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that for receipts of fluid milk products assigned to Class I pursuant to § 1108.46 (a) (3) (iv) and (v) and the corresponding step of $ 1108.46(b) the Class I price shall be adjusted to the location of the transferor plant; and

(e) Add an amount equal to the value at the Class I price, adjusted for location of the nearest nonpool plant(s) from which an equivalent weight was received, with respect to skim milk and butterfat subtracted from Class I pursuant to $ 1108.46(a) (7) and the corresponding step of $ 1108.46(b). (29 F.R. 10986, July 30, 1964, as amended at 34 F.R. 18713, Nov. 22, 1969] § 1108.71 Computation of the uniform

price. For each month the market administrator shall compute the uniform price (or weighted average price) per hundredweight of milk received from producers as follows:

(a) Combine into one total the values computed pursuant to § 1108.70 for all handlers who filed the reports prescribed by $ 1108.30 for the month and who made the payments pursuant to $$ 1108.80 and 1108.82 for the preceding month;

(b) Add an amount equal to the total value of the location differentials computed pursuant to $ 1108.74;

(c) Subtract, if the average butterfat content of the milk specified in paragraph (e) of this section is more than 3.5 percent, or add, if such butterfat content is less than 3.5 percent, an amount computed by multiplying the amount by which the average butterfat content of such milk varies from 3.5 percent by the butterfat differential computed pursuant to $ 1108.73 and multiplying the result by the total hundredweight of such milk;

(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 $ 1108.70(e);

(1) Subtract not less than four cents nor more than five cents per hundredweight. The result shall be the "weight

ed average price”, and, except for the months of February through July 1964 and March through July thereafter, shall be the “uniform price” for milk received from producers. [29 F.R. 10986, July 30, 1964) § 1108.72 Computation of uniform

prices for base milk and excess milk. For each of the months of February through July 1964 and March through July thereafter, the market administrator shall compute the uniform prices per hundredweight for base milk and for excess milk as follows:

(a) Subtract from the amount resulting from the computations made pursuant to $ 1108.71(a) through (d) an amount computed by multiplying the hundredweight of milk specified in $ 1108.71(e) (2) by the weighted average price;

(b) Compute the aggregate value of excess milk as follows:

(1) Multiply the hundredweight of such milk not in excess of the total quantity of producer milk assigned to Class II milk of handlers included in these computations by the Class II milk price;

(2) Multiply any additional hundredweight of such milk by the Class I price; and

(3) Add together the resulting amounts;

(c) Divide the aggregate value of excess milk obtained in paragraph (b) of this section by the total hundredweight of such milk, adjust to the nearest cent and subtract four cents. The resulting figure shall be the uniform price for excess milk of 3.5 percent butterfat content received from producers;

(d) Subtract an amount determined by multiplying the uniform price obtained in paragraph (c) of this section, plus four cents, times the hundredweight of excess milk from the aggregate value of milk obtained in paragraph (a) of this section;

(e) Divide the result obtained in paragraph (d) of this section by the total hundredweight of base milk of handlers included in these computations; and

(f) Subtract not less than four cents nor more than five cents from the price computed pursuant to paragraph (e) of this section. The resulting figure shall be the uniform price for base milk of 3.5 percent butterfat content f.o.b. market. (29 F.R. 10986, July 30, 1964)

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$ 1108.73 Butterfat differential to pro- not less than the appropriate uniform ducers.

price(s) adjusted by the butterfat and The applicable uniform prices to be

location differentials to producers multipaid each producer shall be increased or

plied by the hundredweight of milk or decreased for each one-tenth of one per

base milk and excess milk received from cent which the average butterfat content

such producer during the month, subject of his milk is above or below 3.5 percent,

to the following adjustments: (1) Less respectively, at the rate determined by payments made to such producer purmultiplying the pounds of butterfat in

suant to subparagraph (1) of this paraproducer milk allocated to each class by

graph, (11) less marketing service dethe appropriate butterfat differential for

ductions made pursuant to g 1108.85, (III) :such class as determined pursuant to

plus or minus adjustments for errors $ 1108.52, dividing by the total butterfat

made in previous payments made to such in producer milk and rounding to the

producer, and (iv) less proper deductions nearest even tenth of a cent.

authorized in writing by such producer:

Provided, That if by such date such f 1108.74 Location differentials to pro- handler has not received full payment ducers and on nonpool milk.

from the market administrator pursuant (a) The applicable uniform prices to to $ 1108.83 for such month, he may rebe paid for producer milk received at a duce pro rata his payments to producers pool plant located 60 miles or more from by not more than the amount of such the County Courthouse in Arkadelphia, underpayment. Payments to producers Arkansas, or the State Capital in Little shall be completed thereafter not later Rock, Arkansas, whichever is nearer by than the date for making payments purthe shortest highway distance, as deter- suant to this paragraph next following mined by the market administrator, shall after the receipt of the balance due from be reduced according to the distance of the market administrator. the plant from the respective buildings (b) In the case of a cooperative assodesignated above at the rate of 1.5 cents ciation which the market administrator for each 10 miles or residual fraction determines is authorized by its members thereof; and

to collect payment for their milk and (b) For purposes of computations pur- which has so requested any handler in suant to $ $ 1108.82 and 1108.83 the writing, such handler shall on or before weighted average price shall be adjusted the 2d day prior to the date on which at the rates set forth in § 1108.53 ap- payments are due individual producers plicable at the location of the nonpool pay the cooperative association for milk plant from which the milk was received. received during the month from the pro(29 F.R. 10987, July 30, 1964)

ducer members of such association as

determined by the market administrator PAYMENTS

an amount equal to not less than the $ 1108.80 Time and method of payment amount due such producer members as for producer milk.

determined pursuant to paragraph (a)

of this section. (a) Except as provided in paragraph

(c) Each handler shall furnish the (b) in this section, each handler shall make payment to each producer from person to whom payment is to be made whom milk is received during the month pursuant to this section with the fol

lowing information; as follows:

(1) On or before the 25th day of the (1) On or before the last day of each month to each producer who did not dis- month, the pounds of milk received from continue shipping milk to such handler the producer or from each member of before the 25th day of the month, an the cooperative association during the

first 15 days of such month; amount equal to not less than the Class II price for the preceding month multi- (2) On or before the 7th day of the plied by the hundredweight of milk re- following month to a cooperative assoceived from such producer during the ciation for its individual members, or on first 15 days of the month, less proper or before the 15th day of the following deductions authorized by such producer month to producers (i) the pounds of to be made from payments due pursuant milk received each day and the total for to this paragraph;

the month, together with the butterfat (2) On or before the 15th day of the content of such milk, (ii) for the months following month, an amount equal to of February through July 1964 and

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11108 27F

March through July thereafterthe § 1108.83 Payments out of the propounds of base milk received, (iii) the ducer-settlement fund. amount or rate and nature of deductions

On or before the 13th day after the made from payments and (iv) the

end of each month the market adminamount and nature of payments due pur

istrator shall pay to each handler the suant to $ 1108.84.

amount, if any, by which the amount (d) To a cooperative association with

computed pursuant to $ 1108.82(b) exrespect to receipts of milk for which ceeds the amount computed pursuant to such cooperative association is the han. § 1108.82(a). If at such time the baldler pursuant to $ 1108.12(c):

ance in the producer-settlement fund is (1) On or before the 2d day prior insufficient to make all payments purto the last day of the delivery period, an suant to this section, the market adminamount equal to the rate specified in istrator shall reduce uniformly such payparagraph (a) (1) of this section times ments and shall complete such payments the volume received during the first 15 as soon as the appropriate funds are days of the delivery period; and

available. (2) On or before the 13th day after [29 F.R. 10987, July 30, 1964) the end of each delivery period, an

8 1108.84 Adjustment of accounts. amount equal to not less than the value of such milk at applicable class price(s) Whenever audit by the market adminless payment made pursuant to para

istrator of any reports, books, records, or graph (d) (1) of this section.

accounts or other verification discloses $ 1108.81 Producer-settlement fund.

errors resulting in moneys due (a) the

market administrator from a handler, The market administrator shall estab- (b) a handler from the market adminlish and maintain a separate fund istrator, or (c) any producer or cooperaknown as the

"producer-settlement tive association from a handler, the fund" into which he shall deposit all pay- market administrator shall promptly ments made by handlers pursuant to notify such handler of any amount so $$ 1108.61, 1108.62, 1108.82, and 1108.84, due and payment thereof shall be made and out of which he shall make all pay- on or before the next date for making ments pursuant to $ $ 1108.83 and

payments set forth in the provisions 1108.84: Provided, That any payments under which such error occurred. due to any handler shall be offset by any payments due from such handler.

f 1108.85 Marketing services. [34 F.R. 18713, Nov. 22, 1969)

(a) Except as set forth in paragraph

(b) of this section, each handler, in mak§ 1108.82 Payments to the producersettlement fund.

ing payments to producers for milk

(other than milk of his own production) On or before the 12th day after the pursuant to $ 1108.80, shall deduct 5 end of the month each handler shall pay cents per hundredweight, or such to the market administrator the amount,

amount not exceeding 5 cents per hun. if any, by which the total amounts speci

dredweight, as may be prescribed by fied in paragraph (a) of this section ex- the Secretary, and shall pay such deceed the amounts specified in paragraph

ductions to the market administrator on (b) of this section:

or before the 15th day after the end of (a) The total of the net pool obliga- the month. Such money shall be used tion computed pursuant to § 1108.70 for by the market administrator to provide such handler; and

market information and to check the ac(b) The sum of:

curacy of the testing and weighing of (1) The value of such handler's pro- their milk for producers who are not ducer milk at the applicable uniform receiving such service from a cooperative prices specified in § 1108.80; and

association; (2) The value at the weighted average (b) In the case of producers who are price(s) applicable at the location of the members of a cooperative association plant(s) from which received (not to be which the Secretary has determined is less than the value at the Class II price) actually performing the services set with respect to other source milk for forth in paragraph (a) of this section, which a value is computed pursuant to each handler shall (in lieu of the deduc$ 1108.70(e).

tion specified in paragraph (a) of this (29 F.R. 10987, July 30, 1964]

section), make such deductions from the

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payments to be made to such producers first day on which milk is received from as may be authorized by the membership such producer by a handler regulated agreement or marketing contract be- under any one of the aforesaid orders, tween such cooperative association and but not less than 90 for the Septembersuch producers, and on or before the December base-forming period and 120 13th day after the end of each month, thereafter. In the case of producers depay such deductions to the cooperative livering milk to a plant which first beassociation of which such producers are came a pool plant during or after the members, furnishing a statement show- end of the base-forming period, the daily ing the amount of any such deductions average base for each producer shall be and the amount of milk for which such that which would have been calculated deduction was computed for each for such producer for the entire baseproducer.

forming period if the plant had been a § 1108.86 Expense of administration.

pool plant during such period. As his pro rata share of the expense

$ 1108.91 Determination of monthly of administration of the order, each

base of each producer. handler shall pay to the market admin- Subject to the rules set forth in istrator on or before the 15th day after § 1108.92, the market administrator shall the end of the month four cents per calculate a monthly base for each prohundredweight or such lesser amount as ducer for each of the months of Februthe Secretary may prescribe, with re- ary through July 1964 and March spect to (a) producer milk received by a through July thereafter, as follows: cooperative association as a handler (a) If milk is received by handlers as pursuant to $ 1108.12(c), except that producer milk during the month, multitransferred to another handler operat- ply such producer's daily average base ing a pool plant, (b) producer milk of

computed pursuant to $ 1108.90 by the a handler operating a pool plant (in- number of days in such month; cluding such handler's own production), (b) If milk is received as producer plus milk received from a cooperative milk from the same farm by handlers association as a handler pursuant to regulated under this part and by han$ 1108.12(c), (c) other source milk allo- dlers fully regulated under the terms cated to Class I pursuant to $ 1108.46(a) of the Memphis, Tennessee (Part 1097

of (3) and (7) and the corresponding steps

this chapter), Fort Smith,

Arkansas (Part 1102 of this chapter), of $ 1108.46(b), and (d) Class I milk

orders during the month, multiply such disposed of from a partially regulated

producer's daily average base computed distributing plant on routes in the

pursuant to $ 1108.90 by the number of marketing area that exceeds Class I milk

days in such month and multiply the received during the month at such plant

result by the percentages of the total from pool plants and other order plants.

pounds of milk received from such pro(29 F.R. 10987, July 30, 1964)

ducer by handlers fully regulated under DETERMINATION OF BASE

the terms of the three orders specified

in $ 1108.90 which were received by each $ 1108.90 Computation of daily average

handler to determine the amount of base base for each producer.

milk received from such producer by each The daily average base for each pro

handler. ducer shall be determined by the market

1108.92 Base rules. administrator as follows: Divide the total pounds of milk received from such pro- The following rules shall apply in conducer by handlers fully regulated under nection with the transfer of daily avthe terms of the respective orders regu- erage bases for each producer computed lating the handling of milk in the Mem- pursuant to $ 1108.90: phis, Tennessee; Fort Smith, Arkansas; (a) An entire base shall be transferred and Central Arkansas marketing areas from a person holding such base to any (Parts 1097, 1102 and 1108, respectively, other person effective as of the end of of this chapter) during the immediately any month during which an application preceding period of September through for such transfer is received by the marDecember 1963, and September through ket administrator, such application to be January thereafter, by the total number on forms approved by the market adof days in such period beginning with the ministrator and signed by the base

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