Proposed Rule
Statement of Required Findings of Fact

    Sec. 12(a) of the Compact directs the Commission to make four
findings of fact as the basis for promulgating a compact over-order
price regulation.
    (a) In addition to the concise general statement of basis and
purpose required by section 4(b) of the Federal Administrative
Procedure Act, as amended (5 U.S.C. Sec. 553(c)), the commission shall
make findings of fact with respect to:

    (1) Whether the public interest will be served by the
establishment of minimum milk prices to dairy farmers under Article
IV.
    (2) What level of prices will assure that procedures receive a
price sufficient to cover their costs of production and will elicit
an adequate supply of milk for the inhabitants of the regulated area
and for manufacturing purposes.
    (3) Whether the major provisions of the order, other than those
fixing minimum milk prices, are in the public interest and are
reasonably designed to achieve the purposes of the order.
    (4) Whether the terms of the proposed regional order or
amendment are approved by producers as provided in section thirteen.

Compact Art. V. Sec. 12.
    For purposes of clarity, the analysis of the testimony and comment
first addresses the substance of findings (2) above, or the level of
price needed by producers to cover their costs of production and which
will elicit an adequate supply of milk for inhabitants. The conclusion
of that analysis is that the current pay price is not sufficient to
cover cost of production or to elicit an adequate supply of milk for
inhabitants. Based on that determination the

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resulting analysis addresses the substance of finding (1) above, or
whether the establishment of minimum milk prices to dairy farmers would
serve the public interest.