[Federal Register Volume 60, Number 87 (Friday, May 5, 1995)]
[Rules and Regulations]
[Pages 22255-22256]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-11042]



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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 1036

[DA-95-13]


Milk in the Eastern Ohio-Western Pennsylvania Marketing Area; 
Termination of Certain Provisions of the Order

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Final rule.

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SUMMARY: This rule terminates the advertising and promotion provisions 
of the Eastern Ohio-Western Pennsylvania Federal milk order. 
Termination of the provisions was requested by several associations of 
dairy farmers whose milk is pooled under the order. Two comments were 
filed in response to the proposed termination, and both were in favor 
of terminating these provisions. Termination eliminates redundant 
expenses in administering regional advertising and promotion programs 
without affecting producers' participation.

EFFECTIVE DATE: Amendments 2 and 3 (Secs. 1036.73 and 1036.105 through 
1036.121) are effective July 1, 1995. Amendment 4 (Sec. 1036.122) is 
effective August 1, 1995.

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) 
720-2357.

SUPPLEMENTARY INFORMATION: Prior document in this proceeding:
    Notice of Proposed Termination: Issued March 21, 1995; published 
March 24, 1995 (60 FR 15523).
    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 [[Page 22256]] certified that this rule will not 
have a significant economic impact on a substantial number of small 
entities. This rule lessens the regulatory impact of the order on dairy 
farmers and will not affect milk handlers.
    The Department is issuing this rule in conformance with Executive 
Order 12866.
    This final rule has been reviewed under Executive Order 12778, 
Civil Justice Reform. This rule is not intended to have a retroactive 
effect. This rule will not preempt any state or local laws, 
regulations, or policies, unless they present an irreconcilable 
conflict with this 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 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 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.
    This order of termination is issued pursuant to the provisions of 
the Agricultural Marketing Agreement Act and of the order regulating 
the handling of milk in the Eastern Ohio-Western Pennsylvania marketing 
area.
    Notice of proposed rulemaking was published in the Federal Register 
on March 24, 1995 (60 FR 15523) concerning a proposed termination of 
certain provisions of the order. Interested persons were afforded an 
opportunity to file written data, views and arguments thereon. Two 
comments supporting (and none opposing) the proposed termination were 
received.
    After consideration of all relevant material, including the 
proposal in the notice, the comments received, and other available 
information, it is hereby found and determined that the following 
provisions of the order do not tend to effectuate the declared policy 
of the Act:
    Sections 1036.105 through 1036.122, the undesignated center heading 
preceding them, and the reference to these provisions in Sec. 1036.73.

Statement of Consideration

    This rule terminates the advertising and promotion provisions of 
the Eastern Ohio-Western Pennsylvania Federal milk order. Milk 
Marketing Inc. (MMI), Dairylea Cooperative Inc., and Tri-County 
Producers Cooperative, all associations of dairy farmers whose milk is 
pooled on the Eastern Ohio-Western Pennsylvania Federal milk order, 
requested termination of the provisions.
    The cooperatives stated that the primary purpose of these 
provisions, at the time of their implementation, was to increase 
producer participation in the advertising and promotion of milk and 
dairy products. However, the Dairy and Tobacco Adjustment Act of 1983 
mandated that all dairy farmers contribute to such activities through a 
national program that includes all Federal order marketing areas (7 CFR 
part 1150). The cooperatives asserted that the advertising and 
promotion provisions of the order are redundant and create unnecessary 
expenses in view of the existence of qualified regional programs that 
are funded under the national advertising and promotion program. The 
efficiency and effectiveness of producer funds would be enhanced with 
termination of the Federal order advertising and promotion provisions. 
Thus, the cooperatives requested removal of the advertising and 
promotion provisions to eliminate administrative costs without 
affecting the integrity of the Federal order program or the national 
Dairy Promotion Program.
    Comments favoring the termination of the provisions were received 
from National Farmers Organization (NFO) and a dairy farmer whose milk 
is pooled on Order 36. NFO reiterated the comments made by the three 
proponent cooperatives. The dairy farmer's comments favored the 
proposed termination of the provisions.
    The advertising and promotion provisions of the Eastern Ohio-
Western Pennsylvania Federal order should be terminated. Termination of 
the aforesaid sections of Order 36 would reduce administrative costs of 
the Order, while funding for dairy research and promotion would be 
maintained via 7 CFR part 1150, the Dairy Promotion Program. In 
addition, producers whose milk is pooled under the order support 
elimination of these provisions.
    Section 608c(16)(A) of the Act authorizing Federal milk orders 
provides that any order provisions may be terminated separately 
whenever the Secretary makes a determination that such provisions 
obstruct or do not tend to effectuate the declared policy of the Act.
    Therefore, the aforesaid provisions of the order are hereby 
terminated.

List of Subjects in 7 CFR Part 1036

    Milk marketing orders.

    For the reasons set forth in the preamble, the following provisions 
in Title 7, Part 1036, are amended as follows:

PART 1036--MILK IN THE EASTERN OHIO-WESTERN PENNSYLVANIA MARKETING 
AREA

    1. The authority citation for 7 CFR Part 1036 continues to read as 
follows:

    Authority: 7 U.S.C. 601-674.


Sec. 1036.73  [Amended]

    2. In Sec. 1036.73, paragraph (a)(2)(iii) is amended, effective 
July 1, 1995, by adding the word ``and'', and paragraph (a)(2)(iv) is 
removed and reserved.


Secs. 1036.105 through 1036.121  [Removed]

    3. Sections 1036.105 through 1036.121 are removed, effective July 
1, 1995.


Sec. 1036.122  [Removed]

    4. Section 1036.122 and the undesignated center heading preceding 
it are removed, effective August 1, 1995.

    Dated: May 1, 1995.
David R. Shipman,
Acting Deputy Assistant Secretary, Marketing and Regulatory Programs.
[FR Doc. 95-11042 Filed 5-4-95; 8:45 am]
BILLING CODE 3410-02-P