Release No. 188-05

Becky Unkenholz (202) 720-8998

Becky.unkenholz@usda.gov

Billy Cox (202) 720-899

bill.cox@usda.gov

WASHINGTON, Sept. 20, 2005 -- The U.S. Department of Agriculture today announced a decision adopting amendments to the Appalachian and Southeast Federal milk marketing orders. This decision is based on record evidence of a public hearing held in Feb. 2004 in Atlanta, Ga.

This decision adopts amendments that will expand the Appalachian milk marketing area to include 25 unregulated counties and 15 unregulated cities in Virginia and eliminate the ability to simultaneously pool the same milk on the Appalachian or Southeast order and a state-operated milk order that has marketwide pooling. The decision amends the transportation credit provisions of the Appalachian and Southeast orders to increase the maximum rate of assessment by $0.03 per hundredweight (cwt) to $0.095 per cwt and $0.10 per cwt, respectively. Another amendment provides Market Administrators the authority to adjust the criteria used to determine the milk of a dairy farmer that is eligible for transportation credits.

This decision does not adopt a proposal that would merge the Appalachian and Southeast marketing areas into a single order and a proposal that would create a new "Mississippi Valley" milk order by splitting the Southeast marketing area. Proposals regarding the producer-handler

provisions of the Appalachian and Southeast orders will be addressed in a separate decision.

The partial final decision will be published in the Sept. 21, 2005, Federal Register.

The orders as amended by this decision require the approval of dairy farmers under the affected markets. If the amended orders are approved, a final rule will be issued implementing the changes.

Additional information about the decision may be obtained from the following market administrators:

Appalachian: Harold H. Friedly

USDA/AMS/Dairy Programs

P.O. Box 18030, Louisville, KY. 40261-0030

Tel. (502) 499-0040; email: friedly@malouisville.com

Southeast: Sue L. Mosley

USDA/AMS/Dairy Programs

P.O. Box 491778, Lawrenceville, GA. 30049

Tel. (770) 682-2501; email: smosley@fmmatlanta.com