[Federal Register Volume 59, Number 124 (Wednesday, June 29, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-15718]


[[Page Unknown]]

[Federal Register: June 29, 1994]


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DEPARTMENT OF AGRICULTURE
7 CFR Part 1137

[DA-94-13]

 

Milk in the Eastern Colorado 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 certain performance standards of the Eastern Colorado Federal 
milk marketing order, which would make it easier for handlers to 
qualify milk for pool status. The action was proposed 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 market.

DATES: Comments are due no later than July 29, 1994.

ADDRESSES: Comments (two copies) should be filed with the USDA/AMS/
Dairy Division, Order Formulation Branch, room 2971, 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 
2971, 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 
rule would not have a significant economic impact on a substantial 
number of small entities. This rule would lessen the regulatory impact 
of the order on certain milk handlers and would tend to ensure that 
dairy farmers who have been historically associated with this market 
would continue to have their milk priced under the order and thereby 
receive the benefits that accrue from such pricing.
    The Department is issuing this proposed rule in conformance with 
Executive Order 12866.
    This proposed rule 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 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 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 request 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 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 
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:
    1. For the months of September 1994 through February 1995: In the 
second sentence of Sec. 1137.7(b), the words ``plant which has 
qualified as a'' and ``of March through August''; and
    2. For the months of September 1994 through August 1995:
    In the first sentence of 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 
the USDA/AMS/Dairy Division, Order Formulation Branch, room 2971, South 
Building, P.O. Box 96456, Washington, DC 20090-6456, by the 30th day 
after publication of this notice in the Federal Register.
    All written submissions made pursuant to this notice will be made 
available for public inspection in the Dairy Division during regular 
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 
(Order 137). It would be easier for handlers to qualify milk for 
pooling under the order if the provisions were suspended.
    The proposed suspension was requested by Mid-America Dairymen, Inc. 
(Mid-Am), a cooperative association that has pooled milk of dairy 
farmers under Order 137 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 order.
    Mid-Am requests, for the months of September 1994 through February 
1995, 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 1994 through August 1995, the touch-base 
requirement not apply and that the diversion allowance for cooperatives 
be raised.
    These provisions have been suspended in prior years to maintain the 
pool status of producers who have historically supplied the fluid needs 
of Order 137 distributing plants. The cooperative indicates that the 
marketing conditions which justified the prior suspensions continue to 
exist.
    Mid-Am asserts that they have made a commitment to supply the fluid 
milk requirements of distributing plants if their suspension request is 
granted. Without the suspension, Mid-Am contends that to qualify 
certain of its milk for pooling it will be necessary to ship milk from 
distant farms to Denver-area bottling plants. The distant milk will 
displace milk produced on nearby farms 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. Proponent 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.

    Authority: Secs. 1-19, 48 Stat. 31, as amended; 7 U.S.C. 601-
674.

    Dated: June 23, 1994.
Lon Hatamiya,
Administrator.
[FR Doc. 94-15718 Filed 6-28-94; 8:45 am]
BILLING CODE 3410-02-P