Milk in the Iowa Marketing Area; Notice of Proposed Revision of Pool Supply Plant Shipping Percentage

SUMMARY: This notice invites written comments on a proposal to increase

the percentage of a supply plant's receipts that must be delivered to

fluid milk plants to qualify a supply plant for pooling under the Iowa

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

percentage points, from 20 percent to 30 percent. The action is

requested on behalf of Anderson-Erickson Dairy Company of Des Moines,

Iowa, a proprietary distributing plant that is regulated under the

order. Proponent contends that the action is needed to obtain an

adequate supply of milk for fluid use.

DATES: Comments are due no later than November 30, 1994.

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

Division, Order Formulation Branch, Room 2968, 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

2968, South Building, P.O. Box 96456, Washington, DC 20090-6456, (202)

720-7311.

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 action would

not have a significant economic impact on a substantial number of small

entities. Such action would tend to ensure that an adequate supply of

fluid milk is available to consumers in the marketing area.

The Department is issuing this proposed rule in conformance with

Executive Order 12866.

This proposed revision of rules has been reviewed under Executive

Order 12778, Civil Justice Reform. This action is not intended to have

retroactive effect. If adopted, this proposed action will not preempt

any state or local laws, regulations, or policies, unless they present

an irreconcilable conflict with this rule.

The Act 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 provision 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 date of the entry of the ruling.

Notice is hereby given that, pursuant to the provisions of the

Agricultural Marketing Agreement Act of 1937, as amended (7 U.S.C. 601-

674), and the provisions of Sec. 1079.7(b)(1) of the order, the

revision of certain provisions of the order regulating the handling of

milk in the Iowa marketing area is being considered for the months of

December 1, 1994 through March 31, 1994.

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 7th day

after publication of this notice in the Federal Register. The filing

period is limited to seven days because proponent asked that this

revision be effective for the period of December 1, 1994 through March

31, 1995.

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 percentage of a supply

plant's receipts required to be shipped to pool distributing plants

pursuant to Sec. 1079.7(b) of the Iowa Federal milk order (Order 79).

As proposed, the percentage of a supply plant's receipts that must be

shipped to pool distributing plants (fluid milk plants) if the supply

plant is to be considered a pool plant would be increased by the

maximum allowable 10 percentage points, from 20 percent to 30 percent,

for the period December 1, 1994 through March 31, 1995.

Section 1079.7(b)(1) allows the Director of the Dairy Division to

reduce or increase a pool supply plant's minimum shipping requirement

by up to 10 percentage points to prevent uneconomic milk shipments or

to assure an adequate supply of milk for fluid use.

Anderson-Erickson Dairy Company (A-E), a fluid milk processing

plant that is a pool distributing plant under Order 79, requested that

the shipping percentage be increased. The handler's request states that

although milk supplies on the market are plentiful, suppliers are

unable or unwilling to supply milk to A-E at the present market price,

leaving A-E short of its needs for fluid milk by 3 loads of milk per

day. A-E cites the $1.93 difference between Class III and Class III-A

prices as a factor in causing milk supplies to be retained in nonfat

dry milk operations instead of being made available to the fluid

market.

In view of the foregoing, it may be appropriate to increase the

shipping percentage requirements for pool supply plants under Order 79

for the period December 1, 1994 through March 31, 1995.

List of Subjects in 7 CFR Part 1079

Milk marketing orders.

The authority citation for 7 CFR Part 1079 continues to read as

follows:

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

674).

Dated: November 21, 1994.

Richard M. McKee,

Director, Dairy Divison.

[FR Doc. 94-29082 Filed 11-22-94; 8:45 am]

BILLING CODE 3410-02-P