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.

UNIFORM PRICES

1131.60 Handler's value of milk.

1131.61 Computation of uniform prices.

1131.62 Announcement of uniform prices.

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, and 7253.

Subpart -- Order Regulating Handling

GENERAL PROVISIONS

§ 1131.1 General provisions. 

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

chapter apply to this part 1131. 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.

§ 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

§ ----.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:

(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.

(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 the order in this part, 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

the order in this part or another Federal order;

(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]

§ 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 the order in this part 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:

(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.

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.

(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.

§ 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 § 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:

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

1131.60 for all handlers;

(2) Add an amount equal to the minus location adjustments and

subtract an amount equal to the plus 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.

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 producer-settlement 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 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. 

(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;

(3) The minimum rate at which payment to the producer is

required pursuant to the order in this part;

(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 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.