held to consider proposals to amend five Federal milk marketing orders. The proposals would establish a multiple component pricing plan for pricing producer milk under the orders. Producer milk utilized in Class II and Class III would be priced to handlers on the basis of three components. The components priced would be butterfat, protein and solids-not-fat other than protein. Under some of the proposals, producer prices or protein prices would be adjusted for quality attributes of milk, such as somatic cell content. The hearing was requested by a dairy trade association and several cooperative associations that represent a substantial number of dairy farmers who supply these markets. A number of other dairy cooperative associations and dairy organizations submitted proposals to be considered at the hearing. The proponents maintain that the proposed payment plans would give producers a direct economic incentive to produce the components valued by the marketplace. DATES: The hearing will convene at 9 a.m. local time on January 25, 1994. ADDRESSES: The hearing will be held at the Sheraton Inn Airport, 2500 E. 79th Street, Bloomington, Minnesota 55425, telephone (612) 854-1771. FOR FURTHER INFORMATION CONTACT: Constance M. Brenner, Marketing Specialist, USDA/AMS/Dairy Division, Order Formulation Branch, Room 2971, South Building, P. O. Box 96456, Washington, DC 20090-6456, (202) 720-7183. SUPPLEMENTARY INFORMATION: This administrative action is governed by the provisions of Sections 556 and 557 of title 5 of the United States Code and therefore, is excluded from the requirements of Executive Order 12866. Notice is hereby given of a public hearing to be held at the Sheraton Inn Airport, 2500 E. 79th Street, Bloomington, Minnesota 55425 (telephone 612/854-1771), beginning at 9 a.m. on January 25, 1994, with respect to proposed amendments to the tentative marketing agreements and to the orders regulating the handling of milk in the aforesaid marketing areas. The hearing is called pursuant to the provisions of the Agricultural Marketing Agreement Act of 1937, as amended (7 U.S.C. 601- 674), and the applicable rules of practice and procedure governing the formulation of marketing agreements and marketing orders (7 CFR part 900). The purpose of the hearing is to receive evidence with respect to the economic and marketing conditions which relate to the proposed amendments, hereinafter set forth, and any appropriate modifications thereof, to the tentative marketing agreements and to the orders. Actions under the Federal milk order programs are subject to the Regulatory Flexibility Act (Pub. L. 96-354). This Act seeks to ensure that, within the statutory authority of a program, the regulatory and information requirements are tailored to the size and nature of small businesses. For the purpose of the Act, a dairy farm is 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. Most parties subject to a milk order are considered as a small business. Accordingly, interested parties are invited to present evidence on the probable regulatory and informational impact of the hearing proposals on small businesses. Also, parties may suggest modifications of these proposals for the purpose of tailoring their applicability to small business. The amendments to the rules proposed herein have been reviewed under Executive Order 12778, Civil Justice Reform. They are not intended to have a retroactive effect. If adopted, the proposed amendments would not preempt any state or local laws, regulations, or policies, unless they present an irreconcilable conflict with these rules. The Act 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 provision of the order, or any obligation imposed in connection with the order is not in accordance with the law and requesting a modification of an 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 courts 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 date of the entry of the ruling. Interested parties who wish to introduce exhibits should provide the Presiding Officer at the hearing with 6 copies of such exhibits for the Official Record. Also, it would be helpful if additional copies are available for the use of other participants at the hearing. List of Subjects in 7 CFR Parts 1030, 1065, 1068, 1076, and 1079 Milk marketing orders. The authority citation for 7 CFR parts 1030, 1065, 1068, 1076, and 1079 continues to read as follows: Authority: Secs. 1-19, 48 Stat. 31 as amended; 7 U.S.C. 601-674. The proposed amendments, as set forth below, have not received the approval of the Secretary of Agriculture. Proposed by National All-Jersey, Inc., and supported by a number of cooperative associations and other dairy organizations: Proposal No. 1 For the Chicago Regional, Upper Midwest and Iowa Federal milk orders (Orders 30, 68 and 79), establish a multiple component pricing plan for producer milk by revising each of the orders to incorporate the pricing plan included in detail in this notice for part 1030, to include the following provisions: Change the introductory text and add paragraphs (e) and (f) to Sec. 1030.20, as follows: Sec. 1030.20 Product prices. The following product prices shall be used in calculating the basic Class II formula price pursuant to Sec. 1030.51(b) and the component prices defined in Sec. 1030.50 as follows: * * * * * (e) Monthly Cheddar Cheese Price. The Monthly Cheddar Cheese Price means the National Cheese Exchange (Green Bay) monthly average price for 40 pound blocks of cheddar cheese as calculated and reported each month by the Dairy Division, Agricultural Marketing Service in Dairy Market News. (f) Whey Protein Concentrate Price. The Whey Protein Concentrate Price means the monthly average whey protein concentrate price (central and western (f.o.b.) edible 34 percent protein) calculated and reported each month by the Dairy Division, Agricultural Marketing Service in Dairy Market News. Revise Sec. 1030.30 to read as follows: Sec. 1030.30 Reports of receipts and utilization. On or before the 10th day after the end of each month, each handler shall report for such month to the market administrator, in the detail and on the forms prescribed by the market administrator as follows: (a) Each handler described in Sec. 1030.9(a), (b) and (c) shall report for each plant of the handler (except if a handler requests and is approved by the market administrator, a handler may file a consolidated report for supply plants and/or a consolidated report for distributing plants) the following information: (1) Product pounds, pounds of butterfat, pounds of protein and pounds of solids-not-fat other than protein contained in: (i) Receipts of producer milk, including producer milk diverted by the handler, and (ii) Receipts of milk from handlers described in Sec. 1030.9(c). (2) Product pounds of butterfat contained in: (i) Receipts of fluid milk products not included in (a)(1) above and bulk fluid cream products from any source; (ii) Receipts of other source milk; (iii) Inventories at the beginning and end of the month of fluid milk products and products specified in Sec. 1030.40(b)(1); (iv) The utilization or disposition of all milk, filled milk, and milk products required to be reported pursuant to this paragraph. (b) Each handler operating a partially regulated distributing plant shall report with respect to such plant in the same manner as prescribed for reports required by paragraph (a) of this section. Receipts of milk that would have been producer milk if the plant had been fully regulated shall be reported in lieu of producer milk. Such report shall show also the quantity of any reconstituted skim milk in route disposition in the marketing area. (c) Each handler not specified in paragraphs (a) and (b) of this section shall report with respect to its receipts and utilization of milk, filled milk, and milk products in such manner as the market administrator may prescribe. Revise Sec. 1030.31 to read as follows: Sec. 1030.31 Payroll reports. (a) On or before the 25th day after the end of each month, each handler described in Sec. 1030.9(a), (b), and (c) shall report to the market administrator its producer payroll for such month, in the detail prescribed by the market administrator, showing for each producer: (1) Name and address; (2) The total pounds of milk received from such producer; (3) The pounds of butterfat contained in such milk; (4) The pounds of protein contained in such milk; (5) The pounds of solids-not-fat other than protein (Other Solids) contained in such milk; (6) The price per pound of butterfat, protein and Other Solids, the gross amount due, the amount and nature of any deductions, and the net amount paid. (b) Each handler operating a partially regulated distributing plant who elects to make payment pursuant to Sec. 1030.76(b) shall report for each dairy farmer who would have been a producer if the plant had been fully regulated in the same manner as prescribed for reports required by paragraph (a) of this section. Class and Component Prices In Sec. 1030.50, change the introductory sentence and add four component prices following the existing three paragraphs for Class prices as follows: Sec. 1030.50 Class prices and component prices. The Class prices for the month per hundredweight of milk containing 3.5 percent butterfat subject to the provisions of Sec. 1030.52, and the component prices for the month shall be as follows: * * * * * (d) Skim Milk Price. The skim milk price per hundredweight, rounded to the nearest one-hundredth cent shall be the Class III price less an amount computed by multiplying the butterfat differential computed pursuant to Sec. 1030.74 by 35. (e) Butterfat Price. The butterfat price per pound rounded to the nearest one-hundredth cent, shall be the sum of (1) the skim milk price per hundredweight for the month computed pursuant to paragraph (d) of this section, divided by 100 and (2) the butterfat differential for the month, computed pursuant to Sec. 1030.74 multiplied by 10. (f) Protein Price. The protein price per pound, rounded to the nearest one-hundredth cent, shall be 1.32 times the monthly cheddar cheese price pursuant to Sec. 1030.20(e) plus .735 times the whey protein concentrate price pursuant to Sec. 1030.20(f) and subject to (g) of this section. (g) Other Solids Price. The other solids price per pound, rounded to the nearest one-hundredth cent, shall be the basic formula price pursuant to Sec. 1030.52(a) less the sum of (1) 3.5 times the butterfat price pursuant to Sec. 1030.50(e) and (2) the average protein content of the milk on which the basic formula price is based for the previous month as reported by the Department and adjusted for the current month by the Dairy Division times the protein price pursuant to Sec. 1030.50(f), and dividing the resulting price by the difference between (i) the average solids-not-fat content of the milk on which the basic formula price is based for the previous month as reported by the Department, and adjusted for the current month by the Dairy Division and (ii) the average protein content of the milk on which the basic formula price is based for the previous month as reported by the Department and adjusted for the current month by the Dairy Division. If the resulting price is less than zero, then the protein value shall be adjusted so that the other solids price equals zero. (h) Class I Differential Price. The Class I differential price shall be the difference between the current month's Class I and Class III prices (this price may be negative). (i) Class II Differential Price. The Class II differential price shall be the difference between the current month's Class II and III prices (this price may be negative). Revise Sec. 1030.51 to read as follows: Sec. 1030.51 Basic formula prices. (a) Basic Formula Price. Include all material now contained in Sec. 1030.51 without change. (b) Basic Class II Formula Price. Include all material now contained in Sec. 1030.51a without change. Revise Sec. 1030.53 to read as follows: Sec. 1030.53 Announcement of class and component prices. (a) On or before the 5th of the month, the market administrator shall announce the following prices and any other prices deemed appropriate: (1) The Class I price for the following month; (2) The Class III price for the preceding month; (3) The skim milk price for the preceding month; (4) The butterfat price for the preceding month; (5) The protein price for the preceding month; (6) The other solids price for the preceding month. (7) The butterfat differential for the preceding month. (b) On or before the 15th day of the month, the market administrator shall announce the Class II price for the following month computed pursuant to Sec. 1030.50(b) Handler Obligations and Producer Prices In Sec. 1030.60, revise paragraphs (a) and (f) to read as follows: Sec. 1030.60 Handler's obligation and producer prices. For the purpose of computing a handler's obligation for producer milk, the market administrator shall determine for each month the value of milk of each handler described in Sec. 1030.9 (a), (b), and (c) as follows: (a) The handler's obligation for producer milk shall be computed as follows: (1) Multiply the total hundredweight of producer milk in Class I as determined by Sec. 1030.44 by an amount equal to the Class I differential price pursuant to Sec. 1030.50(h) for the month (this amount may be negative); (2) Add an amount obtained by multiplying the total hundredweight of producer milk in Class II as determined by Sec. 1030.44 by an amount equal to the Class II differential price pursuant to Sec. 1130.50(i) for the month (this amount may be negative); (3) Add an amount obtained by multiplying the hundredweight of skim milk in Class I as determined pursuant to Sec. 1030.44 by the skim milk price pursuant to Sec. 1030.50(d); (4) Add an amount obtained by multiplying the pounds of skim milk in Class II and Class III as determined pursuant to Sec. 1030.44(a) by the average protein content of producer skim milk received by the handler (reported pursuant to Sec. 1030.30(e)), and multiplying the resulting pounds of protein by the protein price specified in Sec. 1030.50(f); (5) Add an amount obtained by multiplying the pounds of skim milk in Class II and Class III as determined pursuant to Sec. 1030.44(a) by the average other solids content of producer skim milk received by the handler and multiplying the resulting pounds of other solids by the other solids price specified in Sec. 1030.50(g); * * * * * (f) Add the amount obtained from multiplying the Class I price applicable at the location of the nearest unregulated supply plants from which an equivalent volume was received less the Class III price by the pounds of skim milk and butterfat in receipts of concentrated fluid milk products assigned to Class I pursuant to Sec. 1030.43(d) and Sec. 1030.44(a)(7)(i) and the pounds of skim milk and butterfat subtracted from Class I pursuant to Sec. 1030.44(a)(11) and the corresponding steps of Sec. 1030.44(b), excluding such skim milk and butterfat in receipts of bulk fluid milk products from an unregulated supply plant to the extent that an equivalent amount of skim milk or butterfat disposed of to such plant by handlers fully regulated under any Federal milk order is classified and priced as Class I milk and is not used as an offset for any other payment obligation under any order; In Sec. 1030.61, redesignate paragraphs (b), (c), (d), and (e) as (c), (d), (e) and (f); revise the introductory language and paragraph (a), add a new paragraph (b), and revise redesignated paragraph (e) to read as follows: Sec. 1030.61 Producer price differential. For each month the market administrator shall compute a producer price differential per hundredweight for Zone 1 (this price may be negative). If the unreserved cash balance in the producer settlement fund to be included in the computation is less than 2 cents per hundredweight of producer milk on all reports, the payments required pursuant to Sec. 1030.71 for the preceding month shall not be included in the computation of the uniform price. The report of such handler shall not be included in the computation of the uniform price. The report of such handler shall not be included in the computation for succeeding months until he has made full payment of outstanding monthly obligations. Subject to the aforementioned conditions, the market administrator shall compute the producer price differential in the following manner: (a) Combine the values computed pursuant to Sec. 1030.60 (a)(1), (a)(2), and (b) through (k) for all handlers; (b) Add the values computed pursuant to Sec. 1030.60 (a)(3), (a)(4), and (a)(5) and subtract the value obtained by multiplying the protein price by the handlers' total pounds of protein and by multiplying the other solids price by the handlers' total pounds of other solids. * * * * * (e) Divide the resulting amount by the sum of (1) the total hundredweight of producer milk and (2) the total hundredweight of skim milk and butterfat for which a value was computed pursuant to Sec. 1030.60(f); and * * * * * Revise Sec. 1030.62 to read as follows: Sec. 1030.62 Statistical uniform price. The statistical uniform price is the sum of the basic formula price and the producer price differential pursuant to Sec. 1030.61. Add a new Sec. 1030.63 to read as follows: Sec. 1030.63 Announcement of producer prices. (a) On or before the 5th day after the end of each month, the market administrator shall announce the butterfat differential pursuant to Sec. 1130.74 for such month. (b) On or before the 14th day after the end of each month, the market administrator shall announce the following prices: (1) The statistical uniform price for milk containing 3.5 percent butterfat and the average protein and other solids content of producer milk; (2) The producer price differential; (3) The butterfat price; (4) The protein price; (5) The other solids price; and (6) The butterfat differential. Payments for Milk Revise paragraph (a) of Sec. 1030.71 to read as follows: Sec. 1030.71 Payments to the producer-settlement fund. (a) On or before the 16th day after the end of the month, each handler shall pay to the market administrator the amount, if any, by which the amount specified in paragraph (a)(1) of this section exceeded the amount specified in paragraph (a)(2) of this section: (1) The total value of milk of the handler for such month as determined pursuant to Sec. 1030.60. (2) The sum of: (i) An amount obtained by multiplying the total hundredweight of producer milk as determined pursuant to Sec. 1030.44 by the producer price differential calculated pursuant to Sec. 1030.61 as adjusted by Sec. 1030.75; (ii) An amount obtained by multiplying the total pounds of protein contained in producer milk by the protein price; (iii) An amount obtained by multiplying the total pounds of other solids contained in producer milk by the other solids price; and (iv) An amount obtained by multiplying the pounds of skim milk and butterfat for which a value was computed pursuant to Sec. 1030.60(f) by the producer price differential as adjusted for plant location by Sec. 1030.52. * * * * * In Sec. 1030.73, paragraphs (a), (c) and (d) are revised, and a new paragraph (e) is added, to read as follows: Sec. 1030.73 Payments to producers and to cooperative associations. (a) * * * (1) On or before the 3rd day after the end of each month, to each producer who has not discontinued shipping milk to such handler before the end of the month, for producer milk received during the first 15 days of the month at a rate per hundredweight not less than the Class III price under the order for milk of 3.5 percent butterfat for the preceding month, less proper deductions authorized in writing by such producer; and (2) On or before the 18th day after the end of each month, for producer milk received during such month, an amount not less than the sum of: (i) The pounds of milk received from the producer times the producer price differential for the month pursuant to Sec. 1030.61, adjusted pursuant to Sec. 1030.75 and Sec. 1030.86; (ii) The pounds of butterfat received from the producer times the butterfat price for the month, (iii) The pounds of protein received from the producer times the protein price for the month; (iv) The pounds of other solids received from the producer times the other solids price for the month; (v) Less any payments made pursuant to paragraph (a) of this section; and (vi) Less proper deductions authorized in writing by such producer and plus or minus adjustments for errors in previous payments made to such producer. (vii) If by such date the handler has not received full payment from the market administrator pursuant to Sec. 1030.72 for such month, he may reduce pro rata his payments to producers by not more than the amount of such underpayment. Payment to producers shall be completed thereafter not later than the date for making payments pursuant to this paragraph next following receipt of the balance due from the market administrator. (b) * * * (c) Each handler shall pay a cooperative association for milk received by the handler from a pool plant(s) operated by a cooperative association as follows: (1) For milk received during the first 15 days of the month, the handler shall pay the cooperative association on or before the 1st day after the end of the month during which the milk was received at a rate per hundredweight not less than the Class III price under the order for milk of 3.5 percent butterfat for the preceding month; and (2) For milk received during the month the handler shall pay the cooperative association on or before the 16th day after the end of the month during which the milk was received as follows: (i) The hundredweight of Class I milk received times the Class I differential for the month plus the pounds of Class I skim milk times the skim milk price for the month; (ii) The hundredweight of Class II milk received times the Class II differential for the month; (iii) The pounds of butterfat received times the butterfat price for the month; (iv) The pounds of protein received in Class II and III times the protein price for the month; (v) The pounds of other solids received in Class II and III times the other solids price for the month, (vi) Less any payment made pursuant to paragraph (c)(1) of this section; and (vii) Less proper authorized deductions. (d) Each handler shall pay a cooperative association acting as a handler described under Sec. 1030.9(c) as follows: (1) For milk received during the first 15 days of the month, the handler shall pay the cooperative association on or before the 1st day after the end of the month during which milk was received at a rate per hundredweight not less than the Class III price under the order for milk of 3.5 percent butterfat for the preceding month; and (2) For milk received during the month the handler shall pay the cooperative association on or before the 16th day after the end of the month during which the milk was received as follows: (i) The hundredweight of milk received times the producer price differential for the month as adjusted pursuant to Sec. 1030.75; (ii) The pounds of butterfat received times the butterfat price for the month; (iii) The pounds of protein received times the protein price for the month; (iv) The pounds of other solids received times the other solids price for the month; (v) Less any payment made pursuant to paragraph (d)(1) of this section; and (vi) Less proper authorized deductions. (e) In making payments for producer milk pursuant to paragraph (a)(2) or (b)(2) of this section, each handler shall furnish each producer or cooperative association to whom such payment is made a supporting statement in such form that it may be retained by the recipient. Such statement shall show: (1) The month and the identity of the producer; (2) The daily and total pounds of milk for each producer; (3) The total pounds of butterfat contained in the producer's milk; (4) The total pounds of protein contained in the producer's milk; (5) The total pounds of other solids contained in the producer's milk; (6) The minimum rate or rates (for total pounds and components) at which payment to the producer is required pursuant to the order; (7) The rate that is used in making the payment if such rate is other than the applicable minimum rate; (8) The amount, or the rate per hundredweight, or rate per pound of component, and nature of each deduction claimed by the handler; and (9) The net amount of payment to such producer or cooperative association. Revise Sec. 1030.74 to read as follows: Sec. 1030.74 Butterfat differential. The butterfat differential shall be .138 times the butter price less .0028 times the average price per hundredweight, at test, for manufacturing grade milk, f.o.b. plants in Minnesota and Wisconsin, as reported by the Department for the month. The butter price means the simple average for the month of the daily prices per pound of Grade A (92 score) butter. The prices used shall be those of the Chicago Mercantile Exchange as reported and published weekly by the Dairy Division, Agricultural Marketing Service. The average shall be computed by the Director of the Dairy Division, using the price reported each week as the daily price for that day and for each following day until the next price is reported. Proposed by Land O' Lakes, Inc.: Proposal No. 2 Adopt Proposal Number 1 for the Nebraska-Western Iowa and Eastern South Dakota Federal milk orders (Orders 65 and 76) in addition to the three orders included in Proposal No. 1. Proposal No. 3 In Sec. 1030.73, add a new paragraph (e) to read as follows: Sec. 1030.73 Payments to producers and to cooperative associations. * * * * * (e) In making payments to producers, deductions may be made to individual producers for variations in quality or volume of milk relative to an announced norm of up to 10 percent, provided that such deductions are offset by premiums paid to other individual producers of equal or greater value. Proposed by Central Milk Producers Cooperative and supported by Mid-America Dairymen, Inc., and Associated Milk Producers, Inc.: Proposal No. 4 Adopt Proposal No. 2 with the following modifications: a. Compute the protein price by multiplying the barrel cheddar cheese price, instead of the cheddar cheese price for 40-pound blocks, by 1.32, and eliminate the plus adjustment based on the whey protein concentrate price. b. Include an adjustment for the somatic cell count of producer milk and for milk used in Classes II, III, and III-A. Class I milk would not have a somatic cell adjustment. The adjustment for somatic cells would be on a hundredweight basis and would be a positive adjustment beginning with a somatic cell count of 500,000, increasing as the somatic cell count approaches zero. No adjustment would be applied for somatic cell counts greater than 500,000. The somatic cell adjustment would be computed by subtracting the actual somatic cell count (in thousands) from 500 and multiplying by .0005 times the barrel cheese price. Formula: Somatic cell adjustment=(500-SCC) x (.0005 x CP) SCC=actual somatic cell count in thousands CP-National Cheese Exchange monthly average barrel cheese price. Proposed by Kraft General Foods: Proposal No. 5 Adjust the protein or other component price on the basis of somatic cell content (and any other relevant quality characteristic) of producer milk. Proposed by Wagner's Weyauwega Milk Products, Inc.: Proposal No. 6 Modify Proposal No. 4 to include negative somatic cell adjustments for somatic cell levels between 500,000 and 750,000. Proposed by the Wisconsin Cheese Makers Association: Proposal No. 7 Adopt Proposal No. 4 with the following modifications: a. Apply the somatic cell adjustment contained in Proposal No. 4 to all milk, including Class I. b. Apply the somatic cell adjustment to producers' protein price, rather than on a hundredweight basis. c. In calculating the protein price, subtract an appropriate make allowance per pound of barrel cheddar cheese from the cheese price before multiplying by 1.32. This modification may require creation of a separate residual ``component'' in addition to the butterfat, protein and other solids components, which would require a formula to determine the value of other milk solids (not protein). Proposed by the National Cheese Institute: Proposal No. 8 Adopt Proposal No. 4 with the following modifications: a. Calculate a ``residual fluid price'' instead of an ``other solids price'' by subtracting the values of butterfat and protein from the Minnesota-Wisconsin price. b. Instead of including in the order a somatic cell price per hundredweight, allow handlers to submit a plan for the market administrator's approval to pay premiums or make deductions based on somatic cell count or other quality considerations so long as the total payment to all producers reflects the monthly minimum pay price under the Order. c. Payouts to producers should be made on the basis of the same factors as determine the cost of milk to handlers. Proposed by the Trade Association of Proprietary Plants, Inc.: Proposal No. 9 Adopt a multiple component pricing plan that closely resembles Proposal No. 4, modified in the following ways: a. Protein value per hundredweight to be expressed as a protein differential. b. Protein value per hundredweight to be adjusted by a positive somatic cell adjustment of approximately 1 cent per 15,000 somatic cells as somatic cell counts decline below 300,000, and a negative adjustment of approximately 1 cent per 15,000 somatic cells as somatic cell counts increase above 350,000, up to a maximum adjustment of plus or minus 10 cents to the value of protein per hundredweight of milk. c. Sweetened condensed milk to be reclassified as Class III or exempted from the protein pool obligation. Proposed by the Galloway Company: Proposal No. 10 Milk used for the manufacture of ice cream, ice cream mixes, and various Class II sweetened condensed milks shall continue to be priced as under the current regulations and shall not be priced using multiple component pricing. Proposed by Dairy Division, Agricultural Marketing Service: Proposal No. 11 Make such changes as may be necessary to make the entire marketing agreement and order conform with any amendments thereto that may result from this hearing. Copies of this notice of hearing and the orders may be procured from the Market Administrator of each of the aforesaid marketing areas, or from the Hearing Clerk, room 1083, South Building, United States Department of Agriculture, Washington, DC 20250, or may be inspected there. Copies of the transcript of testimony taken at the hearing will not be available for distribution through the Hearing Clerk's Office. If you wish to purchase a copy, arrangements may be made with the reporter at the hearing. From the time that a hearing notice is issued and until the issuance of a final decision in a proceeding, Department employees involved in the decisional process are prohibited from discussing the merits of the hearing issues on an ex parte basis with any person having an interest in the proceeding. For this particular proceeding, the prohibition applies to employees in the following organizational units: Office of the Secretary of Agriculture Office of the Administrator, Agricultural Marketing Service Office of the General Counsel Dairy Division, Agricultural Marketing Service (Washington office only) Office of the Market Administrator, Chicago Regional, Nebraska- Western Iowa, Upper Midwest, Eastern South Dakota and Iowa Marketing Areas Procedural matters are not subject to the above prohibition and may be discussed at any time. Dated: December 22, 1993. Kenneth C. Clayton, Deputy Administrator for Marketing Programs. [FR Doc. 94-56 Filed 1-3-94; 8:45 am] BILLING CODE 3410-02-P