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

DEPARTMENT OF AGRICULTURE

7 CFR Part 1050

[DA-95-09]

Milk in the Central Illinois Marketing Area; Proposed Suspension

of Certain Provisions of the Order

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Proposed suspension of rule.

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SUMMARY: This document invites written comments on a proposal to

suspend the aggregate limits on the amount of producer milk that may be

diverted [[Page 380]] from a pool plant under the Central Illinois

Federal milk marketing order for an indefinite period beginning with

the month of January 1995. The proposal was submitted by Prairie Farms

Dairy, Inc., and Associated Milk Producers, Inc. Both cooperatives

contend the suspension is necessary to ensure that producers

historically associated with the market will continue to have their

milk pooled under the order without having to move milk uneconomically.

DATES: Comments are due no later than January 11, 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: 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 Central

Illinois marketing area is being considered for an indefinite period

commencing on January 1, 1995:

In Sec. 1050.13(d)(2), the words ``: Provided, That the total

quantity of producer milk diverted does not exceed 35 percent of the

physical receipts of producer milk at the handler's pool plant during

the month, exclusive of milk of producers who are members of a

cooperative association that is diverting milk and the milk of other

producers that is diverted pursuant to paragraph (d)(3) of this

section''.

All persons desiring 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 proposed action would suspend the aggregate limit on the amount

of milk that may be diverted from a pool plant during the months of

August through April. At the present time, for each day's production of

a producer's milk that is delivered to a pool plant during these

months, another day's production may be diverted to a nonpool plant.

However, in addition to this individual producer limit, there is an

aggregate limit of 35 percent that applies to the total amount of milk

that a pool plant operator may divert during the month. The language

proposed to be suspended would remove this 35 percent aggregate limit,

effectively increasing the aggregate limit to 50 percent of a pool

plant operator's total producer receipts during the month.

In their letter requesting the suspension, Prairie Farms Dairy,

Inc. (Prairie Farms) and the Morning Glory Farms region of Associated

Milk Producers, Inc. (AMPI), explained that Prairie Farms now operates

the only distributing plant under the Central Illinois order (Order 50)

and that both cooperatives supply milk to this plant, which is located

in Peoria. For several reasons, including the availability of abundant

quantities of good quality feed, milk production is up substantially in

recent months compared to the same period of last year. This has

resulted in both cooperatives having to divert additional milk to

nearby unregulated manufacturing plants on weekends, holidays, and

other days when the Peoria plant is not in operation.

Prairie Farms and AMPI state that the proposed suspension would

allow them to continue to balance the supply of milk needed at the

Peoria plant while, at the same time, eliminating the need to haul milk

in and out of the plant merely to keep their milk pooled under the

order.

Accordingly, it may be appropriate to suspend the aforesaid

provision for an indefinite period commencing on January 1, 1995.

List of Subjects in 7 CFR Part 1032

Milk marketing orders.

The authority citation for 7 CFR Part 1050 continues to read as

follows:

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

Dated: December 28, 1994.

Lon Hatamiya,

Administrator, Agricultural Marketing Service.

[FR Doc. 95-154 Filed 1-3-95; 8:45 am]

BILLING CODE 3410-02-P