Lehigh Valley Farmers, Atlantic Processing, Inc., Dairylea Cooperative, Inc., Mount Joy Farmers Cooperative, Monroe County Milk Producers Cooperative, Ruth, Alpheus Gehman, Robert Hetrick, Roy Hartung, Richard Hafer, Earl R., on Behalf of Himself and the Members of the Berks County Dairy Farmers Protective Association, and Hollenbach, Carl and Carolyn on Behalf of Themselves and the Members of Berks County Dairy Farmers Protective Association v. Block, John R. Pennmarva Dairymen's Cooperative Federation, Inc. & the Individual Members Thereof (Intervenors), Eastern Milk Producers Cooperative Assoc. Inc. & Group of Private Independently Owned Proprietary Handlers (Intervenors). Appeal of John R. Block, Secretary of Agriculture. Farmers' Cooperative Dairy Inc. Spiece, Guy E. Cook, Donald L. Drasher, A. Charles Hilliard, Foster E., Jr. Mylet, Andrew M. Travelpiece, Luther R. And Yoder, Samuel A., on Behalf of Themselves and All Members of Farmers' Cooperative Dairy, Inc. Leatherman, John Rhein, Dawn F. Heisler Bros. Leatherman, Bruce Martin, Ronald Hollenbach, Carl Brown, Carl Hefner, Ralph T/a Jersey Acres Farms Kurtz, Harry Wolf, Marvin Moyer, Wilbert Daubert, William R. Petravich, Alvin Moyer, Lester Leiby, Bertram Heisler, Carl Heisler, Paul Schnoke, Samuel Huber, Robert Moyer, Amos, Jr. Kreager, Kenneth Cuers Dairy, Inc. And Valley Farms, Inc. v. Block, John R. Pennmarva Dairymen's Cooperative Federation, Inc. (Intervenor), Eastern Milk Producers Cooperative Assoc. Inc. & Group of Private Independently Owned Proprietary Handlers (Intervenors). Appeal of John R. Block, Secretary of Agriculture. Lehigh Valley Farmers, Atlantic Processing, Inc., Dairylea Cooperative, Inc., Mount Joy Farmers Cooperative, Monroe County Milk Producers Cooperative, Ruth, Alpheus Gehman, Robert Hetrick, Roy Hartung, Richard Hafer, Earl R., on Behalf of Himself and the Members of the Berks County Dairy Farmers Protective Association, and Hollenbach, Carl and Carolyn, on Behalf of Themselves and the Members of Berks County Dairy Farmers Protective Association v. Block, John R. Pennmarva Dairymen's Cooperative Federation, Inc. & the Individual Members Thereof (Intervenors), Eastern Milk Producers Cooperative Assoc. Inc. & Group of Private Independently Owned Proprietary Handlers (Intervenors). Appeal of Stocker Brothers Dairy, Proposed Intervenor

829 F.2d 409, 1987 U.S. App. LEXIS 12481
CourtCourt of Appeals for the Third Circuit
DecidedSeptember 21, 1987
Docket86-1592
StatusPublished
Cited by1 cases

This text of 829 F.2d 409 (Lehigh Valley Farmers, Atlantic Processing, Inc., Dairylea Cooperative, Inc., Mount Joy Farmers Cooperative, Monroe County Milk Producers Cooperative, Ruth, Alpheus Gehman, Robert Hetrick, Roy Hartung, Richard Hafer, Earl R., on Behalf of Himself and the Members of the Berks County Dairy Farmers Protective Association, and Hollenbach, Carl and Carolyn on Behalf of Themselves and the Members of Berks County Dairy Farmers Protective Association v. Block, John R. Pennmarva Dairymen's Cooperative Federation, Inc. & the Individual Members Thereof (Intervenors), Eastern Milk Producers Cooperative Assoc. Inc. & Group of Private Independently Owned Proprietary Handlers (Intervenors). Appeal of John R. Block, Secretary of Agriculture. Farmers' Cooperative Dairy Inc. Spiece, Guy E. Cook, Donald L. Drasher, A. Charles Hilliard, Foster E., Jr. Mylet, Andrew M. Travelpiece, Luther R. And Yoder, Samuel A., on Behalf of Themselves and All Members of Farmers' Cooperative Dairy, Inc. Leatherman, John Rhein, Dawn F. Heisler Bros. Leatherman, Bruce Martin, Ronald Hollenbach, Carl Brown, Carl Hefner, Ralph T/a Jersey Acres Farms Kurtz, Harry Wolf, Marvin Moyer, Wilbert Daubert, William R. Petravich, Alvin Moyer, Lester Leiby, Bertram Heisler, Carl Heisler, Paul Schnoke, Samuel Huber, Robert Moyer, Amos, Jr. Kreager, Kenneth Cuers Dairy, Inc. And Valley Farms, Inc. v. Block, John R. Pennmarva Dairymen's Cooperative Federation, Inc. (Intervenor), Eastern Milk Producers Cooperative Assoc. Inc. & Group of Private Independently Owned Proprietary Handlers (Intervenors). Appeal of John R. Block, Secretary of Agriculture. Lehigh Valley Farmers, Atlantic Processing, Inc., Dairylea Cooperative, Inc., Mount Joy Farmers Cooperative, Monroe County Milk Producers Cooperative, Ruth, Alpheus Gehman, Robert Hetrick, Roy Hartung, Richard Hafer, Earl R., on Behalf of Himself and the Members of the Berks County Dairy Farmers Protective Association, and Hollenbach, Carl and Carolyn, on Behalf of Themselves and the Members of Berks County Dairy Farmers Protective Association v. Block, John R. Pennmarva Dairymen's Cooperative Federation, Inc. & the Individual Members Thereof (Intervenors), Eastern Milk Producers Cooperative Assoc. Inc. & Group of Private Independently Owned Proprietary Handlers (Intervenors). Appeal of Stocker Brothers Dairy, Proposed Intervenor) is published on Counsel Stack Legal Research, covering Court of Appeals for the Third Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lehigh Valley Farmers, Atlantic Processing, Inc., Dairylea Cooperative, Inc., Mount Joy Farmers Cooperative, Monroe County Milk Producers Cooperative, Ruth, Alpheus Gehman, Robert Hetrick, Roy Hartung, Richard Hafer, Earl R., on Behalf of Himself and the Members of the Berks County Dairy Farmers Protective Association, and Hollenbach, Carl and Carolyn on Behalf of Themselves and the Members of Berks County Dairy Farmers Protective Association v. Block, John R. Pennmarva Dairymen's Cooperative Federation, Inc. & the Individual Members Thereof (Intervenors), Eastern Milk Producers Cooperative Assoc. Inc. & Group of Private Independently Owned Proprietary Handlers (Intervenors). Appeal of John R. Block, Secretary of Agriculture. Farmers' Cooperative Dairy Inc. Spiece, Guy E. Cook, Donald L. Drasher, A. Charles Hilliard, Foster E., Jr. Mylet, Andrew M. Travelpiece, Luther R. And Yoder, Samuel A., on Behalf of Themselves and All Members of Farmers' Cooperative Dairy, Inc. Leatherman, John Rhein, Dawn F. Heisler Bros. Leatherman, Bruce Martin, Ronald Hollenbach, Carl Brown, Carl Hefner, Ralph T/a Jersey Acres Farms Kurtz, Harry Wolf, Marvin Moyer, Wilbert Daubert, William R. Petravich, Alvin Moyer, Lester Leiby, Bertram Heisler, Carl Heisler, Paul Schnoke, Samuel Huber, Robert Moyer, Amos, Jr. Kreager, Kenneth Cuers Dairy, Inc. And Valley Farms, Inc. v. Block, John R. Pennmarva Dairymen's Cooperative Federation, Inc. (Intervenor), Eastern Milk Producers Cooperative Assoc. Inc. & Group of Private Independently Owned Proprietary Handlers (Intervenors). Appeal of John R. Block, Secretary of Agriculture. Lehigh Valley Farmers, Atlantic Processing, Inc., Dairylea Cooperative, Inc., Mount Joy Farmers Cooperative, Monroe County Milk Producers Cooperative, Ruth, Alpheus Gehman, Robert Hetrick, Roy Hartung, Richard Hafer, Earl R., on Behalf of Himself and the Members of the Berks County Dairy Farmers Protective Association, and Hollenbach, Carl and Carolyn, on Behalf of Themselves and the Members of Berks County Dairy Farmers Protective Association v. Block, John R. Pennmarva Dairymen's Cooperative Federation, Inc. & the Individual Members Thereof (Intervenors), Eastern Milk Producers Cooperative Assoc. Inc. & Group of Private Independently Owned Proprietary Handlers (Intervenors). Appeal of Stocker Brothers Dairy, Proposed Intervenor, 829 F.2d 409, 1987 U.S. App. LEXIS 12481 (3d Cir. 1987).

Opinion

829 F.2d 409

LEHIGH VALLEY FARMERS, Atlantic Processing, Inc., Dairylea
Cooperative, Inc., Mount Joy Farmers Cooperative, Monroe
County Milk Producers Cooperative, Ruth, Alpheus; Gehman,
Robert; Hetrick, Roy; Hartung, Richard; Hafer, Earl R.,
on Behalf of himself and the members of the Berks County
Dairy Farmers Protective Association, and Hollenbach, Carl
and Carolyn on Behalf of themselves and the members of Berks
County Dairy Farmers Protective Association
v.
BLOCK, John R.; Pennmarva Dairymen's Cooperative
Federation, Inc. & the Individual Members Thereof
(Intervenors), Eastern Milk Producers Cooperative Assoc.
Inc. & Group of Private Independently Owned Proprietary
Handlers (Intervenors).
Appeal of John R. BLOCK, Secretary of Agriculture.
FARMERS' COOPERATIVE DAIRY INC.; Spiece, Guy E.; Cook,
Donald L.; Drasher, A. Charles; Hilliard, Foster E., Jr.;
Mylet, Andrew M.; Travelpiece, Luther R.; and Yoder,
Samuel A., on Behalf of themselves and all members of
Farmers' Cooperative Dairy, Inc.; Leatherman, John; Rhein,
Dawn F.; Heisler Bros.; Leatherman, Bruce; Martin,
Ronald; Hollenbach, Carl; Brown, Carl; Hefner, Ralph t/a
Jersey Acres Farms; Kurtz, Harry; Wolf, Marvin; Moyer,
Wilbert; Daubert, William R.; Petravich, Alvin; Moyer,
Lester; Leiby, Bertram; Heisler, Carl; Heisler, Paul;
Schnoke, Samuel; Huber, Robert; Moyer, Amos, Jr.;
Kreager, Kenneth; Cuers Dairy, Inc.; and Valley Farms, Inc.
v.
BLOCK, John R.; Pennmarva Dairymen's Cooperative
Federation, Inc. (Intervenor), Eastern Milk Producers
Cooperative Assoc. Inc. & Group of Private Independently
Owned Proprietary Handlers (Intervenors).
Appeal of John R. BLOCK, Secretary of Agriculture.
LEHIGH VALLEY FARMERS, Atlantic Processing, Inc., Dairylea
Cooperative, Inc., Mount Joy Farmers Cooperative, Monroe
County Milk Producers Cooperative, Ruth, Alpheus; Gehman,
Robert; Hetrick, Roy; Hartung, Richard; Hafer, Earl R.,
on behalf of himself and the members of the Berks County
Dairy Farmers Protective Association, and Hollenbach, Carl
and Carolyn, on Behalf of themselves and the members of
Berks County Dairy Farmers Protective Association
v.
BLOCK, John R.; Pennmarva Dairymen's Cooperative
Federation, Inc. & the Individual Members Thereof
(Intervenors), Eastern Milk Producers Cooperative Assoc.
Inc. & Group of Private Independently Owned Proprietary
Handlers (Intervenors).
Appeal of STOCKER BROTHERS DAIRY, Proposed Intervenor.

Nos. 86-1592, 86-1593 and 86-1633.

United States Court of Appeals,
Third Circuit.

Argued June 15, 1987.
Decided Sept. 21, 1987.

Edward S.G. Dennis, Jr., U.S. Atty., Joan K. Garner, Asst. U.S. Atty., Philadelphia, Pa., James Michael Kelly, Associate General Counsel, Raymond W. Fullerton, Asst. General Counsel, Aaron B. Kahn (argued), Office of General Counsel, U.S. Dept. of Agriculture, Washington, D.C., for appellant Secretary of Agriculture.

Roland Morris, Duane, Morris & Heckscher, Philadelphia, Pa., for intervenor Handlers.

Donald F. Copeland, Donald F. Copeland, P.C., Norristown, Pa., for intervenor Pennmarva Dairymen's Federation, Inc.

J. Jackson Eaton (argued), Gross, McGinley, LaBarre & Eaton, Allentown, Pa., appellees in 86-1592 and appellant Stocker Bros. Dairy.

Marvin Beshore (argued), Milspaw & Beshore, Harrisburg, Pa., for appellees in 86-1593.

Before SEITZ and MANSMANN, Circuit Judges, and DEBEVOISE,* District Judge.

OPINION OF THE COURT

SEITZ, Circuit Judge.

The Secretary of the Department of Agriculture appeals the order of the district court enjoining him from implementing amendments to the Middle Atlantic (Order 4) and New York-New Jersey (Order 2) Milk Marketing Orders that would expand the area regulated by the two orders. Stocker Brothers Dairy appeals the denial of its motion to intervene as a plaintiff. This court has jurisdiction pursuant to 28 U.S.C. Sec. 1291 (1982).

I.

To understand this case, it will be helpful to describe briefly the federal regulatory scheme for the marketing of milk. The marketing of milk has taken place in large measure under the aegis of federal control since the 1930s. During the Depression, dairy farmers engaged in fierce competition and "utter chaos" in the dairy industry ensued. See Zuber v. Allen, 396 U.S. 168, 172-74, 90 S.Ct. 314, 317-18, 24 L.Ed.2d 345 (1969). In an effort to bring this destabilizing competition under control, Congress authorized the Secretary of Agriculture to issue milk marketing orders that establish a uniform price to be paid to producers (dairy farmers) by handlers (those who manufacture raw milk into bottled milk and other products) in the Agricultural Marketing Agreement Act of 1937, as amended, 7 U.S.C. Sec. 601 et seq. (1937) (the Act). The purposes of the Act are to maintain orderly marketing conditions that will result in parity prices for farmers and will protect consumers. See 7 U.S.C. Sec. 602 (1982).

The complex federal regulations governing the milk industry are designed to address two distinct phenomena of the industry. First, cows produce significantly more milk in the spring and summer than they do in the fall and winter. Because the demand for milk is relatively constant, dairy farmers must maintain sufficient herds to meet the fall and winter demand for milk. Thus, there is inevitably a surplus of milk during the more productive months. Second, milk that is ultimately used for fluid consumption by consumers (Class I milk) commands a higher price than milk of the same quality that is used in the manufacture of dairy products such as cheese and butter (Class II milk). In the absence of regulation, the intense competition by dairy farmers for the more lucrative fluid sales market can lead to depressed prices and unstable markets. See Zuber v. Allen, supra, 396 U.S. at 172-74, 180-81, 90 S.Ct. at 317-18, 321-22; Smyser v. Block, 760 F.2d 514, 515-16 (3d Cir.1985).

To prevent such disorderly marketing conditions, the Act authorizes the Secretary to issue orders providing for "all producers in a regional market [to] share equally in the burden created by surplus milk." See Smyser v. Block, supra, 760 F.2d at 516. The orders generally accomplish this goal by requiring the marketwide pooling of milk.1 The orders classify milk as Class I or Class II milk according to its use and set minimum prices that the handlers must pay for each class.

Producers receive a uniform price, "the blended price," for all their milk regardless of the ultimate use of the milk. 7 U.S.C. Sec. 608c(5)(B) (1982). The blended price is based on a weighted average value of all milk sold within the marketing area regulated by a federal order. By mandating that producers within a market area receive a uniform price based on the use of milk within the area, the Act eliminates the incentive for dairy farmers to attempt to compete with their neighbors through lowering their prices.

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829 F.2d 409, 1987 U.S. App. LEXIS 12481, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lehigh-valley-farmers-atlantic-processing-inc-dairylea-cooperative-ca3-1987.