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before the next date for making pay- (a) Producer milk (including a han-
ments to producers or a cooperative as- dler's own farm production);
sociation, if such amount is due them. (b) Other source milk allocated to
Whenever such audit discloses errors

Class I milk pursuant to $ 1060.46(a) (4) resulting in moneys due such handler

and (8) and the corresponding steps in from the market administrator, payment

§ 1060.46(b); and shall be made within 5 days.

(c) Class I milk disposed of in the § 1060.87 Marketing services.

marketing area from a partially regulated (a) Except as set forth in paragraph distributing plant that exceeds the (b) of this section, each handler in mak- hundredweight of Class I milk received ing payments to producers other than to during the month at such plant from himself pursuant to § 1060.80(a) (1) shall pool plants and other order plants. deduct 5 cents per hundredweight or such lesser amount as the Secretary may prescribe with respect to all milk re

PART 1061-MILK IN THE SOUTHceived by such handler from producers

EASTERN MINNESOTA-NORTHERN during the month, and shall pay such IOWA (DAIRYLAND) MARKETING deductions to the market administrator AREA not later than the 15th day after the end

GENERAL PROVISIONS AND DEFINITIONS of the month. Such money shall be used by the market administrator to verify or Sec. establish weights, samples, and tests of

1061.1 General provisions. milk received from, and to provide mar

1061.5 Cooperative association.

1061.6 ket information to, such producers. Such

Southeastern Minnesota-Northern

Iowa (Dairyland) marketing services shall be performed in whole or in part by the market administrator or 1061.7 Fluid milk product. by an agent engaged by and responsible 1061.8 Route disposition. to him.

1061.9 Distributing plant. (b) In the case of producers for whom

1061.10 Supply plant. a cooperative association is performing,


Pool plant. as determined by the Secretary, the serv

1061.12 Nonpool plant. ices set forth in paragraph (a) of this

1061.13 Handler. section, each handler shall, in lieu of the

1061.14 Producer-handler. deductions specified in paragraph (a) of

1061.15 Producer. this section, make such deductions from

1061.16 Producer milk.
the payments to be made directly to pro-

1061.17 Diverted milk.

Other source milk.
ducers pursuant to $ 1060.80(a) (1), as
are authorized by such producers and, on

or before the 15th day after the end of 1061.22 Additional duties of the market
each month, pay over such deductions to

the association (of which such producers

are members) rendering such services.
(c) When requested by the coopera-

1061.30 Monthly reports of receipts and tive association a statement shall be sup

utilization. plied the cooperative association show

1061.31 Other reports. ing for each producer for whom such

CLASSIFICATION OF MILK deduction is made the amount of such 1061.40 Skim milk and butterfat to be deduction, the total delivery of milk, and

classified. unless otherwise previously provided, the

1061.41 Classes of utilization. butterfat test.

1061.42 Shrinkage.

1061.44 Transfers. § 1060.88 Expense of administration.

1061.45 Computation of skim milk and As his pro rata share of the expense

butterfat in each class. of the administration of the order, each

1061.46 Allocation of skim milk and buthandler shall pay to the market adminis

terfat classified. trator on or before the 15th day after the

MINIMUM PRICES end of each month four cents per hun

1061.50 Basic formula price. dredweight or such lesser amount as the 1061.51 Class prices. Secretary may prescribe with respect to 1061.52 Butterfat differentials to handlers. skim milk and butterfat contained in:

1061.53 Equivalent prices.

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of dem area anoth

$ 106

"Su which shipp. ing p.

$ 106

"PO the ca his s

imple plant That separ such healt:

prodi not be purse

reloa from te a purse


means all the territory within the boundSec.

aries of the counties listed below, includ1061.60 Plants subject to other Federal

ing all territory within such boundaries. orders. 1061.61 Obligations of handler operating

occupied by Government (municipal, a partially regulated distributing

State, or Federal) reservations, instalplant.

lations, institutions or other similar


MINNESOTA COUNTIES 1061.70 Computation of the net pool ob

Blue Earth.

Mower. ligation of each handler.


Nicollet. 1061.71 Computation of uniform price.





Rice. 1061.80 Time and method of payment.


Steele. 1061.81 Butterfat differential to producers.


Wabasha. 1061.82 Producer-settlement fund.


Waseca, 1061.83 Payments to the producer-settle

Le Sueur.

Watonwan. ment fund.


Winona. 1061.84 Payments out of the producer

IOWA COUNTIES settlement fund. 1061.85 Adjustment of accounts.


Winnebago. 1061.86 Statement to producer.



Mitchell (except city Worth.

of Osage). 1061.90 Expense of administration,

$ 1061.7 Fluid milk product. 1061.91 Marketing services. 1061.92 Adjustment of overdue accounts. "Fluid milk product” means milk, AUTHORITY: The provisions of this part

cream, skim milk, buttermilk, unsteri1061 issued under secs. 1-19, 48 Stat. 31, as

lized concentrated milk or skim milk, amended; 7 U.S.C. 601-674.

eggnog and eggnog flavored milk, and

mixtures combining milk, skim milk, SOURCE: The provisions of this Part 1061

and/or cream, including the aforesaid appear at 34 F.R. 5909, Mar. 29, 1969, unless otherwise noted.

products sweet, sour, cultured, or acidi

fied and such products reconstituted GENERAL PROVISIONS AND DEFINITIONS

from or fortified with milk products. The § 1061.1 General provisions.

term includes the aforesaid products to The terms, definitions, and provisions which flavors, sweeteners, stabilizers, in Part 1000 of this chapter are hereby emulsifiers, vitamins, minerals, and simincorporated by reference and made a ilar ingredients have been added. The part of this order.

term does not include products which [36 F.R. 9851, May 29, 1971]

are sterilized and disposed of in hermeti§ 1061.5 Cooperative association.

cally sealed metal or glass containers. “Cooperative association” means any § 1061.8 Route disposition. cooperative marketing association of pro

"Route disposition" means a delivery ducers which the Secretary determines,

from a plant (including delivery from a after application by the association:

retail store at such plant and delivery (a) Is qualified under the provisions of the Act of Congress of February 18,

through vendors or distribution points) 1922, as amended, known as the “Cap

of any fluid milk product classified as per-Volstead Act”; and

Class I under § 1061.41(a) to a retail or (b) Has full authority in the sale of

wholesale outlet other than a milk plant. milk of its members and is engaged in

A delivery through a vendor or through making collective sales of or marketing

a distribution point shall be considered milk or its products for its members.

a route disposition of the plant at the

location of the wholesale or retail outlet § 1061.6 Southeastern Minnesota-NorthIowa (Dairyland) marketing

to which delivery is made.

§ 1061.9 Distributing plant. “Southeastern Minnesota-Northern “Distributing plant” means a plant Iowa (Dairyland) marketing area”, here- from which a Grade A fluid milk product inafter called the “marketing area" that is packaged in such plant is disposed

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ern area.

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of during the month in the marketing or moved in the form of packaged fluid area on routes, either directly or through milk products to other plants. Such disanother plant.

position is to be exclusive of receipts of

packaged fluid milk products from other § 1061.10 Supply plant.

pool distributing plants. "Supply plant” means a plant from (b) A supply plant from which not less which a Grade A fluid milk product is than 15 percent of its total Grade A milk shipped during the month to a distribut- receipts from dairy farmers during the ing plant.

month is delivered as fluid milk products (36 F.R. 4777, Mar. 12, 1971]

to pool plants pursuant to paragraph (a)

of this section subject to subparagraphs $ 1061.11 Pool plant.

(1), (2) and (3) of this paragraph: "Pool plant” means any plant meeting (1) Any plant which qualified pursuant the conditions of paragraph (a) or (b) of to this paragraph in each of the immethis section except an exempt distribut- diately preceding months of September ing plant, the plant of a handler ex- through November shall be a pool plant empted pursuant to $ 1061.60 or the for the months of December through plant of a producer-handler: Provided, August unless written application is filed That if a portion of a plant is operated by the plant operator with the market separately from the Grade A portion of administrator on or before the first day such plant and is not approved by any of any such month requesting the plant health authority for the receiving, proc- be designated a nonpool plant for such essing, or packaging of any fluid milk month and each subsequent month product for Grade A disposition, it shall through August during which it would not be considered as part of a pool plant not otherwise qualify as a pool plant; pursuant to this section: And provided (2) In determining the pool plant further, That facilities used only as a qualifications of a cooperative associareload point for transferring bulk milk tion's plant, member producer milk of from one tank truck to another shall not such association which is delivered dibe a pool plant or part of a pool plant rectly to plants described in paragraph pursuant to this section.

(a) of this section shall be considered (a) A distributing plant from which for purposes of this paragraph as having there is disposed of during the month not been first received at the cooperative's less than the percentages set forth in plant subject to the following condisubparagraphs (1) and (2) of this para- tions: graph of the total Grade A fluid milk (i) Written request is made to the products received during the month at market administrator by the cooperative such plant, including producer milk di- association prior to or during the month, verted under $ 1061.17(b), but excluding designating the plant to be a pool plant -receipts of packaged fluid milk products pursuant to this subparagraph for the from other pool distributing plants and month, and for each month thereafter, receipts from unregulated supply plants until such request is withdrawn or termiand other order plants which are as- nated pursuant to subdivision (ii) of this signed pursuant to § 1061.46 (a) (5) (i) (a) subparagraph; and (ii) and the corresponding step of (ii) Any such plant which in a suc§ 1061.46(b):

ceeding month is pooled under the pro(1) Not less than 10 percent of such visions of another order issued pursuant receipts is disposed of from such plant as to the Act shall not be pooled under this Class I milk in the marketing area either

subparagraph for the ensuing 12 months. as route disposition or moved as pack- [34 F.R. 5909, Mar. 29, 1969, as amended at aged fluid milk products to other plants

36 F.R. 4777, Mar. 12, 1971) from which it is disposed of in the mar- $ 1061.12 Nonpool plant. keting area as route

sition. Such disposition is to be exclusive of receipts

“Nonpool plant” means any milk re

ceiving, manufacturing, or processing of packaged fluid milk products from plant other than a pool plant. The followother pool distributing plants; and

ing categories of nonpool plants are fur(2) Not less than 15 percent during ther defined as follows: the months of February-August and 20 (a) "Other order plant” means a plant percent during the months September- that is fully subject to the pricing and January of such receipts is disposed of pooling provisions of another order isas Class I milk either as route disposition sued pursuant to the Act.

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(b) "Producer-handler plant" means farmers nor from any other source, exa plant operated by a producer-handler cept receipts by plant transfer from pool as defined in any order (including this plants and who receives no nonfluid milk part) issued pursuant to the Act.

products from any source for use in re(c) “Partially regulated distributing constituted fluid milk products: Provided, plant” means a nonpool plant that is not That such person provides proof satisan other order plant, a producer-handler factory to the market administrator that plant or an exempt governmental plant the care and management of all dairy and from which fluid milk products eli- animals and other resources necessary to gible for sale as Grade A in consumer- produce the entire volume of fluid milk type packages or dispenser units are dis

and milk products handled (excluding posed of as route disposition in the mar- receipts from pool plants) and the opketing area during the month.

eration of the processing and packaging (d) “Unregulated supply plant” means business are wholly the personal entera nonpool plant that is not an other

prise and risk of such person. order plant, a producer-handler plant or

[36 F.R. 4777, Mar. 12, 1971] an exempt governmental plant and from which a Grade A fluid milk product is

$ 1061.15 Producer. shipped during the month to a pool "Producer” means any person, other plant.

than a producer-handler as defined in (e) "Exempt governmental plant”

any order (including this part) issued means a distributing or supply plant pursuant to the Act, who produces milk operated by a governmental agency. in compliance with the Grade A inspec[34 F.R. 5909, Mar. 29, 1969, as amended at tion requirements of a duly constituted 36 F.R. 4777, Mar. 12, 1971]

health authority which milk is received

as producer milk at a pool plant, or di§ 1061.13 Handler.

verted pursuant to § 1061.17 from a pool "Handler” means:

plant to a nonpool plant. (a) Any person in his capacity as the

§ 1061.16 Producer milk. operator of a pool plant(s);

(b) Any cooperative association with "Producer milk” means the skim milk respect to producer milk which it causes and butterfat in Grade A milk: to be diverted for its account from a pool (a) Received at a pool plant directly plant of another handler to a nonpool from a dairy farmer, except that milk plant;

received by diversion from other order (c) Any cooperative association with plants which is assigned pursuant to respect to milk of its producers which is § 1061.46 (a) (5) (ii) and the correspondreceived from the farm for delivery to the ing step of $ 1061.46(b); pool plant of another handler in a tank (b) Received at a pool plant from a truck owned and operated by or under cooperative association handler pursuant contract to such cooperative association; to § 1061.13(c); (d) Any person in his capacity as the

(c) Received by a cooperative associaoperator of a partially regulated distrib

tion handler pursuant to § 1061.13(c) uting plant;

from producers in excess of the quantity (e) Any person in his capacity as the

delivered to pool plants; and the operator of an other order plant from

(d) Subject to the provisions of § 1061. which during the month fluid milk prod

17, diverted from a pool plant to a nonucts are either disposed of as route disposition in the marketing area or ship

pool plant that is not an other order ped to a pool plant; and

plant, or to a nonpool plant that is an (f) A producer-handler.

other order plant if diverted as Class II [34 F.R. 5909, Mar. 29, 1969, as amended at

milk and such milk is not producer milk 36 F.R. 4777, Mar. 12, 1971)

under such other order. § 1061.14 Producer-handler.

§ 1061.17 Diverted milk. “Producer-handler" means any person

“Diverted milk” means, for any month, who operates a dairy farm and a dis- milk produced by a dairy farmer which tributing plant from which Class I milk a pool plant handler or a handler purof his own production is disposed of as suant to $1061.13(b) caused to be moved route disposition in the marketing area, from the farm to a nonpool plant (suband who receives no milk or fluid milk ject to the conditions set forth in products from the farms of other dairy § 1061.16(d)) if such milk is claimed as

producer milk and the conditions of paragraphs (a) or (b), and (c) of this section have been met.

(a) During the months of February through August a cooperative association handler pursuant to § 1061.13(b) may divert for its account, without limit on the remaining days, the milk of any member who was a producer during the previous month or whose milk is delivered to a pool plant on at least 1 day during the current month. During the months of September through January such handler may divert as producer milk the milk of any member producer whose milk is delivered to a pool plant described in $ 1061.11(a) on at least 1 day during the month except that the aggregate quantity of producer milk diverted by such handler shall not exceed the quantity of milk delivered during that month by all its member producers to pool plants described in § 1061.11(a).

(b) During February through August a handler in his capacity as the operator of a pool plant may divert for his account without limit on the remaining days the milk of any dairy farmer who was a producer during the previous month or whose milk is received at his pool plant on at least 1 day during the current month. During the months of September through January such handler may divert as producer milk the milk of any producer whose milk is received at his pool plant on at least 1 day during the month except that the aggregate quantity of producer milk diverted by such handler shall not exceed the quantity of milk received during the month at his pool plant from all producers except the member producers of a cooperative which diverted milk during the month pursuant to paragraph (a) of this section.

(c) If milk receipts from dairy farmers are diverted in excess of the quantities allowed pursuant to paragraphs (a) and (b) of this section the diverting handler shall specify the dairy farmers whose milk was overdiverted. If the diverting handler does not specify the dairy farmers whose milk was overdiverted, only the milk of dairy farmers which is received at a pool plant during the month shall be producer milk for such month. § 1061.18 Other source milk.

“Other source milk” means all skim milk and butterfat in:

(a) Fluid milk products from any source other than:

(1) Producer milk;

(2) Fluid milk products received from pool plants; or

(3) Fluid milk products in inventory on hand at the beginning of the month; and

(b) Products other than fluid milk products from any source (including those produced at the plant) which are reprocessed, converted into, or combined with another product in the plant during the month and any disappearance of products other than fluid milk products which are in a form in which they may be converted into fluid milk products and for which specific use cannot be verified by the market administrator. [34 F.R. 5909, Mar. 29, 1969, as amended at 36 F.R. 4777, Mar. 12, 1971]

MARKET ADMINISTRATOR § 1061.22 Additional duties of the mar

ket administrator. In addition to the duties specified in § 1000.3(c) of this chapter, the market administrator shall perform the following duties:

(a)-(g) [Reserved]

(h) On or before the fifth day of each month, mail to all handlers and make public announcement of the Class I price computed pursuant to § 1061.51(a), and the butterfat differential computed pursuant to § 1061.52(a) for the current month, and the Class II price computed pursuant to § 1061.51(b) and the butterfat differential computed pursuant to $ 1061.52(b) for the preceding month;

(i) On or before the 12th day after the end of each month, announce the uniform price computed pursuant to § 1061.71 and the producer butterfat differential pursuant to § 1061.81.

(j) Whenever required for the purpose of allocating receipts from other order plants pursuant to $ 1061.46(a) (9) and the corresponding step of § 1061.46(b), the market administrator shall estimate and publicly announce the utilization (to the nearest percentage) in each class during the month of skim milk and butterfat, respectively, in producer milk of all handlers. Such estimate shall be based upon the most current available data and shall be final for such purpose;

(k) Report to the market administrator of the other order, as soon as possible after the report of receipts and utilization for the month is received from a

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