Browse by Year
/ 1998
/ January
/ Friday, January 30, 1998
[Federal Register: January 30, 1998 (Volume 63, Number 20)]
[Proposed Rules]
[Page 5051-5095]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr30ja98-34]
[[pp. 5051-5095]] Milk in the New England and Other Marketing Areas; Proposed Rule
and Opportunity To File Comments, Including Written Exceptions, on
Proposed Amendments to Marketing Agreements and Orders
[[Continued from page 5050]]
[[Page 5051]]
(1) Multiply the pounds of skim milk in Class III as determined
pursuant to Sec. 1000.44(a) by the average protein content of producer
skim milk received by the handler, and multiply the resulting pounds of
protein by the protein price;
(2) Add an amount obtained by multiplying the pounds of skim milk
in Class III as determined pursuant to Sec. 1000.44(a) by the average
other solids content of producer skim milk received by the handler, and
multiply the resulting pounds of other solids by the other solids
price; and
(3) Add an amount obtained by multiplying the pounds of butterfat
in Class III as determined pursuant to Sec. 1000.44(b) by the butterfat
price;
(d) Add the Class IV value computed as follows:
(1) Multiply the pounds of skim milk in Class IV as determined
pursuant to Sec. 1000.44(a) by the average nonfat solids content of
producer skim milk received by the handler, and multiply the resulting
pounds of nonfat solids by the nonfat solids price; and
(2) Add an amount obtained by multiplying the pounds of butterfat
in Class IV as determined pursuant to Sec. 1000.44(b) by the butterfat
price;
(e) Add an adjustment for somatic cell content of producer milk
determined by multiplying the value reported pursuant to
Sec. 1030.30(a)(1) by the percentage of the total producer milk
allocated to Class II, Class III, and Class IV pursuant to
Sec. 1000.44(c);
(f) Add the amounts obtained from multiplying the pounds of skim
milk and butterfat overage assigned to each class pursuant to
Sec. 1000.43(b)(2) by the respective skim milk and butterfat prices
applicable at the location of the pool plant;
(g) Add the amount obtained from multiplying the difference between
the Class III price for the preceding month and the Class I price
applicable at the location of the pool plant or the Class II price, as
the case may be, for the current month by the hundredweight of skim
milk and butterfat subtracted from Class I and Class II pursuant to
Sec. 1000.44(a)(7) and the corresponding step of Sec. 1000.44(b);
(h) Add the amount obtained from multiplying the difference between
the Class I price applicable at the location of the pool plant and the
Class III price by the hundredweight of skim milk and butterfat
assigned to Class I pursuant to Sec. 1000.43(d) and the hundredweight
of skim milk and butterfat subtracted from Class I pursuant to
Sec. 1000.44(a)(3)(i) through (iii) and the corresponding step of
Sec. 1000.44(b), excluding receipts of bulk fluid cream products from a
plant regulated under other Federal orders and bulk concentrated fluid
milk products from pool plants, plants regulated under other Federal
orders, and unregulated supply plants;
(i) Add the amount obtained from multiplying the difference between
the Class I price and the Class III price applicable at the location of
the nearest unregulated supply plants from which an equivalent volume
was received by the pounds of skim milk and butterfat in receipts of
concentrated fluid milk products assigned to Class I pursuant to
Sec. 1000.43(d) and Sec. 1000.44(a)(3)(i) and the pounds of skim milk
and butterfat subtracted from Class I pursuant to Sec. 1000.44(a)(8)
and the corresponding step of Sec. 1000.44(b), excluding such skim milk
and butterfat in receipts of bulk fluid milk products from an
unregulated supply plant to the extent that an equivalent amount of
skim milk or butterfat disposed of to such plant by handlers fully
regulated under any Federal milk order is classified and priced as
Class I milk and is not used as an offset for any other payment
obligation under any order;
(j) Subtract an amount equal to any credits applicable pursuant to
Sec. 1030.55;
(k) Subtract, for reconstituted milk made from receipts of nonfluid
milk products, an amount computed by multiplying $1.00 (but not more
than the difference between the Class I price applicable at the
location of the pool plant and the Class IV price) by the hundredweight
of skim milk and butterfat contained in receipts of nonfluid milk
products that are allocated to Class I pursuant to Sec. 1000.43(d); and
(l) Exclude, for pricing purposes under this section, receipts of
nonfluid milk products that are distributed as labeled reconstituted
milk for which payments are made to the producer-settlement fund of
another order under Sec. 1000.76(a)(5) or (c).
Sec. 1030.61 Computation of producer price differential.
For each month the market administrator shall compute a producer
price differential per hundredweight. If the unreserved balance in the
producer-settlement fund to be included in the computation is less than
2 cents per hundredweight of producer milk on all reports, the report
of any handler who has not made payments required pursuant to
Sec. 1030.71 for the preceding month shall not be included in the
computation of the producer price differential. The report of such
handler shall not be included in the computation for succeeding months
until the handler has made full payment of outstanding monthly
obligations. Subject to the aforementioned conditions, the market
administrator shall compute the producer price differential in the
following manner:
(a) Combine into one total the values computed pursuant to
Sec. 1030.60 for all handlers required to file reports prescribed in
Sec. 1030.30;
(b) Subtract the total values obtained by multiplying each
handler's total pounds of protein, other solids, and butterfat
contained in the milk for which an obligation was computed pursuant to
Sec. 1030.60 by the protein price, the other solids price, and the
butterfat price, respectively, and the total value of the somatic cell
adjustment pursuant to Sec. 1030.30(a)(1);
(c) Add an amount equal to the sum of the location adjustments
computed pursuant to Sec. 1030.75;
(d) Add an amount equal to not less than one-half of the
unobligated balance in the producer-settlement fund;
(e) Divide the resulting amount by the sum of the following for all
handlers included in these computations:
(1) The total hundredweight of producer milk; and
(2) The total hundredweight for which a value is computed pursuant
to Sec. 1030.60(i); and
(f) Subtract not less than 4 cents nor more than 5 cents from the
price computed pursuant to paragraph (e) of this section. The result
shall be known as the producer price differential for the month.
Sec. 1030.62 Announcement of producer prices.
On or before the 13th day after the end of each month, the market
administrator shall announce publicly the following prices and
information:
(a) The producer price differential;
(b) The protein price;
(c) The other solids price;
(d) The butterfat price;
(e) The somatic cell adjustment rate;
(f) The average butterfat, protein and other solids content of
producer milk; and
(g) The statistical uniform price for milk containing 3.5 percent
butterfat, computed by combining the Class III price and the producer
price differential.
Payments for Milk
Sec. 1030.70 Producer-settlement fund.
See Sec. 1000.70 of this chapter.
Sec. 1030.71 Payments to the producer-settlement fund.
Each handler shall make payment to the producer-settlement fund in
a manner that provides receipt of the
[[Page 5052]]
funds by the market administrator no later than the 15th day after the
end of the month. Payment shall be the amount, if any, by which the
amount specified in (a) of this section exceeds the amount specified in
(b) of this section:
(a) The total value of milk to the handler for the month as
determined pursuant to Sec. 1030.60.
(b) The sum of:
(1) An amount obtained by multiplying the total hundredweight of
producer milk as determined pursuant to Sec. 1000.44(c) by the producer
price differential as adjusted pursuant to Sec. 1030.75;
(2) An amount obtained by multiplying the total pounds of protein,
other solids, and butterfat contained in producer milk by the protein,
other solids, and butterfat prices respectively;
(3) The total value of the somatic cell adjustment to producer
milk; and
(4) An amount obtained by multiplying the pounds of skim milk and
butterfat for which a value was computed pursuant to Sec. 1030.60(i) by
the producer price differential as adjusted pursuant to Sec. 1030.75
for the location of the plant from which received.
Sec. 1030.72 Payments from the producer-settlement fund.
No later than the 16th day after the end of each month, the market
administrator shall pay to each handler the amount, if any, by which
the amount computed pursuant to Sec. 1030.71(b) exceeds the amount
computed pursuant to Sec. 1030.71(a). If, at such time, the balance in
the producer-settlement fund is insufficient to make all payments
pursuant to this section, the market administrator shall reduce
uniformly such payments and shall complete the payments as soon as the
funds are available.
Sec. 1030.73 Payments to producers and to cooperative associations.
(a) Each handler shall pay each producer for producer milk for
which payment is not made to a cooperative association pursuant to
paragraph (b) of this section, as follows:
(1) Partial payment. For each producer who has not discontinued
shipments as of the date of this partial payment, payment shall be made
so that it is received by each producer on or before the 26th day of
the month for milk received during the first 15 days of the month from
the producer at not less than the lowest announced class price for the
preceding month, less proper deductions authorized in writing by the
producer; and
(2) Final payment. For milk received during the month, payment
shall be made so that it is received by each producer no later than the
17th day after the end of the month in an amount equal to not less than
the sum of:
(i) The hundredweight of producer milk received times the producer
price differential for the month as adjusted pursuant to Sec. 1030.75;
(ii) The pounds of butterfat received times the butterfat price for
the month;
(iii) The pounds of protein received times the protein price for
the month;
(iv) The pounds of other solids received times the other solids
price for the month;
(v) The hundredweight of milk received times the somatic cell
adjustment for the month;
(vi) Less any payment made pursuant to paragraph (a)(1) of this
section;
(vii) Less proper deductions authorized in writing by such producer
and plus or minus adjustments for errors in previous payments to such
producer; and
(viii) Less deductions for marketing services pursuant to
Sec. 1000.86.
(b) Payments for milk received from cooperative association
members. On or before the day prior to the dates specified in
paragraphs (a)(1) and (a)(2) of this section, each handler shall pay to
a cooperative association for milk from producers who market their milk
through the cooperative association and who have authorized the
cooperative to collect such payments on their behalf an amount equal to
the sum of the individual payments otherwise payable for such producer
milk pursuant to paragraphs (a)(1) and (a)(2) of this section.
(c) Payment for milk received from cooperative association pool
plants or from cooperatives as handlers pursuant to Sec. 1000.9(c). On
or before the day prior to the dates specified in paragraph (a)(1) and
(a)(2) of this section, each handler who receives fluid milk products
at its plant from a cooperative association in its capacity as the
operator of a pool plant or who receives milk from a cooperative
association in its capacity as a handler pursuant to Sec. 1000.9(c),
including the milk of producers who are not members of such association
and who the market administrator determines have authorized the
cooperative association to collect payment for their milk, shall pay
the cooperative for such milk as follows:
(1) For bulk fluid milk products and bulk fluid cream products
received from a cooperative association in its capacity as the operator
of a pool plant and for milk received from a cooperative association in
its capacity as a handler pursuant to Sec. 1000.9(c) during the first
15 days of the month, at not less than the lowest announced class price
per hundredweight for the preceding month;
(2) For the total quantity of bulk fluid milk products and bulk
fluid cream products received from a cooperative association in its
capacity as the operator of a pool plant, at not less than the total
value of such products received from the association's pool plants, as
determined by multiplying the respective quantities assigned to each
class under Sec. 1000.44, as follows:
(i) The hundredweight of Class I skim milk times the Class I skim
milk price for the month plus the pounds of Class I butterfat times the
Class I butterfat price for the month. The Class I price to be used
shall be that price effective at the location of the shipping plant;
(ii) The hundredweight of Class II skim milk times $ .70;
(iii) The pounds of nonfat solids received in Class II and Class IV
milk times the nonfat solids price for the month;
(iv) The pounds of butterfat received in Class II, Class III, and
Class IV milk times the butterfat price for the month;
(v) The pounds of protein received in Class III milk times the
protein price for the month;
(vi) The pounds of other solids received in Class III milk times
the other solids price for the month;
(vii) The hundredweight of Class II, Class III, and Class IV milk
received times the somatic cell adjustment; and
(viii) Add together the amounts computed in paragraphs (c)(2)(i)
through (vii) of this section and from that sum deduct any payment made
pursuant to paragraph (c)(1) of this section.
(3) For the total quantity of milk received during the month from a
cooperative association in its capacity as a handler under
Sec. 1000.9(c) as follows:
(i) The hundredweight of producer milk received times the producer
price differential as adjusted pursuant to Sec. 1030.75;
(ii) The pounds of butterfat received times the butterfat price for
the month;
(iii) The pounds of protein received times the protein price for
the month;
(iv) The pounds of other solids received times the other solids
price for the month;
(v) The hundredweight of milk received times the somatic cell
adjustment for the month; and
(vi) Add together the amounts computed in paragraphs (c)(3)(i)
through (v) of this section and from that sum deduct any payment made
pursuant to paragraph (c)(1) of this section.
[[Page 5053]]
(d) If a handler has not received full payment from the market
administrator pursuant to Sec. 1030.72 by the payment date specified in
paragraph (a), (b) or (c)(2) of this section, the handler may reduce
pro rata its payments to producers or to the cooperative association
(with respect to receipts described in paragraph (b), prorating the
underpayment to the volume of milk received from the cooperative
association in proportion to the total milk received from producers by
the handler), but not by more than the amount of the underpayment. The
payments shall be completed on the next scheduled payment date after
receipt of the balance due from the market administrator.
(e) If a handler claims that a required payment to a producer
cannot be made because the producer is deceased or cannot be located,
or because the cooperative association or its lawful successor or
assignee is no longer in existence, the payment shall be made to the
producer-settlement fund, and in the event that the handler
subsequently locates and pays the producer or a lawful claimant, or in
the event that the handler no longer exists and a lawful claim is later
established, the market administrator shall make the required payment
from the producer-settlement fund to the handler or to the lawful
claimant, as the case may be.
(f) In making payments to producers pursuant to this section, each
handler shall furnish each producer, except a producer whose milk was
received from a cooperative association handler described in
Sec. 1000.9(a) or (c), a supporting statement in a form that may be
retained by the recipient which shall show:
(1) The name, address, Grade A identifier assigned by a duly
constituted regulatory agency, and payroll number of the producer;
(2) The daily and total pounds, and the month and dates such milk
was received from that producer;
(3) The total pounds of butterfat, protein, and other solids
contained in the producer's milk;
(4) The somatic cell count of the producer's milk;
(5) The minimum rate or rates at which payment to the producer is
required pursuant to this order;
(6) The rate used in making payment if the rate is other than the
applicable minimum rate;
(7) The amount, or rate per hundredweight, or rate per pound of
component, and the nature of each deduction claimed by the handler; and
(8) The net amount of payment to the producer or cooperative
association.
Sec. 1030.74 [Reserved]
Sec. 1030.75 Plant location adjustments for producer milk and nonpool
milk.
(a) The producer price differential for producer milk shall be
adjusted according to the location of the plant at which the milk was
physically received by subtracting from the price differential the
amount by which the Class I price specified in Sec. 1030.51 exceeds the
Class I price at the plant's location. If the Class I price at the
plant location exceeds the Class I price specified in Sec. 1030.51, the
difference shall be added to the producer price differential price; and
(b) The producer price differential applicable to other source milk
shall be adjusted following the procedure specified in paragraph (a) of
this section, except that the adjusted producer price differential
shall not be less than zero.
Sec. 1030.76 Payments by a handler operating a partially regulated
distributing plant.
See Sec. 1000.76 of this chapter.
Sec. 1030.77 Adjustment of accounts.
See Sec. 1000.77 of this chapter.
Sec. 1030.78 Charges on overdue accounts.
See Sec. 1000.78 of this chapter.
Administrative Assessment and Marketing Service Deduction
Sec. 1030.85 Assessment for order administration.
See Sec. 1000.85 of this chapter.
Sec. 1030.86 Deduction for marketing services.
See Sec. 1000.86 of this chapter.
PART 1032--MILK IN THE CENTRAL MARKETING AREA
Subpart--Order Regulating Handling
General Provisions
Sec.
1032.1 General provisions.
Definitions
1032.2 Central marketing area.
1032.3 Route disposition.
1032.4 Plant.
1032.5 Distributing plant.
1032.6 Supply plant.
1032.7 Pool plant.
1032.8 Nonpool plant.
1032.9 Handler.
1032.10 Producer-handler.
1032.11 [Reserved]
1032.12 Producer.
1032.13 Producer milk.
1032.14 Other source milk.
1032.15 Fluid milk product.
1032.16 Fluid cream product.
1032.17 [Reserved]
1032.18 Cooperative association.
1032.19 Commercial food processing establishment.
Handler Reports
1032.30 Reports of receipts and utilization.
1032.31 Payroll reports.
1032.32 Other reports.
Classification of Milk
1032.40 Classes of utilization.
1032.41 [Reserved]
1032.42 Classification of transfers and diversions.
1032.43 General classification rules.
1032.44 Classification of producer milk.
1032.45 Market administrator's reports and announcements concerning
classification.
Class Prices
1032.50 Class prices and component prices.
1032.51 Class I differential and price.
1032.52 Adjusted Class I differentials.
1032.53 Announcement of class prices and component prices.
1032.54 Equivalent price.
Producer Price Differential
1032.60 Handler's value of milk.
1032.61 Computation of producer price differential.
1032.62 Announcement of producer prices.
Payments for Milk
1032.70 Producer-settlement fund.
1032.71 Payments to the producer-settlement fund.
1032.72 Payments from the producer-settlement fund.
1032.73 Payments to producers and to cooperative associations.
1032.74 [Reserved]
1032.75 Plant location adjustments for producer milk and nonpool
milk.
1032.76 Payments by a handler operating a partially regulated
distributing plant.
1032.77 Adjustment of accounts.
1032.78 Charges on overdue accounts.
Administrative Assessment and Marketing Service Deduction
1032.85 Assessment for order administration.
1032.86 Deduction for marketing services.
Authority: 7 U.S.C. 601-674.
Subpart--Order Regulating Handling
General Provisions
Sec. 1032.1 General provisions.
The terms, definitions, and provisions in Part 1000 of this chapter
apply to and are hereby made a part of this order.
Definitions
Sec. 1032.2 Central marketing area.
The marketing area means all territory within the bounds of the
following states and political subdivisions, including all piers,
docks, and wharves connected therewith and all craft moored thereat,
and all territory occupied by government (municipal, State, or Federal)
reservations,
[[Page 5054]]
installations, institutions, or other similar establishments if any
part thereof is within any of the listed states or political
subdivisions:
(a) In the State of Colorado, the counties of: Adams, Arapahoe,
Baca, Bent, Boulder, Clear Creek, Cheyenne, Crowley, Custer, Denver,
Douglas, El Paso, Elbert, Gilpin, Huerfano, Jefferson, Kiowa, Kit
Carson, Larimer, Las Animas, Lincoln, Logan, Morgan, Otero, Park,
Phillips, Prowers, Pueblo, Sedgwick, Teller, Washington, Weld, and
Yuma.
(b) In the State of Illinois, the counties of:
(1) Adams, Alexander, Bond, Brown, Bureau, Calhoun, Cass,
Champaign, Christian, Clark, Clay, Clinton, Coles, Crawford,
Cumberland, De Witt, Douglas, Edgar, Edwards, Effingham, Fayette, Ford,
Franklin, Fulton, Gallatin, Greene, Grundy, Hamilton, Hancock, Hardin,
Henderson, Henry, Iroquois, Jackson, Jasper, Jefferson, Jersey,
Johnson, Kankakee, Knox, La Salle, Lawrence, Livingston, Logan,
McDonough, McLean, Macon, Macoupin, Madison, Marion, Marshall, Mason,
Massac, Menard, Mercer, Monroe, Montgomery, Morgan, Moultrie, Peoria,
Perry, Piatt, Pike, Pope, Pulaski, Putnam, Randolph, Richland, Rock
Island, Saline, Sangamon, Schuyler, Scott, Shelby, St. Clair, Stark,
Tazewell, Union, Vermilion, Wabash, Warren, Washington, Wayne, White,
Williamson, and Woodford;
(2) In Jo Daviess County, the city of East Dubuque; and
(3) In Whiteside County, the townships of Fulton, Ustick, Clyde,
Genesee, Mount Pleasant, Union Grove, Garden Plain, Lyndon, Fenton,
Newton, Prophetstown, Portland, and Erie.
(c) In the State of Iowa:
(1) All of the counties except: Howard, Kossuth, Mitchell (except
the city of Osage), Winnebago, Winneshiek, and Worth; and
(2) In Mitchell County the city of Osage.
(d) All of the State of Kansas.
(e) In the State of Minnesota, the counties of: Lincoln, Nobles,
Pipestone, and Rock.
(f) In the State of Missouri: (1) The counties of:
Andrew, Atchison, Bates, Buchanan, Caldwell, Carroll, Cass, Clark,
Clay, Clinton, Daviess, De Kalb, Franklin, Gentry, Grundy, Harrison,
Henry, Hickory, Holt, Jackson, Jefferson, Johnson, Knox, Lafayette,
Lewis, Lincoln, Livingston, Marion, Mercer, Nodaway, Pettis, Platte,
Putnam, Ray, Saline, Schuyler, Scotland, Shelby, St. Charles, St.
Clair, Ste. Genevieve, St. Louis, Sullivan, Warren, and Worth; and
(2) The city of St. Louis.
(g) In the State of Nebraska, the counties of: Adams, Antelope,
Boone, Buffalo, Burt, Butler, Cass, Cedar, Chase, Clay, Colfax, Cuming,
Custer, Dakota, Dawson, Dixon, Dodge, Douglas, Dundy, Fillmore,
Franklin, Frontier, Furnas, Gage, Gosper, Greeley, Hall, Hamilton,
Harlan, Hayes, Hitchcock, Howard, Jefferson, Johnson, Kearney, Keith,
Knox, Lancaster, Lincoln, Madison, Merrick, Nance, Nemaha, Nuckolls,
Otoe, Pawnee, Perkins, Phelps, Pierce, Platte, Polk, Red Willow,
Richardson, Saline, Sarpy, Saunders, Seward, Sherman, Stanton, Thayer,
Thurston, Valley, Washington, Wayne, Webster, and York.
(h) All of the State of Oklahoma.
(i) In the State of South Dakota, the counties of: Aurora, Beadle,
Bon Homme, Brookings, Clark, Clay, Codington, Davison, Deuel, Douglas,
Hamlin, Hanson, Hutchinson, Jerauld, Kingsbury, Lake, Lincoln, McCook,
Miner, Minnehaha, Moody, Sanborn, Spink, Turner, Union, and Yankton.
(j) In the State of Wisconsin, the counties of: Crawford and Grant.
Sec. 1032.3 Route disposition.
See Sec. 1000.3 of this chapter.
Sec. 1032.4 Plant.
See Sec. 1000.4 of this chapter.
Sec. 1032.5 Distributing plant.
Sec. 1000.5 of this chapter.
Sec. 1032.6 Supply plant.
Sec. 1000.6 of this chapter.
Sec. 1032.7 Pool plant.
Pool plant means a plant, unit of plants, or a system of plants as
specified in paragraphs (a) through (f) of this section. The pooling
standards described in paragraphs (a), (c), (d), (e), and (f) of this
section are subject to modification pursuant to paragraph (g) of this
section:
(a) A distributing plant from which during the month:
(1) Total route disposition is equal to 25 percent of more of the
total quantity of bulk fluid milk products physically received at the
plant; and
(2) Route disposition in the marketing area is at least 15 percent
of total route disposition.
(3) For purposes of this section, packaged fluid milk products that
are transferred to a distributing plant shall be considered as route
disposition from the transferring plant, rather than the receiving
plant, for the single purpose of qualifying the transferring plant as a
pool distributing plant.
(b) A distributing plant located in the marketing area at which the
majority of milk received is processed into aseptically packaged fluid
milk products unless there are no sales from the plant into any
marketing area and the plant operator in writing requests nonpool plant
status for the plant for the month.
(c) A supply plant from which the quantity of bulk fluid milk
products transferred or diverted to plants described in paragraph (a)
or (b) of this section during each of the months of September through
November and January is 35 percent or more of the total Grade A milk
received at the plant from dairy farmers (except dairy farmers
described in Sec. 1032.12(b)) and handlers described in Sec. 1000.9(c),
including milk diverted by the plant operator, and 25 percent for all
other months, subject to the following conditions:
(1) A supply plant that has qualified as a pool plant during each
of the immediately preceding months of August through April shall
continue to so qualify in each of the following months of May through
July, unless the plant operator files a written request with the market
administrator that such plant not be a pool plant, such nonpool status
to be effective the first month following such request and thereafter
until the plant qualifies as a pool plant on the basis of milk
shipments;
(2) A pool plant operator may include as qualifying shipments milk
diverted to pool distributing plants pursuant to Sec. 1032.13(c);
(3) The operator of a supply plant may include as qualifying
shipments transfers of fluid milk products to distributing plants
regulated under any other Federal order, except that credit for such
transfers shall be limited to the amount of milk, including milk
shipped directly from producers' farms, delivered to distributing
plants qualified as pool plants pursuant to paragraphs (a) or (b) of
this section;
(4) No plant may qualify as a pool plant due to a reduction in the
shipping percentage pursuant to paragraph (g) of this section unless it
has been a pool supply plant during each of the immediately preceding
three months.
(d) A plant located in the marketing area and operated by a
cooperative association if, during the month or the immediately
preceding 12-month period, 35 percent or more of the producer milk of
members of the association (and any producer milk of nonmembers and
members of another cooperative association which may be marketed by the
cooperative association) is physically received in the form of bulk
fluid milk products at
[[Page 5055]]
plants specified in paragraph (a) or (b) of this section either
directly from farms or by transfer from supply plants operated by the
cooperative association and from plants of the cooperative association
for which pool plant status has been requested under this paragraph
subject to the following conditions:
(1) The plant does not qualify as a pool plant under paragraph (a),
(b) or (c) of this section or under comparable provisions of another
Federal order; and
(2) The plant is approved by a duly constituted regulatory agency
for the handling of milk approved for fluid consumption in the
marketing area.
(e) Two or more plants operated by the same handler and located in
the marketing area may qualify for pool status as a unit by meeting the
total and in-area route disposition requirements of a pool distributing
plant specified in paragraph (a) of this section and subject to the
following additional requirements:
(1) At least one of the plants in the unit must qualify as a pool
plant pursuant to paragraph (a) of this section;
(2) Other plants in the unit must process Class I or Class II
products, using 50 percent or more of the total Grade A fluid milk
products received in bulk form at such plant or diverted therefrom by
the plant operator in Class I or Class II products, and must be located
in a pricing zone providing the same or a lower Class I price than the
price applicable at the distributing plant included in the unit
pursuant to paragraph (e)(1) of this section; and
(3) The operator of the unit has filed a written request with the
market administrator prior to the first day of the month for which such
status is desired to be effective. The unit shall continue from month
to month thereafter without further notification. The handler shall
notify the market administrator in writing prior to the first day of
any month for which termination or any change of the unit is desired.
(f) A system of supply plants may be qualified for pooling by the
association of two or more supply plants operated by one or more
handlers by meeting the applicable percentage requirements of paragraph
(c) of this section in the same manner as a single plant, subject to
the following additional requirements:
(1) Each plant in the system is located within the marketing area;
(2) The handler(s) establishing the system submits a written
request to the market administrator on or before September 1 requesting
that such plants qualify as a system for the period of September
through August of the following year. Such request will contain a list
of the plants participating in the system.
(3) Each plant included within a pool supply plant system shall
continue each month as a plant in the system through the following
August unless the handler(s) establishing the system submits a written
request to the market administrator that the plant be deleted from the
system or that the system be discontinued. Any plant that has been so
deleted from a system, or that has failed to qualify in any month, will
not be part of any system for the remaining months through August. No
plant may be added in any subsequent month through the following August
to a system that qualifies in September.
(4) If a system fails to qualify under the requirements of this
paragraph, the handler responsible for qualifying the system shall
notify the market administrator which plant or plants will be deleted
from the system so that the remaining plants may be pooled as a system.
If the handler fails to do so, the market administrator shall exclude
one or more plants, beginning at the bottom of the list of plants in
the system and continuing up the list as necessary until the deliveries
are sufficient to qualify the remaining plants in the system;
(g) The applicable shipping percentages of paragraphs (a), (c),
(d), and (f) of this section may be increased or decreased by the
market administrator if found necessary to obtain needed shipments or
to prevent uneconomic shipments. Before making a finding that a change
is necessary the market administrator shall investigate the need for
revision, either on the market administrator's own initiative or at the
request of interested persons. If such investigation shows that a
revision might be appropriate, a notice shall be issued stating that a
revision is being considered and inviting data, views, and arguments.
If the market administrator determines that an adjustment to the
shipping percentages is necessary, the market administrator shall
notify the industry within one day of the effective date of such
adjustment.
(h) The term pool plant shall not apply to the following plants:
(1) A producer-handler as defined under any Federal order;
(2) An exempt plant as defined in Sec. 1000.8(e);
(3) A plant located within the marketing area and qualified
pursuant to paragraph (a) or (e) of this section which meets the
pooling requirements of another Federal order, and from which more than
50 percent of its route disposition has been in the other Federal order
marketing area for three consecutive months. On the basis of a written
application made by the plant operator at least 15 days prior to the
date for which a determination of the market administrator is to be
effective, the market administrator may determine that the route
disposition in the respective marketing areas to be used for purposes
of this paragraph shall exclude (for a specified period of time) route
disposition made under limited term contracts to governmental bases and
institutions;
(4) A plant located outside the marketing area and qualified
pursuant to paragraph (a) of this section that meets the pooling
requirements of another Federal order and has had greater sales in such
other Federal order's marketing area for 3 consecutive months;
(5) A plant located in another Federal order marketing area and
qualified pursuant to paragraph (a) of this section that meets the
pooling requirements of such other Federal order and does not have a
majority of its route distribution in this marketing area for 3
consecutive months or if the plant is required to be regulated under
such other Federal order without regard to its route disposition in any
other Federal order marketing area;
(6) A plant qualified pursuant to paragraph (c) of this section
which also meets the pooling requirements of another Federal order and
from which greater qualifying shipments are made to plants regulated
under the other Federal order than are made to plants regulated under
this order, or the plant has automatic pooling status under the other
Federal order; and
(7) That portion of a regulated plant designated as a nonpool plant
that is physically separate and operated separately from the pool
portion of such plant. The designation of a portion of a regulated
plant as a nonpool plant must be requested in advance and in writing by
the handler and must be approved by the market administrator.
Sec. 1032.8 Nonpool plant.
See Sec. 1000.8 of this chapter.
Sec. 1032.9 Handler.
See Sec. 1000.9 of this chapter.
Sec. 1032.10 Producer-handler.
Except as provided in paragraph (g) of this section, producer-
handler means a person who:
(a) Operates a dairy farm and a distributing plant from which there
is monthly route disposition in excess of 150,000 pounds during the
month;
(b) Receives no fluid milk products from sources other than own
farm production, pool handlers, and plants
[[Page 5056]]
fully regulated under another Federal order;
(c) Receives at its plant or acquires for route disposition no more
than 150,000 pounds of fluid milk products from handlers fully
regulated under any Federal order. This limitation shall not apply if
the producer-handler's own farm production is less than 150,000 pounds
during the month.
(d) Disposes of no other source milk as Class I milk except by
increasing the nonfat milk solids content of the fluid milk products
received from own farm production or pool handlers;
(e) Disposes of no fluid milk products using the distribution
system of another handler except for direct deliveries to retail
outlets or to a pool handler's plant;
(f) Provides proof satisfactory to the market administrator that
the care and management of the dairy animals and other resources
necessary to produce all Class I milk handled (excluding receipts from
handlers fully regulated under any Federal order) and the processing,
packaging, and distribution operations are the producer-handler's own
enterprise and at its own risk; and
(g) Producer-handler shall not include any producer who also
operates a distributing plant if the producer-handler so requests that
the two be operated as separate entities with the distributing plant
regulated under Sec. 1032.7(a) and the farm operated as a producer
under Sec. 1032.12.
Sec. 1032.11 [Reserved]
Sec. 1032.12 Producer.
(a) Except as provided in paragraph (b) of this section, producer
means any person who produces milk approved by a duly constituted
regulatory agency for fluid consumption as Grade A milk and whose milk
(or components of milk) is:
(1) Received at a pool plant directly from the producer or diverted
by the plant operator in accordance with Sec. 1032.13; or
(2) Received by a handler described in Sec. 1000.9(c).
(b) Producer shall not include:
(1) A producer-handler as defined in any Federal order;
(2) A dairy farmer whose milk is received at an exempt plant,
excluding producer milk diverted to the exempt plant pursuant to
Sec. 1032.13(d);
(3) A dairy farmer whose milk is received by diversion at a pool
plant from a handler regulated under another Federal order if the other
Federal order designates the dairy farmer as a producer under that
order and that milk is allocated by request to a utilization other than
Class I; and
(4) A dairy farmer whose milk is reported as diverted to a plant
fully regulated under another Federal order with respect to that
portion of the milk so diverted that is assigned to Class I under the
provisions of such other order.
Sec. 1032.13 Producer milk.
Producer milk means the skim milk (or the skim equivalent of
components of skim milk), including nonfat components, and butterfat in
milk of a producer that is:
(a) Received by the operator of a pool plant directly from a
producer or a handler described in Sec. 1000.9(c). Any milk picked up
from the producer's farm tank in a tank truck under the control of the
operator of a pool plant or a handler described in Sec. 1000.9(c) but
which is not received at a plant until the following month shall be
considered as having been received by the handler during the month in
which it is picked up at the producer's farm. All milk received
pursuant to this paragraph shall be priced at the location of the plant
where it is first physically received;
(b) Received by a handler described in Sec. 1000.9(c) in excess of
the quantity delivered to pool plants;
(c) Diverted by a pool plant operator to another pool plant. Milk
so diverted shall be priced at the location of the plant to which
diverted; or
(d) Diverted by the operator of a pool plant or a cooperative
association described in Sec. 1000.9(c) to a nonpool plant, subject to
the following conditions:
(1) Milk of a dairy farmer shall not be eligible for diversion
unless at least one day's production of such dairy farmer has been
physically received as producer milk at a pool plant and the dairy
farmer has continuously retained producer status since that time. If a
dairy farmer loses producer status under this order (except as a result
of a temporary loss of Grade A approval), the dairy farmer's milk shall
not be eligible for diversion until milk of the dairy farmer has been
physically received as producer milk at a pool plant;
(2) Of the quantity of producer milk received during the month
(including diversions, but excluding the quantity of producer milk
received from a handler described in Sec. 1000.9(c)) the handler
diverts to nonpool plants not more than 65 percent during the months of
September through November and January, and not more than 75 percent
during the months of February through August and December;
(3) Diverted milk shall be priced at the location of the plant to
which diverted;
(4) Any milk diverted in excess of the limits prescribed in (d)(2)
of this section shall not be producer milk. If the diverting handler or
cooperative association fails to designate the dairy farmers'
deliveries that are not to be producer milk, no milk diverted by the
handler or cooperative association during the month to a nonpool plant
shall be producer milk; and
(5) The applicable diversion limits in paragraph (d)(2) of this
section may be increased or decreased by the market administrator if
the market administrator finds that such revision is necessary to
assure orderly marketing and efficient handling of milk in the
marketing area. Before making such a finding, the market administrator
shall investigate the need for the revision either on the market
administrator's own initiative or at the request of interested persons.
If the investigation shows that a revision might be appropriate, the
market administrator shall issue a notice stating that the revision is
being considered and inviting written data, views, and arguments. Any
decision to revise an applicable percentage must be issued in writing
at least one day before the effective date.
Sec. 1032.14 Other source milk.
See Sec. 1000.14 of this chapter.
Sec. 1032.15 Fluid milk product.
See Sec. 1000.15 of this chapter.
Sec. 1032.16 Fluid cream product.
See Sec. 1000.16 of this chapter.
Sec. 1032.17 [Reserved]
Sec. 1032.18 Cooperative association.
See Sec. 1000.18 of this chapter.
Sec. 1032.19 Commercial food processing establishment.
See Sec. 1000.19 of this chapter.
Handler Reports
Sec. 1032.30 Reports of receipts and utilization.
Each handler shall report monthly so that the market
administrator's office receives the report on or before the 7th day
after the end of the month, in the detail and on the prescribed forms,
as follows:
(a) Each handler that operates a pool plant pursuant to Sec. 1032.7
and each handler described in Sec. 1000.9(c) shall report for each of
its operations the following information:
(1) Product pounds, pounds of butterfat, pounds of protein, pounds
of
[[Page 5057]]
solids-not-fat other than protein (other solids), and the value of the
somatic cell adjustment pursuant to Sec. 1000.50(p), contained in or
represented by:
(i) Receipts of producer milk, including producer milk diverted by
the handler; and
(ii) Receipts of milk from handlers described in Sec. 1000.9(c);
(2) Product pounds and pounds of butterfat contained in:
(i) Receipts of fluid milk products and bulk fluid cream products
from other pool plants;
(ii) Receipts of other source milk; and
(iii) Inventories at the beginning and end of the month of fluid
milk products and bulk fluid cream products;
(3) The utilization or disposition of all milk and milk products
required to be reported pursuant to this paragraph; and
(4) Such other information with respect to the receipts and
utilization of skim milk, butterfat, milk protein, other nonfat solids,
and somatic cell information, as the market administrator may
prescribe.
(b) Each handler operating a partially regulated distributing plant
shall report with respect to such plant in the same manner as
prescribed for reports required by paragraph (a) of this section.
Receipts of milk that would have been producer milk if the plant had
been fully regulated shall be reported in lieu of producer milk. The
report shall show also the quantity of any reconstituted skim milk in
route disposition in the marketing area.
(c) Each handler not specified in paragraphs (a) and (b) of this
section shall report with respect to its receipts and utilization of
milk and milk products in such manner as the market administrator may
prescribe.
Sec. 1032.31 Payroll reports.
(a) On or before the 20th day after the end of each month, each
handler that operates a pool plant pursuant to Sec. 1032.7 and each
handler described in Sec. 1000.9(c) shall report to the market
administrator its producer payroll for the month, in the detail
prescribed by the market administrator, showing for each producer the
information described in Sec. 1032.73(f).
(b) Each handler operating a partially regulated distributing plant
who elects to make payment pursuant to Sec. 1000.76(b) shall report for
each dairy farmer who would have been a producer if the plant had been
fully regulated in the same manner as prescribed for reports required
by paragraph (a) of this section.
Sec. 1032.32 Other reports.
In addition to the reports required pursuant to Secs. 1032.30 and
1032.31, each handler shall report any information the market
administrator deems necessary to verify or establish each handler's
obligation under the order.
Classification of Milk
Sec. 1032.40 Classes of utilization.
See Sec. 1000.40 of this chapter.
Sec. 1032.41 [Reserved]
Sec. 1032.42 Classification of transfers and diversions.
See Sec. 1000.42 of this chapter.
Sec. 1032.43 General classification rules.
See Sec. 1000.43 of this chapter.
Sec. 1032.44 Classification of producer milk.
See Sec. 1000.44 of this chapter.
Sec. 1032.45 Market administrator's reports and announcements
concerning classification.
See Sec. 1000.45 of this chapter.
Class Prices
Sec. 1032.50 Class prices and component prices.
See Sec. 1000.50 of this chapter.
Sec. 1032.51 Class I differential and price.
The Class I differential shall be the differential established for
Jackson County, Missouri, which is reported in Sec. 1000.52. The Class
I price shall be the price computed pursuant to Sec. 1000.50(a) for
Jackson County, Missouri.
Sec. 1032.52 Adjusted Class I differentials.
See Sec. 1000.52 of this chapter.
Sec. 1032.53 Announcement of class prices and component prices.
See Sec. 1000.53 of this chapter.
Sec. 1032.54 Equivalent price.
See Sec. 1000.54 of this chapter.
Producer Price Differential
Sec. 1032.60 Handler's value of milk.
For the purpose of computing a handler's obligation for producer
milk, the market administrator shall determine for each month the value
of milk of each handler with respect to each of its pool plants, and of
each handler described in Sec. 1000.9(c) as follows:
(a) Class I value.
(1) Multiply the hundredweight of skim milk in Class I as
determined pursuant to Sec. 1000.44(a) by the Class I skim milk price
applicable at the handler's location; and
(2) Add an amount obtained by multiplying the pounds of butterfat
in Class I as determined pursuant to Sec. 1000.44(b) by the Class I
butterfat price applicable at the handler's location.
(b) Add the Class II value, computed as follows:
(1) Multiply the hundredweight of skim milk in Class II as
determined pursuant to Sec. 1000.44(a) by 70 cents;
(2) Add an amount obtained by multiplying the pounds of skim milk
in Class II as determined pursuant to Sec. 1000.44(a) by the average
nonfat solids content of producer skim milk received by the handler,
and multiply the resulting pounds of nonfat solids by the nonfat solids
price; and
(3) Add an amount obtained by multiplying the pounds of butterfat
in Class II as determined pursuant to Sec. 1000.44(b) by the butterfat
price;
(c) Add the Class III value computed as follows:
(1) Multiply the pounds of skim milk in Class III as determined
pursuant to Sec. 1000.44(a) by the average protein content of producer
skim milk received by the handler, and multiply the resulting pounds of
protein by the protein price;
(2) Add an amount obtained by multiplying the pounds of skim milk
in Class III as determined pursuant to Sec. 1000.44(a) by the average
other solids content of producer skim milk received by the handler, and
multiply the resulting pounds of other solids by the other solids
price; and
(3) Add an amount obtained by multiplying the pounds of butterfat
in Class III as determined pursuant to Sec. 1000.44(b) by the butterfat
price;
(d) Add the Class IV value computed as follows:
(1) Multiply the pounds of skim milk in Class IV as determined
pursuant to Sec. 1000.44(a) by the average nonfat solids content of
producer skim milk received by the handler, and multiply the resulting
pounds of nonfat solids by the nonfat solids price; and
(2) Add an amount obtained by multiplying the pounds of butterfat
in Class IV as determined pursuant to Sec. 1000.44(b) by the butterfat
price;
(e) Add an adjustment for somatic cell content of producer milk
determined by multiplying the value reported pursuant to
Sec. 1032.30(a)(1) by the percentage of the total producer milk
allocated to Class II, Class III, and Class IV pursuant to
Sec. 1000.44(c);
(f) Add the amounts obtained from multiplying the pounds of skim
milk and butterfat overage assigned to each class pursuant to
Sec. 1000.43(b)(2) by the respective skim milk and butterfat prices
applicable at the location of the pool plant;
(g) Add the amount obtained from multiplying the difference between
the
[[Page 5058]]
Class III price for the preceding month and the Class I price
applicable at the location of the pool plant or the Class II price, as
the case may be, for the current month by the hundredweight of skim
milk and butterfat subtracted from Class I and Class II pursuant to
Sec. 1000.44(a)(7) and the corresponding step of Sec. 1000.44(b);
(h) Add the amount obtained from multiplying the difference between
the Class I price applicable at the location of the pool plant and the
Class III price by the hundredweight of skim milk and butterfat
assigned to Class I pursuant to Sec. 1000.43(d) and the hundredweight
of skim milk and butterfat subtracted from Class I pursuant to
Sec. 1000.44(a)(3)(i) through (iii) and the corresponding step of
Sec. 1000.44(b), excluding receipts of bulk fluid cream products from a
plant regulated under other Federal orders and bulk concentrated fluid
milk products from pool plants, plants regulated under other Federal
orders, and unregulated supply plants;
(i) Add the amount obtained from multiplying the difference between
the Class I price and the Class III price applicable at the location of
the nearest unregulated supply plants from which an equivalent volume
was received by the pounds of skim milk and butterfat in receipts of
concentrated fluid milk products assigned to Class I pursuant to
Sec. 1000.43(d) and Sec. 1000.44(a)(3)(i) and the pounds of skim milk
and butterfat subtracted from Class I pursuant to Sec. 1000.44(a)(8)
and the corresponding step of Sec. 1000.44(b), excluding such skim milk
and butterfat in receipts of bulk fluid milk products from an
unregulated supply plant to the extent that an equivalent amount of
skim milk or butterfat disposed of to such plant by handlers fully
regulated under any Federal milk order is classified and priced as
Class I milk and is not used as an offset for any other payment
obligation under any order;
(j) Subtract, for reconstituted milk made from receipts of nonfluid
milk products, an amount computed by multiplying $1.00 (but not more
than the difference between the Class I price applicable at the
location of the pool plant and the Class IV price) by the hundredweight
of skim milk and butterfat contained in receipts of nonfluid milk
products that are allocated to Class I pursuant to Sec. 1000.43(d); and
(k) Exclude, for pricing purposes under this section, receipts of
nonfluid milk products that are distributed as labeled reconstituted
milk for which payments are made to the producer-settlement fund of
another order under Sec. 1000.76(a)(5) or (c).
Sec. 1032.61 Computation of producer price differential.
For each month the market administrator shall compute a producer
price differential per hundredweight. If the unreserved balance in the
producer-settlement fund to be included in the computation is less than
2 cents per hundredweight of producer milk on all reports, the report
of any handler who has not made payments required pursuant to
Sec. 1032.71 for the preceding month shall not be included in the
computation of the producer price differential. The report of such
handler shall not be included in the computation for succeeding months
until the handler has made full payment of outstanding monthly
obligations. Subject to the aforementioned conditions, the market
administrator shall compute the producer price differential in the
following manner:
(a) Combine into one total the values computed pursuant to
Sec. 1032.60 for all handlers required to file reports prescribed in
Sec. 1032.30;
(b) Subtract the total values obtained by multiplying each
handler's total pounds of protein, other solids, and butterfat
contained in the milk for which an obligation was computed pursuant to
Sec. 1032.60 by the protein price, the other solids price, and the
butterfat price, respectively, and the total value of the somatic cell
adjustment pursuant to Sec. 1032.30(a)(1);
(c) Add an amount equal to the sum of the location adjustments
computed pursuant to Sec. 1032.75;
(d) Add an amount equal to not less than one-half of the
unobligated balance in the producer-settlement fund;
(e) Divide the resulting amount by the sum of the following for all
handlers included in these computations:
(1) The total hundredweight of producer milk; and
(2) The total hundredweight for which a value is computed pursuant
to Sec. 1032.60(i); and
(f) Subtract not less than 4 cents nor more than 5 cents from the
price computed pursuant to paragraph (e) of this section. The result
shall be known as the producer price differential for the month.
Sec. 1032.62 Announcement of producer prices.
On or before the 11th day after the end of each month, the market
administrator shall announce publicly the following prices and
information:
(a) The producer price differential;
(b) The protein price;
(c) The other solids price;
(d) The butterfat price;
(e) The somatic cell adjustment rate;
(f) The average butterfat, protein and other solids content of
producer milk; and
(g) The statistical uniform price for milk containing 3.5 percent
butterfat, computed by combining the Class III price and the producer
price differential.
Payments for Milk
Sec. 1032.70 Producer-settlement fund.
See Sec. 1000.70 of this chapter.
Sec. 1032.71 Payments to the producer-settlement fund.
Each handler shall make payment to the producer-settlement fund in
a manner that provides receipt of the funds by the market administrator
no later than the 14th day after the end of the month. Payment shall be
the amount, if any, by which the amount specified in (a) of this
section exceeds the amount specified in (b) of this section:
(a) The total value of milk to the handler for the month as
determined pursuant to Sec. 1032.60.
(b) The sum of:
(1) An amount obtained by multiplying the total hundredweight of
producer milk as determined pursuant to Sec. 1000.44(c) by the producer
price differential as adjusted pursuant to Sec. 1032.75;
(2) An amount obtained by multiplying the total pounds of protein,
other solids, and butterfat contained in producer milk by the protein,
other solids, and butterfat prices respectively;
(3) The total value of the somatic cell adjustment to producer
milk; and
(4) An amount obtained by multiplying the pounds of skim milk and
butterfat for which a value was computed pursuant to Sec. 1032.60(i) by
the producer price differential as adjusted pursuant to Sec. 1032.75
for the location of the plant from which received.
Sec. 1032.72 Payments from the producer-settlement fund.
No later than the 15th day after the end of each month, the market
administrator shall pay to each handler the amount, if any, by which
the amount computed pursuant to Sec. 1032.71(b) exceeds the amount
computed pursuant to Sec. 1032.71(a). If, at such time, the balance in
the producer-settlement fund is insufficient to make all payments
pursuant to this section, the market administrator shall reduce
uniformly such payments and shall complete the payments as soon as the
funds are available.
[[Page 5059]]
Sec. 1032.73 Payments to producers and to cooperative associations.
(a) Each handler shall pay each producer for producer milk for
which payment is not made to a cooperative association pursuant to
paragraph (b) of this section, as follows:
(1) Partial payment. For each producer who has not discontinued
shipments as of the date of this partial payment, payment shall be made
so that it is received by each producer on or before the 26th day of
the month for milk received during the first 15 days of the month from
the producer at not less than the lowest announced class price for the
preceding month, less proper deductions authorized in writing by the
producer; and
(2) Final payment. For milk received during the month, payment
shall be made so that it is received by each producer no later than the
17th day after the end of the month in an amount equal to not less than
the sum of:
(i) The hundredweight of producer milk received times the producer
price differential for the month as adjusted pursuant to Sec. 1032.75;
(ii) The pounds of butterfat received times the butterfat price for
the month;
(iii) The pounds of protein received times the protein price for
the month;
(iv) The pounds of other solids received times the other solids
price for the month;
(v) The hundredweight of milk received times the somatic cell
adjustment for the month;
(vi) Less any payment made pursuant to paragraph (a)(1) of this
section;
(vii) Less proper deductions authorized in writing by such producer
and plus or minus adjustments for errors in previous payments to such
producer; and
(viii) Less deductions for marketing services pursuant to
Sec. 1000.86.
(b) Payments for milk received from cooperative association
members. On or before the day prior to the dates specified in
paragraphs (a)(1) and (a)(2) of this section, each handler shall pay to
a cooperative association for milk from producers who market their milk
through the cooperative association and who have authorized the
cooperative to collect such payments on their behalf an amount equal to
the sum of the individual payments otherwise payable for such producer
milk pursuant to paragraphs (a)(1) and (a)(2) of this section.
(c) Payment for milk received from cooperative association pool
plants or from cooperatives as handlers pursuant to Sec. 1000.9(c). On
or before the day prior to the dates specified in paragraph (a)(1) and
(a)(2) of this section, each handler who receives fluid milk products
at its plant from a cooperative association in its capacity as the
operator of a pool plant or who receives milk from a cooperative
association in its capacity as a handler pursuant to Sec. 1000.9(c),
including the milk of producers who are not members of such association
and who the market administrator determines have authorized the
cooperative association to collect payment for their milk, shall pay
the cooperative for such milk as follows:
(1) For bulk fluid milk products and bulk fluid cream products
received from a cooperative association in its capacity as the operator
of a pool plant and for milk received from a cooperative association in
its capacity as a handler pursuant to Sec. 1000.9(c) during the first
15 days of the month, at not less than the lowest announced class price
per hundredweight for the preceding month;
(2) For the total quantity of bulk fluid milk products and bulk
fluid cream products received from a cooperative association in its
capacity as the operator of a pool plant, at not less than the total
value of such products received from the association's pool plants, as
determined by multiplying the respective quantities assigned to each
class under Sec. 1000.44, as follows:
(i) The hundredweight of Class I skim milk times the Class I skim
milk price for the month plus the pounds of Class I butterfat times the
Class I butterfat price for the month. The Class I price to be used
shall be that price effective at the location of the shipping plant;
(ii) The hundredweight of Class II skim milk times $.70;
(iii) The pounds of nonfat solids received in Class II and Class IV
milk times the nonfat solids price for the month;
(iv) The pounds of butterfat received in Class II, Class III, and
Class IV milk times the butterfat price for the month;
(v) The pounds of protein received in Class III milk times the
protein price for the month;
(vi) The pounds of other solids received in Class III milk times
the other solids price for the month;
(vii) The hundredweight of Class II, Class III, and Class IV milk
received times the somatic cell adjustment; and
(viii) Add together the amounts computed in paragraphs (c)(2)(i)
through (vii) of this section and from that sum deduct any payment made
pursuant to paragraph (c)(1) of this section.
(3) For the total quantity of milk received during the month from a
cooperative association in its capacity as a handler under
Sec. 1000.9(c) as follows:
(i) The hundredweight of producer milk received times the producer
price differential as adjusted pursuant to Sec. 1032.75;
(ii) The pounds of butterfat received times the butterfat price for
the month;
(iii) The pounds of protein received times the protein price for
the month;
(iv) The pounds of other solids received times the other solids
price for the month;
(v) The hundredweight of milk received times the somatic cell
adjustment for the month; and
(vi) Add together the amounts computed in paragraphs (c)(3)(i)
through (v) of this section and from that sum deduct any payment made
pursuant to paragraph (c)(1) of this section.
(d) If a handler has not received full payment from the market
administrator pursuant to Sec. 1032.72 by the payment date specified in
paragraph (a), (b) or (c) of this section, the handler may reduce pro
rata its payments to producers or to the cooperative association (with
respect to receipts described in paragraph (b), prorating the
underpayment to the volume of milk received from the cooperative
association in proportion to the total milk received from producers by
the handler), but not by more than the amount of the underpayment. The
payments shall be completed on the next scheduled payment date after
receipt of the balance due from the market administrator.
(e) If a handler claims that a required payment to a producer
cannot be made because the producer is deceased or cannot be located,
or because the cooperative association or its lawful successor or
assignee is no longer in existence, the payment shall be made to the
producer-settlement fund, and in the event that the handler
subsequently locates and pays the producer or a lawful claimant, or in
the event that the handler no longer exists and a lawful claim is later
established, the market administrator shall make the required payment
from the producer-settlement fund to the handler or to the lawful
claimant, as the case may be.
(f) In making payments to producers pursuant to this section, each
handler shall furnish each producer, except a producer whose milk was
received from a cooperative association handler described in
Sec. 1000.9(a) or (c), a supporting statement in a form that may be
retained by the recipient which shall show:
(1) The name, address, Grade A identifier assigned by a duly
constituted regulatory agency, and payroll number of the producer;
[[Page 5060]]
(2) The daily and total pounds, and the month and dates such milk
was received from that producer;
(3) The total pounds of butterfat, protein, and other solids
contained in the producer's milk;
(4) The somatic cell count of the producer's milk;
(5) The minimum rate or rates at which payment to the producer is
required pursuant to this order;
(6) The rate used in making payment if the rate is other than the
applicable minimum rate;
(7) The amount, or rate per hundredweight, or rate per pound of
component, and the nature of each deduction claimed by the handler; and
(8) The net amount of payment to the producer or cooperative
association.
Sec. 1032.74 [Reserved]
Sec. 1032.75 Plant location adjustments for producer milk and nonpool
milk.
(a) The producer price differential for producer milk shall be
adjusted according to the location of the plant at which the milk was
physically received by subtracting from the price differential the
amount by which the Class I price specified in Sec. 1032.51 exceeds the
Class I price at the plant's location. If the Class I price at the
plant location exceeds the Class I price specified in Sec. 1032.51, the
difference shall be added to the producer price differential; and
(b) The producer price differential applicable to other source milk
shall be adjusted following the procedure specified in paragraph (a) of
this section, except that the adjusted producer price differential
shall not be less than zero.
Sec. 1032.76 Payments by a handler operating a partially regulated
distributing plant.
See Sec. 1000.76 of this chapter.
Sec. 1032.77 Adjustment of accounts.
See Sec. 1000.77 of this chapter.
Sec. 1032.78 Charges on overdue accounts.
See Sec. 1000.78 of this chapter.
Administrative Assessment and Marketing Service Deduction
Sec. 1032.85 Assessment for order administration.
See Sec. 1000.85 of this chapter.
Sec. 1032.86 Deduction for marketing services.
See Sec. 1000.86 of this chapter.
PART 1033--MILK IN THE MIDEAST MARKETING AREA
Subpart--Order Regulating Handling
General Provisions
Sec.
1033.1 General provisions.
Definitions
1033.2 Mideast marketing area.
1033.3 Route disposition.
1033.4 Plant.
1033.5 Distributing plant.
1033.6 Supply plant.
1033.7 Pool plant.
1033.8 Nonpool plant.
1033.9 Handler.
1033.10 Producer-handler.
1033.11 [Reserved]
1033.12 Producer.
1033.13 Producer milk.
1033.14 Other source milk.
1033.15 Fluid milk product.
1033.16 Fluid cream product.
1033.17 [Reserved]
1033.18 Cooperative association.
1033.19 Commercial food processing establishment.
Handler Reports
1033.30 Reports of receipts and utilization.
1033.31 Payroll reports.
1033.32 Other reports.
Classification of Milk
1033.40 Classes of utilization.
1033.41 [Reserved]
1033.42 Classification of transfers and diversions.
1033.43 General classification rules.
1033.44 Classification of producer milk.
1033.45 Market administrator's reports and announcements concerning
classification.
Class Prices
1033.50 Class prices and component prices.
1033.51 Class I differential and price.
1033.52 Adjusted Class I differentials.
1033.53 Announcement of class prices and component prices.
1033.54 Equivalent price.
Producer Price Differential
1033.60 Handler's value of milk.
1033.61 Computation of producer price differential.
1033.62 Announcement of producer prices.
Payments for Milk
1033.70 Producer-settlement fund.
1033.71 Payments to the producer-settlement fund.
1033.72 Payments from the producer-settlement fund.
1033.73 Payments to producers and to cooperative associations.
1033.74 [Reserved]
1033.75 Plant location adjustments for producer milk and nonpool
milk.
1033.76 Payments by a handler operating a partially regulated
distributing plant.
1033.77 Adjustment of accounts.
1033.78 Charges on overdue accounts.
Administrative Assessment and Marketing Service Deduction
1033.85 Assessment for order administration.
1033.86 Deduction for marketing services.
Authority: 7 U.S.C. 601-674.
Subpart--Order Regulating Handling
General Provisions
Sec. 1033.1 General provisions.
The terms, definitions, and provisions in Part 1000 of this chapter
apply to and are hereby made a part of this order.
Definitions
Sec. 1033.2 Mideast marketing area.
The marketing area means all territory within the bounds of the
following states and political subdivisions, including all piers,
docks, and wharves connected therewith and all craft moored thereat,
and all territory occupied by government (municipal, State, or Federal)
reservations, installations, institutions, or other similar
establishments if any part thereof is within any of the listed states
or political subdivisions:
Ohio
All of the State of Ohio.
Indiana Counties
Adams, Allen, Bartholomew, Benton, Blackford, Boone, Brown,
Carroll, Cass, Clay, Clinton, Dearborn, Decatur, De Kalb, Delaware,
Elkhart, Fayette, Fountain, Franklin, Fulton, Grant, Hamilton,
Hancock, Hendricks, Henry, Howard, Huntington, Jackson, Jasper, Jay,
Jefferson, Jennings, Johnson, Kosciusko, Lagrange, Lake, La Porte,
Lawrence, Madison, Marion, Marshall, Miami, Monroe, Montgomery,
Morgan, Newton, Noble, Ohio, Owen, Parke, Porter, Pulaski, Putnam,
Randolph, Ripley, Rush, Shelby, St. Joseph, Starke, Steuben,
Switzerland, Tippecanoe, Tipton, Union, Vermillion, Vigo, Wabash,
Warren, Wayne, Wells, White, and Whitley.
Kentucky Counties
Boone, Boyd, Bracken, Campbell, Floyd, Grant, Greenup, Harrison,
Johnson, Kenton, Lawrence, Lewis, Magoffin, Martin, Mason,
Pendleton, Pike, and Robertson.
Michigan Counties
All counties except Delta, Dickinson, Gogebic, Iron, Menominee,
and Ontonagon.
Pennsylvania Counties
Allegheny, Armstrong, Beaver, Butler, Crawford, Erie, Fayette,
Greene, Lawrence, Mercer, Venango, and Washington.
In Clarion County only the townships of Ashland, Beaver,
Licking, Madison, Perry, Piney, Richland, Salem, and Toby.
All of Westmoreland County except the townships of Cook,
Donegal, Fairfield, Ligonier, and St. Clair, and the boroughs of
Bolivar, Donegal, Ligonier, New Florence, and Seward.
[[Page 5061]]
West Virginia Counties
Barbour, Boone, Brooke, Cabell, Calhoun, Doddridge, Fayette,
Gilmer, Hancock, Harrison, Jackson, Kanawha, Lewis, Lincoln, Logan,
Marion, Marshall, Mason, Mingo, Monongalia, Ohio, Pleasants,
Preston, Putnam, Raleigh, Randolph, Ritchie, Roane, Taylor, Tucker,
Tyler, Upshur, Wayne, Wetzel, Wirt, Wood, and Wyoming.
Sec. 1033.3 Route disposition.
See Sec. 1000.3 of this chapter.
Sec. 1033.4 Plant.
See Sec. 1000.4 of this chapter.
Sec. 1033.5 Distributing plant.
See Sec. 1000.5 of this chapter.
Sec. 1033.6 Supply plant.
See Sec. 1000.6 of this chapter.
Sec. 1033.7 Pool plant.
Pool plant means a plant, unit of plants, or a system of plants as
specified in paragraphs (a) through (f) of this section. The pooling
standards described in paragraphs (a), (c), (d), (e), and (f) of this
section are subject to modification pursuant to paragraph (g) of this
section:
(a) A distributing plant from which during the month:
(1) Total route disposition is equal to 30 percent or more of the
total quantity of bulk fluid milk products physically received at the
plant;
(2) Route disposition in the marketing area is at least 30 percent
of total route disposition.
(3) For purposes of this section, packaged fluid milk products that
are transferred to a distributing plant shall be considered as route
disposition from the transferring plant, rather than the receiving
plant, for the single purpose of qualifying the transferring plant as a
pool distributing plant.
(b) A distributing plant located in the marketing area at which the
majority of milk received is processed into aseptically packaged fluid
milk products unless there are no sales from the plant into any
marketing area and the plant operator in writing requests nonpool plant
status for the plant for the month.
(c) A supply plant from which the quantity of bulk fluid milk
products shipped to, received at, and physically unloaded into plants
described in paragraph (a) or (b) of this section as a percent of the
Grade A milk received at the plant from dairy farmers (except dairy
farmers described in Sec. 1033.12(b)) and handlers described in
Sec. 1033.9(c), as reported in Sec. 1033.30(a), is not less than 30
percent of the milk received from dairy farmers, including milk
diverted pursuant to Sec. 1033.13, subject to the following conditions:
(1) Qualifying shipments pursuant to this paragraph may be made to
the following plants, except whenever the authority provided in
paragraph (g) of this section is applied to increase the shipping
requirements specified in this section, only shipments to pool plants
described in Sec. 1033.7(a) and (b), and units described in
Sec. 1033.7(e) shall count as qualifying shipments for the purpose of
meeting the increased shipments:
(i) Pool plants described in Sec. 1033.7(a), (b) and (e);
(ii) Plants of producer-handlers;
(iii) Partially regulated distributing plants, except that credit
for such shipments shall be limited to the amount of such milk
classified as Class I at the transferee plant; and
(iv) Distributing plants fully regulated under other Federal
orders, except that credit for transfers to such plants shall be
limited to the quantity shipped to pool distributing plants during the
month. Qualifying transfers to other order plants shall not include
transfers made on the basis of agreed-upon Class II, Class III, or
Class IV utilization.
(2) The operator of a supply plant may include deliveries to pool
distributing plants directly from farms of producers pursuant to
Sec. 1033.13(c) as up to 90 percent of the supply plant's qualifying
shipments;
(3) A supply plant that meets the shipping requirements of this
paragraph during each of the immediately preceding months of September
through February shall be a pool plant during the following months of
March through August unless the milk received at the plant fails to
meet the requirements of a duly constituted regulatory agency, the
plant fails to meet a shipping requirement instituted pursuant to
paragraph (f) of this section, or the plant operator requests nonpool
status for the plant. Such nonpool status shall be effective on the
first day of the month following the receipts of such request and
thereafter until the plant again qualifies as a pool plant on the basis
of its deliveries to a pool distributing plant(s).
The automatic pool qualification of a plant can be waived if the
handler or cooperative requests in writing to the market administrator
the nonpool status of such plant. The request must be made prior to the
beginning of any month during the March through August period. The
plant shall be a nonpool plant for such month and thereafter until it
requalifies under paragraph (c) of this section on the basis of actual
shipments therefrom. To requalify as a pool plant under paragraph (d),
(e) or (f) of this section, such plant must first have met the
percentage shipping requirements of paragraph (c) of this section for 6
consecutive months; and
(4) A supply plant that does not meet the minimum delivery
requirements specified in this paragraph to qualify for pool status in
the current month because a distributing plant to which the supply
plant delivered its fluid milk products during such month failed to
qualify as a pool plant pursuant to paragraph (a) or (b) of this
section shall continue to be a pool plant for the current month if such
supply plant qualified as a pool plant in the three immediately
preceding months.
(d) A plant operated by a cooperative association if, during the
month, 35 percent or more of the producer milk of members of the
association is delivered to a distributing pool plant(s) or to a
nonpool plant(s), and classification other than Class I is not
requested. Deliveries for qualification purposes may be made directly
from the farm or by transfer from such association's plant, subject to
the following conditions:
(1) The cooperative requests pool status for such plant;
(2) The 35-percent delivery requirement may be met for the current
month or it may be met on the basis of deliveries during the preceding
12-month period ending with the current month;
(3) The plant is approved by a duly constituted regulatory
authority to handle milk for fluid consumption; and
(4) The plant does not qualify as a pool plant under (a), (b), or
(c) of this section or under the similar provisions of another Federal
order applicable to a distributing plant or supply plant.
(e) A plant located inside the marketing area which has been a pool
plant under this order or its predecessor orders for twelve consecutive
months, but is not otherwise qualified under this paragraph, if it has
a marketing agreement with a cooperative association and it fulfills
the following conditions:
(1) The aggregate monthly quantity supplied by all parties to such
an agreement as a percentage of the producer milk receipts included in
the unit during the month is not less than 35 percent; and
(2) Shipments for qualification purposes shall include both
transfers from supply plants to plants described in paragraph (c)(1) of
this section, and deliveries made direct from the farm to plants
qualified under paragraph (a) of this section.
(f) A system of supply plants may be qualified for pooling by the
association of two or more supply plants operated
[[Page 5062]]
by one or more handlers by meeting the applicable percentage
requirements of paragraph (c) of this section in the same manner as a
single plant and subject to the following additional requirements:
(1) Each plant in the system is located within the marketing area,
or was a pool supply plant for each of the three months immediately
preceding the effective date of this paragraph so long as it continues
to maintain pool status. Cooperative associations may not use shipments
pursuant to Sec. 1033.9(c) to qualify plants located outside the
marketing area;
(2) A written notification to the market administrator listing the
plants to be included in the system and the handler that is responsible
for meeting the performance requirements of this paragraph under a
marketing agreement certified to the market administrator by the
designated handler and any others included in the system, and the
period during which such consideration shall apply. Such notice, and
notice of any change in designation, shall be furnished on or before
the fifth working day following the month to which the notice applies.
The listed plants included in the system shall also be in the sequence
in which they shall qualify for pool plant status based on the minimum
deliveries required. If the deliveries made are insufficient to qualify
the entire system for pooling, the last listed plant shall be excluded
from the system, followed by the plant next-to-last on the list, and
continuing in this sequence until remaining listed plants have met the
minimum shipping requirements; and
(3) Each plant that qualifies as a pool plant within a system shall
continue each month as a plant in the system unless the plant
subsequently fails to qualify for pooling, or the responsible handler
submits a written notification to the market administrator prior to the
first day of the month that the plant is to be deleted from the system,
or that the system is to be discontinued. In any month of March through
August, a system shall not contain any plant which was not qualified
under this paragraph, either individually or as a member of a system,
during the previous September through February.
(g) The performance standards of paragraphs (a), (c), (d), (e) and
(f) of this section may be increased or decreased by the market
administrator if the market administrator finds that such adjustment is
necessary to obtain needed shipments or to prevent uneconomic
shipments. Before making such a finding, the market administrator shall
investigate the need for revision, either on the market administrator's
own initiative or at the request of interested persons. If such
investigation shows that a revision might be appropriate, the market
administrator shall issue a notice stating that a revision is being
considered and inviting data, views, and arguments. If the market
administrator determines that an adjustment to the shipping percentages
is necessary, the market administrator shall notify the industry within
one day of the effective date of such adjustment.
(h) The term pool plant shall not apply to the following plants:
(1) A producer-handler as defined under any Federal order;
(2) An exempt plant as defined in Sec. 1000.8(e);
(3) A plant located within the marketing area and qualified
pursuant to paragraph (a) of this section that meets the pooling
requirements of another Federal order, and from which more than 50
percent of its route disposition has been in the other Federal order
marketing area for three consecutive months;
(4) A plant located outside any Federal order marketing area and
qualified pursuant to paragraph (a) of this section that meets the
pooling requirements of another Federal order and has had greater sales
in such other Federal order's marketing area for 3 consecutive months;
(5) A plant located in another Federal order marketing area and
qualified pursuant to paragraph (a) of this section that meets the
pooling requirements of such other Federal order and does not have a
majority of its route distribution in this marketing area for 3
consecutive months or if the plant is required to be regulated under
such other Federal order without regard to its route disposition in any
other Federal order marketing area;
(6) A plant qualified pursuant to paragraph (c) or (d) of this
section that also meets the pooling requirements of another Federal
order and from which greater qualifying shipments are made to plants
regulated under the other Federal order than are made to plants
regulated under this order, or the plant has automatic pooling status
under the other Federal order; and
(7) That portion of a regulated plant designated as a nonpool plant
that is physically separate and operated separately from the pool
portion of such plant. The designation of a portion of a regulated
plant as a nonpool plant must be requested in advance and in writing by
the handler and must be approved by the market administrator.
(i) Any plant that qualifies as a pool plant in each of the
immediately preceding three months pursuant to paragraph (a) of this
section or the shipping percentages in paragraph (c) of this section
that is unable to meet such performance standards for the current month
because of unavoidable circumstances determined by the market
administrator to be beyond the control of the handler operating the
plant, such as a natural disaster (ice storm, wind storm, flood), fire,
breakdown of equipment, or work stoppage, shall be considered to have
met the minimum performance standards during the period of such
unavoidable circumstances, but such relief shall not be granted for
more than two consecutive months.
Sec. 1033.8 Nonpool plant.
See Sec. 1000.8 of this chapter.
Sec. 1033.9 Handler.
See Sec. 1000.9 of this chapter.
Sec. 1033.10 Producer-handler.
Except as provided in paragraph (g) of this section, producer-
handler means a person who:
(a) Operates a dairy farm and a distributing plant from which there
is monthly route disposition in excess of 150,000 pounds during the
month;
(b) Receives no fluid milk products from sources other than own
farm production, pool handlers, and plants fully regulated under
another Federal order;
(c) Receives at its plant or acquires for route disposition no more
than 150,000 pounds of fluid milk products from handlers fully
regulated under any Federal order. This limitation shall not apply if
the producer-handler's own farm production is less than 150,000 pounds
during the month.
(d) Disposes of no other source milk as Class I milk except by
increasing the nonfat milk solids content of the fluid milk products
received from own farm production or pool handlers;
(e) Disposes of no fluid milk products using the distribution
system of another handler except for direct deliveries to retail
outlets or to a pool handler's plant;
(f) Provides proof satisfactory to the market administrator that
the care and management of the dairy animals and other resources
necessary to produce all Class I milk handled (excluding receipts from
handlers fully regulated under any Federal order) and the processing,
packaging, and distribution operations are the producer-handler's own
enterprise and at its own risk; and
(g) Producer-handler shall not include any producer who also
operates a distributing plant if the producer-
[[Page 5063]]
handler so requests that the two be operated as separate entities with
the distributing plant regulated under Sec. 1033.7(a) and the farm
operated as a producer under Sec. 1033.12.
Sec. 1033.11 [Reserved]
Sec. 1033.12 Producer.
(a) Except as provided in paragraph (b) of this section, producer
means any person who produces milk approved by a duly constituted
regulatory agency for fluid consumption as Grade A milk and whose milk
is:
(1) Received at a pool plant directly from the producer or diverted
by the plant operator in accordance with Sec. 1033.13; or
(2) Received by a handler described in Sec. 1033.9(c).
(b) Producer shall not include:
(1) A producer-handler as defined in any Federal order;
(2) A dairy farmer whose milk is received at an exempt plant,
excluding producer milk diverted to the exempt plant pursuant to
Sec. 1033.13(d);
(3) A dairy farmer whose milk is received by diversion at a pool
plant from a handler regulated under another Federal order if the other
Federal order designates the dairy farmer as a producer under that
order and that milk is allocated by request to a utilization other than
Class I; and
(4) A dairy farmer whose milk is reported as diverted to a plant
fully regulated under another Federal order with respect to that
portion of the milk so diverted that is assigned to Class I under the
provisions of such other order.
Sec. 1033.13 Producer milk.
Producer milk means the skim milk (or the skim equivalent of
components of skim milk), including nonfat components, and butterfat in
milk of a producer that is:
(a) Received by the operator of a pool plant directly from a
producer or a handler described in Sec. 1000.9(c). Any milk picked up
from the producer's farm tank in a tank truck under the control of the
operator of a pool plant or a handler described in Sec. 1000.9(c) but
which is not received at a plant until the following month shall be
considered as having been received by the handler during the month in
which it is picked up at the producer's farm. All milk received
pursuant to this paragraph shall be priced at the location of the plant
where it is first physically received;
(b) Received by a handler described in Sec. 1000.9(c) in excess of
the quantity delivered to pool plants;
(c) Diverted by a pool plant operator to another pool plant. Milk
so diverted shall be priced at the location of the plant to which
diverted; or
(d) Diverted by the operator of a pool plant or by a cooperative
association described in Sec. 1033.9(c) to a nonpool plant, subject to
the following conditions:
(1) Milk of a dairy farmer shall not be eligible for diversion
until milk of such dairy farmer has been physically received as
producer milk at a pool plant and the dairy farmer has continuously
retained producer status since that time. If a dairy farmer loses
producer status under this order (except as a result of a temporary
loss of Grade A approval), the dairy farmer's milk shall not be
eligible for diversion until milk of the dairy farmer has been
physically received as producer milk at a pool plant;
(2) The equivalent of at least one day's production is caused by
the handler to be physically received at a pool plant in each of the
months of September through November;
(3) Of the total quantity of producer milk received during the
month (including diversions but excluding the quantity of producer milk
received from a handler described in Sec. 1000.9(c)), the handler
diverted to nonpool plants not more than 60 percent during the months
of September through February;
(4) Diverted milk shall be priced at the location of the plant to
which diverted;
(5) Any milk diverted in excess of the limits set forth in
paragraph (d)(3) of this section shall not be producer milk. The
diverting handler shall designate the dairy farmer deliveries that
shall not be producer milk. If the handler fails to designate the dairy
farmer deliveries which are ineligible, producer milk status shall be
forfeited with respect to all milk diverted to nonpool plants by such
handler; and
(6) The delivery day requirements and the diversion percentages in
paragraphs (d)(2) and (d)(3) of this section may be increased or
decreased by the market administrator if the market administrator finds
that such revision is necessary to assure orderly marketing and
efficient handling of milk in the marketing area. Before making such a
finding, the market administrator shall investigate the need for the
revision either on the market administrator's own initiative or at the
request of interested persons. If the investigation shows that a
revision might be appropriate, the market administrator shall issue a
notice stating that the revision is being considered and inviting
written data, views, and arguments. Any decision to revise an
applicable percentage must be issued in writing at least one day before
the effective date.
Sec. 1033.14 Other source milk.
See Sec. 1000.14 of this chapter.
Sec. 1033.15 Fluid milk product.
See Sec. 1000.15 of this chapter.
Sec. 1033.16 Fluid cream product.
See Sec. 1000.16 of this chapter.
Sec. 1033.17 [Reserved]
Sec. 1033.18 Cooperative association.
See Sec. 1000.18 of this chapter.
Sec. 1033.19 Commercial food processing establishment.
See Sec. 1000.19 of this chapter.
Handler Reports
Sec. 1033.30 Reports of receipts and utilization.
Each handler shall report monthly so that the market
administrator's office receives the report on or before the 7th day
after the end of the month, in the detail and on the prescribed forms,
as follows:
(a) Each handler that operates a pool plant pursuant to Sec. 1033.7
and each handler described in Sec. 1000.9(c) shall report for each of
its operations the following information:
(1) Product pounds, pounds of butterfat, pounds of protein, and the
value of the somatic cell adjustment pursuant to Sec. 1000.50(p),
contained in or represented by:
(i) Receipts of producer milk, including producer milk diverted by
the reporting handler; and
(ii) Receipts of milk from handlers described in Sec. 1000.9(c);
(2) Product pounds and pounds of butterfat contained in:
(i) Receipts of fluid milk products and bulk fluid cream products
from other pool plants;
(ii) Receipts of other source milk; and
(iii) Inventories at the beginning and end of the month of fluid
milk products and bulk fluid cream products;
(3) The utilization or disposition of all milk and milk products
required to be reported pursuant to this paragraph; and
(4) Such other information with respect to the receipts and
utilization of skim milk, butterfat, milk protein, and somatic cell
information as the market administrator may prescribe.
(b) Each handler operating a partially regulated distributing plant
shall report with respect to such plant in the same manner as
prescribed for reports required by paragraph (a) of this section.
Receipts of milk that would have been
[[Page 5064]]
producer milk if the plant had been fully regulated shall be reported
in lieu of producer milk. The report shall show also the quantity of
any reconstituted skim milk in route disposition in the marketing area.
(c) Each handler not specified in paragraphs (a) and (b) of this
section shall report with respect to its receipts and utilization of
milk and milk products in such manner as the market administrator may
prescribe.
Sec. 1033.31 Payroll reports.
(a) On or before the 22nd day after the end of each month, each
handler that operates a pool plant pursuant to Sec. 1033.7 and each
handler described in Sec. 1033.9(c) shall report to the market
administrator its producer payroll for the month, in the detail
prescribed by the market administrator, showing for each producer the
information described in Sec. 1033.73(e).
(b) Each handler operating a partially regulated distributing plant
who elects to make payment pursuant to Sec. 1000.76(b) shall report for
each dairy farmer who would have been a producer if the plant had been
fully regulated in the same manner as prescribed for reports required
by paragraph (a) of this section.
Sec. 1033.32 Other reports.
In addition to the reports required pursuant to Secs. 1033.30 and
1033.31, each handler shall report any information the market
administrator deems necessary to verify or establish each handler's
obligation under the order.
Classification of Milk
Sec. 1033.40 Classes of utilization.
See Sec. 1000.40 of this chapter.
Sec. 1033.41 [Reserved]
Sec. 1033.42 Classification of transfers and diversions.
See Sec. 1000.42 of this chapter.
Sec. 1033.43 General classification rules.
See Sec. 1000.43 of this chapter.
Sec. 1033.44 Classification of producer milk.
See Sec. 1000.44 of this chapter.
Sec. 1033.45 Market administrator's reports and announcements
concerning classification.
See Sec. 1000.45 of this chapter.
Class Prices
Sec. 1033.50 Class prices and component prices.
See Sec. 1000.50 of this chapter.
Sec. 1033.51 Class I differential and price.
The Class I differential shall be the differential established for
Cuyahoga County, Ohio which is reported in Sec. 1000.52. The Class I
price shall be the price computed pursuant to Sec. 1000.50(a) for
Cuyahoga County, Ohio.
Sec. 1033.52 Adjusted Class I differentials.
See Sec. 1000.52 of this chapter.
Sec. 1033.53 Announcement of class prices and component prices.
See Sec. 1000.53 of this chapter.
Sec. 1033.54 Equivalent price.
See Sec. 1000.54 of this chapter.
Producer Price Differential
Sec. 1033.60 Handler's value of milk.
For the purpose of computing a handler's obligation for producer
milk, the market administrator shall determine for each month the value
of milk of each handler with respect to each of its pool plants, and of
each handler described in Sec. 1033.9(c) as follows:
(a) Class I value.
(1) Multiply the hundredweight of skim milk in Class I as
determined pursuant to Sec. 1000.44(a) by the Class I skim milk price
applicable at the handler's location; and
(2) Add an amount obtained by multiplying the pounds of butterfat
in Class I as determined pursuant to Sec. 1000.44(b) by the Class I
butterfat price applicable at the handler's location;
(b) Add the Class II value computed as follows:
(1) Multiply the hundredweight of skim milk in Class II as
determined pursuant to Sec. 1000.44(a) by 70 cents;
(2) Add an amount obtained by multiplying the pounds of skim milk
in Class II as determined pursuant to Sec. 1000.44(a) by the average
nonfat solids content of producer skim milk received by the handler,
and multiply the resulting pounds of nonfat solids by the nonfat solids
price; and
(3) Add an amount obtained by multiplying the pounds of butterfat
in Class II as determined pursuant to Sec. 1000.44(b) by the butterfat
price;
(c) Add the Class III value computed as follows:
(1) Multiply the pounds of skim milk in Class III as determined
pursuant to Sec. 1000.44(a) by the average protein content of producer
skim milk received by the handler, and multiply the resulting pounds of
protein by the protein price;
(2) Add an amount obtained by subtracting from the pounds of skim
milk in Class III as determined pursuant to Sec. 1000.44(a) the pounds
of protein determined in Sec. 1033.60(c)(1) and multiplying the
resulting pounds of fluid carrier by a price determined by multiplying
5.7 times the other solids price and dividing the result by 91 (the
resulting price, rounded to the 4th decimal place, shall be known as
the fluid carrier price); and
(3) Add an amount obtained by multiplying the pounds of butterfat
in Class III as determined pursuant to Sec. 1000.44(b) by the butterfat
price;
(d) Add the Class IV value computed as follows:
(1) Multiply the pounds of skim milk in Class IV as determined
pursuant to Sec. 1000.44(a) by the average nonfat solids content of
producer skim milk received by the handler, and multiply the resulting
pounds of nonfat solids by the nonfat solids price; and
(2) Add an amount obtained by multiplying the pounds of butterfat
in Class IV as determined pursuant to Sec. 1000.44(b) by the butterfat
price;
(e) Add an adjustment for the somatic cell content of producer milk
determined by multiplying the value reported pursuant to
Sec. 1033.30(a)(1) by the percentage of the total producer milk
allocated to Class II, Class III, and Class IV pursuant to
Sec. 1000.44(c);
(f) Add the amounts obtained from multiplying the pounds of skim
milk and butterfat overage assigned to each class pursuant to
Sec. 1000.43(b)(2) by the respective skim milk and butterfat prices
applicable at the location of the pool plant;
(g) Add the amount obtained from multiplying the difference between
the Class III price for the preceding month and the Class I price
applicable at the location of the pool plant or the Class II price, as
the case may be, for the current month by the hundredweight of skim
milk and butterfat subtracted from Class I and Class II pursuant to
Sec. 1000.44(a)(7) and the corresponding step of Sec. 1000.44(b);
(h) Add the amount obtained from multiplying the difference between
the Class I price applicable at the location of the pool plant and the
Class III price by the hundredweight of skim milk and butterfat
assigned to Class I pursuant to Sec. 1000.43(d) and the hundredweight
of skim milk and butterfat subtracted from Class I pursuant to
Sec. 1000.44(a)(3)(i) through (iii) and the corresponding step of
Sec. 1000.44(b), excluding receipts of bulk fluid cream products from
plants regulated under other Federal orders and bulk concentrated fluid
milk products from pool plants, plants regulated under other Federal
orders, and unregulated supply plants;
[[Page 5065]]
(i) Add the amount obtained from multiplying the difference between
the Class I price and the Class III price applicable at the location of
the nearest unregulated supply plants from which an equivalent volume
was received by the pounds of skim milk and butterfat in receipts of
concentrated fluid milk products assigned to Class I pursuant to
Sec. 1000.43(d) and Sec. 1000.44(a)(3)(i) and the pounds of skim milk
and butterfat subtracted from Class I pursuant to Sec. 1000.44(a)(8)
and the corresponding step of Sec. 1000.44(b), excluding such skim milk
and butterfat in receipts of bulk fluid milk products from an
unregulated supply plant to the extent that an equivalent amount of
skim milk or butterfat disposed of to such plant by handlers fully
regulated under any Federal milk order is classified and priced as
Class I milk and is not used as an offset for any other payment
obligation under any order;
(j) Subtract, for reconstituted milk made from receipts of nonfluid
milk products, an amount computed by multiplying $1.00 (but not more
than the difference between the Class I price applicable at the
location of the pool plant and the Class IV price) by the hundredweight
of skim milk and butterfat contained in receipts of nonfluid milk
products that are allocated to Class I pursuant to Sec. 1000.43(d); and
(k) Exclude, for pricing purposes under this section, receipts of
nonfluid milk products that are distributed as labeled reconstituted
milk for which payments are made to the producer-settlement fund of
another order under Sec. 1000.76(a)(5) or (c).
Sec. 1033.61 Computation of producer price differential.
For each month the market administrator shall compute a producer
price differential per hundredweight. If the unreserved balance in the
producer-settlement fund to be included in the computation is less than
2 cents per hundredweight of producer milk on all reports, the report
of any handler who has not made payments required pursuant to
Sec. 1033.71 for the preceding month shall not be included in the
computation of the producer price differential. The report of such
handler shall not be included in the computation for succeeding months
until the handler has made full payment of outstanding monthly
obligations. Subject to the aforementioned conditions, the market
administrator shall compute the producer price differential in the
following manner:
(a) Combine into one total the values computed pursuant to
Sec. 1033.60 for all handlers required to file reports prescribed in
Sec. 1033.30;
(b) Subtract the total values obtained by multiplying each
handler's total pounds of protein, fluid carrier, and butterfat
contained in the milk for which an obligation was computed pursuant to
Sec. 1033.60 by the protein price, the fluid carrier price, and the
butterfat price, respectively, and the total value of the somatic cell
adjustment pursuant to Sec. 1033.30(a)(1);
(c) Add an amount equal to the sum of the location adjustments
computed pursuant to Sec. 1033.75;
(d) Add an amount equal to not less than one-half of the
unobligated balance in the producer-settlement fund;
(e) Divide the resulting amount by the sum of the following for all
handlers included in these computations:
(1) The total hundredweight of producer milk; and
(2) The total hundredweight for which a value is computed pursuant
to Sec. 1033.60(i); and
(f) Subtract not less than 4 cents nor more than 5 cents from the
price computed pursuant to paragraph (e) of this section. The result
shall be known as the producer price differential for the month.
Sec. 1033.62 Announcement of producer prices.
On or before the 13th day after the end of each month, the market
administrator shall announce publicly the following prices and
information:
(a) The producer price differential;
(b) The protein price;
(c) The fluid carrier price;
(d) The butterfat price;
(e) The somatic cell adjustment rate;
(f) The average butterfat and protein content of producer milk; and
(g) The statistical uniform price for milk containing 3.5 percent
butterfat, computed by combining the Class III price and the producer
price differential.
Payments for Milk
Sec. 1033.70 Producer-settlement fund.
See Sec. 1000.70 of this chapter.
Sec. 1033.71 Payments to the producer-settlement fund.
Each handler shall make payment to the producer-settlement fund in
a manner that provides receipt of the funds by the market administrator
no later than the 15th day after the end of the month. Payment shall be
the amount, if any, by which the amount specified in (a) of this
section exceeds the amount specified in (b) of this section:
(a) The total value of milk to the handler for the month as
determined pursuant to Sec. 1033.60.
(b) The sum of:
(1) An amount obtained by multiplying the total hundredweight of
producer milk as determined pursuant to Sec. 1000.44(c) by the producer
price differential as adjusted pursuant to Sec. 1033.75;
(2) An amount obtained by multiplying the total pounds of protein
and butterfat contained in producer milk by the protein and butterfat
prices, respectively;
(3) An amount obtained by multiplying the total hundredweight of
fluid carrier contained in producer milk by the fluid carrier price
computed pursuant to Sec. 1033.60(c)(2);
(4) The total value of the somatic cell adjustment to producer
milk; and
(5) An amount obtained by multiplying the pounds of skim milk and
butterfat for which a value was computed pursuant to Sec. 1033.60(i) by
the producer price differential as adjusted pursuant to Sec. 1033.75
for the location of the plant from which received.
Sec. 1033.72 Payments from the producer-settlement fund.
No later than the 16th day after the end of each month, the market
administrator shall pay to each handler the amount, if any, by which
the amount computed pursuant to Sec. 1033.71(b) exceeds the amount
computed pursuant to Sec. 1033.71(a). If, at such time, the balance in
the producer-settlement fund is insufficient to make all payments
pursuant to this section, the market administrator shall reduce
uniformly such payments and shall complete the payments as soon as the
funds are available.
Sec. 1033.73 Payments to producers and to cooperative associations.
(a) Each handler shall pay each producer for producer milk for
which payment is not made to a cooperative association pursuant to
paragraph (b) of this section, as follows:
(1) Partial payment. For each producer who has not discontinued
shipments as of the date of this partial payment, payment shall be made
so that it is received by each producer on or before the 26th day of
the month for milk received during the first 15 days of the month from
the producer at not less than the lowest announced class price for the
preceding month, less proper deductions authorized in writing by the
producer; and
(2) Final payment. For milk received during the month, payment
shall be
[[Page 5066]]
made so that it is received by each producer no later than the 17th day
after the end of the month in an amount equal to not less than the sum
of:
(i) The hundredweight of producer milk received times the producer
price differential for the month as adjusted pursuant to Sec. 1033.75;
(ii) The pounds of butterfat received times the butterfat price for
the month;
(iii) The pounds of protein received times the protein price for
the month;
(iv) The hundredweight of fluid carrier received times the fluid
carrier price for the month;
(v) The hundredweight of milk received times the somatic cell
adjustment for the month;
(vi) Less any payment made pursuant to paragraph (a)(1) of this
section;
(vii) Less proper deductions authorized in writing by such producer
and plus or minus adjustments for errors in previous payments to such
producer; and
(viii) Less deductions for marketing services pursuant to
Sec. 1000.86.
(b) Payments for milk received from cooperative associations. On or
before the day prior to the dates specified in paragraphs (a)(1) and
(a)(2) of this section, each handler shall pay to a cooperative
association for milk received as follows:
(1) Partial payment to a cooperative association. For bulk fluid
milk/skimmed milk received during the first 15 days of the month from a
cooperative association in any capacity, except as the operator of a
pool plant, the partial payment shall be equal to the hundredweight of
milk received multiplied by the lowest announced class price for the
preceding month;
(2) Partial payment to a cooperative association for milk
transferred from its pool plant. For bulk milk/skimmed milk products
received during the first 15 days of the month from a cooperative
association in its capacity as the operator of a pool plant, the
partial payment shall be at the pool plant operator's estimated use
value of the milk using the most recent class prices available,
adjusted for butterfat and plant location;
(3) Final payment to a cooperative association for milk transferred
from its pool plant. Following the classification of bulk fluid milk
products and bulk fluid cream products received during the month from a
cooperative association in its capacity as the operator of a pool
plant, the final payment for such receipts shall be not less than an
amount computed by multiplying the respective quantities assigned to
each class under Sec. 1000.44 by the value calculated pursuant to
Sec. 1033.60(a) and location adjustments pursuant to Sec. 1033.75,
minus the amount of the payment made to the association pursuant to
paragraph (a)(1) of this section.
(4) Final payment to a cooperative association for bulk milk
received directly from producers' farms. For bulk milk received from a
cooperative association during the month, including the milk of
producers who are not members of such association and who the market
administrator determines have authorized the cooperative association to
collect payment for their milk, the final payment for such milk shall
be an amount equal to the sum of the individual payments otherwise
payable for such milk pursuant to paragraph (a)(2) of this section.
(c) If a handler has not received full payment from the market
administrator pursuant to Sec. 1033.72 by the payment date specified in
paragraph (a) or (b) of this section, the handler may reduce payments
pursuant to paragraphs (a) and (b) of this section, but not by more
than the amount of the underpayment. The payments shall be completed on
the next scheduled payment date after receipt of the balance due from
the market administrator.
(d) If a handler claims that a required payment to a producer
cannot be made because the producer is deceased or cannot be located,
or because the cooperative association or its lawful successor or
assignee is no longer in existence, the payment shall be made to the
producer-settlement fund, and in the event that the handler
subsequently locates and pays the producer or a lawful claimant, or in
the event that the handler no longer exists and a lawful claim is later
established, the market administrator shall make the required payment
from the producer-settlement fund to the handler or to the lawful
claimant, as the case may be.
(e) In making payments to producers pursuant to this section, each
handler shall furnish each producer, except a producer whose milk was
received from a cooperative association handler described in
Sec. 1000.9(c), a supporting statement in a form that may be retained
by the recipient which shall show:
(1) The name, address, Grade A identifier assigned by a duly
constituted regulatory agency, and payroll number of the producer;
(2) The daily and total pounds, and the month and dates such milk
was received from that producer;
(3) The total pounds of butterfat, protein, and fluid carrier
contained in the producer's milk;
(4) The average somatic cell count of the producer's milk;
(5) The minimum rate or rates at which payment to the producer is
required pursuant to this order;
(6) The rate used in making payment if the rate is other than the
applicable minimum rate;
(7) The amount, or rate per hundredweight, or rate per pound of
component, and the nature of each deduction claimed by the handler; and
(8) The net amount of payment to the producer or cooperative
association.
Sec. 1033.74 [Reserved]
Sec. 1033.75 Plant location adjustments for producer milk and nonpool
milk.
(a) The producer price differential for producer milk shall be
adjusted according to the location of the plant at which the milk was
physically received by subtracting from the price differential the
amount by which the Class I price specified in Sec. 1033.51 exceeds the
Class I price at the plant's location. If the Class I price at the
plant location exceeds the Class I price specified in Sec. 1033.51, the
difference shall be added to the producer price differential; and
(b) The producer price differential applicable to other source milk
shall be adjusted following the procedure specified in paragraph (a) of
this section, except that the adjusted producer price differential
shall not be less than zero.
Sec. 1033.76 Payments by a handler operating a partially regulated
distributing plant.
See Sec. 1000.76 of this chapter.
Sec. 1033.77 Adjustment of accounts.
See Sec. 1000.77 of this chapter.
Sec. 1033.78 Charges on overdue accounts.
See Sec. 1000.78 of this chapter.
Administrative Assessment and Marketing Service Deduction
Sec. 1033.85 Assessment for order administration.
See Sec. 1000.85 of this chapter.
Sec. 1033.86 Deduction for marketing services.
See Sec. 1000.86 of this chapter.
PART 1124--MILK IN THE PACIFIC NORTHWEST MARKETING AREA
Subpart--Order Regulating Handling
General Provisions
Sec.
1124.1 General provisions.
Definitions
1124.2 Pacific Northwest marketing area.
1124.3 Route disposition.
1124.4 Plant.
1124.5 Distributing plant.
[[Page 5067]]
1124.6 Supply plant.
1124.7 Pool plant.
1124.8 Nonpool plant.
1124.9 Handler.
1124.10 Producer-handler.
1124.11 Cooperative reserve supply unit.
1124.12 Producer.
1124.13 Producer milk.
1124.14 Other source milk.
1124.15 Fluid milk product.
1124.16 Fluid cream product.
1124.17 [Reserved]
1124.18 Cooperative association.
1124.19 Commercial food processing establishment.
Handler Reports
1124.30 Reports of receipts and utilization.
1124.31 Payroll reports.
1124.32 Other reports.
Classification of Milk
1124.40 Classes of utilization.
1124.41 [Reserved]
1124.42 Classification of transfers and diversions.
1124.43 General classification rules.
1124.44 Classification of producer milk.
1124.45 Market administrator's reports and announcements concerning
classification.
Class Prices
1124.50 Class prices and component prices.
1124.51 Class I differential and price.
1124.52 Adjusted Class I differentials.
1124.53 Announcement of class prices and component prices.
1124.54 Equivalent price.
Producer Price Differential
1124.60 Handler's value of milk.
1124.61 Computation of producer price differential.
1124.62 Announcement of producer prices.
Payments for Milk
1124.70 Producer-settlement fund.
1124.71 Payments to the producer-settlement fund.
1124.72 Payments from the producer-settlement fund.
1124.73 Payments to producers and to cooperative associations.
1124.74 [Reserved]
1124.75 Plant location adjustments for producer milk and nonpool
milk.
1124.76 Payments by a handler operating a partially regulated
distributing plant.
1124.77 Adjustment of accounts.
1124.78 Charges on overdue accounts.
Administrative Assessment and Marketing Service Deduction
1124.85 Assessment for order administration.
1124.86 Deduction for marketing services.
Authority: 7 U.S.C. 601-674.
Subpart--Order Regulating Handling
General Provisions
Sec. 1124.1 General provisions.
The terms, definitions, and provisions in Part 1000 of this chapter
apply to and are hereby made a part of this order.
Definitions
Sec. 1124.2 Pacific Northwest marketing area.
The marketing area means all territory within the bounds of the
following states and political subdivisions, including all piers,
docks, and wharves connected therewith and all craft moored thereat,
and all territory occupied by government (municipal, State, or Federal)
reservations, installations, institutions, or other similar
establishments if any part thereof is within any of the listed states
or political subdivisions:
Washington
All of the State of Washington.
Idaho Counties
Benewah, Bonner, Boundary, Kootenai, Latah, and Shoshone.
Oregon Counties
Benton, Clackamas, Clatsop, Columbia, Coos, Crook, Curry,
Deschutes, Douglas, Gilliam, Hood River, Jackson, Jefferson,
Josephine, Klamath, Lake, Lane, Lincoln, Linn, Marion, Morrow,
Multnomah, Polk, Sherman, Tillamook, Umatilla, Wasco, Washington,
Wheeler, and Yamhill.
Sec. 1124.3 Route disposition.
See Sec. 1000.3 of this chapter.
Sec. 1124.4 Plant.
See Sec. 1000.4 of this chapter.
Sec. 1124.5 Distributing plant.
See Sec. 1000.5 of this chapter.
Sec. 1124.6 Supply plant.
See Sec. 1000.6 of this chapter.
Sec. 1124.7 Pool plant.
Pool plant means a plant, unit of plants, or a system of plants as
specified in paragraphs (a) through (f) of this section. The pooling
standards described in paragraphs (a), (c), (d), (e), and (f) of this
section are subject to modification pursuant to paragraph (g) of this
section:
(a) A distributing plant from which during the month:
(1) Total route disposition is equal to 25 percent of more of the
total quantity of bulk fluid milk products physically received at the
plant; and
(2) Route disposition in the marketing area is at least 15 percent
of total route disposition.
(3) For purposes of this section, packaged fluid milk products that
are transferred to a distributing plant shall be considered as route
disposition from the transferring plant, rather than the receiving
plant, for the single purpose of qualifying the transferring plant as a
pool distributing plant.
(b) A distributing plant located in the marketing area at which the
majority of milk received is processed into aseptically packaged fluid
milk products unless there are no sales from the plant into any
marketing area and the plant operator in writing requests nonpool plant
status for the plant for the month.
(c) A supply plant from which during any month not less than 20
percent of the total quantity of milk that is physically received at
such plant from dairy farmers eligible to be producers pursuant to
Sec. 1124.12 (excluding milk received at such plant as diverted milk
from another plant, which milk is classified in Class III under this
order and is subject to the pricing and pooling provisions of this or
another order issued pursuant to the Act) or diverted as producer milk
to another plant pursuant to Sec. 1124.13, is shipped in the form of a
fluid milk product to a pool distributing plant or is a route
disposition in the marketing area of fluid milk products processed and
packaged at such plant;
(1) A supply plant that has qualified as a pool plant during each
of the immediately preceding months of September through February shall
continue to so qualify in each of the following months of March through
August, unless the plant operator files a written request with the
market administrator that such plant not be a pool plant, such nonpool
status to be effective the first month following such request and
thereafter until the plant qualifies as a pool plant on the basis of
milk shipments;
(2) A cooperative association that operates a supply plant may
include as qualifying shipments its deliveries to pool distributing
plants directly from farms of producers pursuant to Sec. 1000.9(c);
(3) A pool plant operator may include as qualifying shipments milk
diverted to pool distributing plants pursuant to Sec. 1124.13(c);
(4) No plant may qualify as a pool plant due to a reduction in the
shipping percentage pursuant to paragraph (g) of this section unless it
has been a pool supply plant during each of the immediately preceding
three months.
(d)-(f) [Reserved]
(g) The applicable shipping percentages of paragraphs (a) and (c)
of this section may be increased or decreased by the market
administrator if found necessary to obtain needed shipments or to
prevent uneconomic shipments. Before making a finding that a change is
necessary the market administrator shall investigate the need for
revision, either on the market administrator's own initiative or at the
request of interested persons. If such
[[Page 5068]]
investigation shows that a revision might be appropriate, a notice
shall be issued stating that a revision is being considered and
inviting data, views, and arguments. If the market administrator
determines that an adjustment to the shipping percentages is necessary,
the market administrator shall notify the industry within one day of
the effective date of such adjustment.
(h) The term pool plant shall not apply to the following plants:
(1) A producer-handler as defined under any Federal order;
(2) An exempt plant as defined in Sec. 1000.8(e);
(3) A plant located within the marketing area and qualified
pursuant to paragraph (a) of this section which meets the pooling
requirements of another Federal order, and from which more than 50
percent of its route disposition has been in the other Federal order
marketing area for three consecutive months;
(4) A plant located outside the marketing area and qualified
pursuant to paragraph (a) of this section that meets the pooling
requirements of another Federal order and has had greater sales in such
other Federal order's marketing area for 3 consecutive months;
(5) A plant located in another Federal order marketing area and
qualified pursuant to paragraph (a) of this section that meets the
pooling requirements of such other Federal order and does not have a
majority of its route distribution in this marketing area for 3
consecutive months or if the plant is required to be regulated under
such other Federal order without regard to its route disposition in any
other Federal order marketing area; and
(6) A plant qualified pursuant to paragraph (c) of this section
which also meets the pooling requirements of another Federal order and
from which greater qualifying shipments are made to plants regulated
under the other Federal order than are made to plants regulated under
this order, or the plant has automatic pooling status under the other
Federal order.
Sec. 1124.8 Nonpool plant.
See Sec. 1000.8 of this chapter.
Sec. 1124.9 Handler.
See Sec. 1000.9 of this chapter.
Sec. 1124.10 Producer-handler.
Except as provided in paragraph (f) of this section, producer-
handler means a person who operates a dairy farm and a distributing
plant from which there is monthly route disposition within the
marketing area in excess of 150,000 pounds during the month and who has
been so designated by the market administrator upon determination that
all of the requirements of this section have been met, providing that
none of the conditions therein for cancellation of such designation
exists.
(a) Requirements for designation. The producer-handler provides
proof satisfactory to the market administrator that:
(1) In its capacity as a dairy farmer, the care and management of
the dairy animals and other resources and facilities (designated as
such pursuant to paragraph (b)(1) of this section) necessary to produce
all Class I milk handled (excluding receipts from handlers fully
regulated under any Federal order); and
(2) In its capacity as a handler, the plant operation at which it
processes and packages and from which it distributes its own milk
production (designated as such pursuant to paragraph (b)(2) of this
section) are under the complete and exclusive control and management of
the producer-handler and are at its own enterprise and at its sole
risk.
(3) The producer-handler neither receives at its designated milk
production resources and facilities nor receives, handles, processes or
distributes at or through any of its designated milk handling,
processing or distributing resources and facilities other source milk
products for reconstitution into fluid milk products, or fluid milk
products derived from any source other than:
(i) Its designated milk production resources and facilities (own
farm production);
(ii) Pool handlers and plants regulated under any Federal order
within the limitation specified in paragraph (c)(2) of this section; or
(iii) nonfat milk solids which are used to fortify fluid milk
products.
(4) The producer-handler is neither directly nor indirectly
associated with the business control or management of, nor has a
financial interest in, another handler's operation; nor is any other
handler so associated with the producer-handler's operation.
(5) Designation of any person as a producer-handler following a
cancellation of its prior designation shall be preceded by performance
in accordance with paragraph (a)(1) through (4) of this section for a
period of 1 month.
(b) Designation of resources and facilities. Designation of a
person as a producer-handler shall include the determination and
designation of the milk production, handling, processing and
distributing resources and facilities, all of which shall be deemed to
constitute an integrated operation, as follows:
(1) As milk production res |
