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]

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);

(f) 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]

§ 1108.73 Butterfat differential to producers.

The applicable uniform prices to be paid each producer shall be increased or decreased for each one-tenth of one percent which the average butterfat content of his milk is above or below 3.5 percent, respectively, at the rate determined by multiplying the pounds of butterfat in producer milk allocated to each class by the appropriate butterfat differential for such class as determined pursuant to § 1108.52, dividing by the total butterfat in producer milk and rounding to the nearest even tenth of a cent.

§ 1108.74 Location differentials to producers and on nonpool milk.

(a) The applicable uniform prices to be paid for producer milk received at a pool plant located 60 miles or more from the County Courthouse in Arkadelphia, Arkansas, or the State Capital in Little Rock, Arkansas, whichever is nearer by the shortest highway distance, as determined by the market administrator, shall be reduced according to the distance of the plant from the respective buildings designated above at the rate of 1.5 cents for each 10 miles or residual fraction thereof; and

(b) For purposes of computations pursuant to §§ 1108.82 and 1108.83 the weighted average price shall be adjusted at the rates set forth in § 1108.53 applicable at the location of the nonpool plant from which the milk was received. [29 F.R. 10987, July 30, 1964]

PAYMENTS

§ 1108.80 Time and method of payment for producer milk.

(a) Except as provided in paragraph (b) in this section, each handler shall make payment to each producer from whom milk is received during the month as follows:

(1) On or before the last day of each month to each producer who did not discontinue shipping milk to such handler before the 25th day of the month, an amount equal to not less than the Class II price for the preceding month multiplied by the hundredweight of milk received from such producer during the first 15 days of the month, less proper deductions authorized by such producer to be made from payments due pursuant to this paragraph;

(2) On or before the 15th day of the following month, an amount equal to

not less than the appropriate uniform price(s) adjusted by the butterfat and location differentials to producers multiplied by the hundredweight of milk or base milk and excess milk received from such producer during the month, subject to the following adjustments: (1) Less payments made to such producer pursuant to subparagraph (1) of this paragraph, (11) less marketing service deductions made pursuant to § 1108.85, (iii) plus or minus adjustments for errors made in previous payments made to such producer, and (iv) less proper deductions authorized in writing by such producer: Provided, That if by such date such handler has not received full payment from the market administrator pursuant to § 1108.83 for such month, he may reduce pro rata his payments to producers by not more than the amount of such underpayment. Payments to producers shall be completed thereafter not later than the date for making payments pursuant to this paragraph next following after the receipt of the balance due from the market administrator.

(b) In the case of a cooperative association which the market administrator determines is authorized by its members to collect payment for their milk and which has so requested any handler in writing, such handler shall on or before the 2d day prior to the date on which payments are due individual producers pay the cooperative association for milk received during the month from the producer members of such association as determined by the market administrator an amount equal to not less than the amount due such producer members as determined pursuant to paragraph (a) of this section.

(c) Each handler shall furnish the person to whom payment is to be made pursuant to this section with the following information;

(1) On or before the 25th day of the month, the pounds of milk received from the producer or from each member of the cooperative association during the first 15 days of such month;

(2) On or before the 7th day of the following month to a cooperative association for its individual members, or on or before the 15th day of the following month to producers (i) the pounds of milk received each day and the total for the month, together with the butterfat content of such milk, (ii) for the months of February through July 1964 and

March through July thereafter, the pounds of base milk received, (iii) the amount or rate and nature of deductions made from payments and (iv) the amount and nature of payments due pursuant to § 1108.84.

(d) To a cooperative association with respect to receipts of milk for which such cooperative association is the handler pursuant to § 1108.12(c):

(1) On or before the 2d day prior to the last day of the delivery period, an amount equal to the rate specified in paragraph (a) (1) of this section times the volume received during the first 15 days of the delivery period; and

(2) On or before the 13th day after the end of each delivery period, an amount equal to not less than the value of such milk at applicable class price(s) less payment made pursuant to paragraph (d) (1) of this section.

§ 1108.81 Producer-settlement fund.

The market administrator shall establish and maintain a separate fund known as the "producer-settlement fund" into which he shall deposit all payments made by handlers pursuant to §§ 1108.61, 1108.62, 1108.82, and 1108.84, and out of which he shall make all payments pursuant to §§ 1108.83 and 1108.84: Provided, That any payments due to any handler shall be offset by any payments due from such handler. [34 F.R. 18713, Nov. 22, 1969]

§ 1108.82 Payments to the producersettlement fund.

On or before the 12th day after the end of the month each handler shall pay to the market administrator the amount, if any, by which the total amounts specified in paragraph (a) of this section exceed the amounts specified in paragraph (b) of this section:

(a) The total of the net pool obligation computed pursuant to § 1108.70 for such handler; and

(b) The sum of:

(1) The value of such handler's producer milk at the applicable uniform prices specified in § 1108.80; and

(2) The value at the weighted average price(s) applicable at the location of the plant(s) from which received (not to be less than the value at the Class II price) with respect to other source milk for which a value is computed pursuant to § 1108.70 (e).

[29 F.R. 10987, July 30, 1964]

§ 1108.83 Payments out of the producer-settlement fund.

On or before the 13th 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 § 1108.82 (b) exceeds the amount computed pursuant to § 1108.82(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 such payments as soon as the appropriate funds are available.

[29 F.R. 10987, July 30, 1964] § 1108.84

Adjustment of accounts.

Whenever audit by the market administrator of any reports, books, records, or accounts or other verification discloses errors resulting in moneys due (a) the market administrator from a handler, (b) a handler from the market administrator, or (c) any producer or cooperative association from a handler, the market administrator shall promptly notify such handler of any amount so due and payment thereof shall be made on or before the next date for making payments set forth in the provisions under which such error occurred.

§ 1108.85 Marketing services.

(a) Except as set forth in paragraph (b) of this section, each handler, in making payments to producers for milk (other than milk of his own production) pursuant to § 1108.80, shall deduct 5 cents per hundredweight, or such amount not exceeding 5 cents per hundredweight, as may be prescribed by the Secretary, and shall pay such deductions to the market administrator on or before the 15th day after the end of the month. Such money shall be used by the market administrator to provide market information and to check the accuracy of the testing and weighing of their milk for producers who are not receiving such service from a cooperative association;

(b) In the case of producers who are members of a cooperative association which the Secretary has determined is actually performing the services set forth in paragraph (a) of this section, each handler shall (in lieu of the deduction specified in paragraph (a) of this section), make such deductions from the

payments to be made to such producers as may be authorized by the membership agreement or marketing contract between such cooperative association and such producers, and on or before the 13th day after the end of each month, pay such deductions to the cooperative association of which such producers are members, furnishing a statement showing the amount of any such deductions and the amount of milk for which such deduction was computed for each producer.

§ 1108.86 Expense of administration.

As his pro rata share of the expense of administration of the order, each handler shall pay to the market administrator on or before the 15th day after the end of the month four cents per hundredweight or such lesser amount as the Secretary may prescribe, with respect to (a) producer milk received by a cooperative association as a handler pursuant to § 1108.12 (c), except that transferred to another handler operating a pool plant, (b) producer milk of a handler operating a pool plant (including such handler's own production), plus milk received from a cooperative association as a handler pursuant to § 1108.12 (c), (c) other source milk allocated to Class I pursuant to § 1108.46(a) (3) and (7) and the corresponding steps of § 1108.46(b), and (d) Class I milk disposed of from a partially regulated distributing plant on routes in the marketing area that exceeds Class I milk received during the month at such plant from pool plants and other order plants. [29 F.R. 10987, July 30, 1964]

DETERMINATION OF BASE

§ 1108.90 Computation of daily average base for each producer.

The daily average base for each producer shall be determined by the market administrator as follows: Divide the total pounds of milk received from such producer by handlers fully regulated under the terms of the respective orders regulating the handling of milk in the Memphis, Tennessee; Fort Smith, Arkansas; and Central Arkansas marketing areas (Parts 1097, 1102 and 1108, respectively, of this chapter) during the immediately preceding period of September through December 1963, and September through January thereafter, by the total number of days in such period beginning with the

first day on which milk is received from such producer by a handler regulated under any one of the aforesaid orders, but not less than 90 for the SeptemberDecember base-forming period and 120 thereafter. In the case of producers delivering milk to a plant which first became a pool plant during or after the end of the base-forming period, the daily average base for each producer shall be that which would have been calculated for such producer for the entire baseforming period if the plant had been a pool plant during such period. Determination § 1108.91 base of each producer.

of monthly

Subject to the rules set forth in § 1108.92, the market administrator shall calculate a monthly base for each producer for each of the months of February through July 1964 and March through July thereafter, as follows:

(a) If milk is received by handlers as producer milk during the month, multiply such producer's daily average base computed pursuant to § 1108.90 by the number of days in such month;

(b) If milk is received as producer milk from the same farm by handlers regulated under this part and by handlers fully regulated under the terms of the Memphis, Tennessee (Part 1097 of this chapter), or Fort Smith, Arkansas (Part 1102 of this chapter), orders during the month, multiply such producer's daily average base computed pursuant to § 1108.90 by the number of days in such month and multiply the result by the percentages of the total pounds of milk received from such producer by handlers fully regulated under the terms of the three orders specified in § 1108.90 which were received by each handler to determine the amount of base milk received from such producer by each handler.

§ 1108.92 Base rules.

The following rules shall apply in connection with the transfer of daily average bases for each producer computed pursuant to § 1108.90:

(a) An entire base shall be transferred from a person holding such base to any other person effective as of the end of any month during which an application for such transfer is received by the market administrator, such application to be on forms approved by the market administrator and signed by the base

holder, or his heirs, and by the person to whom such base is to be transferred;

(b) If a base is held jointly, the entire base shall be transferable only upon the receipt of such application signed by all joint holders or their heirs, and by the person to whom such base is to be transferred.

§ 1108.93

bases.

Announcement of established

On or before January 25, 1964, and February 25 of each year thereafter, the market administrator shall notify each producer of the daily average base established by such producer.

66-018-72-28