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from such price if the plant is located unless, notwithstanding the provisions of in Minnesota; and

this paragraph, it is regulated by such
(3) Transfers of fluid milk products other order;
between pool plants shall be assigned (b) A distributing plant which meets
Class I milk disposition at the receiving the requirements set forth in § 1060.23(a)
plant, in excess of the sum of receipts at which also meets the requirements of
such plant from producers (including re- another marketing order on the basis of
ceipts from a cooperative association as a its distribution in such other marketing
handler of bulk tank milk pursuant to area and from which the Secretary de-
§ 1060.10(c)) and the pounds assigned as termines a greater quantity of fluid milk
Class I milk to receipts from other order products, except filled milk, is disposed
plants and unregulated supply plants. of during the month on routes in this
Such assignment is to be made first to marketing area than is so disposed of
shipping plants priced at the same price, in such other marketing area but which
next to plants having a higher price, and plant is nevertheless fully regulated
then in sequence to plants having a lower under such other marketing order;
price, beginning with the plant at which (c) A supply plant from which the
the highest price would apply.

Secretary determines a greater propor-

tion of its Grade A receipts, except filled

milk, is shipped during the month to § 1060.60 Producer-handlers and plants which are regulated by another empt institutions.

order pursuant to the Act if such ship(a) Sections 1060.40 through 1060.46,

ments qualify it as a pool plant under 1060.50 through 1060.54, 1060.70, 1060.71,

such other order; and 1060.80 through 1060.88 shall not

(d) Each handler operating a plant apply to a producer-handler: and

described in paragraph (a), (b) or (c) of (b) None of the provisions of this part

this section shall, with respect to total reshall apply to a governmentally owned

ceipts and utilization or disposition of and operated institution which disposes

skim milk and butterfat at such plant, of Class I milk solely for use on its own

report to the market administrator at premises or to its own facilities. Sales

such time and in such manner as the of fluid milk products from a pool plant

market administrator may require (in to such an institution shall be Class I lieu of reports pursuant to $$ 1060.35 and receipts of fluid milk products at a

through 1060.37) and allow verificapool plant from such an institution shall

tion of such reports by the market be Class II.

administrator; and

(e) Each handler operating a plant § 1060.61 Plants subject to other Fed- specified in paragraph (a), (b) or (c) of eral orders.

this section if such plant is subject to the The provisions of this order shall not

section if such plant is subject to the apply with respect to a plant of a han

classification and pricing provisions of

another order which provides for indidler specified in paragraph (a), (b), or

vidual handler pooling, shall pay to the (c) of this section except as specified in

market administrator for the producerparagraphs (d) and (e):

settlement fund on or before the 25th (a) A distributing plant from which

day after the end of the month an the Secretary determines a greater por- amount computed as follows: tion of fluid milk products, except filled (1) Determine the quantity of reconmilk, is disposed of on routes in another stituted skim milk in filled milk disposed marketing area regulated by another or- of on routes in the marketing area which der issued pursuant to the Act and such was allocated to Class I at such other plant is fully subject to regulation of

order plant. If reconstituted skim milk such other order: Provided, That a dis

in filled milk is disposed of from such tributing plant which was a pool plant

plant on routes in marketing areas reg

ulated by two or more market pool under this order in the immediately pre

orders, the reconstituted skim milk asceding month shall continue to be sub

signed to Class I shall be prorated ject to all of the provisions of this part

according to such disposition in each until the third consecutive month in

area; and which a greater proportion of its Class I (2) Compute the value of the quantity disposition, except filled milk, on routes

assigned in subparagraph (1) of this is made in such other marketing area paragraph to Class I disposition in this

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area, at the Class I price under this part a supply plant for such partially reguapplicable at the location of the other lated distributing plant by shipments to order plant and subtract its value at the such plant during the month equivalent Class II price.

to the requirements of $ 1060.23(b), with (34 F.R. 14823, Sept. 26, 1969, as amended at agreement of the operator of such plant 34 F.R. 18660, Nov. 22, 1969)

that the market administrator may ex

amine the books and records of such § 1060.62 Obligation of handler operating a partially regulated distributing

plant for purposes of verification of such plant.

reports, there will be added the amount

of the obligation computed at such nonEach handler who operates a partially

pool supply plant in the same manner regulated distributing plant shall pay to

and subject to the same conditions as for the market administrator for the pro

the partially regulated distributing plant. ducer-settlement fund on or before the

(2) From this obligation there will be 25th day after the end of the month

deducted the sum of (i) the gross payeither of the amounts (at the handler's

ments made by such handler for Grade election) calculated pursuant to para

A milk received during the month from graph (a) or (b) of this section. If the

dairy farmers at such plant and like handler fails to report pursuant to

payments made by the operator of a $$ 1060.35(b) and 1060.36 the informa

supply plant(s) included in the computation necessary to compute the amount

tions pursuant to subparagraph (1) of specified in paragraph (a), he shall pay

this paragraph, and (i) any payments the amount computed pursuant to para- to the producer-settlement fund of angraph (b) of this section:

other order under which such plant is (a) An amount computed as follows:

also a partially regulated distributing (1) (i) The obligation that would have

plant; been computed pursuant to § 1060.70 at

(b) An amount computed as follows: such plant shall be determined as though

(1) Determine the respective amounts such plant were a pool plant. For pur

of skim milk and butterfat disposed of as poses of such computation, receipts at

Class I milk on routes (other than to such nonpool plant from a pool plant

pool plants) in the marketing area; an other order plant shall be assigned to the utilization at which classified at

(2) Deduct (except that deducted unthe pool plant or other order plant and

der a similiar provision of another order transfers from such nonpool plant to

issued pursuant to the Act) the respective

amounts of skim milk and butterfat rea pool plant or an other order plant shall be classified as Class II milk if allocated

ceived as Class I milk at the partially to such class at the pool plant or other

regulated distributing plant from pool order plant and be valued at the uniform

plants and other order plants; price of the respective order if so allo

(3) Deduct the quantity of reconcated to Class I milk, except that recon

stituted skim milk in fluid milk products stituted skim milk in filled milk shall

disposed of on routes in the marketing be valued at the Class II price. There area; shall be included in the obligation so (4) Combine the amounts of skim milk computed a charge in the amount speci- and butterfat remaining into one total fied in § 1060.70 (f) and a credit in the and determine the weighted average amount specified in § 1060.84(b) (2) butterfat content; and with respect to receipts from an unregu

(5) From the value of such milk at the lated supply plant, except that the credit Class I price applicable at the location for receipts of reconstituted skim milk of the nonpool plant, subtract its value in filled milk shall be at the Class II at the uniform price applicable at such price, unless an obligation with respect location (not to be less than the Class II to such plant is computed as specified price), and add for the dauntity of rein subdivision (ii) of this subparagraph; constituted skim milk specified in suband

paragraph (3) of this paragraph its value (11) If the operator of the partially computed at the Class I price applicable regulated distributing plant so requests, at the location of the nonpool plant less and provides with his report pursuant to the value of such skim milk at the Class $8 1060.35(b) and 1060.36, a similar re- II price. port with respect to the operations of (32 F.R. 13703, Sept. 30, 1967, as amended at any other nonpool plant which serves as 34 F.R. 18660, Nov. 22, 1969)

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DETERMINATION OF UNIFORM PRICE subtracted from Class I pursuant to § 1060.70 Computation of the net pool

§ 1060.46 (a) (8) and the corresponding obligation of each pool handler.

step of $ 1060.46(b). The net pool obligation of each pool

[32 F.R. 13703, Sept. 30, 1967, as amended at

34 F.R. 18660, Nov. 22, 1969) handler as described in § 1060.10 (a), (b), and (c) during each month shall be

§ 1060.71 Computation of uniform a sum of money computed by the market

price. administrator as follows:

For each month the market adminis(a) Multiply the quantity of producer trator shall compute a uniform price as milk in each class as computed pursuant follows: to § 1060.46(c), by the applicable class (a) Combine into one total the values prices (adjusted pursuant to $ $ 1060.52 computed pursuant to § 1060.70 for all and 1060.53);

handlers who filed reports pursuant to (b) Add the amount obtained from $ $ 1060.35 and 1060.37(b) for the month multiplying the pounds of overage de- and who made the payments pursuant to ducted from each class pursuant to $ $ 1060.80 and 1060.84 for the preceding § 1060.46(a) (11) and the corresponding month; step of § 1060.46(b) by the applicable (b) Add or subtract for each one-tenth class prices;

percent that the average butterfat con(c) Add the amount computed from tent of milk represented by the values multiplying the difference between the specified in paragraph (a) of this section appropriate Class II price for the preced- is less or more, respectively, than 3.5 ing month and the appropriate Class I percent, the amount obtained by mulprice for the current month by the tiplying such difference by the butterfat hundredweight of skim milk and butter- differential pursuant to § 1060.81 and by fat subtracted from Class I pursuant to multiplying the result by the total hun§ 1060.46(a) (6) and the corresponding dredweight of such milk; step of § 1060.46(b);

(c) Add an amount equal to the total (d) Add (or subtract, pursuant to the value of minus location differentials proviso of this paragraph) the amount computed pursuant to § 1060.82(a); computed from multiplying the difference (d) Subtract an amount equal to the between the appropriate Class I price of total value of the plus location differenthe preceding month and the appropriate tials computed pursuant to § 1060.82(a); Class I price for the current month by the (e) Add an amount equal to not less hundredweight of skim milk and butter- than one-half of the unobligated balfat subtracted from Class I pursuant to

ance in the producer-settlement fund; § 1060.46(a) (3) and the corresponding (f) Divide the resulting amount by the step of $ 1060.46(b): Provided, That if sum of the following for all handlers inthe Class I price for the current month cluded in these computations; is less than the Class I price for the (1) The total hundredweight of propreceding month, the result shall be a ducer milk; and minus amount;

(2) The total hundredweight for (e) Add the amount equal to the dif- which a value is computed pursuant to ference between the value at the Class I § 1060.70(f); and price applicable at the pool plant and the (g) Subtract not less than 4 cents nor value at the Class II price, with respect more than 5 cents per hundredweight. to skim milk and butterfat from other The result shall be the "uniform price” source milk subtracted from Class I pur- for milk received from producers. suant to § 1060.46(a) (4) and the corre

PAYMENTS sponding step of § 1060.46(b), except that for receipts of fluid milk products § 1060.80 Time and method of payment. assigned to Class I pursuant to § 1060.46

Each handler shall make payment for (a) (4) (iv) and (v) and the correspond

milk received from producers or cooperaing step of § 1060.46(b) the Class I price

tive associations as follows: shall be adjusted to the location of the

(a) To each producer for whom paytransferor plant; and

ment is not made pursuant to paragraph (f) Add an amount equal to the value (b) or (c) of this section: at the Class I price adjusted for location

(1) A final settlement on or before the of the nearest nonpool plant(s) from 15th day after the end of each month which an equivalent volume was received during which producer milk was received, with respect to skim milk and butterfat at not less than the uniform price for

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such milk, adjusted by the butterfat dif- members shall be filed simultaneously ferential computed pursuant to § 1060.81, with the market administrator by the subject to the location adjustment to cooperative association and shall be subproducers pursuant to § 1060.82, and less ject to verification at his discretion the following amounts:

through audit of the records of the co(i) The payments made pursuant to operative association pertaining thereto. subparagraph (2) of this par ph; Exceptions, if any, to the accuracy of

(ii) Marketing service deductions pur- such certification by a producer claimed suant to § 1060.87; and

to be a member, or by a handler, shall be (iii) Any deductions authorized by the made by written notice to the market producer: Provided, That if by such date administrator and shall be subject to such handler has not received full pay- his determination; ment for such month pursuant to (c) To a cooperative association § 1060.85, he may reduce his total pay- which is a handler pursuant to § 1060.10 ment to all producers uniformly by not (a) or (b) for milk which it caused to less than the amount of reduction in be delivered to such handler: payment from the market administrator; (1) A final settlement on or before the handler shall, however, complete the 13th day after the end of the month such payments not later than the date in which the skim milk or butterfat was for making such payments pursuant to received, an amount equal to not less this paragraph next following receipt of

than the applicable class prices for all the balance from the market administrator;

skim milk and butterfat so delivered, less (2) A partial payment on or before

the amount of payment made pursuant the last day of each month with respect

to subparagraph (2) of this paragraph; to producer milk received during the first

(2) A partial payment on or before 15 days of the month at not less than

the 26th day of each month at not less the Class II price for the preceding than the applicable Class II price for the month (without deduction for hauling); preceding month (without deduction for

(b) (1) On or before the second day hauling) for all skim milk and butterfat prior to the date payments are due indi- so delivered during the first 15 days of vidual producers as specified in this sec- the current month; tion, pay to a cooperative association which

(d) In making payments to producers SO requests and which the market administrator determines

pursuant to paragraph (a) of this sec

is authorized by its members to col

tion, each handler shall furnish each lect payments for their milk and

producer with a supporting statement which promises in writing to reim

in such form that it may be retained by burse the handler the amount of

the producer, which shall show: any actual loss incurred by him because

(1) The month and the identity of the of any member's claim on the part of handler and of the producer; the cooperative association of the pay- (2) The pounds per shipment, the toments pursuant to paragraph (a) of

tal pounds, and the average butterfat test this section an amount equal to the sum

of milk delivered by the producer; of the individual payments otherwise (3) The minimum rate or rates at payable to such producers. The fore- which payment to the producer is regoing payment shall be made with re- quired under the provisions of $ $ 1060.80, spect to milk of each producer whom 1060.81, and 1060.82; the cooperative association certifies is a (4) The rate which is used in making member effective on and after the first payment, if such rate is other than the day of the calendar month next follow- applicable minimum rate; ing receipt of such certification through (5) The amount or the rate per hunthe last day of the month next preced- dredweight of each deduction claimed by ing receipt of notice from the coopera- the handler, including any deduction tive association of a termination of claimed under paragraph (c) (2) of this membership or until the original re- section and § 1060.87, together with a quest is rescinded in writing by the co- description of the respective deductions; operative association; and

and of each such request, (6) The net amount of payment to the promise to reimburse, and certified list of producer.

(2) A copy

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$ 1060.81 Butterfat differential to pro- handler shall not relieve the transferee ducers.

handler of any obligation on any such The uniform price for producer milk

milk which is due the cooperative assoshall be increased or decreased for each

ciation, or otherwise due pursuant to one-tenth of 1 percent that the butterfat

$ $ 1060.80 through 1060.88: content of such milk is above or below

(a) The sum of: 3.5 percent, respectively, at the rate de

(1) The total of the net pool obligation termined by multiplying the pounds of

computed pursuant to $ 1060.70 for such butterfat in producer milk allocated to

handlers; and Class I and Class II milk pursuant to

(2) In the case of a cooperative asso§ 1060.46 by the respective butterfat dit

ciation which is a handler pursuant to ferential for each class, determined pur

§ 1060.10(c), the minimum amounts due suant to § 1060.52, dividing the sum of

from other handlers pursuant to § 1060.80 such values by the total pounds of such

(c) (1); and butterfat, and rounding the resultant

(b) The sum of: figure to the nearest one-tenth cent.

(1) The amount required to be paid § 1060.82 Location differentials to pro

producers (including payments to producers and on nonpool milk.

ducers through cooperative associations)

pursuant to § 1060.80 before deductions (a) For producer milk received at a

authorized by the producer or cooperapool plant or diverted to a nonpool plant tive association or for marketing servlocated outside the base zone, the uni- ices pursuant to § 1060.87; and form price shall be adjusted at the rate

(2) The value at the uniform price(s) set forth in § 1060.53.

applicable at the location of the plant(s) (b) For purposes of computation pur

from which received (not to be less than suant to $8 1060.84(b) (2) and 1060.85, the value at the Class II price) with the uniform price shall be adjusted at the respect to other source milk for rates set forth in § 1060.53 applicable at which a value is computed pursuant to the location of the nonpool plant(s) from

§ 1060.70(e). which the milk was received.

§ 1060.85 Payments out of the producer. § 1060.83 Producer-settlement fund.

settlement fund. The market administrator shall estab- On or before the 14th day after the lish and maintain a separate fund known

end of each month the market adminisas the “producer-settlement fund" into trator shall pay (subject to the proviso which he shall deposit all funds received of $ 1060.83) to each handler the amount pursuant to paragraph (a) of this section

if any by which the amount computed and out of which he shall make all pay- pursuant to § 1060.84(b) exceeds the ments required pursuant to paragraph amount computed pursuant to § 1060.84 (b) of this section:

(a). The market administrator shall off(a) Payments made by handlers pur- set any payment due any handler against suant to $$ 1060.61, 1060.62, 1060.84 and payments due from such handler. If the 1060.86.

balance in the producer-settlement fund (b) Payments due handlers pursuant

is insufficient to make all payments purto $$ 1060.85 and 1050.86: Provided, That suant to this section, the market adminpayments due any handler shall be offset istrator shall reduce uniformly such payby payments due from such handler pur- ments and shall complete such payments

soon suant to $$ 1060.62, 1060.84, 1060.86,

as the necessary funds are

available. 1060.87, and 1060.88. (32 F.R. 13703, Sept. 30, 1967, as amended at § 1060.86 Adjustment of accounts. 34 F.R. 18660, Nov. 22, 1969)

(a) Whenever audit by the market § 1060.84 Payments to the producer- administrator of any handler's reports, settlement fund.

books, records, or accounts discloses On or before the 13th day after the end errors resulting in moneys due the marof the month each handler shall pay to ket administrator or any producer or the market administrator the amount, if cooperative association from such any, by which the total amounts specified handler, the market administrator shall in paragraph (a) of this section exceed promptly notify such handler of the the amount specified in paragraph (b) amount due and payment therefor shall of this section: Provided, That payment be made within 5 days if such amount is made by a cooperative association as a due the market administrator, or on or



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