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PART 1131 -- MILK IN ARIZONA-LAS VEGAS MARKETING AREA

Subpart -- Order Regulating Handling

GENERAL PROVISIONS

Sec. 

1131.1 General provisions. 

DEFINITIONS

1131.2 Arizona-Las Vegas marketing area. 

1131.3 Route disposition. 

1131.4 Plant.

1131.5 Distributing plant.

1131.6 Supply plant.

1131.7 Pool plant.

1131.8 Nonpool plant.

1131.9 Handler.

1131.10 Producer-handler.

1131.11 [Reserved]

1131.12 Producer.

1131.13 Producer milk.

1131.14 Other source milk.

1131.15 Fluid milk product.

1131.16 Fluid cream product.

1131.17 [Reserved]

1131.18 Cooperative association.

1131.19 Commercial food processing establishment.

HANDLER REPORTS

1131.30 Reports of receipts and utilization.

1131.31 Payroll reports.

1131.32 Other reports.

CLASSIFICATION OF MILK

1131.40 Classes of utilization.

1131.41 [Reserved]

1131.42 Classification of transfers and diversions.

1131.43 General classification rules.

1131.44 Classification of producer milk.

1131.45 Market administrator's reports and announcements

 concerning classification.

CLASS PRICES

1131.50 Class prices, component prices, and advanced pricing

 factors.

1131.51 Class I differential and price.

1131.52 Adjusted Class I differentials.

1131.53 Announcement of class prices, component prices, and

 advanced pricing factors.

1131.54 Equivalent price.
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UNIFORM PRICES

1131.60 Handler's value of milk.

1131.61 Computation of uniform prices.

1131.62 Announcement of uniform prices.
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PAYMENTS FOR MILK

1131.70 Producer-settlement fund.

1131.71 Payments to the producer-settlement fund.

1131.72 Payments from the producer-settlement fund.

1131.73 Payments to producers and to cooperative associations.

1131.74 [Reserved]

1131.75 Plant location adjustments for producers and nonpool 

 milk.

1131.76 Payments by a handler operating a partially regulated

 distributing plant.

1131.77 Adjustment of accounts.

1131.78 Charges on overdue accounts.

ADMINISTRATIVE ASSESSMENT AND MARKETING SERVICE DEDUCTION

1131.85 Assessment for order administration.

1131.86 Deduction for marketing services.

 Authority: 7 U.S.C. 601 - 674.

Subpart -- Order Regulating Handling

GENERAL PROVISIONS

§ 1131.1 General provisions. 

The terms, definitions, and provisions in part 1000 of this

chapter apply to and are hereby made a part of this order. In

this part 1131, all references to sections in part 1000 refer to

part 1000 of this chapter.

DEFINITIONS

§ 1131.2 Arizona-Las Vegas marketing area. 

The marketing area means all territory within the bounds of

the following states and political subdivisions, including all

piers, docks and wharves connected therewith and all craft moored

thereat, and all territory occupied by government (municipal,

State or Federal) reservations, installations, institutions, or

other similar establishments if any part thereof is within any of

the listed states or political subdivisions:

Arizona

All of the State of Arizona.

Nevada Counties

Clark.

§ 1131.3 Route disposition.

See § 1000.3.

§ 1131.4 Plant.

See § 1000.4.

§ 1131.5 Distributing plant.

See § 1000.5.

§ 1131.6 Supply plant.

See § 1000.6.
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§ 1131.7 Pool plant.

Pool Plant means a plant or unit of plants specified in

paragraphs (a) through (e) of this section, but excluding a plant

specified in paragraph (g) of this section. The pooling standards

described in paragraphs (c) and (d) of this section are subject to

modification pursuant to paragraph (f) of this section.

(a) A distributing plant, other than a plant qualified as a

pool plant pursuant to paragraph (b) of this section or section

7(b) of any other Federal milk order, from which during the month

25 percent or more of the total quantity of fluid milk products

physically received at the plant (excluding concentrated milk

received from another plant by agreement for other than Class I

use) are disposed of as route disposition or are transferred in

the form of packaged fluid milk products to other distributing

plants. At least 25 percent of such route disposition and

transfers must be to outlets in the marketing area. 

(b) Any distributing plant located in the marketing area

which during the month processed at least 25 percent of the total

quantity of fluid milk products physically received at the plant

(excluding concentrated milk received from another plant by

agreement for other than Class I use) into ultra-pasteurized or

aseptically-processed fluid milk products.

(c) A supply plant from which 50 percent or more of the

total quantity of milk that is physically received at such plant

from dairy farmers and handlers described in § 1000.9(c),

including milk that is diverted as producer milk to other plants,

is transferred to pool distributing plants. Concentrated milk

transferred from the supply plant to a distributing plant for an

agreed-upon use other than Class I shall be excluded from the

supply plant’s shipments in computing the plant’s shipping

percentage.

(d) A plant located within the marketing area and operated

by a cooperative association if, during the month, or the

immediately preceding 12-month period ending with the current

month, 35 percent or more of the producer milk of members of the

association (and any producer milk of nonmembers and members of

another cooperative association which may be marketed by the

cooperative association) is physically received in the form of

bulk fluid milk products (excluding concentrated milk transferred

to a distributing plant for an agreed-upon use other than Class I)

at plants specified in paragraph (a) or (b) of this section either

directly from farms or by transfer from supply plants operated by

the cooperative association and from plants of the cooperative

association for which pool plant status has been requested under

this paragraph subject to the following conditions:
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(1) The plant does not qualify as a pool plant under

paragraph (a), (b) or (c) of this section or under comparable

provisions of another Federal order; and

(2) The plant is approved by a duly constituted regulatory

agency for the handling of milk approved for fluid consumption in

the marketing area.

(e) Two or more plants operated by the same handler and

located in the marketing area may qualify for pool plant status as

a unit by together meeting the requirements specified in paragraph

(a) of this section and subject to all of the following additional

requirements:

(1) At least one of the plants in the unit must qualify as a

pool plant pursuant to paragraph (a) of this section;

(2) Other plants in the unit must process Class I or

Class II products, using 50 percent or more of the total Grade A

fluid milk products received in bulk form at such plant or

diverted therefrom by the plant operator in Class I or Class II

products, and must be located in a pricing zone providing the same

or lower Class I price than the price applicable at the

distributing plant included in the unit pursuant to paragraph

(e)(1) of this section; and

(3) A written request to form a unit must be filed by the

handler with the market administrator prior to the first day of

the month for which such status is desired to be effective. The

unit shall continue from month to month thereafter without further

notification. The handler shall notify the market administrator

in writing prior to the first day of any month for which

termination or any change of the unit is desired.

(f) The applicable shipping percentages of paragraphs (c) 

and (d) of this section may be increased or decreased by the

market administrator if the market administrator finds that such

adjustment is necessary to encourage needed shipments or to

prevent uneconomic shipments. Before making such a finding, the

market administrator shall investigate the need for adjustment

either on the market administrator’s own initiative or at the

request of interested parties if the request is made in writing at

least 15 days prior to the month for which the requested revision

is desired effective. If the investigation shows that an

adjustment of the shipping percentages might be appropriate, the

market administrator shall issue a notice stating that an

adjustment is being considered and invite data, views and

arguments. Any decision to revise an applicable shipping

percentage must be issued in writing at least one day before the

effective date.
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(g) The term pool plant shall not apply to the following

plants:

(1) A producer-handler as defined under any Federal order;

(2) An exempt plant as defined in § 1000.8(e);

(3) A plant located within the marketing area and qualified

pursuant to paragraph (a) of this section which meets the pooling

requirements of another Federal order, and from which more than 50

percent of its route disposition has been in the other Federal

order marketing area for 3 consecutive months;

(4) A plant located outside any Federal order marketing area

and qualified pursuant to paragraph (a) of this section that meets

the pooling requirements of another Federal order and has had

greater route disposition in such other Federal order’s marketing

area for 3 consecutive months;

(5) A plant located in another Federal order marketing area

and qualified pursuant to paragraph (a) of this section that meets

the pooling requirements of such other Federal order and does not

have a majority of its route distribution in this marketing area

for 3 consecutive months or if the plant is required to be

regulated under such other Federal order without regard to its

route disposition in any other Federal order marketing area;

(6) A plant qualified pursuant to paragraph (c) of this

section which also meets the pooling requirements of another

Federal order and from which greater qualifying shipments are made

to plants regulated under the other Federal order than are made to

plants regulated under this order, or the plant has automatic

pooling status under the other Federal order; and

(7) That portion of a regulated plant designated as a

nonpool plant that is physically separate and operated separately

from the pool portion of such plant. The designation of a portion

of a regulated plant as a nonpool plant must be requested in

advance and in writing by the handler and must be approved by the

market administrator.

§ 1131.8 Nonpool plant. 

See § 1000.8.

§ 1131.9 Handler.

See § 1000.9.

§ 1131.10 Producer-handler.

Producer-handler means a person who:

(a) Operates a dairy farm and a distributing plant from

which there is route disposition in the marketing area during the

month;

(b) Receives fluid milk products from own farm production or

milk that is fully subject to the pricing and pooling provisions

of this or another Federal order;
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(c) Receives at its plant or acquires for route disposition

no more than 150,000 pounds of fluid milk products from handlers

fully regulated under any Federal order. This limitation shall

not apply if the producer-handler’s own farm production is less

than 150,000 pounds during the month;

(d) Disposes of no other source milk as Class I milk except

by increasing the nonfat milk solids content of the fluid milk

products;

(e) Does not distribute fluid milk products to a wholesale

customer who also is serviced by a plant described in § 1131.7(a),

(b), or (e), or a handler described in § 1000.8(c) that supplied

the same product in the same-sized package with a similar label to

the wholesale customer during the month; and

(f) Provides proof satisfactory to the market administrator

that the care and management of the dairy animals and other

resources necessary to produce all Class I milk handled (excluding

receipts from handlers fully regulated under any Federal order)

and the operation of the distributing plant are the personal

enterprise of, and at the personal risk of, such person in his/her

capacity as a producer-handler.

§ 1131.11 [Reserved]
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§ 1131.12 Producer.

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

producer means any person who produces milk approved by a duly

constituted regulatory agency for fluid consumption as Grade A

milk and whose milk (or components of milk) is:

(1) Received at a pool plant directly from the producer or

diverted by the plant operator in accordance with § 1131.13; or

(2) Received by a handler described in § 1000.9(c).

(b) Producer shall not include:

(1) A producer-handler as defined in any Federal order;

(2) A dairy farmer whose milk is received at an exempt

plant, excluding producer milk diverted to the exempt plant

pursuant to § 1131.13(d);

(3) A dairy farmer whose milk is received by diversion at a 

pool plant from a handler regulated under another Federal order if

the other Federal order designates the dairy farmer as a producer

under that order and that milk is allocated by request to a

utilization other than Class I;

(4) A dairy farmer whose milk is reported as diverted to a

plant fully regulated under another Federal order with respect to

that portion of the milk so diverted that is assigned to Class I

under the provisions of such other order; and

(5) A dairy farmer whose milk is received at a pool plant if

during the month milk from the same farm is received at a nonpool

plant (except a nonpool plant that has no utilization of milk

products in any class other than Class III or Class IV) other than

as producer milk under this or some other Federal order. Such a

dairy farmer shall be known as a dairy farmer for other markets.

§ 1131.13 Producer milk.

Producer milk means the skim milk (or the skim equivalent of

components of skim milk) and butterfat in milk of a producer that

is:

(a) Received by the operator of a pool plant directly from a

producer or a handler described in § 1000.9(c). All milk received

pursuant to this paragraph shall be priced at the location of the

plant where it is first physically received;

(b) Received by a handler described in § 1000.9(c) in excess

of the quantity delivered to pool plants;

(c) Diverted by a pool plant operator to another pool plant. 

Milk so diverted shall be priced at the location of the plant to

which diverted; or

(d) Diverted by the operator of a pool plant or a

cooperative association described in § 1000.9(c) to a nonpool

plant, subject to the following conditions:
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(1) Milk of a dairy farmer shall not be eligible for

diversion unless at least one day’s production of such dairy

farmer is physically received at a pool plant during the month;

(2) The total quantity of milk diverted by a handler in any

month shall not exceed 50 percent of the total producer milk

caused by the handler to be received at pool plants and diverted;

(3) Diverted milk shall be priced at the location of the

plant to which diverted;

(4) Any milk diverted in excess of the limits prescribed in

paragraph (d)(2) of this section shall not be producer milk. If

the diverting handler or cooperative association fails to

designate the dairy farmers’ deliveries that are not to be

producer milk, no milk diverted by the handler or cooperative

association during the month to a nonpool plant shall be producer

milk. In the event some of the milk of any producer is determined

not to be producer milk pursuant to this paragraph, other milk

delivered by such producer as producer milk during the month will

not be subject to § 1131.12(b)(5); and

(5) The delivery day requirement in paragraph (d)(1) of this

section and diversion percentage in paragraph (d)(2) of this

section may be increased or decreased by the market administrator

if the market administrator finds that such revision is necessary

to assure orderly marketing and efficient handling of milk in the

marketing area. Before making such a finding, the market

administrator shall investigate the need for the revision either

on the market administrator’s own initiative or at the request of

interested persons if the request is made in writing at least 15

days prior to the month for which the requested revision is

desired effective. If the investigation shows that a revision

might be appropriate, the market administrator shall issue a

notice stating that the revision is being considered and inviting

written data, views, and arguments. Any decision to revise the

delivery day requirement or the diversion percentage must be

issued in writing at least one day before the effective date.

§ 1131.14 Other source milk.

See § 1000.14.

§ 1131.15 Fluid milk product.

See § 1000.15.

§ 1131.16 Fluid cream product.

See § 1000.16.

§ 1131.17 [Reserved]

§ 1131.18 Cooperative association.

See § 1000.18.

§ 1131.19 Commercial food processing establishment.

See § 1000.19.
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HANDLER REPORTS

§ 1131.30 Reports of receipts and utilization.

Each handler shall report monthly so that the market

administrator’s office receives the report on or before the 7th day

after the end of the month, in the detail and on the forms

prescribed by the market administrator, as follows: 

(a) With respect to each of its pool plants, the quantities

of skim milk and butterfat contained in or represented by: 

(1) Receipts of producer milk, including producer milk

diverted by the reporting handler, from sources other than

handlers described in § 1000.9(c);

(2) Receipts of milk from handlers described in § 1000.9(c); 

(3) Receipts of fluid milk products and bulk fluid cream

products from other pool plants;

(4) Receipts of other source milk;

(5) Inventories at the beginning and end of the month of

fluid milk products and bulk fluid cream products; and

(6) The utilization or disposition of all milk and milk

products required to be reported pursuant to this paragraph.

(b) Each handler operating a partially regulated

distributing plant shall report with respect to such plant in the

same manner as prescribed for reports required by paragraph (a) of

this section. Receipts of milk that would have been producer milk

if the plant had been fully regulated shall be reported in lieu of

producer milk. Such report shall show also the quantity of any

reconstituted skim milk in route disposition in the marketing

area.

(c) Each handler described in § 1000.9(c) shall report:

(1) The quantities of all skim milk and butterfat contained

in receipts of milk from producers; and

(2) The utilization or disposition of all such receipts.

(d) Each handler described in § 1131.10 shall report:

(1) The pounds of milk received from each of the handler’s

own-farm production units, showing separately the production of

each farm unit and the number of dairy cows in production at each

farm unit;

(2) Fluid milk products and bulk fluid cream products

received at its plant or acquired for route disposition from pool

plants, other order plants, and handlers described in § 1000.9(c);

(3) Receipts of other source milk not reported pursuant to

paragraph (d)(2) of this section;

(4) Inventories at the beginning and end of the month of

fluid milk products and fluid cream products; and

(5) The utilization or disposition of all milk and milk

products required to be reported pursuant to this paragraph.
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(e) Each handler not specified in paragraphs (a) through (d)

of this section shall report with respect to its receipts and

utilization of milk and milk products in such manner as the market

administrator may prescribe.

§ 1131.31 Payroll reports.

(a) On or before the 20th day after the end of each month,

each handler that operates a pool plant pursuant to § 1131.7 and

each handler described in § 1000.9(c) shall report to the market

administrator its producer payroll for such month, in the detail

prescribed by the market administrator, showing for each producer:

(1) The month;

(2) The producer’s name and address;

(3) The daily and total pounds of milk received from the

producer;

(4) The total butterfat content of such milk; and

(5) The price per hundredweight, the gross amount due, the

amount and nature of any deductions, and the net amount paid.

(b) Each handler operating a partially regulated

distributing plant who elects to make payment pursuant to

§ 1000.76(b) shall report for each dairy farmer who would have

been a producer if the plant had been fully regulated in the same

manner as prescribed for reports required by paragraph (a) of this

section.

§ 1131.32 Other reports.

In addition to the reports required pursuant to § 1131.30 and

§ 1131.31, each handler shall report any information the market

administrator deems necessary to verify or establish each

handler’s obligation under the order.

CLASSIFICATION OF MILK

§ 1131.40 Classes of utilization.

See § 1000.40.

§ 1131.41 [Reserved]

§ 1131.42 Classification of transfers and diversions.

See § 1000.42.

§ 1131.43 General classification rules.

See § 1000.43.

§ 1131.44 Classification of producer milk.

See § 1000.44.

§ 1131.45 Market administrator's reports and announcements

concerning classification.

See § 1000.45.

CLASS PRICES

§ 1131.50 Class prices, component prices, and advanced pricing

factors.

See § 1000.50.
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§ 1131.51 Class I differential and price.

The Class I differential shall be the differential

established for Maricopa County, Arizona, which is reported in

§ 1000.52. The Class I price shall be the price computed pursuant

to § 1000.50(a) for Maricopa County, Arizona.

§ 1131.52 Adjusted Class I differentials.

See § 1000.52.

§ 1131.53 Announcement of class prices, component prices, and

advanced pricing factors.

See § 1000.53.

§ 1131.54 Equivalent price.

See § 1000.54.

UNIFORM PRICES

§ 1131.60 Handler's value of milk.

For the purpose of computing a handler’s obligation for

producer milk, the market administrator shall determine for each

month the value of milk of each handler with respect to each of

the handler's pool plants and of each handler described in

§ 1000.9(c) with respect to milk that was not received at a pool

plant by adding the amounts computed in paragraphs (a) through (e)

of this section and subtracting from that total amount the value

computed in paragraph (f) of this section. Receipts of nonfluid

milk products that are distributed as labeled reconstituted milk

for which payments are made to the producer-settlement fund of

another Federal order under § 1000.76(a)(4) or (d) shall be

excluded from pricing under this section. 

(a) Multiply the pounds of skim milk and butterfat in

producer milk that were classified in each class pursuant to 

§ 1000.44(c) by the applicable skim milk and butterfat prices, and

add the resulting amounts;

(b) Multiply the pounds of skim milk and butterfat overage

assigned to each class pursuant to § 1000.44(a)(11) and the

corresponding steps of § 1000.44(b) by the respective skim milk

and butterfat prices applicable at the location of the pool plant;

(c) Multiply the difference between the current month’s Class

I, II, or III price, as the case may be, and the Class IV price

for the preceding month by the hundredweight of skim milk and

butterfat subtracted from Class I, II, or III, respectively,

pursuant to § 1000.44(a)(7) and the corresponding step of

§ 1000.44(b);

(d) Multiply the difference between the Class I price

applicable at the location of the pool plant and the Class IV

price by the hundredweight of skim milk and butterfat assigned to

Class I pursuant to § 1000.43(d) and the hundredweight of skim

milk and butterfat subtracted from Class I pursuant to
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§ 1000.44(a)(3)(i) through (vi) and the corresponding step of

§ 1000.44(b), excluding receipts of bulk fluid cream products from

plants regulated under other Federal orders and bulk concentrated

fluid milk products from pool plants, plants regulated under other

Federal orders, and unregulated supply plants;

(e) Multiply the Class I price applicable at the location of

the nearest unregulated supply plants from which an equivalent

volume was received by the pounds of skim milk and butterfat in

receipts of concentrated fluid milk products assigned to Class I

pursuant to § 1000.43(d) and § 1000.44(a)(3)(i) and the

corresponding steps of § 1000.44(b) and the pounds of skim milk

and butterfat subtracted from Class I pursuant to § 1000.44(a)(8)

and the corresponding step of § 1000.44(b), excluding such skim

milk and butterfat in receipts of fluid milk products from an

unregulated supply plant to the extent that an equivalent amount

of skim milk or butterfat disposed of to such plant by handlers

fully regulated under any Federal milk order is classified and

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

payment obligation under any order; and

(f) For reconstituted milk made from receipts of nonfluid

milk products, multiply $1.00 (but not more than the difference

between the Class I price applicable at the location of the pool

plant and the Class IV price) by the hundredweight of skim milk

and butterfat contained in receipts of nonfluid milk products that

are allocated to Class I use pursuant to § 1000.43(d).

§ 1131.61 Computation of uniform prices.

On or before the 11th day of each month, the market

administrator shall compute a uniform butterfat price, a uniform

skim milk price, and a uniform price for producer milk receipts

reported for the prior month. The report of any handler who has

not made payments required pursuant to § 1131.71 for the preceding

month shall not be included in the computation of these prices,

and such handler’s report shall not be included in the computation

for succeeding months until the handler has made full payment of

outstanding monthly obligations. 

(a) Uniform butterfat price. The uniform butterfat price

per pound, rounded to the nearest one-hundredth cent, shall be

computed by multiplying the pounds of butterfat in producer milk

allocated to each class pursuant to § 1000.44(b) by the respective

class butterfat prices and dividing the sum of such values by the

total pounds of such butterfat.

(b) Uniform skim milk price. The uniform skim milk price

per hundredweight, rounded to the nearest cent, shall be computed

as follows:
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(1) Combine into one total the values computed pursuant to §

1131.60 for all handlers;

(2) Add an amount equal to the sum of the location

adjustments computed pursuant to § 1131.75;

(3) Add an amount equal to not less than one-half of the

unobligated balance in the producer-settlement fund;

(4) Subtract the value of the total pounds of butterfat for

all handlers. The butterfat value shall be computed by

multiplying the pounds of butterfat by the butterfat price

computed in paragraph (a) of this section;

(5) Divide the resulting amount by the sum of the following

for all handlers included in these computations:

(i) The total skim pounds of producer milk; and

(ii) The total skim pounds for which a value is computed

pursuant to § 1131.60(e); and 

(6) Subtract not less than 4 cents and not more than 5

cents.

(c) Uniform price. The uniform price per hundredweight,

rounded to the nearest cent, shall be the sum of the following:

(1) Multiply the uniform butterfat price for the month

pursuant to paragraph (a) of this section times 3.5 pounds of

butterfat; and

(2) Multiply the uniform skim milk price for the month

pursuant to paragraph (b) of this section times .965.

§ 1131.62 Announcement of uniform prices.

On or before the 11th day after the end of the month, the

market administrator shall announce the uniform prices for the

month computed pursuant to § 1131.61.
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PAYMENTS FOR MILK

§ 1131.70 Producer-settlement fund.

See § 1000.70.

§ 1131.71 Payments to the producer-settlement fund.

Each handler shall make payment to the producer-settlement

fund in a manner that provides receipt of the funds by the market

administrator no later than the 13th day after the end of the month

(except as provided in § 1000.90). Payments due the market

administrator shall be deemed not to have been made until the

money owed has been received at the market administrator’s office,

or deposited into the market administrator’s bank account. 

Payment shall be the amount, if any, by which the amount specified

in paragraph (a) of this section exceeds the amount specified in

paragraph (b) of this section:

(a) The total value of milk to the handler for the month as

determined pursuant to § 1131.60.

(b) The sum of:

(1) The value at the uniform prices for skim milk and

butterfat, adjusted for plant location, of the handler’s receipts

of producer milk; and

(2) The value at the uniform price as adjusted pursuant to

§ 1131.75 applicable at the location of the plant from which

received of other source milk for which a value is computed

pursuant to § 1131.60(e).

§ 1131.72 Payments from the producer-settlement fund.

No later than the 14th day after the end of each month (except

as provided in § 1000.90), the market administrator shall pay to

each handler the amount, if any, by which the amount computed

pursuant to § 1131.71(b) exceeds the amount computed pursuant to

§ 1131.71(a). If, at such time, the balance in the producersettlement fund is insufficient to make all payments pursuant to

this section, the market administrator shall reduce uniformly such

payments and shall complete the payments as soon as the funds are

available.

§ 1131.73 Payments to producers and to cooperative associations.

(a) Except as provided in paragraphs (b) and (c) of this

section, each handler shall make payment to each producer from

whom milk is received during the month as follows: 

(1) Partial Payment. For each producer who has not

discontinued shipments as of the 25th day of the month, payment

shall be made so that it is received by the producer on or before

the 27th day of each month (except as provided in § 1000.90) for

milk received from such producer during the first 15 days of the

month at not less than 1.3 times the lowest class price for the
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preceding month less proper deductions authorized in writing by

the producer.

(2) Final payment. For milk received during the month, a

payment computed as follows shall be made so that it is received

by each producer one day after the payment date required in

§ 1131.72:

(i) Multiply the hundredweight of producer skim milk

received times the uniform skim milk price for the month;

(ii) Multiply the pounds of producer butterfat received

times the uniform butterfat price for the month;

(iii) Multiply the hundredweight of producer milk received

times the plant location adjustment pursuant to § 1131.75; and

(iv) Add the amounts computed in paragraph (a)(2)(i), (ii),

and (iii) of this section, and from that sum:

(A) Subtract the partial payment made pursuant to paragraph

(a)(1) of this section;

(B) Subtract the deduction for marketing services pursuant

to § 1000.86;

(C) Add or subtract for errors made in previous payments to

the producer, subject to approval by the market administrator; and

(D) Subtract proper deductions authorized in writing by the

producer. 

(b) Two days prior to the dates on which partial and final

payments are due pursuant to paragraph (a) of this section, each

pool plant operator shall pay a cooperative association for milk

received as follows:

(1) Partial payment to a cooperative association for bulk

milk received directly from producers’ farms. For bulk milk

(including the milk of producers who are not members of such

association and who the market administrator determines have

authorized the cooperative association to collect payment for

their milk) received during the first 15 days of the month from a

cooperative association in any capacity except as the operator of

a pool plant, the payment shall be an amount not less than 1.3

times the lowest class price for the preceding month multiplied by

the hundredweight of milk. 

(2) Partial payment to a cooperative association for milk

transferred from its pool plant. For bulk fluid milk products and

bulk fluid cream products received during the first 15 days of the

month from a cooperative association in its capacity as the

operator of a pool plant, the partial payment shall be at the pool

plant operator’s estimated use value of the milk using the most

recent class prices available for skim milk and butterfat at the

receiving plant’s location. 
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(3) Final payment to a cooperative association for milk

transferred from its pool plant. For bulk fluid milk products and

bulk fluid cream products received during the month from a

cooperative association in its capacity as the operator of a pool

plant, the final payment shall be the classified value of such

milk as determined by multiplying the pounds of skim milk and

butterfat assigned to each class pursuant to § 1000.44 by the

class prices for the month at the receiving plant’s location, and

subtracting from this sum the partial payment made pursuant to

paragraph (b)(2) of this section.

(4) Final payment to a cooperative association for bulk milk

received directly from producers’ farms. For bulk milk received

from a cooperative association during the month, including the

milk of producers who are not members of such association and who

the market administrator determines have authorized the

cooperative association to collect payment for their milk, the

final payment for such milk shall be an amount equal to the sum of

the individual payments otherwise payable for such milk pursuant

to paragraph (a)(2) of this section. 

(c) If a handler has not received full payment from the

market administrator pursuant to § 1131.72 by the payment date

specified in paragraph (a) or (b) of this section, the handler may

reduce pro rata his payments pursuant to such paragraphs, but by

not more than the amount of such underpayment. Payments to

producers shall be completed on the next scheduled payment date

after receipt of the balance due from the market administrator.

(d) If a handler claims that a required payment to a

producer cannot be made because the producer is deceased or cannot

be located, or because the cooperative association or its lawful

successor or assignee is no longer in existence, the payment shall

be made to the producer-settlement fund. In the event the handler

subsequently locates and pays the producer or a lawful claimant,

or in the event that the handler no longer exists and a lawful

claim is later established, the market administrator shall make

the required payment from the producer- settlement fund to the

handler or the lawful claimant, as the case may be.

(e) In making payments to producers pursuant to this

section, each pool plant operator shall furnish each producer,

except a producer whose milk was received from a cooperative

association described in § 1000.9(a) or (c), a supporting

statement in such form that it may be retained by the recipient

which shall show:

(1) The month, and identity of the producer;

(2) The daily and total pounds and the total pounds of

butterfat content of producer milk;
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(3) The minimum rate at which payment to the producer is

required pursuant to this order;

(4) The rate used in making payments if the rate is other

than the applicable minimum rate;

(5) The amount, rate per hundredweight, and nature of each

deduction claimed by the handler; and

(6) The net amount of payment to the producer or cooperative

association.

§ 1131.74 [Reserved]

§ 1131.75 Plant location adjustments for producers and on nonpool

milk.

For purposes of making payments for producer milk and nonpool

milk, a plant location adjustment shall be determined by

subtracting the Class I price specified in § 1131.51 from the

Class I price at the plant’s location. The difference, plus or

minus as the case may be, shall be used to adjust the payments

required pursuant to §§ 1131.73 and 1000.76. 

§ 1131.76 Payments by handler operating a partially regulated

distributing plant.

See § 1000.76.

§ 1131.77 Adjustment of accounts.

See § 1000.77.

§ 1131.78 Charges on overdue accounts.

See § 1000.78.

ADMINISTRATIVE ASSESSMENT AND MARKETING SERVICE DEDUCTION

§ 1131.85 Assessment for order administration.

See § 1000.85.

§ 1131.86 Deduction for marketing services.

See § 1000.86.