§ 1000.53 Announcement of class prices, component prices, and

advanced pricing factors.

(a) On or before the 5th day of the month, the market

administrator for each Federal milk marketing order shall announce

the following prices (as applicable to that order) for the

preceding month:

(1) The Class II price;

(2) The Class II butterfat price; 

(3) The Class III price;

(4) The Class III skim milk price;

(5) The Class IV price;

(6) The Class IV skim milk price;

(7) The butterfat price;

(8) The nonfat solids price;

(9) The protein price;

(10) The other solids price; and

(11) The somatic cell adjustment rate. 

(b) On or before the 23rd day of the month, the market

administrator for each Federal milk marketing order shall announce

the following prices and pricing factors for the following month:

(1) The Class I price;

(2) The Class I skim milk price;

(3) The Class I butterfat price;

(4) The Class II skim milk price;

(5) The Class II nonfat solids price; and

(6) The advanced pricing factors described in § 1000.50(q).

§ 1000.54 Equivalent price.

If for any reason a price or pricing constituent required for

computing the prices described in § 1000.50 is not available, the

market administrator shall use a price or pricing constituent

determined by the Deputy Administrator, Dairy Programs,

Agricultural Marketing Service, to be equivalent to the price or

pricing constituent that is required.

Subpart H--Payments for Milk

§ 1000.70 Producer-settlement fund.

The market administrator shall establish and maintain a

separate fund known as the producer-settlement fund into which the

market administrator shall deposit all payments made by handlers

pursuant to §§ ----.71, ----.76, and ----.77 of each Federal milk

order and out of which the market administrator shall make all

payments pursuant to §§ ----.72 and ----.77 of each Federal milk

order. Payments due any handler shall be offset by any payments

due from that handler.

§ 1000.76 Payments by a handler operating a partially regulated

distributing plant.

 On or before the 25th day after the end of the month (except
as provided in § 1000.90), the operator of a partially regulated

distributing plant, other than a plant that is subject to

marketwide pooling of producer returns under a State government’s

milk classification and pricing program, shall pay to the market

administrator for the producer-settlement fund the amount computed

pursuant to paragraph (a) of this section or, if the handler

submits the information specified in §§ ----.30(b) and ----.31(b)

of the order, the handler may elect to pay the amount computed

pursuant to paragraph (b) of this section. A partially regulated

distributing plant that is subject to marketwide pooling of

producer returns under a State government’s milk classification

and pricing program shall pay the amount computed pursuant to

paragraph (c) of this section.

(a) The payment under this paragraph shall be an amount

resulting from the following computations:

(1) From the plant’s route disposition in the marketing

area: 

(i) Subtract receipts of fluid milk products classified as

Class I milk from pool plants, plants fully regulated under other

Federal orders, and handlers described in § 1000.9(c) and

§ 1135.11, except those receipts subtracted under a similar

provision of another Federal milk order;

(ii) Subtract receipts of fluid milk products from another

nonpool plant that is not a plant fully regulated under another

Federal order to the extent that an equivalent amount of fluid

milk products disposed of to the nonpool plant by handlers fully

regulated under any Federal order is classified and priced as

Class I milk and is not used as an offset for any payment

obligation under any order; and

(iii) Subtract the pounds of reconstituted milk made from

nonfluid milk products which are disposed of as route disposition

in the marketing area;

(2) For orders with multiple component pricing, compute a

Class I differential price by subtracting Class III price from the

current month’s Class I price. Multiply the pounds remaining

after the computation in paragraph (a)(1)(iii) of this section by

the amount by which the Class I differential price exceeds the

producer price differential, both prices to be applicable at the

location of the partially regulated distributing plant except that

neither the adjusted Class I differential price nor the adjusted

producer price differential shall be less than zero;

(3) For orders with skim milk and butterfat pricing,

multiply the remaining pounds by the amount by which the Class I

price exceeds the uniform price, both prices to be applicable at

the location of the partially regulated distributing plant except

that neither the adjusted Class I price nor the adjusted uniform

price differential shall be less than the lowest announced class
price; and

(4) Unless the payment option described in paragraph (d) is

selected, add the amount obtained from multiplying the pounds of

labeled reconstituted milk included in paragraph (a)(1)(iii) of

this section by any positive difference between the Class I price

applicable at the location of the partially regulated distributing

plant (less $1.00 if the reconstituted milk is labeled as such)

and the Class IV price. 

(b) The payment under this paragraph shall be the amount

resulting from the following computations:

(1) Determine the value that would have been computed

pursuant to § ----.60 of the order for the partially regulated

distributing plant if the plant had been a pool plant, subject to

the following modifications:

(i) Fluid milk products and bulk fluid cream products

received at the plant from a pool plant, a plant fully regulated

under another Federal order, and handlers described in § 1000.9(c)

and § 1135.11 shall be allocated at the partially regulated

distributing plant to the same class in which such products were

classified at the fully regulated plant;

(ii) Fluid milk products and bulk fluid cream products

transferred from the partially regulated distributing plant to a

pool plant or a plant fully regulated under another Federal order

shall be classified at the partially regulated distributing plant

in the class to which allocated at the fully regulated plant. 

Such transfers shall be allocated to the extent possible to those

receipts at the partially regulated distributing plant from the

pool plant and plants fully regulated under other Federal orders

that are classified in the corresponding class pursuant to

paragraph (b)(1)(i) of this section. Any such transfers remaining

after the above allocation which are in Class I and for which a

value is computed pursuant to § ----.60 of the order for the

partially regulated distributing plant shall be priced at the

statistical uniform price or uniform price, whichever is

applicable, of the respective order regulating the handling of

milk at the receiving plant, with such statistical uniform price

or uniform price adjusted to the location of the nonpool plant

(but not to be less than the lowest announced class price of the

respective order); and

(iii) If the operator of the partially regulated

distributing plant so requests, the handler’s value of milk

determined pursuant to § ----.60 of the order shall include a

value of milk determined for each nonpool plant that is not a

plant fully regulated under another Federal order which serves as

a supply plant for the partially regulated distributing plant by

making shipments to the partially regulated distributing plant

during the month equivalent to the requirements of section 7(c) of
the order subject to the following conditions:

(A) The operator of the partially regulated distributing

plant submits with its reports filed pursuant to §§ ----.30(b) and

----.31(b) of the order similar reports for each such nonpool

supply plant;

(B) The operator of the nonpool plant maintains books and

records showing the utilization of all skim milk and butterfat

received at the plant which are made available if requested by the

market administrator for verification purposes; and

(C) The value of milk determined pursuant to § ----.60 for

the unregulated supply plant shall be determined in the same

manner prescribed for computing the obligation of the partially

regulated distributing plant; and

(2) From the partially regulated distributing plant’s value

of milk computed pursuant to paragraph (b)(1) of this section,

subtract:

(i) The gross payments that were made for milk that would

have been producer milk had the plant been fully regulated;

(ii) If paragraph (b)(1)(iii) of this section applies, the

gross payments by the operator of the nonpool supply plant for

milk received at the plant during the month that would have been

producer milk if the plant had been fully regulated; and

(iii) The payments by the operator of the partially

regulated distributing plant to the producer-settlement fund of

another Federal order under which the plant is also a partially

regulated distributing plant and, if paragraph (b)(1)(iii) of this

section applies, payments made by the operator of the nonpool

supply plant to the producer-settlement fund of any order.

(c) The operator of a partially regulated distributing plant

that is subject to marketwide pooling of returns under a milk

classification and pricing program that is imposed under the

authority of a State government shall pay on or before the 25th day

after the end of the month (except as provided in § 1000.90) to

the market administrator for the producer-settlement fund an

amount computed as follows:

After completing the computations described in paragraphs

(a)(1)(i) and (ii) of this section, determine the value of the

remaining pounds of fluid milk products disposed of as route

disposition in the marketing area by multiplying the hundredweight

of such pounds by the amount, if greater than zero, that remains

after subtracting the State program’s class prices applicable to

such products at the plant’s location from the Federal order Class

I price applicable at the location of the plant.

(d) Any handler may elect partially regulated distributing

plant status for any plant with respect to receipts of nonfluid

milk ingredients that are reconstituted for fluid use. Payments

may be made to the producer-settlement fund of the order
regulating the producer milk used to produce the nonfluid milk

ingredients at the positive difference between the Class I price

applicable under the other order at the location of the plant

where the nonfluid milk ingredients were processed and the Class

IV price. This payment option shall apply only if a majority of

the total milk received at the plant that processed the nonfluid

milk ingredients is regulated under one or more Federal orders and

payment may only be made to the producer-settlement fund of the

order pricing a plurality of the milk used to produce the nonfluid

milk ingredients. This payment option shall not apply if the

source of the nonfluid ingredients used in reconstituted fluid

milk products cannot be determined by the market administrator. 

§ 1000.77 Adjustment of accounts.

Whenever audit by the market administrator of any handler’s

reports, books, records, or accounts, or other verification

discloses errors resulting in money due the market administrator

from a handler, or due a handler from the market administrator, or

due a producer or cooperative association from a handler, the

market administrator shall promptly notify such handler of any

amount so due and payment thereof shall be made on or before the

next date for making payments as set forth in the provisions under

which the error(s) occurred.

§ 1000.78 Charges on overdue accounts.

Any unpaid obligation due the market administrator,

producers, or cooperative associations from a handler pursuant to

the provisions of the order shall be increased 1.0 percent each

month beginning with the day following the date such obligation

was due under the order. Any remaining amount due shall be

increased at the same rate on the corresponding day of each

succeeding month until paid. The amounts payable pursuant to this

section shall be computed monthly on each unpaid obligation and

shall include any unpaid charges previously computed pursuant to

this section. The late charges shall accrue to the administrative

assessment fund. For the purpose of this section, any obligation

that was determined at a date later than prescribed by the order

because of a handler's failure to submit a report to the market

administrator when due shall be considered to have been payable by

the date it would have been due if the report had been filed when

due.

Subpart I--Administrative Assessment and Marketing Service 

Deduction

§ 1000.85 Assessment for order administration.

On or before the payment receipt date specified under § -

---.71 of each Federal milk order each handler shall pay to the

market administrator its pro rata share of the expense of

administration of the order at a rate specified by the market

administrator that is no more than 5 cents per hundredweight with
respect to:

(a) Receipts of producer milk (including the handler’s own

production) other than such receipts by a handler described in

§ 1000.9(c) that were delivered to pool plants of other handlers;

(b) Receipts from a handler described in § 1000.9(c);

(c) Receipts of concentrated fluid milk products from

unregulated supply plants and receipts of nonfluid milk products

assigned to Class I use pursuant to § 1000.43(d) and other source

milk allocated to Class I pursuant to § 1000.44(a)(3) and (8) and

the corresponding steps of § 1000.44(b), except other source milk

that is excluded from the computations pursuant to § ----.60(d)

and (e) of Parts 1005, 1006, and 1007 or § ----.60(h) and (i) of

Parts 1001, 1030, 1032, 1033, 1124, 1126, 1131, and 1135; and

(d) Route disposition in the marketing area from a partially

regulated distributing plant that exceeds the skim milk and

butterfat subtracted pursuant to § 1000.76(a)(1)(i)and (ii).

§ 1000.86 Deduction for marketing services.

(a) Except as provided in paragraph (b) of this section,

each handler in making payments to producers for milk (other than

milk of such handler’s own production) pursuant to § ----.73 of

each Federal milk order shall deduct an amount specified by the

market administrator that is no more than 7 cents per

hundredweight and shall pay the amount deducted to the market

administrator not later than the payment receipt date specified

under § ----.71 of each Federal milk order. The money shall be

used by the market administrator to verify or establish weights,

samples and tests of producer milk and provide market information

for producers who are not receiving such services from a

cooperative association. The services shall be performed in whole

or in part by the market administrator or an agent engaged by and

responsible to the market administrator.

(b) In the case of producers for whom the market

administrator has determined that a cooperative association is

actually performing the services set forth in paragraph (a) of

this section, each handler shall make deductions from the payments

to be made to producers as may be authorized by the membership

agreement or marketing contract between the cooperative

association and the producers. On or before the 15th day after the

end of the month (except as provided in § 1000.90), such

deductions shall be paid to the cooperative association rendering

the services accompanied by a statement showing the amount of any

deductions and the amount of milk for which the deduction was

computed for each producer. These deductions shall be made in lieu

of the deduction specified in paragraph (a) of this section.

Subpart J--Miscellaneous Provisions

§ 1000.90 Dates.
If a date required for a payment contained in a Federal milk

order falls on a Saturday, Sunday, or national holiday, such

payment or announcement will be due on the next day that the

market administrator’s office is open for public business. 

§ 1000.91 [Reserved]

§ 1000.92 [Reserved]

§ 1000.93 OMB control number assigned pursuant to the Paperwork

Reduction Act.

The information collection requirements contained in this

regulation have been approved by the Office of Management and

Budget (OMB) under the provisions of Title 44 U.S.C. chapter 35

and have been assigned OMB control number 0581-0032.