Congress Ends Most Legal Challenges to Milk Rule

December 14, 1999

When Congress allowed a milk pricing system to become part of the appropriations process, the action pretty much ended the legal challenges that had been filed against USDA's final rule on federal milk marketing order reform. But plaintiffs in the Southwest continue to have problems with the final rule, and a hearing is to be held this week in an effort to resolve the issues.

According to the terms of the legislation, the new pricing system, Option 1A, becomes effective Jan. 1 if legal issues are resolved by then. The National Milk Producers Federation says many of the litigants suing to prevent USDA from implementing the final rule without Option 1A have decided to withdraw their lawsuits.

Justice Department attorneys asked judges in two hearings Dec. 2 to dismiss the cases because all issues had been rendered moot by the legislation. Attorneys representing plaintiffs in the South and Northeast indicated they were agreeable.

But, says NMPF, attorneys representing plaintiffs in the Southwest told the courts they continue to have problems with the Class III and Class IV pricing provisions in the USDA final rule. The milk pricing option in the legislation was for Class I milk prices. Plaintiffs in the Southwest are concerned about the impact of the final rule's new Class III and IV make allowances on dairy farmer revenue.

A hearing was scheduled for Thursday (Dec. 16) to consider the government's motion to dismiss and the plaintiffs' amended complaint seeking a continued injunction preventing USDA from implementing the final rule.