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

SUMMARY: This document invites written comments on a proposal to lower

the percentage of a cooperative's milk that must be delivered to fluid

milk plants to qualify a reserve processing plant operated by the

cooperative as a pool plant under the Eastern Ohio-Western Pennsylvania

Federal milk order. The applicable percentage would be reduced by 10

percentage points, from 35 percent to 25 percent.

DATES: Comments are due no later than August 1, 1994.

ADDRESSES: Comments (two copies) should be sent to USDA/AMS/Dairy

Division, Order Formulation Branch, room 2971, South Building, P.O. Box

96456, Washington, DC 20090-6456.

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: 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 will 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 and the provisions of

Sec. 1036.7(f) of the order, the revision of certain provisions of the

order regulating the handling of milk in the Eastern Ohio-Western

Pennsylvania marketing area is being considered for the period

September 1, 1994, through December 31, 1995.

All persons who desire to submit written data, views or arguments

about the proposed revision should send two copies of their views to

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 provision proposed for revision is the delivery percentage

required of a cooperative association operating a reserve processing

pool plant pursuant to section 1036.7(d) of the Eastern Ohio-Western

Pennsylvania order (Order 36). As proposed, the percentage of a

cooperative's producer milk that must be delivered to fluid milk plants

if the cooperative's plant is to be considered a pool plant would be

decreased by the maximum allowable 10 percentage points, from 35

percent to 25 percent, for the months of September 1994 through

December 1995.

Section 1036.7(f) allows the Director of the Dairy Division to

reduce or increase a cooperative's minimum delivery requirement by up

to 10 percentage points to prevent uneconomic milk shipments or to

assure an adequate supply of milk for fluid use. The order also

provides that the minimum pooling standard may be met on the basis of

deliveries in the current month or during the preceding 12 months.

Milk Marketing Inc. (MMI), a dairy farmer cooperative that supplies

milk to Order 36 fluid milk plants, requested that an earlier reduction

of the delivery requirement be continued. The cooperative states that

milk production pooled under the order has increased markedly in recent

months, while Class I use has declined. According to the cooperative,

increases in production without corresponding increases in Class I

usage create a greater-than-normal need to move reserve supplies of

milk to manufacturing facilities. MMI points out that this problem has

been exacerbated by the reduction in Class I use, creating a tremendous

burden on the cooperative to maintain cooperative supply plant status

under the order.

In view of the current supply and demand relationship, it may be

necessary to continue the reduction in delivery requirements for

cooperative associations operating reserve processing plants under

Order 36 as quickly as possible, as proposed, to provide for the

efficient and economic marketing of milk during the period September 1,

1994 through December 31, 1995.

List of Subjects in 7 CFR Part 1036

Milk marketing orders.

The authority citation for 7 CFR Part 1036 continues to read as

follows:

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

Dated: June 27, 1994.

Silvio Capponi, Jr.,

Acting Director, Dairy Division.

[FR Doc. 94-16057 Filed 6-30-94; 8:45 am]

BILLING CODE 3410-02-P