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first assigned to the skim milk and but- istrators, transfers in bulk form shall be terfat in the fluid milk products so trans- classified as Class II to the extent of the ferred or diverted from pool plants, next Class I utilization (or comparable utilpro rata to receipts from other order zation under such other order) available plants and thereafter to receipts from for such assignment pursuant to the allodairy farmers who the market admin- cation provisions of the transferee order; istrator determines constitute regular (4) If information concerning the sources of supply of Grade A milk for classification to which allocated under such nonpool plant;

the other order is not available to the (ii) Any Class I utilization disposed of market administrator for purposes of on routes in the marketing area of establishing classification pursuant to another order issued pursuant to the Act this paragraph, classification shall be as shall be first assigned to receipts from Class I subject to adjustment when such plants fully regulated by such order, information is available; next pro rata to receipts from pool (5) For purposes of this paragraph, if plants and other order plants not regu- the transferee order provides for more lated by such order, and thereafter to than two classes of utilization, skim receipts from dairy farmers who the milk and butterfat allocated to a class market administrator determines con- consisting primarily of fluid milk prodstitute regular sources of supply for such ucts shall be classified as Class I and nonpool plant;

skim milk and butterfat allocated to (iii) Class I utilization in excess of other classes shall be classified as Class that assigned pursuant to subdivisions II; and (1) and (ii) of this subparagraph shall (6) If the form in which any fluid be assigned first to remaining receipts milk product is transferred to another from dairy farmers who the market ad- order plant is not defined as a fluid milk ministrator determines constitute the product under such other order, classiregular source of supply for such non- fication shall be in accordance with the pool plant and Class I utilization in ex- provisions of § 1060.41. cess of such receipts shall be assigned

(32 F.R. 13703, Sept. 30, 1967, as amended at pro rata to unassigned receipts at such 34 F.R. 18659, Nov. 22, 1969) nonpool plant from all pool and other order plants;

§ 1060.45 Computation of skim milk and

butterfat in each class. (iv) To the extent that Class I utilization is not so assigned to it the skim

For each month the market adminismilk and butterfat so transferred or di

trator shall correct for mathematical and verted shall be classified as Class II milk;

for other obvious errors the reports of (v) If any skim milk or butterfat is receipts and utilization submitted purtransferred to a second nonpool plant

suant to § 1060.35 by each handler and under this paragraph, the same condi

shall compute the pounds of skim milk tions of audit, classification and alloca

and butterfat in each class at all pool tion shall apply;

plants of such handler. Allocation pur(f) As follows, if transferred to an

suant to § 1060.46 and computation of other order plant in excess of receipts

obligations pursuant to § 1060.70 shall be from such plant in the same category as

based upon the combined utilization so described in subparagraph (1), (2), or

computed. (3) of this paragraph:

§ 1060.46 Allocation of skim milk and (1) If transferred in packaged form, butterfat classified. classification shall be in the classes to

After making the computations purwhich allocated as a fluid milk product

suant to § 1060.45, the market adminunder the other order;

istrator shall determine the classification (2) If transferred in bulk form, classi- of producer milk for each handler as fication shall be in the classes to which

follows: allocated as a fluid milk product under

(a) Skim milk shall be allocated in the the other order (including allocation following manner: under the conditions set forth in sub

(1) Subtract from the total pounds of paragraph (3) of this paragraph); skim milk in Class II the pounds of skim

(3) If the operators of both the trans- milk classified as Class II pursuant to feror and transferee plants so request § 1060.41(b) (5); in the reports of receipts and utilization (2) Subtract from the pounds of skim filed with their respective market admin- milk in each class the pounds of skim

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 Iccated 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 à 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 (h) 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 pur- Class I milk on routes (other than to poses of such computation, receipts at pool plants) in the marketing area; such nonpool plant from a pool plant or (2) Deduct (except that deducted unan other order plant shall be assigned der a similiar provision of another order to the utilization at which classified at issud pursuant to the Act) the respective the pool plant or other order plant and amounts of skim milk and butterfat retransfers from such nonpool plant to ceived as Class I milk at the partially a pool plant or an other order plant shall regulated distributing plant from pool be classified as Class II milk if allocated plants and other order plants; to such class at the pool plant or other (3) Deduct the quantity of reconorder plant and be valued at the uniform stituted skim milk in fluid milk products price of the respective order if so allo- disposed of on routes in the marketing cated to Class I milk, except that recon- area; stituted skim milk in filled milk shall (4) Combine the amounts of skim milk be valued at the Class II price. There and butterfat remaining into one total shall be included in the obligation so and determine the weighted average computed a charge in the amount speci- butterfat content; and fied in § 1060.70(f) and a credit in the (5) From the value of such milk at the amount specified in § 1060.84(b) (2) Class I price applicable at the location with respect to receipts from an unregu- of the nonpool plant, subtract its value lated supply plant, except that the credit at the uniform price applicable at such for receipts of reconstituted skim milk location (not to be less than the Class II in filled milk shall be at the Class II price), and add for the dauntity of reprice, unless an obligation with respect constituted skim milk specified in subto such plant is computed as specified paragraph (3) of this paragraph its value in subdivision (ii) of this subparagraph; computed at the Class I price applicable and

at the location of the nonpool plant less (ii) If the operator of the partially the value of such skim milk at the Class regulated distributing plant so requests, II price. and provides with his report pursuant to [32 F.R. 13703, Sept. 30, 1967, as amended at $ $ 1060.35(b) and 1060.36, a similar re- 34 F.R. 18660, Nov. 22, 1969] port with respect to the operations of

DETERMINATION OF UNIFORM PRICE any other nonpool plant which serves as a supply plant for such partially regu- § 1060.70 Computation of the net pool lated distributing plant by shipments to obligation of each pool handler. such plant during the month equivalent The net pool obligation of each pool to the requirements of § 1060.23(b), with handler as described in § 1060.10 (a), agreement of the operator of such plant

(b), and (c) during each month shall be that the market administrator may ex

a sum of money computed by the market amine the books and records of such

administrator as follows: plant for purposes of verification of such

(a) Multiply the quantity of producer reports, there will be added the amount milk in each class as computed pursuant of the obligation computed at such non- to § 1060.46(c), by the applicable class pool supply plant in the same manner prices (adjusted pursuant to $$ 1060.52 and subject to the same conditions as for and 1060.53); the partially regulated distributing plant. (b) Add the amount obtained from

(2) From this obligation there will be multiplying the pounds of overage dededucted the sum of (1) the gross pay- ducted from each class pursuant to ments made by such handler for Grade § 1060.46(a) (11) and the corresponding A milk received during the month from

step of § 1060.46(b) by the applicable dairy farmers at such plant and like class prices; payments made by the operator of a (c) Add the amount computed from supply plant(s) included in the computa- multiplying the difference between the tions pursuant to subparagraph (1) of appropriate Class II price for the precedthis paragraph, and (i) any payments ing month and the appropriate Class I to the producer-settlement fund of an- price for the current month by the other order under which such plant is hundredweight of skim milk and butteralso a partially regulated distributing fat subtracted from Class I pursuant to plant;

§ 1060.46(a) (6) and the corresponding (b) An amount computed as follows: step of § 1060.46(b);

(1) Determine the respective amounts (d) Add (or subtract, pursuant to the of skim milk and butterfat disposed of as proviso of this paragraph) the amount

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