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

DEPARTMENT OF AGRICULTURE

7 CFR Part 1131

[DA-96-03]

Milk in the Central Arizona Marketing Area; Suspension of Certain

Provisions of the Order

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Suspension of rule.

-----------------------------------------------------------------------

SUMMARY: This document continues to suspend certain provisions of the

Central Arizona Federal milk marketing order during April 1, 1996,

through March 31, 1997. The continued suspension eliminates the

requirement that a cooperative association ship at least 50 percent of

its receipts to other handler pool plants to maintain pool status of a

manufacturing plant operated by the cooperative. United Dairymen of

Arizona, a cooperative association that represents nearly all of the

producers who supply milk to the market, requested the suspension. The

suspension is necessary to prevent uneconomical and inefficient

movements of milk.

EFFECTIVE DATE: April 1, 1996, through March 31, 1997.

FOR FURTHER INFORMATION CONTACT: Clifford M. Carman, Marketing

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

2971, South Building, PO Box 96456, Washington, DC 20090-6456, (202)

720-9368.

SUPPLEMENTARY INFORMATION: Prior document in this proceeding:

Notice of Proposed Suspension: Issued March 7, 1996; published

March 13, 1996 (61 FR 10288).

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 rule will not have a

significant economic impact on a substantial number of small entities.

This rule lessens the regulatory impact of the order on certain milk

handlers and tends to ensure that dairy farmers will continue to have

their milk priced under the order and thereby receive the benefits that

accrue from such pricing.

The Department is issuing this final rule in conformance with

Executive Order 12866.

This final rule has been reviewed under Executive Order 12778,

Civil Justice Reform. This rule is not intended to have a retroactive

effect. This rule will not preempt any state or local laws,

regulations, or policies, unless they present an irreconcilable

conflict with this 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 the law and requesting 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.

This order of suspension is issued pursuant to the provisions of

the Agricultural Marketing Agreement Act and of the order regulating

the handling of milk in the Central Arizona marketing area.

Notice of proposed rulemaking was published in the Federal Register

on March 13, 1995 (61 FR 10288) concerning a proposed suspension of

certain provisions of the order. Interested persons were afforded

opportunity to file written data, views and arguments thereon. No

comments were received.

After consideration of all relevant material, including the

proposal in the notice and other available information, it is hereby

found and determined that for the months of April 1, 1996, through

March 31, 1997, the following provisions of the order do not tend to

effectuate the declared policy of the Act:

In Sec. 1131.7(c), the words ``50 percent or more of'',

``(including the skim milk and butterfat in fluid milk products

transferred from its own plant pursuant to this paragraph that is not

in excess of the skim milk and butterfat contained in member producer

milk actually received at such plant)'' and ``or the previous 12-month

period ending with the current month.''

Statement of Consideration

This rule continues to suspend certain provisions of the Central

Arizona order for the months of April 1996 through March 1997. The

suspension removes the requirement that a cooperative association that

operates a manufacturing plant in the marketing area must ship at least

50 percent of its milk supply during the current month or the previous

12-month period ending with the current month to other handlers' pool

plants to maintain the pool status of its manufacturing plant.

The order permits a cooperative association's manufacturing plant,

located in the marketing area, to be a pool plant if at least 50

percent of the producer milk of members of the cooperative association

is physically received at pool plants of other handlers during the

current month or the previous 12-month period ending with the current

month.

Continuation of the current suspension of this shipping requirement

was requested by United Dairymen of Arizona (UDA), a cooperative

association that represents nearly all of the dairy farmers who supply

the Central Arizona market. UDA states that the continued pool status

of their manufacturing plant is threatened if the suspension is not

continued. UDA contends that the same marketing conditions that

warranted the suspension last year still exist. UDA maintains that

members who increased their milk production to meet the projected

demands of fluid handlers for distribution into Mexico continue to

suffer the adverse impact of the collapse of the Mexican peso.

During the past year, there has been an increase in producer milk

while handler requirements for bulk milk deliveries has decreased. This

decrease is primarily a result of reduced Class I sales by Central

Arizona handlers in Mexico because of the continued devaluation of the

Mexican peso. Pool status of UDA's manufacturing plant will not be

maintained absent continuation of the suspension. Thus, costly and

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

status of producers who have historically supplied the market and to

prevent disorderly marketing in the Central Arizona marketing area.

UDA again requested that the suspension be granted for an

indefinite period beginning in April 1996. After reviewing the

marketing conditions of the Central Arizona marketing area and their

relationship with the uncertain value of the Mexican peso, this

[[Page 17562]]

suspension will be for a one-year period.

Accordingly, it is appropriate to suspend the aforesaid provisions

beginning April 1, 1996, through March 31, 1997.

It is hereby found and determined that thirty days' notice of the

effective date hereof is impractical, unnecessary and contrary to the

public interest in that:

(a) The suspension is necessary to reflect current marketing

conditions and to assure orderly marketing conditions in the marketing

area, in that such rule is necessary to permit the continued pooling of

the milk of dairy farmers who have historically supplied the market

without the need for making costly and inefficient movements of milk;

(b) This suspension does not require of persons affected

substantial or extensive preparation prior to the effective date; and

(c) Notice of proposed rulemaking was given interested parties and

they were afforded opportunity to file written data, views or arguments

concerning this suspension. No comments were received.

Therefore, good cause exists for making this order effective less

than 30 days from the date of publication in the Federal Register.

List of Subjects in 7 CFR Part 1131

Milk marketing orders.

For the reasons set forth in the preamble, the following provisions

in title 7, part 1131, are amended as follows:

PART 1131--MILK IN THE CENTRAL ARIZONA MARKETING AREA

1. The authority citation for 7 CFR Part 1131 continues to read as

follows:

Authority: 7 U.S.C. 601-674.

Sec. 1131.7 [Temporarily Suspended in Part]

2. In Sec. 1131.7(c), the words ``50 percent or more of'',

``(including the skim milk and butterfat in fluid milk products

transferred from its own plant pursuant to this paragraph that is not

in excess of the skim milk and butterfat contained in member producer

milk actually received at such plant)'' and ``or the previous 12-month

period ending with the current month.'' are suspended for the months of

April 1, 1996, through March 31, 1997.

Dated: April 16, 1996.

Michael V. Dunn,

Assistant Secretary, Marketing and Regulatory Programs.

[FR Doc. 96-9826 Filed 4-19-96; 8:45 am]

BILLING CODE 3410-02-P