Milk in the Carolina Marketing Area; Proposed Suspension of Certain Provisions of the Order

SUMMARY: This document invites written comments on a proposal to

suspend for a cooperative association the diversion limitation of the

Carolina Federal milk marketing order (Order 5) for the months of

January and February 1995. The proposed suspension was requested by

Carolina Virginia Milk Producers Association (Carolina Virginia). The

cooperative association contends the action is necessary to maintain

orderly marketing conditions and ensure that the milk of its member

producers will continue to be pooled during these months.

DATES: Comments are due no later than December 2, 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: Nicholas Memoli, Marketing Specialist,

USDA/AMS/Dairy Division, Order Formulation Branch, Room 2971, South

Building, P.O. Box 96456, Washington, DC 20090-6456, (202) 690-1932.

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 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

provision of the order regulating the handling of milk in the Carolina

marketing area is being considered for the period of January 1 through

February 28, 1995:

In Sec. 1005.13(d)(2), the words ``and January and February''.

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 7th day

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

for filing comments is limited to 7 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 Carolina order requires that during each of the months of July

through November, January, and February, the total quantity of milk

diverted to nonpool plants by a cooperative association not exceed 25

percent of the producer milk that such cooperative caused to be

delivered to or diverted from such pool plants. The proposed action

would suspend the 25 percent diversion limitation for a cooperative

association for the months of January and February. It would allow a

cooperative association to divert an unlimited quantity of each member

producer's milk to nonpool plants if at least six days' production was

delivered to a pool plant during the month.

Carolina Virginia Milk Producers Association (Carolina Virginia), a

cooperative association with member producers pooled on the Alabama

(Order 93), Georgia (Order 7), Tennessee Valley (Order 11), and

Carolina (Order 5) Federal milk marketing orders, indicates that

effective August 1, 1994, it lost Class I sales with a handler

regulated under Order 7. The cooperative then gained Class I sales with

a handler regulated under Order 5 effective October 1, 1994, and

shifted the producer milk supply formerly associated with the Order 7

handler to Order 5. This realignment resulted in additional producer

milk delivered to Carolina handlers during the summer and fall months

of 1994.

The cooperative states that it is the balancing agent for its Class

I customers under Order 5 for their weekly and seasonal milk supply. It

asserts that the proposed suspension is necessary to accommodate

pooling the anticipated production of its member producers during these

months.

Accordingly, it may be appropriate to suspend the aforesaid

provisions from January 1 through February 28, 1995.

List of Subjects in 7 CFR Part 1005

Milk marketing orders.

The authority citation for 7 CFR Part 1005 continues to read as

follows:

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

Dated: November 21, 1994.

Lon Hatamiya,

Administrator.

[FR Doc. 94-29092 Filed 11-23-94; 8:45 am]

BILLING CODE 3410-02-P