times the simple average of the daily wholesale selling prices (using the midpoint of any price range as one price) of Grade A (92-score) bulk creamery butter per pound at Chicago, as reported by the U.S. Department of Agriculture for the month. The basic formula price shall be rounded to the nearest full cent. For the purpose of computing Class I prices, the basic formula price shall be not less than $4.33.

§ 1061.51 Class prices.

Subject to the provisions of § 1061.52, the class prices per hundredweight for the month shall be as follows:

(a) Class I milk price. The Class I milk price shall be the basic formula price for the preceding month plus $0.86, plus an additional 20 cents.

(b) Class II milk price. The Class II milk price shall be the basic formula price for the month.

[34 F.R. 5909, Mar. 29, 1969, as amended at 35 F.R. 16790, Oct. 30, 1970]

For milk containing more or less than 3.5 percent butterfat, the class prices for the month pursuant to § 1061.51 shall be increased or decreased, respectively, for each one-tenth percent butterfat at a rate, rounded to the nearest one-tenth cent, determined as follows:

(a) Class I price. Multiply the simple average of the daily wholesale selling prices (using the midpoint of any price range as one price) of Grade A (92score) bulk creamery butter per pound at Chicago, as reported by the U.S. Department of Agriculture for the preceding month by 0.12.

(b) Class II price. Multiply the simple average of the daily wholesale selling prices per pound (using the midpoint of any price range as one price) of Grade AA (93-score butter at New York, as reported by the U.S. Department of Agriculture for the month by 0.115. § 1061.53 Equivalent prices.

If for any reason a price quotation or other pricing factor required by this order for computing class prices or for other purposes is not available in the manner described, the market administrator shall use a price quotation or price factor determined by the Secretary to be equivalent to that required.

APPLICATION OF PROVISIONS

§ 1061.60 Plants subject to other Federal orders.

The provisions of this order shall not apply with respect to the plant of a handler that is fully subject to the pricing and pooling provisions of another order issued pursuant to the Act, unless such plant is qualified as a pool plant pursuant to § 1061.11 and a greater volume of fluid milk products is disposed of from such plant as route disposition in this marketing area and to pool plants qualified on the basis of route disposition in this marketing area than is so disposed of in the marketing area regulated pursuant to such other order.

[36 F.R. 4778, Mar. 12, 1971]

§ 1061.61 Obligations of handler operating a partially regulated distributing plant.

Each handler who operates a partially regulated distributing plant shall pay to the market administrator for the producer-settlement fund on or before the 25th day after the end of the month either of the amounts (at the handler's election) calculated pursuant to paragraph (a) or (b) of this section. If the handler fails to report pursuant to § 1061.31 (c) and (d) the information necessary to compute the amount specified in paragraph (a) of this section, he shall pay the amount computed pursuant to paragraph (b) of this section:

(a) An amount computed as follows:

(1) Determine the obligation that would have been computed pursuant to § 1061.70 for the partially regulated distributing plant if the plant had been a pool plant, subject to the following modifications:

(i) Receipts at the partially regulated distributing plant from a pool plant or an other order plant shall be allocated at the partially regulated distributing plant to the same class in which such products were classified at the fully regulated plants;

(ii) Transfers from the partially regulated distributing plant to a pool plant or an other order plant shall be classified at the nonpool plant in the class to which allocated at the fully regulated plant;

(iii) Any transfers described in subdivision (ii) of this subparagraph that are classified as Class I milk shall be priced as follows:

(a) Such Class I transfers shall not be subject to obligation at the partially

regulated distributing plant if the operator of the transferee pool plant or other order plant is not obligated under the applicable order because such transfer is treated under such order as milk received at the partially regulated distributing plant from a plant fully regulated by an order issued pursuant to the Act where it has been priced as Class I milk and not used as an offset on any other payment obligation in this or any other order; and

(b) Remaining Class I transfers, to the extent that such. do not exceed Grade A receipts from dairy farmers at the partially regulated distributing plant and at a plant described pursuant to subdivision (v) of this subparagraph shall be priced at the uniform price of the respective order (or at the weighted average price if the order provides such price).

(iv) Unless subdivision (v) of this subparagraph applies, the obligation for the partially regulated distributing plant shall include the charge specified in § 1061.70 (f) and the credit specified in § 1061.83 (b) (2) with respect to receipts of Class I milk from another nonpool plant (not another order plant) which serves as a supply plant for such partially regulated distributing plant: Provided, That if Class I transfers to fully regulated plants pursuant to subdivision (iii) of this subparagraph remain after the application of subdivision (iii) (b), the charge pursuant to § 1061.70 (f) and the credit pursuant to § 1061.83 (b) (2) shall not apply pursuant to this paragraph to such remaining amount.

(v) If the operator of the partially regulated distributing plant so requests, the obligation for such plant shall include a similar obligation for each nonpool plant (not another order plant) which serves as a supply plant for such partially regulated distributing plant by making shipments to such plant during the month equivalent to the requirements of § 1061.11(b), subject to the following conditions:

(a) The operator of the partially regulated distributing plant submits with his reports filed pursuant to § 1061.31 (c) similar reports for such nonpool supply plant;

(b) The operator of such nonpool supply plant maintains books and records showing the utilization of all skim milk and butterfat received at such plant which are made available if requested by the market administrator for verification purposes; and

(c) The obligation for such nonpool plant shall be determined in the same manner prescribed for computing the obligation of such partially regulated distributing plant; and

(2) From the obligation computed pursuant to subparagraph (1) of this paragraph, subtract:

(i) The gross payments by the operator of such partially regulated distributing plant for Grade A milk received at the plant during the month from dairy farmers;

(ii) If subparagraph (1)(v) of this paragraph applies, the gross payments by the operator of such nonpool supply plant for Grade A milk received at the plant during the month from dairy farmers; and

(iii) The payments by the operator of the partially regulated distributing plant to the producer-settlement fund of another order under which such plant is also a partially regulated distributing plant and like payments by the operator of an unregulated supply plant if subparagraph (1)(v) of this paragraph applies to such plant.

(b) An amount computed as follows: (1) Determine the respective amounts of skim milk and butterfat disposed of as Class I route disposition (other than to pool plants) in the marketing area;

(2) Deduct the respective amounts of skim milk and butterfat received at the plant;

(i) As Class I milk from pool plants and other order plants except that deducted under a similar provision of another order issued pursuant to the Act; and

(ii) From a nonpool plant that is not an other order plant to the extent that an equivalent amount of skim milk or butterfat disposed of to such nonpool plant by handlers fully regulated under this or any other order issued pursuant to the Act is classified and priced as Class I milk and is not used as an offset on any other payment obligation under this or any other order;

(3) Combine the amounts of skim milk and butterfat remaining into one total and determine the weighted average butterfat content; and,

(4) From the value of such milk at the Class I price, subtract its value at the uniform price pursuant to § 1061.71. [34 F.R. 5909, Mar. 29, 1969, as amended at 36 F.R. 4778, Mar. 12, 1971]

DETERMINATION OF UNIFORM PRICES TO PRODUCERS

§ 1061.70 Computation of the net pool obligation of each handler.

The net pool obligation of each handler pursuant to § 1061.13(a) and of each cooperative association handler with respect to its producer milk pursuant to § 1061.16 (c) and (d), shall be a sum of money computed for each month by the market administrator as follows:

(a) Multiply the quantity of producer milk in each class as computed pursuant to 1061.46 (c) by the respective class prices;

(b) Add the amount obtained from multiplying the pounds of overage deducted from each class pursuant to § 1061.46 (a) (11) and the corresponding step of § 1061.46 (b) by the respective class prices;

(c) Add an amount equal to the difference between the value at the Class II price for the preceding month and the value at the Class I price for the current month with respect to skim milk and butterfat subtracted from Class I pursuant to § 1061.46 (a) (6) and the corresponding step of § 1061.46(b);

(d) Add (or subtract, pursuant to the proviso of this paragraph) an amount equal to the difference between the value at the Class I price of the preceding month and the value at the Class I price of the current month with respect to skim milk and butterfat subtracted from Class I pursuant to § 1061.46 (a) (3) and the corresponding step of § 1061.46(b): Provided, That if the value at the Class I price for the current month is less than the value at the Class I price for the preceding month, the result shall be a minus amount:

(e) Add an amount equal to the difference between the value at the Class I price and the value at the Class II price, with respect to skim milk and butterfat from other source milk subtracted from Class I pursuant to § 1061.46 (a) (4) and the corresponding step of § 1061.46 (b); and

(f) Add the value at the Class I price with respect to skim milk and butterfat subtracted from Class I pursuant to § 1061.46(a) (8) and the corresponding step of § 1061.46(b), excluding such skim milk or butterfat in bulk receipts of fluid milk products from an unregulated supply plant to the extent that an equivalent amount of skim milk or butterfat dis

For each month the market administrator shall compute a uniform price as follows:

(a) Combine into one total the values computed pursuant to § 1061.70 for all handlers who filed reports pursuant to §§ 1061.30 and 1061.31(b) for the month and who made payments pursuant to § 1061.83 for the preceding month;

(b) Subtract, if the average butterfat content of the milk specified in paragraph (d) of this section is more than 3.5 percent or add, ií 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 § 1061.81 and multiplying the result by the total hundredweight of such milk;

(c) Add an amount equal to not less than one-half of the unobligated balance in the producer-settlement fund;

(d) 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

terfat differential computed pursuant to § 1061.81 and less the following amounts: (i) The payments made pursuant to subparagraph (2) of this paragraph;

(ii) Marketing service deductions pursuant to § 1061.91; and

(iii) Any proper deductions authorized by the producer: Provided, That if by such date such handler has not received full payment from the market administrator pursuant to § 1061.84 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;

(2) A partial payment on or before the fifth day of the following month to each producer who had not discontinued shipping milk to such handler at not less than the Class II price for the preceding month for producer milk received during the first 15 days of the month (without deduction for hauling);

(b) Payments required in paragraph (a) of this section shall be made on or before the second day prior to the dates set forth in paragraph (a) of this section to a cooperative association (except as specified in paragraph (c) of this section) qualified under § 1061.5, or its duly authorized agent, if the cooperative association so requests and the market administrator determines it is authorized by its members to collect payments for their milk. Payments to the cooperative association under this paragraph shall be made subject to the condition that the association has provided the hanIdler with a promise to reimburse the handler the amount of any actual loss incurred by such handler because of any improper claim on the part of the cooperative association: and

(c) on or before the 11th day after the end of the month, each handler shall pay a cooperative association which is a handler with respect to all skim milk and butterfat received by him from a pool plant operated by such cooperative association not less than the applicable class prices.

§ 1061.81 Butterfat

producers.

differential to

The uniform price pursuant to § 1061.71 shall be increased or decreased for each one-tenth of 1 percent that the

butterfat content of such milk is above or below 3.5 percent, respectively, at the rate determined by multiplying the pounds of butterfat in producer milk allocated to Class I milk and Class II milk pursuant to § 1061.46 by the respective butterfat differential for each class, dividing the sum of such values by the total pounds of such butterfat, and rounding the resultant figure to the nearest one-tenth cent.

§ 1061.82 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 §§ 1061.61, 1061.83, and 1061.85 and out of which he shall make all payments due handlers pursuant to §§ 1061.84 and 1061.85: Provided, That the market administrator shall offset any payments due any handler against payments due from such handler.

(1) The value of such handler's producer milk at the applicable uniform price specified in § 1061.80; and

(2) The value of such handler's receipts of other source milk for which a value is computed pursuant to § 1061.70 (f) at the uniform price.

§ 1061.84 Payments out of the producersettlement fund.

On or before the 16th day after the end of each month, the market administrator shall pay, subject to the proviso of § 1061.82, to each handler the amount, if any, by which the amount computed pursuant to § 1061.83(b) exceeds the amount computed pursuant to § 1061.83 (a).

§ 1061.85 Adjustment of accounts.

When verification by the market administrator of reports or payment of any handler discloses errors resulting in money due (a) the market administrator

from such handler, (b) such handler from the market administrator, or (c) any producer or cooperative association from such handler, the market administrator shall promptly notify such handler of any amount so due and payment thereof shall be made not later than the date for making payment next following such disclosure. § 1061.86

Statement to producer.

In making payment to individual producers as required by § 1061.80, each handler shall furnish each producer from whom he received milk a supporting statement, in such form that it may be retained by the producer, which shall show:

(a) The month involved, and the identity of the handler and of the producer;

(b) The total pounds and the average butterfat content of the milk received from the producer;

(c) The minimum rate at which payment to the producer is required pursuant to § 1061.80;

(d) The rate used in making the payment if such rate is other than the applicable minimum;

(e) The amount (or rate) per hundredweight of each deduction claimed by the handler, including any deduction claimed under § 1061.91, together with a description of the respective deductions; (f) The net amount of the payment to the producer.

MISCELLANEOUS

§ 1061.90 Expense of administration.

As his pro rata share of the expense of administration, each handler shall pay to the market administrator on or before the 14th day after the end of the month, 4 cents per hundredweight, or such lesser amount as the Secretary may prescribe with respect to milk handled during the month as follows:

(a) Each handler (excluding a cooperative association as the operator of a pool plant with respect to milk transferred in bulk to a pool plant of another handler) with respect to his receipts of producer milk (including such handler's own-farm production, and milk received in bulk from a pool plant owned and operated by a cooperative association) and other source milk allocated to Class I pursuant to § 1061.46 (a) (4) and (8) and the corresponding steps of § 1061.46 (b);

(b) Each handler in his capacity as the operator of a partially regulated dis

tributing plant with respect to his route disposition in the marketing area in excess of his receipts of Class I milk from pool plants, cooperative associations as handlers pursuant to § 1004.10(b), and other order plants assigned to such disposition.

[36 F.R. 4779, Mar. 12, 1971]

§ 1061.91 Marketing services.

(a) Except as set forth in paragraph (b) of this section, each handler in making payments to each producer pursuant to § 1061.80 shall deduct 6 cents per hundredweight or such lesser amount as the Secretary may prescribe with respect to producer milk received by such handler (except such handler's own farm production) during the month, and shall pay such deductions to the market administrator not later than the 18th day after the end of the month. Such monies shall be used by the market administrator to verify or establish weights, samples, and tests of producer milk and to provide producers with market information. Such services shall be performed by the market administrator or by an agent engaged by and responsible to him.

(b) In the case of member producers for whom a cooperative association is performing, as determined by the Secretary, the services set forth in paragraph (a) of this section, each handler shall make, in lieu of the deductions specified in paragraph (a) of this section such deductions as are authorized by such producers and, on or before the 18th day after the end of each month, pay over such deductions to the association rendering such services.

The unpaid obligation of a handler pursuant to §§ 1061.61, 1061.83, and 1061.85 shall be increased three-fourths of 1 percent for each month or portion thereof that such obligation is overdue: Provided, That,

(a) The amounts payable pursuant to this section shall be computed monthly on each unpaid obligation, which shall include any unpaid charges previously made pursuant to this section; and

(b) For the purpose of this section, any obligation that was determined at a date later than prescribed by the order because of a handler's failure to submit a report to the market administrator when due, shall be considered to have