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plant, such assignment to be made first settlement fund on or before the 25th to transferor plants at which no location day after the end of the month an adjustment credit is applicable and then amount computed as follows: in sequence beginning with the plant at (1) Determine the quantity of rewhich the least location adjustment constituted skim milk in filled milk diswould apply.

posed of on routes in the marketing area

which was allocated to Class I at such § 1079.53 Use of equivalent prices.

other order plant. If reconstituted skim If for any reason a price quotation re- milk in filled milk is disposed of from quired by this order for computing class such plant on routes in marketing areas prices or for other purposes is not avail- regulated by two or more market pool able in the manner described, the orders, the reconstituted skim milk asmarket administrator shall use a price signed to Class I shall be prorated acdetermined by the Secretary to be equiv- cording to such disposition in each area; alent to the price which is required. and APPLICATION OF PROVISIONS

(2) Compute the value of the quan

tity assigned in subparagraph (1) of this $ 1079.60 Producer-handler.

paragraph to Class I disposition in this Sections 1079.40 to 1079.46, 1079.50 to

area, at the Class I price under this part 1079.52, and 1079.80 to 1079.88 shall not applicable at the location of the other apply to a producer-handler.

order plant and subtract its value at the

Class II price. $ 1079.61 Plants subject to other Fed. eral orders.

[34 F.R. 18688, Nov. 22, 1969)

8 1079.62 Obligations of handler operThe provisions of this part shall not apply to a handler who operates a plant

ating a partially regulated distribut

ing plant. specified in paragraph (a) of this section except as specified in paragraphs (b)

Each handler who operates a partially and (c);

regulated distributing plant shall pay to (a) A distributing plant or a supply

the market administrator for proplant during any month in which such ducer-settlement fund on or before the plant would be subject to the classifica- 25th day after the end of the month tion and pricing provisions of another either of the amounts (at the handler's order issued pursuant to the act unless

election) calculated pursuant to parathe disposition of fluid milk products, graph (a) or (b) of this section. If the except filled milk, from such plant to handler fails to report pursuant to pool plants qualified under $ 1079.10 and $ $ 1079.30 and 1079.31(b) (1) the inforto retail and wholesale outlets in the Des mation necessary to compute the amount Moines, Iowa, marketing area exceeds specified in paragraph (a) of this section, such disposition to retail and wholesale he shall pay the amount computed pursuoutlets in such other marketing area and ant to paragraph (b) of this section: to pool plants regulated by such other (a) An amount computed as follows: order;

(1) (i) The obligation that would (b) Each handler operating a plant

have been computed pursuant to § 1079.described in paragraph (a) of this sec

70 at such plant shall be determined as tion shall, with respect to total receipts

though such plant were a pool plant. and utilization or disposition of skim

For purposes of such computation, remilk and butterfat at such plant, report

ceipts at such nonpool plant from a pool to the market administrator at such time

plant or an other order plant shall be

assigned to the utilization at which clasand in such manner as the market ad

sified at the pool plant or other order ministrator may require (in lieu of re

plant and transfers from such nonpool ports pursuant to $$ 1079.30 and 1079.31)

plant to a pool plant or an other order and allow verification of such reports plant shall be classified as Class II milk by the market administrator.

if allocated to such class at the pool (c) Each handler operating a plant plant or other order plant and be valued specified in paragraph (a), of this sec- at the uniform price of the respective tion if such plant is subject to the clas- order if so allocated to Class I milk, exsification and pricing provisions of an- cept that reconstituted skim milk in other order which provides for individ- filled milk shall be valued at the Class ual-handler pooling, shall pay to the II price. There shall be included in the market administrator for the producer- obligation so computed a charge in the amount specified in § 1079.70(e) and a (5) From the value of such milk at the credit in the amount specified in

Class I price applicable at the location § 1079.84(b) (2) with respect to receipts of the nonpool plant, subtract its value from an unregulated supply plant, ex- at the uniform price applicable at such cept that the credit for receipts of re- location (not to be less than the Class II constituted skim milk in filled milk shall price) and add for the quantity of rebe at the Class II price, unless an obli- constituted skim milk specified in subgation with respect to such plant is com- paragraph (3) of this paragraph its puted as specified below in this

value computed at the Class I price apsubparagraph; and

plicable at the location of the nonpool (ii) If the operator of the partially plant less the value of such skim milk at regulated distributing plant so requests, the Class II price. and provides with his reports pursuant

(34 F.R. 7136, May 1, 1969, as amended at to $$ 1079.30 and 1079.31(b) (1) similar

34 F.R. 18689, Nov. 22, 1969) reports with respect to the operations or any other nonpool plant which serves

DETERMINATION OF UNIFORM PRICE as a supply plant for such partially reg- § 1079.70 Computation of the net pool ulated distributing plant by shipments obligation of each pool handler. to such plant during the month equiva

The net pool obligation of each pool lent to the requirements of § 1079.10(b)

handler during each month shall be a with agreement of the operator of such

sum of money computed by the market plant that the market administrator may

administrator as follows: examine the books and records of such

(a) Multiply the quantity of producer plant for purposes of verification of such

milk in each class, as computed pursureports, there will be added the amount of the obligation computed at such non

ant to § 1079.46(c), by the applicable

class prices (adjusted pursuant to pool supply plant in the same manner

$ $ 1079.51 and 1079.52); and subject to the same conditions as

(b) Add the amount obtained from for the partially regulated distributing

multiplying the pounds of overage deplant. (2) From this obligation there will be

ducted from each class pursuant to deducted the sum of (i) the gross pay

$1079.46(a) (10) and the corresponding

step of § 1079.46 (b) by the applicable ments made by such handler for Grade A

class prices; milk received during the month from

(c) Add the amount obtained from dairy farmers at such plant and like pay

multiplying the difference between the ments made by the operator of a supply

Class II price for the preceding month plant(s) included in the computations

and the Class I price for the current pursuant to subparagraph (1) of this

month by the hundredweight of skim paragraph, and (ii) any payments to the

milk and butterfat subtracted from Class producer-settlement fund of another or

I pursuant to § 1079.46 (a) (5) and the der under which such plant is also a partially regulated distributing plant.

corresponding step of $ 1079.46(b); (b) An amount computed as follows:

(d) Add an amount equal to the dif(1) Determine the respective amounts

ference between the value at the Class I of skim milk and butterfat disposed of as price applicable at the pool plant and the Class I milk on routes in the marketing value at the Class II price, with respect area;

to skim milk and butterfat in other (2) Deduct the respective amounts of source milk subtracted from Class I purskim milk and butterfat received as Class

suant to § 1079.46 (a) (3) and the correI milk at the partially regulated dis

sponding step of § 1079.46 (b) except that tributing plant from pool plants and

for receipts of fluid milk products asother order plants except that deducted under a similar provision of another or

signed to Class I pursuant to § 1079.46 der issued pursuant to the Act;

(a) (3) (iv) and (v) and the correspond(3) Deduct the quantity of reconsti

ing step of § 1079.46(b) the Class I price tuted skim milk in fluid milk products shall be adjusted to the location of the disposed of on routes in the marketing transferor plant; and area;

(e) Add an amount equal to the value (4) Combine the amounts of skim at the Class I price, adjusted for locamilk and butterfat remaining into one tion of the nearest nonpool plant(s) total and determine the weighted aver- from which an equivalent volume was age butterfat content; and

received, with respect to skim milk and butterfat subtracted from Class I pur

50-018471—19

PAYMENT FOR MILK suant to § 1079.46(a) (7) and the cor

& 1070.80 Time and method of payment. responding step of $ 1079.46(b).

(a) Each handler shall pay each pro(34 F.R. 7136, May 1, 1969, as amended at 34 F.R. 18689, Nov. 22, 1969)

ducer for producer milk for which pay

ment is not made to a cooperative asso8 1079.71 Computation of aggregate

ciation pursuant to paragraph (b) of this value used to determine uniform

section, as follows: price.

(1) On or before the last day of each For each month the market adminis- month, for producer milk received during trator shall compute an aggregate value the first 15 days of the month, at not less from which to determine the uniform than the Class II price for the preceding price per hundredweight for producer month; and milk of 3.5 percent butterfat content, (2) On or before the 15th day after f.o.b. plants located within the base zone, the end of each month, for producer as follows:

milk received during such month, an (a) Combine into one total the values amount computed at not less than the computed pursuant to § 1079.70 for all uniform price pursuant to § 1079.72 adpool plants for which the reports pre- justed pursuant to $$ 1079.81, 1079.82 scribed in § 1079.30 for such month were and 1079.87, and less the payment made made, except those in default of pay- pursuant to subparagraph (1) of this ments required pursuant to § 1079.84 for paragraph. the preceding month;

(b) Each handler shall make pay(b) Add or subtract for each one- ment to a cooperative association for tenth percent that the average butterfat producer milk which it caused to be content of the milk specified in § 1079.72 delivered to such handler, if such co(a) is less or more, respectively, than 3.5 operative association is authorized to percent, an amount computed by multi- collect such payments for its members plying such differences by the butterfat and exercises such authority, an amount differential to producers, and multiply- equal to the sum of the individual paying the result by the hundredweight of ments otherwise payable for such prosuch milk;

ducer milk, as follows: (c) Add an amount equal to the sum of (1) On or before the 26th day of each the location differential deductions to be month for producer milk received during made pursuant to § 1079.82; and

the first 15 days of the month; and (d) Add an amount equal to one-half (2) On or before the 13th day after of the unobligated cash balance in the the end of each month for milk received producer-settlement fund.

during such month.

(c) In making the payments for pro§ 1079.72 Computation of uniform

ducer milk pursuant to this section, each price.

handler shall furnish each producer or For each month the market adminis

cooperative association from whom he trator shall compute a uniform price for has received milk with a supporting milk of 3.5 percent butterfat content, statement in such form that it may be f.o.b. pool plants located within the base retained by the recipient, which shall

show: zone, as follows: (a) Divide the aggregate value com

(1) The month and identity of the

handler and of the producer; puted pursuant to § 1079.71 by the sum

(2) The daily and total pounds and of the following for all handlers included

the average butterfat content of proin these computations:

ducer milk; (1) The total hundredweight of pro

(3) The minimum rate or rates at ducer milk; and

which payment to the producer is re(2) The total hundredweight for

quired pursuant to the order; which a value is computed pursuant to (4) The rate which is used in making § 1079.70(e); and

the payment, if such rate is other than (b) Subtract not less than four cents the applicable minimum rate; nor more than five cents from the price (5) The amount or the rate per computed pursuant to paragraph (a) of hundredweight and nature of each dethis section. The result shall be known duction claimed by the handler; and as the uniform price for milk received (6) The net amount of payment to from producers.

such producer or cooperative association.

§ 1079.81 Butterfat differentials to pro- producer milk received during the ducers.

month; and The uniform price pursuant to

(2) The value at the uniform price ap§ 1079.72 shall be increased or de

plicable at the location of the plant(s) creased for each one-tenth of 1 per

from which received (not to be less cent that the butterfat content of such

than the value at the Class II price) milk is above or below 3.5 percent, re

with respect to other source milk for spectively, at the rate determined by

which a value is computed pursuant to multiplying the pounds of butterfat in

$1079.70(e). producer milk allocated to Class I and

§ 1079.85 Payments out of the producerClass II milk pursuant to § 1079.46 by settlement fund. the respective butterfat differential for

On or before the 13th day after the each class, dividing the sum of such

end of each month the market adminisvalues by the total pounds of such butter

trator shall pay to each handler the fat, and rounding the resultant figure to

amount, if any, by which the amount the nearest one-tenth cent.

computed pursuant to § 1079.84(b) ex8 1079.82 Location differentials to ceeds the amount computed pursuant to producers.

§ 1079.84(a): Provided, That if the bal(a) The uniform price for producer

ance in the producer-settlement fund is milk pursuant to § 1079.72 received at a

insufficient to make all payments pursupool plant or diverted from a pool plant

ant to this section, the market adminisshall be reduced according to the loca

trator shall reduce uniformly such paytion of the plant of actual receipt at the

ments and shall complete such payments rates set forth in § 1079.52.

as soon as the necessary funds are avail(b) For purposes of computations

able. A handler who has not received the pursuant to $$ 1079.84 and 1079.85 the

balance of such payments from the maruniform price shall be adjusted at the

ket administrator shall not be considered rates set forth in § 1079.52 applicable at

in violation of § 1079.80 if he reduces his the location of the nonpool plant from

payments to producers by not more than which the milk was received.

the amount of the reduction in payment

from the producer-settlement fund. $ 1079.83 Producer-settlement fund.

§ 1079.86 Adjustment of accounts. The market administrator shall maintain a separate fund known as the “pro

Whenever verification by the market ducer-settlement fund" into which he

administrator of reports or payments of shall deposit all payments made to such

any handler discloses errors in payments fund and out of which he shall make all

to or from the producer-settlement fund payments from such fund pursuant to

pursuant to $ $ 1079.84 and 1079.85, the $ $ 1079.61, 1079.62, 1079.84, 1079.85, and

market administrator shall promptly bill

such handler for any unpaid amounts 1079.86: Provided, That the market ad

and such handler shall, within 15 days ministrator shall offset the payment due

of such billing, make payments to the to a handler against payments due from

market administrator of the amount so such handler.

billed. Whenever verification discloses (34 F.R. 18689, Nov. 22, 1969)

that payment is due from the market § 1079.84 Payments to the producer

administrator to any handler, the market settlement fund.

administrator shall, within 15 days,

make such payment to such handler. On or before the 12th day after the

Whenever verification by the market adend of the month each handler shall pay

ministrator of the payment by a handler to the market administrator the amount,

to any producer or to a cooperative aswhich the total amounts spec

sociation discloses payment of an amount ified in paragraph (a) of this section

less than is required by $ 1079.80 the exceed the amounts specified in para

handler shall make up such payment to graph (b) of this section:

the producer or cooperative association (a) The total of the net pool obliga

not later than the time of making paytion computed pursuant to § 1079.70 for

ment next following such disclosure. such handler; and (b) The sum of

§ 1079.87 Marketing services. (1) The amount of the obligation pur- (a) Except as set forth in paragraph suant to § 1079.80 of such handler for (b) of this section, each handler in mak

if any,

ing payments to each producer pursuant to § 1079.80 shall deduct 5 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 15th day after the end of the month. Such money 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 in whole or in part by the market administrator or by an agent engaged by and responsible to him.

(b) In the case of 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 15th day after the end of each month, pay over such deductions to the association rendering such services. § 1079.88 Expense of administration.

As his pro rata share of the expense of administration of the order, each handler shall pay to the market administrator on or before the 15th day after the end of the month 4 cents per hundredweight or such lesser amount as the Secretary may prescribe, with respect to (a) producer milk, (b) other source milk allocated to Class I pursuant to § 1079.46(a) (3) and (7) and the corresponding steps of 1079.46 (b), and (c) Class I milk disposed of from a partially regulated distributing plant on routes in the marketing area that exceeds Class I milk received during the month at such plant from pool plants and other order plants. § 1079.89 Termination of obligations.

The provisions of this section shall apply to any obligation under this part for the payment of money.

(a) The obligation of any handler to pay money required to be paid under the terms of this order shall, except as provided in paragraph (b) and (c) of this section, terminate 2 years after the last day of the calendar month during which the market administrator received the handler's utilization report on skim milk and butterfat involved in such

obligation, unless within such 2-year period the market administrator notifies the handler in writing that such money is due and payable. Service of such notice shall be complete upon mailing to the handler's last known address, and it shall contain, but need not be limited to, the following information:

(1) The amount of the obligation;

(2) The month(s) during which the skim milk and butterfat, with respect to which the obligation exists, were received or handled; and

(3) If the obligation is payable to one or more producers or to an association of producers, the name of such producer(s) or association of producers, or if the obligation is payable to the market administrator, the account for which it is to be paid.

(b) If a handler fails or refuses, with respect to any obligation under this part, to make available to the market administrator or his representative all books and records required by this order to be made available, the market administrator may, within the 2-year period provided for in paragraph (a) of this section, notify the handler in writing of such failure or refusal. If the market administrator so notifies a handler, the said 2-year period with respect to such obligation shall not begin to run until the first day of the calendar month following the month during which all such books and records pertaining to such obligation are made available to the market administrator or his representatives.

(c) Notwithstanding the provisions of paragraphs (a) and (b) of this section, a handler's obligation under this part to pay money shall not be terminated with respect to any transaction involving fraud or willful concealment of a fact, material to the obligation, on the part of the handler against whom the obligation is sought to be imposed.

(d) Any obligation on the part of the market administrator to pay a handler any money which such handler claims to be due him under the terms of this part shall terminate 2 years after the end of the calender month during which the skim milk and butterfat involved in the claim were received if an underpayment is claimed, or 2 years after the end of the calendar month during which the payment (including deduction or set-off by the market administrator) was made by the handler if a refund on such payment is claimed, unless such handler within

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