[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] ----------------------------------------------------------------------- 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. ----------------------------------------------------------------------- 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