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

SUMMARY: This document invites written comments on a proposal to

suspend certain provisions of the Texas Federal milk marketing order

from March 1, 1995, through July 31, 1995. The proposed suspension

would remove the diversion limitation applicable to cooperative

associations. Associated Milk Producers, Inc., a cooperative

association representing a substantial number of producers who supply

milk to the market, has requested the suspension. The cooperative

asserts that the suspension is necessary to prevent uneconomical and

inefficient movements of milk.

DATES: Comments are due no later than February 23, 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: Clifford M. Carman, Marketing

Specialist, USDA/AMS/Dairy Division, Order Formulation Branch, Room

2971, South Building, P.O. Box 96456, Washington, DC 20090-6456, (202)

720-9368.

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 Texas

marketing area is being considered for the months of March 1, 1995,

through July 31, 1995: In Sec. 1126.13, paragraph (e)(2).

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 15th day

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

for filing comments is limited to 15 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 rule would suspend certain provisions of the producer

milk definition of the Texas order for the months of March through July

1995. The proposed suspension would remove the limitation on the amount

of producer milk that a cooperative may divert to a nonpool plant.

Currently the order permits a cooperative association to divert up

to one-third of the amount of producer milk that the cooperative causes

to be physically received during the month at handlers' pool plants to

nonpool plants. The diversion provisions provide an efficient means to

move milk that is in excess of fluid milk needs directly from farms to

nonpool plants for manufacturing and still be priced under the order.

Associated Milk Producers, Inc. (AMPI), a cooperative association

representing a substantial number of producers who supply milk to the

market, has requested the suspension. AMPI states that during recent

months the cooperative has reached maximum pooling capability because

of the diversion limitations to nonpool plants. AMPI contends that

during the flush season (March through July) the cooperative will be

adversely impacted as local production expands and the cooperative

exceeds the one-third diversion limitation. AMPI projects that when

this occurs more milk will be shipped to other pool plants than is

needed at such plants to gain eligibility for pooling and diversion

status. Absent a suspension, AMPI asserts that costly and inefficient

movements of milk would have to be made to maintain pool status of

producers who have historically supplied the fluid milk needs of the

market.

Accordingly, it may be appropriate to suspend the aforesaid

provisions from March 1, 1995, through July 31, 1995. [[Page 7466]]

List of Subjects in 7 CFR Part 1126

Milk marketing orders.

The authority citation for 7 CFR Part 1126 continues to read as

follows:

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

Dated: February 2, 1995.

Lon Hatamiya,

Administrator.

[FR Doc. 95-3147 Filed 2-7-95; 8:45 am]

BILLING CODE 3410-02-P