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milk in fluid milk products received in packaged form from other order plants, except that to be subtracted pursuant to subparagraph (4) (v) of this paragraph, as follows:

(i) From Class II milk, the lesser of the pounds remaining or 2 percent of such receipts; and

(ii) From Class I milk, the remainder of such receipts;

(3) Subtract from the remaining pounds of skim milk in Class I, the pounds of skim milk in inventory of packaged fluid milk products on hand at the beginning of the month;

(4) Subtract in the order specified below from the pounds of skim milk remaining in each class, in series beginning with Class II, the pounds of skim milk in each of the following:

(i) Other source milk in a form other than that of a fluid milk product;

(ii) Receipts of fluid milk products (except filled milk) for which Grade A certification is not established,

and receipts of fluid milk products from unidentified sources;

(iii) Receipts of fluid milk products from a producer-handler, as defined under this or any other Federal order, and from exempt institutions as defined in $ 1060.60(b);

(iv) Receipts of reconstituted skim milk in filled milk from unregulated supply plants; and

(v) Receipts of reconstituted skim milk in filled milk from other order plants which are regulated under an order providing for individual handler pooling, to the extent that reconstituted skim milk is allocated to Class I at the transferor plant;

(5) Subtract, in the order specified below, from the pounds of skim milk remaining in Class II, but not in excess of such quantity:

(i) The pounds of skim milk in receipts of fluid milk products from an unregulated supply plant that were not subtracted pursuant to subparagraph (4) (iv) of this paragraph;

(a) For which the handler requests Class II utilization; or

(b) The pounds of skim milk in receipts which are in excess of the pounds of skim milk determined by subtracting from 125 percent of the pounds of skim milk remaining in Class I milk (exclusive of transfers between pool plants of the same handler) the sum of the pounds of skim milk in producer milk, receipts of fluid milk products from pool plants of

other handlers, and receipts of fluid milk products in bulk from other order plants that were not subtracted pursuant to subparagraph (4) (v) of this paragraph; and

(ii) The pounds of skim milk in receipts of fluid milk products in bulk from an other order plant that were not subtracted pursuant to subparagraph (4) (v) of this paragraph, in excess of similar transfers to such plant, if Class II utilization was requested by the operator of such plant and the transferee handler but not in excess of the pounds of skim milk remaining in Class II milk;

(6) Subtract from the pounds of skim milk remaining in each class, in series beginning with Class II, the pounds of skim milk in inventory of fluid milk products in bulk on hand at the beginning of the month;

(7) Add to the remaining pounds of skim milk in Class II milk the pounds subtracted pursuant to subparagraph (1) of this paragraph;

*(8) Subtract from the pounds of skim milk remaining in each class, pro rata to such quantities, the pounds of skim milk in receipts of fluid milk products from unregulated supply plants which were not subtracted pursuant to subparagraphs (4) (iv) or (5) (i) of this paragraph;

(9) Subtract from the pounds of skim milk remaining in each class, in the following order, the pounds of skim milk in receipts of fluid milk products in bulk from other order plant(s), in excess in each case of similar transfers to the same plant, which were not subtracted pursuant to subparagraphs (4) (v) or (5) (ii) of this paragraph;

(i) In series beginning with Class II, the pounds determined by multiplying the pounds of such receipts by the larger of the percentage of estimated Class II utilization of skim milk announced for the month by the market administrator pursuant to § 1060.32(1) or the percentage that Class II utilization remaining is of the total remaining utilization of skim milk of the handler; and

(ii) From Class I milk, the remaining pounds of such receipts;

(10) Subtract from the pounds of skim milk remaining in each class the pounds of skim milk received in fluid milk products from pool plants of other handlers according to the classification assigned pursuant to § 1060.44(a); and

(11) If the pounds of skim milk remaining in both classes exceed the pounds of skim milk in producer milk, subtract such excess from the pounds of skim milk remaining in each class in series beginning with Class II. Any amount so subtracted shall be known as "overage";

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(b) Butterfat shall be allocated in accordance with the procedure outlined for skim milk in paragraph (a) of this section; and

(c) Combine the amounts of skim milk and butterfat determined pursuant to paragraphs (a) and (b) of this section into one total for each class and determine the weighted average butterfat content of producer milk in each class. [34 F.R. 18659, Nov. 22, 1969]

MINIMUM PRICES § 1060.50 Basic formula price.

The basic formula, price shall be the average price per hundredweight for manufacturing grade milk, f.o.b. plants in Wisconsin and Minnesota, as reported by the U.S. Department of Agriculture for the month. Such price shall be adjusted to a 3.5 percent butterfat basis by a butterfat differential rounded to the nearest one-tenth cent computed at 0.12 times the Chicago butter price for the month. The resulting price shall be rounded to the nearest full cent. For the purpose of computing Class I prices from the effective date hereof through April 1969, the basic formula price shall not be less than $4.33." [32 F.R. 13703, Sept. 30, 1967, as amended at 33 F.R. 6522, Apr. 30, 1968] § 1060.51

Class prices. Subject to the provisions of $$ 1060.52 and 1060.53, the minimum class prices per hundredweight of milk for the month shall be as follows:

(a) Class I price. The price for Class I milk shall be the basic formula price for the preceding month plus $1.10, and plus 20 cents.

(b) Class II price. The price for Class II milk shall be the basic formula price. [32 F.R. 13703, Sept. 30, 1967, as amended at 34 F.R. 14823, Sept. 26, 19691 § 1060.52 Butterfat differentials to han.

dlers. For milk containing more or less than 3.5 percent butterfat, the class prices for the month pursuant to § 1060.51 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 Chicago butter price for the preceding month by 0.120;

(b) Class II price. Multiply the Chicago butter price for the month by 0.115. § 1060.53 Location differentials to han

dlers. (a) For producer milk received at a pool plant or diverted to a nonpool plant located outside the base zone and classified as Class I milk or assigned Class I location adjustment credit pursuant to paragraph (b) of this section and for other source milk for which a location adjustment is applicable, the price computed pursuant to $ 1060.51(a) shall be adjusted 1.2 cents for each 10 road miles or fraction thereof that such plant is located beyond the perimeter of the base zone.

(b) For the purposes of calculating such adjustments:

(1) All distances shall be by shortest hard-surfaced highways and/or allweather-roads, as determined by the market administrator;

(2) The adjustment pursuant to this section shall be added to the Class I price if the plant is located in North or South Dakota and shall be subtracted from such price if the plant is located in Minnesota; and

(3) Transfers of fluid milk products between pool plants shall be assigned Class I milk disposition at the receiving plant, in excess of the sum of receipts at such plant from producers (including receipts from a cooperative association as a handler of bulk tank milk pursuant to § 1060.10(c)) and the pounds assigned as Class I milk to receipts from other order plants and unregulated supply plants. Such assignment is to be made first to shipping plants priced at the same price, next to plants having a higher price, and then in sequence to plants having a lower price, beginning with the plant at which the highest price would apply.

APPLICATION OF PROVISIONS § 1060.60 Producer-handlers and ex

empt institutions. (a) Sections 1060.40 through 1060.46, 1060.50 through 1060.54, 1060.70, 1060.71, and 1060.80 through 1060.88 shall not. apply to a producer-handler: and

(b) None of the provisions of this part shall apply to a governmentally owned and operated institution which disposes of Class I milk solely for use on its own

premises or to its own facilities. Sales of fluid milk products from a pool plant to such an institution shall be Class I and receipts of fluid milk products at a pool plant from such an institution shall be Class II. § 1060.61 Plants subject to other Fed.

eral orders. The provisions of this order shall not apply with respect to a plant of a handler specified in paragraph (a), (b), or (c) of this section except as specified in paragraphs (d) and (e):

(a) A distributing plant from which the Secretary determines a greater portion of fluid milk products, except filled milk, is disposed of on routes in another marketing area regulated by another order issued pursuant to the Act and such plant is fully subject to regulation of such other order: Provided, That a distributing plant which was a pool plant under this order in the immediately preceding month shall continue to be subject to all of the provisions of this part until the third consecutive month in which a greater proportion of its Class I disposition, except filled milk, on routes is made in such other marketing area unless, notwithstanding the provisions of this paragraph, it is regulated by such other order;

(b) A distributing plant which meets the requirements set forth in § 1060.23(a) which also meets the requirements of another marketing order on the basis of its distribution in such other marketing area and from which the Secretary determines a greater quantity of fluid milk products, except filled milk, is disposed of during the month on routes in this marketing area than is so disposed of in such other marketing area but which plant is nevertheless fully regulated under such other marketing order;

(c) A supply plant from which the Secretary determines a greater proportion of its Grade A receipts, except filled milk, is shipped during the month to plants which are regulated by another order pursuant to the Act if such shipments qualify it as a pool plant under such other order;

(d) Each handler operating a plant described in paragraph (a), (b) or (c) of this section shall, with respect to total receipts and utilization or disposition of skim milk and butterfat at such plant, report to the market administrator at

such time and in such manner as the market administrator may require (in lieu of reports pursuant to $$ 1060.35 through 1060.37) and allow verification of such reports by the market administrator; and

(e) Each handler operating a plant specified in paragraph (a), (b) or (c) of this section if such plant is subject to the section if such plant is subject to the classification and pricing provisions of another order which provides for individual handler pooling, shall pay to the market administrator for the producersettlement fund on or before the 25th day after the end of the month an amount computed as follows:

(1) Determine the quantity of reconstituted skim milk in filled milk disposed of on routes in the marketing area which was allocated to Class I at such other order plant. If reconstituted skim milk in filled milk is disposed of from such plant on routes in marketing areas regulated by two or more market pool orders, the reconstituted skim milk assigned to Class I shall be prorated according to such disposition in each area; and

(2) Compute the value of the quantity assigned in subparagraph (1) of this paragraph to Class I disposition in this area, at the Class I price under this part applicable at the location of the other order plant and subtract its value at the Class II price. [34 F.R. 14823, Sept. 26, 1969, as amended at 34 F.R. 18660, Nov. 22, 1969) § 1060.62 Obligation of handler operat

ing 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 $ $ 1060.35(b) and 1060.36 the information necessary to compute the amount specified in paragraph (a), he shall pay the amount computed pursuant to paragraph (b) of this section:

(a) An amount computed as follows:

(1) (i) The obligation that would have been computed pursuant to § 1060.70 at such plant shall be determined as though

such plant were a pool plant. For purposes of such computation, receipts at such nonpool plant from a pool plant or an other order plant shall be assigned to the utilization at which classified at the pool plant or other order plant and transfers from such nonpool plant to a pool plant or an other order plant shall be classified as Class II milk if allocated to such class at the pool plant or other order plant and be valued at the uniform price of the respective order if so allocated to Class I milk, except that reconstituted skim milk in filled milk shall be valued at the Class II price. There shall be included in the obligation so computed a charge in the amount specified in § 1060.70(f) and a credit in the amount specified in § 1060.84 (b) (2) with respect to receipts from an unregulated supply plant, except that the credit for receipts of reconstituted skim milk in filled milk shall be at the Class II price, unless an obligation with respect to such plant is computed as specified in subdivision (ii) of this subparagraph; and

(ii) If the operator of the partially regulated distributing plant so requests, and provides with his report pursuant to $ $ 1060.35(b) and 1060.36, a similar report with respect to the operations of any other nonpool plant which serves as a supply plant for such partially regulated distributing plant by shipments to such plant during the month equivalent to the requirements of § 1060.23(b), with agreement of the operator of such plant that the market administrator may examine the books and records of such plant for purposes of verification of such reports, there will be added the amount of the obligation computed at such nonpool supply plant in the same manner and subject to the same conditions as for the partially regulated distributing plant.

(2) From this obligation there will be deducted the sum of (i) the gross payments made by such handler for Grade A milk received during the month from dairy farmers at such plant and like payments made by the operator of a supply plant(s) included in the computations pursuant to subparagraph (1) of this paragraph, and (i) any payments to the producer-settlement fund of another order under which such plant is also a partially regulated distributing plant;

(b) An amount computed as follows:

(1) Determine the respective amounts of skim milk and butterfat disposed of as

Class I milk on routes (other than to pool plants) in the marketing area;

(2) Deduct (except that deducted under a similiar provision of another order issud pursuant to the Act) the respective amounts of skim milk and butterfat received as Class I milk at the partially regulated distributing plant from pool plants and other order plants;

(3) Deduct the quantity of reconstituted skim milk in fluid milk products disposed of on routes in the marketing area;

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

(5) From the value of such milk at the Class I price applicable at the location of the nonpool plant, subtract its value at the uniform price applicable at such location (not to be less than the Class II price), and add for the dauntity of reconstituted skim milk specified in subparagraph (3) of this paragraph its value computed at the Class I price applicable at the location of the nonpool plant less the value of such skim milk at the Class II price. [32 F.R. 13703, Sept. 30, 1967, as amended at 34 F.R. 18660, Nov. 22, 1969)

DETERMINATION OF UNIFORM PRICE § 1060.70 Computation of the net pool

obligation of each pool handler. The net pool obligation of each pool handler as described in § 1060.10 (a), (b), and (c) during each month shall be a sum of money computed by the market administrator as follows:

(a) Multiply the quantity of producer milk in each class as computed pursuant to § 1060.46(c), by the applicable class prices (adjusted pursuant to $$ 1060.52 and 1060.53);

(b) Add the amount obtained from multiplying the pounds of overage deducted from each class pursuant to $ 1060.46(a) (11) and the corresponding step of $ 1060.46(b) by the applicable class prices;

(c) Add the amount computed from multiplying the difference between the appropriate Class II price for the preceding month and the appropriate Class I price for the current month by the hundredweight of skim milk and butterfat subtracted from Class I pursuant to § 1060.46(a) (6) and the corresponding step of g 1060.46(b);

(d) Add (or subtract, pursuant to the proviso of this paragraph) the amount

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 subtracted from Class I pursuant to such milk, adjusted by the butterfat dif§ 1060.46(a) (8) and the corresponding ferential computed pursuant to § 1060.81, step of g 1060.46(b).

subject to the location adjustment to (32 F.R. 13703, Sept. 30, 1967, as amended at producers pursuant to $ 1060.82, and less 34 F.R. 18660, Nov. 22, 1969]

the following amounts: § 1060.71 Computation of uniform

(i) The payments made pursuant to price.

subparagraph (2) of this paragraph;

(ii) Marketing service deductions purFor each month the market adminis

suant to § 1060.87; and trator shall compute a uniform price as

(iii) Any deductions authorized by the follows: (a) Combine into one total the values

producer: Provided, That if by such date computed pursuant to $ 1060.70 for all

such handler has not received full payhandlers who filed reports pursuant to

ment for such month pursuant to $$ 1060.35 and 1060.37(b) for the month

$ 1060.85, he may reduce his total payand who made the payments pursuant to ment to all producers uniformly by not $ $ 1060.80 and 1060.84 for the preceding less than the amount of reduction in month;

payment from the market administrator; (b) Add or subtract for each one-tenth the handler shall, however, complete percent that the average butterfat con- such payments not later than the date tent of milk represented by the values for making such payments pursuant to specified in paragraph (a) of this section

this paragraph next following receipt of is less or more, respectively, than 3.5

the balance from the market adminispercent, the amount obtained by multiplying such difference by the butterfat

trator; differential pursuant to § 1060.81 and by

(2) A partial payment on or before multiplying the result by the total hun

the last day of each month with respect dredweight of such milk;

to producer milk received during the first (c) Add an amount equal to the total 15 days of the month at not less than value of minus location differentials the Class II price for the preceding computed pursaunt to $ 1060.82(a); month (without deduction for hauling);

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