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

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URL: https://www.frixlaw.com/law-library/documents/fr%3A95-154

## Record

- **Collection:** Federal Register
- **Document type:** Proposed Rule
- **Published:** January 4, 1995
- **Citation:** 60 FR 379

## Text

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

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Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/fr%3A95-154. Public record. Not legal advice.
