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

DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 1050

[DA-95-14]

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 a portion of the producer milk definition of the Central

Illinois Federal milk marketing order (Order 50) for an indefinite

period commencing April 1, 1995. The proposed suspension was requested

by Prairie Farms Dairy, Inc., which contends the action is necessary to

prevent uneconomic and inefficient movements of milk and to ensure that

producer milk historically associated with Order 50 will continue to be

pooled under the order.

DATES: Comments are due no later than March 30, 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,

beginning April 1, 1995:

In Sec. 1050.13(d)(2), the words ``not'' and ``it'' where they

first appear.

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 proposed rule would suspend a portion of the producer milk

definition under the Central Illinois order for an indefinite period of

time, beginning April 1, 1995. The proposed suspension would suspend

the diversion limits applicable to individual producers for a pool

distributing plant regulated under the order. The aggregate limit of 35

percent contained in the proviso of [[Page 15263]] Sec. 1050.13(d)(2)

were suspended for an indefinite period on January 1, 1995.

The Central Illinois order currently allows an operator of a

distributing plant to divert to a nonpool plant up to 50 percent of a

producer's milk that is physically received at the pool plant during

the months of August through April. The proposed suspension would allow

a distributing plant to divert an unlimited amount of a producer's milk

to a nonpool plant during each of these months, provided that at least

one day's production is physically received at a pool plant.

Prairie Farms, which operates the only distributing plant regulated

under Order 50, states that it represents over 90 percent of the

producer milk pooled under Order 50. According to Prairie Farms,

approximately 60 percent of its producer milk pooled under Order 50 was

supplied to Beatrice Cheese, Inc., effective December 1, 1994. It

contends the proposed suspension is necessary to permit it to keep its

producers pooled under the order without the necessity of costly and

inefficient movements of milk. It maintains that its proposal would not

jeopardize the integrity of the order because at least one day's

production would have to be physically received at a pool plant during

each of the months of August through April to qualify the milk for

diversion to a nonpool plant. Prairie Farms requests that the proposed

action be handled on an emergency basis to allow the continuous pooling

of producer milk historically associated with Order 50.

Accordingly, it may be appropriate to suspend the aforesaid

provision for an indefinite period beginning April 1, 1995.

List of Subjects in 7 CFR Part 1050

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: March 17, 1995

Lon Hatamiya,

Administrator.

[FR Doc. 95-7105 Filed 3-22-95; 8:45 am]

BILLING CODE 3410-02-P