[Federal Register Volume 60, Number 26 (Wednesday, February 8, 1995)] [Proposed Rules] [Pages 7466-7467] From the Federal Register Online via the Government Publishing Office [www.gpo.gov] [FR Doc No: 95-3146] ----------------------------------------------------------------------- DEPARTMENT OF AGRICULTURE 7 CFR Part 1131 [DA-95-11] Milk in the Central Arizona 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 provisions of the Central Arizona Federal milk marketing order for an indefinite period beginning March 1, 1995. The proposed suspension would eliminate the requirement that a cooperative association ship at least 50 percent of its receipts to other handler pool plants to maintain pool status of a manufacturing plant operated by the cooperative. United Dairymen of Arizona, a cooperative association that represents nearly all of the producers who supply milk to the market, has requested the suspension. The cooperative asserts that the suspension is necessary to prevent uneconomical and inefficient movements of milk. DATES: Comments are due no later than February 23, 1995. 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 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. 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, had 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 provision of the order regulating the handling of milk in the Central Arizona marketing area is being considered for an indefinite period beginning March 1, 1995: In Sec. 1131.7(c), the words ``50 percent or more of its member producer milk (including the skim milk and butterfat in fluid milk products transferred from its own plant pursuant to this paragraph that is not in excess of the skim milk and butterfat contained in member producer milk actually received at such plant) received at the pool plants of other handlers during the current month or the previous 12- month period ending with the current month.'' 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 15th day after publication of this notice in the Federal Register. The period for filing comments is limited to 15 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 regular business hours (7 CFR 1.27(b)). Statement of Consideration The proposed rule would suspend certain provisions of the Central Arizona order for an indefinite period beginning March 1, 1995. The proposed suspension would remove the requirement that a cooperative association that operates a manufacturing plant in the marketing area must ship at least 50 percent of its milk supply during the current month or the previous 12-month period ending with the current month to other handlers' pool plants to maintain the pool status of its manufacturing plant. Currently the order permits a cooperative association's manufacturing plant, located in the marketing area, to be a pool plant if at least 50 percent of the producer milk of members of the cooperative association is physically received at pool plants of other handlers during the current month or the previous 12-month period ending with the current month. The proposed suspension of this shipping requirement was requested by United Dairymen of Arizona (UDA), a cooperative association that represents nearly all of the dairy farmers who supply the Central Arizona market. UDA contends that the continued pool status of their manufacturing plant is threatened by an increase in milk production combined with a drop in Class I sales. UDA states that in 1994 its member production increased 17 percent over the previous year. In 1994, monthly deliveries to distributing plants also increased sufficiently to ensure UDA a safe margin over the minimum 50 percent shipping requirement to maintain pool status of its manufacturing plant. According to UDA, the increase in distributing plant demand reflected a significant increase in Class I sales in the Mexico market by Central Arizona handlers. The recent collapse of the Mexican peso has curtailed these sales and thus reduced handler requirements for bulk milk deliveries from UDA. Absent a [[Page 7467]] suspension, UDA projects that costly and inefficient movements of milk would have to be made to maintain pool status of producers who have historically supplied the market and to prevent disorderly marketing in the Central Arizona marketing area. Accordingly, it may be appropriate to suspend the aforesaid provisions beginning March 1, 1995, for an indefinite period. List of Subjects in 7 CFR Part 1131 Milk marketing orders. The authority citation for 7 CFR Part 1131 continues to read as follows: Authority: Secs. 1-19, 48 Stat 31, as amended; 7 U.S.C. 601-674. Dated: February 2, 1995. Lon Hatamiya, Administrator. [FR Doc. 95-3146 Filed 2-7-95; 8:45 am] BILLING CODE 3410-02-M