§ 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.
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§ 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

of this chapter, 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
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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 of

this chapter 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
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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 § ----.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
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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.
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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 of this chapter or 

§ ----.60(h) and (i) of Parts 1001, 1030, 1032, 1033, 1124, 1126,

1131, and 1135 of this chapter; 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.
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(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

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.
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The information collection requirements contained in this part

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.