Milk in the Nebraska-Western Iowa Marketing Area; Proposed Suspension of Supply Plant Shipping Requirements

DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 1065

[DA-99-01]

Milk in the Nebraska-Western Iowa Marketing Area; Proposed

Suspension of Supply Plant Shipping Requirements

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 portions of the supply plant shipping requirements for the

Nebraska-Western Iowa order for the months of March through September

1999. This action was requested by North Central Associated Milk

Producers, Inc. (AMPI), a cooperative association that supplies milk

for the market's fluid needs. Suspension would enable AMPI producers

historically associated with the order to share in the Nebraska-Western

Iowa Federal order pool for March through August 1999.

DATES: Comments must be submitted on or before March 24, 1999.

ADDRESSES: Comments (two copies) should be filed with the USDA/AMS/

Dairy Programs, Order Formulation Branch, Room 2971, South Building,

P.O. Box 96456, Washington, DC 20090-6456. Advance, unofficial copies

of such comments may be faxed to (202) 690-0552 or e-mailed to

OFB__FMMO__C[email protected]. Reference should be given to the title of

action and docket number.

FOR FURTHER INFORMATION CONTACT: Constance M. Brenner, Marketing

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

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

720-2357, e-mail address:

[email protected].

SUPPLEMENTARY INFORMATION: The Department is issuing this proposed rule

in conformance with Executive Order 12866.

This proposed rule has been reviewed under Executive Order 12988,

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 request

modification or exemption from such order by filing with the Secretary

a petition stating that the order, any provision of the order, or any

obligation imposed in connection with the order is not in accordance

with law. 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.

Small Business Consideration

In accordance with the Regulatory Flexibility Act (5 U.S.C. 601 et

seq.), the Agricultural Marketing Service has considered the economic

impact of this action on small entities and has certified that this

proposed rule will not have a significant economic impact on a

substantial number of small entities. For the purpose of the Regulatory

Flexibility Act, a dairy farm is considered a ``small business'' if it

has an annual gross revenue of less than $500,000, and a dairy products

manufacturer is a ``small business'' if it has fewer than 500

employees. For the purpose of determining which dairy farms are ``small

businesses,'' the $500,000 per year criterion was used to establish a

production guideline of 326,000 pounds per month. Although this

guideline does not factor in additional monies that may

[[Page 13126]]

be received by dairy producers, it should be an inclusive standard for

most ``small'' dairy farmers. For purposes of determining a handler's

size, if the plant is part of a larger company operating multiple

plants that collectively exceed the 500-employee limit, the plant will

be considered a large business even if the local plant has fewer than

500 employees.

For the month of January 1999, 1,248 dairy farmers were producers

under Order 65. Of these producers, 1,176 producers (i.e., 94 percent)

were considered small businesses having monthly milk production under

326,000 pounds. A further breakdown of the monthly milk production of

the producers on the order during January 1999 is as follows: 753

produced less than 100,000 pounds of milk; 322 produced between 100,000

and 200,000; 101 produced between 200,000 and 326,000; and 72 produced

over 326,000 pounds. During the same month, 5 handlers were pooled

under the order. None are considered small businesses.

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.

Interested parties are invited to submit comments on the probable

regulatory and informational impact of this proposed rule on small

entities. Also, parties may suggest modifications of this proposal for

the purpose of tailoring their applicability to small businesses.

Preliminary Statement

Notice is hereby given that, pursuant to the provisions of the

Agricultural Marketing Agreement Act, suspension for the months of

March through September 1999 of the following language from the pool

plant provisions of the order regulating the handling of milk in the

Nebraska-Western Iowa marketing area is being considered:

In the first sentence of Sec. 1065.7(b)(4), suspending the

following language: ``each of the months of,'' ``through March,'' and

``for the following months of April.''

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 Programs, 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 Programs during regular

business hours (7 CFR 1.27(b)).

Statement of Consideration

The proposed suspension was requested by AMPI, a cooperative

association that supplies milk for the market's fluid needs. AMPI

requests that language be suspended from the Nebraska-Western Iowa

order's pool supply plant definition for the purpose of allowing

producers who have historically supplied the fluid needs of Nebraska-

Western Iowa distributing plants to maintain their pool status. AMPI

contends that because a fluid milk plant operator reduced its purchase

of fluid milk from AMPI by more than 50 percent, AMPI will not be able

to pool milk historically associated with the Nebraska-Western Iowa

order for March 1999, and thus will not qualify for the automatic

qualification months of April through August.

AMPI maintains that through discussions with other handlers in the

order, it is certain that no additional milk is needed at this time.

Accordingly, it may be appropriate to suspend the aforesaid

regulatory language for the months of March through September 1999.

List of Subjects in 7 CFR Part 1065

Milk marketing orders.

The authority citation for 7 CFR Part 1065 continues to read as

follows:

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

Dated: March 11, 1999.

Richard M. McKee,

Deputy Administrator, Dairy Programs.

[FR Doc. 99-6488 Filed 3-16-99; 8:45 am]

BILLING CODE 3410-02-P