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times the simple average of the daily

APPLICATION OF PROVISIONS wholesale selling prices (using the mid

§ 1061.60 Plants subject to other Fedpoint of any price range as one price)

eral orders. of Grade A (92-score) bulk creamery

The provisions of this order shall not butter per pound at Chicago, as reported

apply with respect to the plant of a by the U.S. Department of Agriculture for the month. The basic formula price

handler that is fully subject to the pricshall be rounded to the nearest full cerit.

ing and pooling provisions of another

order issued pursuant to the Act, unless For the purpose of computing Class I

such plant is qualified as a pool plant prices, the basic formula price shall be not less than $4.33.

pursuant to § 1061.11 and a greater

volume of fiuid milk products is disposed § 1061.51 Class prices.

of from such plant as route disposition in Subject to the provisions of § 1061.52,

this marketing area and to pool plants the class prices per hundredweight for qualified on the basis of route disposition the month shall be as follows:

in this marketing area than is so disposed (a) Class I milk price. The Class I

of in the marketing area regulated purmilk price shall be the basic formula suant to such other order. price for the preceding month plus $0.86, [36 F.R. 4778, Mar. 12, 1971] plus an additional 20 cents.

§ 1061.61 Obligations of handler oper(b) Class II milk price. The Class II

ating a partially regulated distributmilk price shall be the basic formula

ing plant. price for the month.

Each handler who operates a partially (34 F.R. 5909, Mar. 29, 1969, as amended at 35 F.R. 16790, Oct. 30, 1970]

regulated distributing plant shall pay to

the market administrator for the pro§ 1061.52 Butterfat differentials to han- ducer-settlement fund on or before the dlers.

25th day after the end of the month For milk containing more or less than

either of the amounts (at the handler's

election) calculated pursuant to para3.5 percent butterfat, the class prices for the month pursuant to § 1061.51 shall be

graph (a) or (b) of this section. If the

handler fails to report pursuant to increased or decreased, respectively, for § 1061.31(c) and (d) the information each one-tenth percent butterfat at a necessary to compute the amount specirate, rounded to the nearest one-tenth fied in paragraph (a) of this section, he cent, determined as follows:

shall pay the amount computed pursuant (a) Class 1 price. Multiply the simple to paragraph (b) of this section: average of the daily wholesale selling

(a) An amount computed as follows: prices (using the midpoint of any price

(1) Determine the obligation that range as one price) of Grade A (92

would have been computed pursuant to score) bulk creamery butter per pound

§ 1061.70 for the partially regulated disat Chicago, as reported by the U.S. De

tributing plant if the plant had been a partment of Agriculture for the preced

pool plant, subject to the following modi

fications: ing month by 0.12.

(i) Receipts at the partially regulated (b) Class II price. Multiply the simple distributing plant from a pool plant or average of the daily wholesale selling an other order plant shall be allocated at prices per pound (using the midpoint of the partially regulated distributing plant any price range as one price) of Grade to the same class in which such products AA (93-score butter at New York,

were classified at the fully regulated reported by the U.S. Department of Agri

plants; culture for the month by 0.115.

(ii) Transfers from the partially regu§ 1061.53 Equivalent prices.

lated distributing plant to a pool plant

or an other order plant shall be classiIf for any reason a price quotation or

fied at the nonpool plant in the class to other pricing factor required by this

which ailocated at the fully regulated order for computing class prices or for

plant; other purposes is not available in the

(iii) Any transfers described in submanner described, the market adminis

division (ii) of this subparagraph that trator shall use a price quotation or price

are classified as Class I milk shall be factor determined by the Secretary to be

priced as follows:

(a) Such Class I transfers shall not equivalent to that required.

be subject to obligation at the partially

as

regulated distributing plant if the oper- (c) The obligation for such nonpool ator of the transferee pool plant or other plant shall be determined in the same order plant is not obligated under the manner prescribed for computing the obapplicable order because such transfer ligation of such partially regulated disis treated under such order as milk re- tributing plant; and ceived at the partially regulated distrib- (2) From the obligation computed uting plant from a plant fully regulated pursuant to subparagraph (1) of this by an order issued pursuant to the Act paragraph, subtract: where it has been priced as Class I milk (i) The gross payments by the operand not used as an offset on any other ator of such partially regulated distribpayment obligation in this or any other uting plant for Grade A milk received order; and

at the plant during the month from dairy (6) Remaining Class I transfers, to the farmers; extent that such, do not exceed Grade A (ii) If subparagraph (1)(v) of this receipts from dairy farmers at the par- paragraph applies, the gross payments tially regulated distributing plant and at by the operator of such nonpool supply a plant described pursuant to subdivision plant for Grade A milk received at the (v) of this subparagraph shall be priced plant during the month from dairy farmat the uniform price of the respective

ers; and order (or at the weighted average price (iii) The payments by the operator of if the order provides such price). the partially regulated distributing plant

(iv) Unless subdivision (v) of this sub- to the producer-settlement fund of anparagraph applies, the obligation for the other order under which such plant is partially regulated distributing plant also a partially regulated distributing shall include the charge specified in plant and like payments by the operator § 1061.70(f) and the credit specified in of an unregulated supply plant if sub§ 1061.83(b) (2) with respect to receipts paragraph (1) (v) of this paragraph apof Class I milk from another nonpool plies to such plant. plant (not another order plant) which (b) An amount computed as follows: serves as a supply plant for such partially (1) Determine the respective amounts regulated distributing plant: Provided, of skim milk and butterfat disposed of That if Class I transfers to fully regu- as Class I route disposition (other than lated plants pursuant to subdivision

to pooi plants) in the marketing area; (iii) of this subparagraph remain after (2) Deduct the respective amounts of the application of subdivision (iii) (b),

skim milk and butterfat received at the the charge pursuant to § 1061.70 (f)

plant; and the credit pursuant to § 1061.83

(i) As Class I milk from pool plants (b) (2) shall not apply pursuant to this

and other order plants except that deparagraph to such remaining amount.

ducted under a similar provision of an(v) If the operator of the partially regulated distributing plant so requests,

other order issued pursuant to the Act; the obligation for such plant shall in

and clude a similar obligation for each non- (fi) From a nonpool plant that is not pool plant (not another order plant) an other order plant to the extent that which serves as a supply plant for an equivalent amount of skim milk or such partially regulated distributing butterfat disposed of to such nonpool plant by making shipments to such plant

plant by handlers fully regulated under during the month equivalent to the re

this or any other order issued pursuant quirements of § 1061.11(b), subject to

to the Act is classified and priced as Class the following conditions:

I milk and is not used as an offset on any (a) The operator of the partially regulated distributing plant submits with

other payment obligation under this or his reports filed pursuant to § 1061.31(c) any other order; similar reports for such nonpool supply

(3) Combine the amounts of skim plant;

milk and butterfat remaining into one (6) The operator of such nonpool sup- total and determine the weighted averply plant maintains books and records age butterfat content; and, showing the utilization of all skim milk (4) From the value of such milk at and butterfat received at such plant the Class I price, subtract its value at which are made available if requested by the uniform price pursuant to § 1061.71. the market administrator for verifica- 134 F.R. 5909, Mar. 29, 1969, as amended at tion purposes; and

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

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DETERMINATION OF UNIFORM PRICES TO posed of to such plant by handlers fully PRODUCERS

regulated under this or any other order

issued pursuant to the Act is classified § 1061.70 Computation of the net pool

and priced as Class I milk and is not used obligation of each handler.

as an offset on any other payment obliThe net pool obligation of each han

gation under this or any other order. dler pursuant to § 1061.13(a) and of

[34 F.R. 5909, Mar. 29, 1969, as amended at each cooperative association handler 36 F.R. 4779, Mar. 12, 1971] with respect to its producer milk pur

§ 1061.71 Computation of uniform suant to $ 1061.16 (c) and (d), shall be

price. a sum of money computed for each month by the market administrator as For each month the market adminisfollows:

trator shall compute a uniform price as (a) Multiply the quantity of producer

follows: milk in each class as computed pursuant

(a) Combine into one total the values to § 1061.46(c) by the respective class computed pursuant to § 1061.70 for all prices;

handlers who filed reports pursuant to (b) Add the amount obtained from $ $ 1061.30 and 1061.31(b) for the month multiplying the pounds of overage de

and who made payments pursuant to ducted from each class pursuant to

§ 1061.83 for the preceding month; § 1061.46(a) (11) and the corresponding (b) Subtract, if the average butterfat step of $ 1061.46(b) by the respective

content of the milk specified in paraclass prices;

graph (d) of this section is more than (c) Add an amount equal to the dif

3.5 percent or add, is such butterfat conference between the value at the Class 1

tent is less than 3.5 percent, an amount price for the preceding month and the

computed by multiplying the amount by value at the Class I price for the current

which the average butterfat content of month with respect to skim milk and

such milk varies from 3.5 percent by the butterfat subtracted from Class I pur

butterfat differential computed pursuant suant to $ 1061.46(a) (6) and the corre

to § 1061.81 and multiplying the result sponding step of § 1061.46(b);

by the total hundredweight of such milk; (d) Add (or subtract, pursuant to the

(c) Add an amount equal to not less proviso of this paragraph) an amount

than one-half of the unobligated balance equal to the difference between the value

in the producer-settlement fund; at the Class I price of the preceding

(d) Divide the resulting amount by the month and the value at the Class I price

sum of the following for all handlers inof the current month with respect to

cluded in these computations; skim milk and butterfat subtracted from

(1) The total hundredweight of proClass I pursuant to § 1061.46(a) (3) and

ducer milk; and the corresponding step of § 1061.46(b):

(2) The total hundredweight for which Provided, That if the value at the Class

a value is computed pursuant to I price for the current month is less than

§ 1061.70(f); and the value at the Class I price for the

(e) Subtract not less than four cents preceding month, the result shall be a nor more than five cents per hundredminus amount:

weight. The result shall be the “uniform (e) Add an amount equal to the dif- price" for milk received from producers. ference between the value at the Class I [34 F.R. 5909, Mar. 29, 1969, as amended at price and the value at the Class II price, 36 F.R. 4779, Mar. 12, 1971) with respect to skim milk and butterfat from other source milk subtracted from

PAYMENTS FOR MILK
Class I pursuant to g 1061.46(a) (4) and f 1061.80 Time and method of pay-
the corresponding step of § 1061.46(b);

ment.
and
(f) Add the value at the Class I price

Each handler shall make payment for

CO

milk received from producers or with respect to skim milk and butterfat subtracted from Class I pursuant to

operative associations as follows: § 1061.46(a)(8) and the corresponding

(a) To each producer for whom paystep of § 1061.46(b), excluding such skim

ment is not made pursuant to paragraph milk or butterfat in bulk receipts of fluid

(b) and (c) of this section: milk products from an unregulated sup

(1) On or before the 20th day of the ply plant to the extent that an equivalent following month not less than the amount of skim milk or butterfat dis- uniform price, adjusted by the but

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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 g 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 handler 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 differential to

producers. 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. § 1061.83 Payments to the producer

settlement fund. On or before the 14th 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 net pool obligation computed pursuant to § 1061.70 for such handler; and

(b) The sum of:

(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 producer

settlement 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

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from such handler, (b) such handler tributing plant with respect to his route
from the market administrator, or (c) disposition in the marketing area in ex-
any producer or cooperative association cess of his receipts of Class I milk from
from such handler, the market adminis- pool plants, cooperative associations as
trator shall promptly notify such han- handlers pursuant to $ 1004.10(b), and
dler of any amount so due and payment other order plants assigned to such dis-
thereof shall be made not later than the position.
date for making payment next following [36 F.R. 4779, Mar. 12, 19711
such disclosure.

§ 1061.91 Marketing services.
§ 1061.86 Statement to producer.

(a) Except as set forth in raragraph In making payment to individual pro- (b) of this section, each handler in makducers as required by § 1061.80, each ing payments to each producer pursuant handler shall furnish each producer from to § 1061.80 shall deduct 6 cents per hunwhom he received milk a supporting dredweight or such lesser amount as the statement, in such form that it may be Secretary may prescribe with respect to retained by the producer, which shall producer milk received by such handler show:

(except such handler's own farm produc(a) The month involved, and the iden- tion) during the month, and shall pay tity of the handier and of the producer; such deductions to the market admin

(b) The total pounds and the average istrator not later than the 18th day after butterfat content of the milk received the end of the month. Such monies shall from the producer;

be used by the market administrator to (c) The minimum rate at which pay- verify or establish weights, samples, and ment to the producer is required pursu- tests of producer milk and to provide proant to § 1061.80;

ducers with market information. Such (d) The rate used in making the pay- services shall be performed by the marment if such rate is other than the ap- ket administrator or by an agent engaged plicable minimum;

by and responsible to him. (e) The amount (or rate) per hun- (b) In the case of member producers dredweight of each deduction claimed by for whom a cooperative association is the handler, including any deduction performing, as determined by the Secreclaimed under $ 1061.91, together with a tary, the services set forth in paragraph description of the respective deductions; (a) of this section, each handler shall

(f) The net amount of the payment make, in lieu of the deductions specified to the producer.

in paragraph (a) of this section such de

ductions as are authorized by such proMISCELLANEOUS

ducers and, on or before the 18th day § 1061.90 Expense of administration. after the end of each month, pay over As his pro rata share of the expense

such deductions to the association renof administration, each handler shall pay dering such services. to the market administrator on or before the 14th day after the end of the month,

§ 1061.92 Adjustment of overdue ac

counts.
4 cents per hundredweight, or such lesser
amount as the Secretary may prescribe

The unpaid obligation of a handler with respect to milk handled during the pursuant to $ $ 1061.61, 1061.83, and month as follows:

1061.85 shall be increased three-fourths (a) Each handler (excluding a coop

of 1 percent for each month or portion erative association as the operator of a thereof that such obligation is overdue: pool plant with respect to milk trans- Provided, That, ferred in bulk to a pool plant of another handler) with respect to his receipts of

(a) The amounts payable pursuant to producer milk (including such handler's

this section shall be computed monthly own-farm production, and milk received

on each unpaid obligation, which shall in bulk from a pool plant owned and op

include any unpaid charges previously erated by a cooperative association) and

made pursuant to this section; and other source milk allocated to Class I

(b) For the purpose of this section, pursuant to $ 1061.46(a) (4) and (8)

any obligation that was determined at and the corresponding steps of $ 1061.46 a date later than prescribed by the order

because of a handler's failure to submit (b) Each handler in his capacity as

a report to the market administrator the operator of a partially regulated dis

when due, shall be considered to have

(b);

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