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REPORTS, RECORDS AND FACILITIES Sec. 1061.30 Monthly reports of receipts and

utilization. 1061.31 Other reports. 1061.32 Records and facilities. 1061.33 Retention of records.

CLASSIFICATION OF MILK 1061.40 Skim milk and butterfat to be

classified. 1061.41 Classes of utilization. 1061.42 Shrinkage. 1061.43 Responsibility of handlers and re

classification of milk. 1061.44 Transfers. 1061.45 Computation of skim milk and

butterfat in each class. 1061.46 Allocation of skim milk and but

terfat classified.

MINIMUM PRICES 1061.50 Basic formula price. 1061.51 Class prices. 1061.52 Butterfat differentials to handlers. 1061.53 Equivalent prices.

APPLICATION OF PROVISIONS 1061.60 Plants subject to other Federal

orders. 1061.61 Obligations of handler operating

a partially regulated distributing

plant.
DETERMINATION OF UNIFORM PRICES TO

PRODUCERS 1061.70 Computation of the net pool ob

ligation of each handler. 1061.71 Computation of uniform price.

PAYMENTS FOR MILK 1061.80 Time and method of payment. 1061.81 Butterfat differential to producers. 1061.82 Producer-settlement fund. 1061.83 Payments to the producer-settle

ment fund. 1061.84 Payments out of the producer

settlement fund. 1061.85 Adjustment of accounts. 1061.86 Statement to producer.

MISCELLANEOUS 1061.90 Expense of administration. 1061.91 Marketing services. 1061.92 Adjustment of overdue accounts. 1061.93 Termination of obligations. 1061.94 Agents. 1061.95 Separability of provisions. EFFECTIVE TIME, SUSPENSION, OR

TERMINATION 1061.100 Effective time. 1061.101 Suspension or termination.

Sec. 1061.102 Continuing power and duty of the

market administrator. 1061.103 Liquidation after suspension or

termination. AUTHORITY: The provisions of this Part 1061 issued under secs. 1-19, 48 Stat. 31, as amended; 7 U.S.C. 601-674.

SOURCE: The provisions of this part 1061 appear at 34 F.R. 5909, Mar. 29, 1969, unless otherwise noted.

DEFINITIONS § 1061.1

Act. "Act" means Public Act No. 10, 73d Congress, as amended and as reenacted and amended by the Agricultural Marketing Agreement Act of 1937, as amended. § 1061.2 Secretary.

“Secretary” means the Secretary of Agriculture or any oficer or employee of the United States who is authorized to exercise the powers and to perform the duties of the Secretary of Agriculture. § 1061.3 Department.

“Department” means the U.S. Department of Agriculture or such other Federal agency as may be authorized to perform the price reporting functions of the U.S. Department of Agriculture. § 1061.4 Person.

"Person” means any individual, partnership, corporation, association, or other business unit. $ 1061.5 Cooperative association.

“Cooperative association” means any cooperative marketing association of producers which the Secretary determines, after application by the association:

(a) Is qualified under the provisions of the Act of Congress of February 18, 1922, as amended, known as the “Capper-Volstead Act”; and

(b) Has full authority in the sale of milk of its members and is engaged in making collective sales of or marketing milk or its products for its members. § 1061.6 Southeastern Minnesota-North

Iowa (Dairyland) marketing

ern

area.

“Southeastern Minnesota-Northern Iowa (Dairyland) marketing area”, hereinafter called the "marketing area."

means all the territory within the boundaries of the counties listed below, including all territory within such boundaries occupied by Government (municipal, State, or Federal) reservations, installations, institutions or other similar establishments:

MINNESOTA COUNTIES Blue Earth.

Mower. Brown.

Nicollet. Cottonwood.

Olmsted. Dodge.

Redwood. Faribault.

Rice. Fillmore.

Steele. Freeborn.

Wabasha. Goodhue.

Waseca. Le Sueur.

Watonwan. Martin.

Winona.

IOWA COUNTIES Howard.

Winnebago. Kossuth.

Winneshiek. Mitchell (except city Worth.

of Osage). § 1061.7 Fluid milk product.

"Fluid milk product" means milk, cream, skim milk, buttermilk, unsterilized concentrated milk or skim milk, eggnog and eggnog flavored milk, and mixtures combining lilk, skim milk, and/or cream, including the aforesaid products sweet, sour, cultured, or acidified and such products reconstituted from or fortified with milk products. The term includes the aforesaid products to which flavors, sweeteners, stabilizers, emulsifiers, vitamins, minerals, and similar ingredients have been added. The term does not include products which are sterilized and disposed of in hermetically sealed metal or glass containers. § 1061.8 Route disposition.

"Route disposition" means a delivery from a plant (including delivery from a retail store at such plant and delivery through vendors or distribution points) of any fluid milk product classified as Class I under $ 1061.41(a) to a retail or wholesale outlet other than a milk plant. A delivery through a vendor or through a distribution point shall be considered a route disposition of the plant at the location of the wholesale or retail outlet to which delivery is made.

of during the month in the marketing area on routes, either directly or through another plant. $ 1061.10 Supply plant.

“Supply plant” means a plant from which a Grade A fluid milk product is shipped during the month to another plant. § 1061.11 Pool plant.

"Pool plant” means any plant meeting the conditions of paragraph (a) or (b) of this section, except an exempt distributing plant, the plant of a handler exempted pursuant to $ 1061.60 or the plant of a producer-handler: Provided, That if a portion of a plant is operated separately from the Grade A portion of such plant and is not approved by any health authority for the receiving, processing, or packaging of any fluid milk product for Grade A disposition, it shall not be considered as part of a pool plant pursuant to this section: And provided further, That facilities used only as a reload point for transferring bulk milk from one tank truck to another shall not be part of a pool plant pursuant to this section.

(a) A distributing plant from which there is disposed of during the month not less than the percentages set forth in subparagraphs (1) and (2) of this paragraph of the total Grade A fluid milk products received during the month at such plant, including producer milk diverted under $ 1061.17(b), but excluding receipts of packaged fluid milk products from other pool distributing plants and receipts from unregulated supply plants and other order plants which are assigned pursuant to § 1061.46 (a) (5) (i) (a) and (ii) and the corresponding step of $ 1061.46(b):

(1) Not less than 10 percent of such receipts is disposed of from such plant as Class I milk in the marketing area either on routes or moved as packaged fluid milk products to other plants from which it is disposed of in the marketing area on routes. Such disposition is to be exclusive of receipts of packaged fluid milk products from other pool distributing plants; and

(2) Not less than 15 percent during the months February-August and 20 percent during the months September-January of such receipts is disposed of as Class I milk either on routes or moved in the

§ 1061.9 Distributing plant.

"Distributing plant” means a plant from which a Grade A fluid milk product that is packaged in such plant is disposed

form of packaged fluid milk products to other plants. Such disposition is to be exclusive of receipts of packaged fluid milk products from other pool distributing plants.

(b) A supply plant from which not less than 15 percent of its total Grade A milk receipts from dairy farmers during the month is delivered as fluid milk products to pool plants pursuant to paragraph (a) of this section subject to subparagraphs (1), (2) and (3) of this paragraph:

(1) Any plant which qualified pursuant to this paragraph in each of the immediately preceding months of September through November shall be a pool plant for the months of December through August unless written application is filed by the plant operator with the market administrator on or before the first day of any such month requesting the plant be designated a nonpool plant for such month and each subsequent month through August during which it would not otherwise qualify as a pool plant;

(2) In determining the pool plant qualifications of a cooperative association's plant, member producer milk of such association which is delivered directly to plants described in paragraph (a) of this section may be considered for purposes of this paragraph as having been first received at the cooperative's plant; and

(3) During the period from the effective date of this part through August 1969, the monthly percentage shall be not less than 10 percent, except that a plant which would have qualified on the basis of 10 percent shipments to a plant which would have qualified under paragraph (a) of this section during the month of November 1968 shall be a pool plant unless nonpool status is requested in accordance with subparagraph (1) of this paragraph. 8 1061.12 Nonpool plant.

“Nonpool plant” means any milk receiving, manufacturing, or processing plant other than a pool plant. The following categories of nonpool plants are further defined as follows:

(a) "Other order plant” means a plant that is fully subject to the pricing and pooling provisions of another order issued pursuant to the Act.

(b) “Producer-handler plant” means a plant operated by a producer-handler as defined in any order (including this part) issued pursuant to the Act.

(c) “Partially regulated distributing plant” means a nonpool plant that is not an other order plant, a producer-handler plant or an exempt governmental plant and from which fluid milk products eligible for sale as Grade A in consumer-type packages or dispenser units are distributed on routes in the marketing area during the month.

(d) “Unregulated supply plant” means a nonpool plant that is not an other order plant, a producer-handler plant or an exempt governmental plant and from which a Grade A fluid milk product is shipped during the month to a pool plant.

(e) "Exempt governmental plant” means a distributing or supply plant operated a governmental agency. 8 1061.13 Handler.

“Handler” means:

(a) Any person in his capacity as the operator of a pool plant(s);

(b) Any cooperative association with respect to producer milk which it causes to be diverted for its account from a pool plant of another handler to a nonpool plant;

(c) Any cooperative association with respect to milk of its producers which is received from the farm for delivery to the pool plant of another handler in a tank truck owned and operated by or under contract to such cooperative association;

(d) Any person in his capacity as the operator of a partially regulated distributing plant;

(e) Any person in his capacity as the operator of an other order plant from which during the monti, fluid milk products are either distributed on routes in the marketing area or shipped to a pool plant; or

(f) A producer-handler. § 1061.14 Producer-handler.

"Producer-handler" means any person who operates a dairy farm and a distributing plant from which Class I milk of his own production is distributed on routes in the marketing area, and who receives no milk or fluid milk products from the farms of other dairy farmers nor from any other source, except receipts by plant transfer from pool plants and who receives no nonfluid milk products from any source for use in reconstituted fluid milk products: Provided, That such person provides proof satisfactory to the market administrator that the care and management of all dairy animals and other resources necessary to produce the entire volume of fluid milk and milk products handled (excluding receipts from pool plants) and the operation of the processing and packaging business are wholly the personal enterprise and risk of such person. § 1061.15 Producer.

“Producer” means any person, other than a producer-handler as defined in any order (including this part) issued pursuant to the Act, who produces milk in compliance with the Grade A inspection requirements of a duly constituted health authority which milk is received as producer milk at a pool plant, or di. verted pursuant to § 1061.17 from a pool plant to a nonpool plant. § 1061.16 Producer milk.

"Producer milk” means the skim milk and butterfat in Grade A milk:

(a) Received at a pool plant directly from a dairy farmer, except that milk received by diversion from other order plants which is assigned pursuant to § 1061.46(a) (5) (ii) and the corresponding step of § 1061.46(b);

(b) Received at a pool plant from a cooperative association handler pursuant to $ 1061.13(c);

(c) Received by a cooperative association handler pursuant to § 1061.13(c) from producers in excess of the quantity delivered to pool plants; and

(d) Subject to the provisions of $ 1061. 17, diverted from a pool plant to a nonpool plant that is not an other order plant, or to a nonpool plant that is an other order plant if diverted as Class II milk and such milk is not producer milk under such other order. § 1061.17 Diverted milk.

“Diverted milk” means, for any month, milk produced by a dairy farmer which a pool plant handler or a handler pursuant to $1061.13(b) caused to be moved from the farm to a nonpool plant (subject to the conditions set forth in § 1061.16(d)) if such milk is claimed as producer milk and the conditions of paragraphs (a) or (b), and (c) of this section have been met.

(a) During the months of February through August a cooperative association handler pursuant to § 1061.13(b) may

divert for its account, without limit on the remaining days, the milk of any member who was a producer during the previous month or whose milk is delivered to a pool plant on at least 1 day during the current month. During the months of September through January such handler may divert as producer milk the milk of any member producer whose milk is delivered to a pool plant described in $ 1061.11(a) on at least 1 day during the month except that the aggregate quantity of producer milk diverted by such handler shall not exceed the quantity of milk delivered during that month by all its member producers to pool plants described in § 1061.11(a).

(b) During February through August a handler in his capacity as the operator of a pool plant may divert for his account without limit on the remaining days the milk of any dairy farmer who was a producer during the previous month or whose milk is received at his pool plant on at least 1 day during the current month. During the months of September through January such handler may divert as producer milk the milk of any producer whose milk is received at his pool plant on at least 1 day during the month except that the aggregate quantity of producer milk diverted by such handler shall not exceed the quantity of milk received during the month at his pool plant from all producers except the member producers of a cooperative which diverted milk during the month pursuant to paragraph (a) of this section.

(c) If milk receipts from dairy farmers are diverted in excess of the quantities allowed pursuant to paragraphs (a) and (b) of this section the diverting handler shall specify the dairy farmers whose milk was overdiverted. If the diverting handler does not specify the dairy farmers whose milk was overdiverted, only the milk of dairy farmers which is received at a pool plant during the month shall be producer milk for such month. § 1061.18 Other source milk.

“Other source milk” means all skim milk and butterfat in:

(a) Fluid milk products from any source other than:

(1) Producer milk;

(2) Fluid milk products received from pool plants; or

(3) Fluid milk products in inventory on hand at the beginning of the month; and

(b) Products other than fluid milk products from any source (including those produced at the plant) which are reprocessed, converted into, or combined with another product in the plant during the month.

MARKET ADMINISTRATOR § 1061.20 Designation.

The agency for the administration of this part shall be a market administrator who shall be a person selected by the Secretary. Such person shall be entitled to such compensation as may be determined by, and shall be subject to removal at the discretion of the Secretary. § 1061.21 Powers.

The market administrator shall:

(a) Administer the terms and provisions of this part;

(b) Receive, investigate, and report to the Secretary complaints of violations of the terms and provisions of this part;

(c) Recommend to the Secretary amendments to this part; and

(d) Make rules and regulations to effectuate the terms and provisions of this part. § 1061.22 Duties.

The market administrator shall perform all duties necessary to administer the terms and provisions of this part, including but not limited to, the following:

(a) Within 45 days following the date upon which he enters upon his duties, execute and deliver to the Secretary a bond conditioned upon the faithful performance of his duties, in an amount and with surety thereon satisfactory to the Secretary;

(b) Pay, out of the funds provided by § 1061.90, the cost of his bond, his own compensation, and all other expenses necessarily incurred in the maintenance and functioning of his office, except as provided by $ 1061.91;

(c) Keep such books and records as will clearly reflect the transactions provided for in this part and surrender the same to his successor or to such other person as the Secretary may designate;

(d) Submit his books and records to examination by the Secretary and furnish such information and reports as may be requested by the Secretary;

(e) Publicly disclose to handlers and producers, unless otherwise directed by the Secretary, the name of any person who, within 10 days after the date upon which he is required to perform such acts, has not made reports pursuant to $ $ 1061.30 and 1061.31 or has not made payments pursuant to $ $ 1061.80, 1061.83, and 1061.85;

(f) Verify each handler's reports and payments by inspection of such handler's records and the records of any person upon whose utilization the classification of skim milk or butterfat for such handler depends;

(g) Prepare and disseminate to the public such statistics and information concerning the operations under this order as he deems advisable and as do not reveal confidential information;

(h) On or before the fifth day of each month, mail to all handlers and make public announcement of the Class I price computed pursuant to § 1061.51(a), and the butterfat differential computed pursuant to $ 1061.52(a) for the current month, and the Class II price computed pursuant to § 1061.51(b) and the butterfat differential computed pursuant to § 1061.52(b) for the preceding month;

(i) On or before the 12th day after the end of each month, announce the uniform price computed pursuant to § 1061.71 and notify each handler of his obligations to the producer-settlement fund;

(j) Whenever required for the purpose of allocating receipts from other order plants pursuant to $ 1061.46(a) (9) and the corresponding step of § 1061.46(b), the market administrator shall estimate and publicly announce the utilization (to the nearest percentage) in each class during the month of skim milk and butterfat, respectively, in producer milk of all handlers. Such estimate shall be based upon the most current available data and shall be final for such purpose;

(k) Report to the market administrator of the other order, as soon as possible after the report of receipts and utilization for the month is received from a handler who has received fluid milk products from an other order plant, the classification to which such receipts are allocated pursuant to § 1061.46 pursuant to such report and thereafter any change in such allocation required to correct errors disclosed in verification of such report; and

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