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PART 1033--MILK IN THE MIDEAST MARKETING AREA

Subpart - Order Regulating Handling

GENERAL PROVISIONS

Sec. 

1033.1 General provisions. 

DEFINITIONS 

1033.2 Mideast marketing area.

1033.3 Route disposition.

1033.4 Plant.

1033.5 Distributing plant.

1033.6 Supply plant. 

1033.7 Pool plant.

1033.8 Nonpool plant.

1033.9 Handler. 

1033.10 Producer-handler. 

1033.11 [Reserved]

1033.12 Producer. 

1033.13 Producer milk.

1033.14 Other source milk.

1033.15 Fluid milk product.

1033.16 Fluid cream product.

1033.17 [Reserved]

1033.18 Cooperative association.

1033.19 Commercial food processing establishment.

HANDLER REPORTS

1033.30 Reports of receipts and utilization. 

1033.31 Payroll reports. 

1033.32 Other reports. 

CLASSIFICATION OF MILK

1033.40 Classes of utilization.

1033.41 [Reserved]

1033.42 Classification of transfers and diversions.

1033.43 General classification rules.

1033.44 Classification of producer milk.

1033.45 Market administrator's reports and announcements

 concerning classification.

CLASS PRICES 

1033.50 Class prices, component prices, and advanced pricing

 factors. 

1033.51 Class I differential and price. 

1033.52 Adjusted Class I differentials. 

1033.53 Announcement of class prices, component prices, and

 advanced pricing factors.

1033.54 Equivalent price.
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PRODUCER PRICE DIFFERENTIAL

1033.60 Handler's value of milk.

1033.61 Computation of producer price differential.

1033.62 Announcement of producer prices.
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PAYMENTS FOR MILK 

1033.70 Producer-settlement fund. 

1033.71 Payments to the producer-settlement fund.

1033.72 Payments from the producer-settlement fund. 

1033.73 Payments to producers and to cooperative associations. 

1033.74 [Reserved]

1033.75 Plant location adjustments for producer milk and

 nonpool milk.

1033.76 Payments by a handler operating a partially regulated

 distributing plant.

1033.77 Adjustment of accounts.

1033.78 Charges on overdue accounts.

ADMINISTRATIVE ASSESSMENT AND MARKETING SERVICE DEDUCTION 

1033.85 Assessment for order administration. 

1033.86 Deduction for marketing services. 

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

Subpart - Order Regulating Handling

GENERAL PROVISIONS

§ 1033.1 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 1033, all references to sections in part 1000 refer to

part 1000 of this chapter.

DEFINITIONS

§ 1033.2 Mideast 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:

Ohio

The townships of Woodville and Madison in Sandusky County and

all other counties in Ohio except Erie, Huron, and Ottawa.

Indiana Counties

Adams, Allen, Bartholomew, Benton, Blackford, Boone, Brown,

Carroll, Cass, Clay, Clinton, Dearborn, Decatur, De Kalb,

Delaware, Elkhart, Fayette, Fountain, Franklin, Fulton, Grant,

Hamilton, Hancock, Hendricks, Henry, Howard, Huntington, Jackson,

Jasper, Jay, Jefferson, Jennings, Johnson, Kosciusko, Lagrange,

Lake, La Porte, Lawrence, Madison, Marion, Marshall, Miami,

Monroe, Montgomery, Morgan, Newton, Noble, Ohio, Owen, Parke,

Porter, Pulaski, Putnam, Randolph, Ripley, Rush, Shelby, St.
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Joseph, Starke, Steuben, Switzerland, Tippecanoe, Tipton, Union,

Vermillion, Vigo, Wabash, Warren, Wayne, Wells, White, and

Whitley.
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Kentucky Counties

Boone, Boyd, Bracken, Campbell, Floyd, Grant, Greenup,

Harrison, Johnson, Kenton, Lawrence, Lewis, Magoffin, Martin,

Mason, Pendleton, Pike, and Robertson.

Michigan Counties

All counties except Delta, Dickinson, Gogebic, Iron,

Menominee, and Ontonagon.

Pennsylvania Counties

Allegheny, Armstrong, Beaver, Butler, Crawford, Erie,

Fayette, Greene, Lawrence, Mercer, Venango, and Washington.

In Clarion County only the townships of Ashland, Beaver,

Licking, Madison, Perry, Piney, Richland, Salem, and Toby.

All of Westmoreland County except the townships of Cook,

Donegal, Fairfield, Ligonier, and St. Clair, and the boroughs of

Bolivar, Donegal, Ligonier, New Florence, and Seward. 

West Virginia Counties

Barbour, Boone, Brooke, Cabell, Calhoun, Doddridge, Fayette,

Gilmer, Hancock, Harrison, Jackson, Kanawha, Lewis, Lincoln,

Logan, Marion, Marshall, Mason, Mingo, Monongalia, Ohio,

Pleasants, Preston, Putnam, Raleigh, Randolph, Ritchie, Roane,

Taylor, Tucker, Tyler, Upshur, Wayne, Wetzel, Wirt, Wood, and

Wyoming.

§ 1033.3 Route disposition.

See § 1000.3.

§ 1033.4 Plant.

See § 1000.4.

§ 1033.5 Distributing plant.

See § 1000.5.

§ 1033.6 Supply plant.

See § 1000.6.

§ 1033.7 Pool plant.

Pool plant means a plant, unit of plants, or a system of

plants as specified in paragraphs (a) through (f) of this section,

but excluding a plant specified in paragraph (h) of this section. 

The pooling standards described in paragraphs (c) through (f) of

this section are subject to modification pursuant to paragraph (g)

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

30 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
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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 30 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 the quantity of bulk fluid

milk products shipped to, received at, and physically unloaded

into plants described in paragraph (a) or (b) of this section as a

percent of the Grade A milk received at the plant from dairy

farmers (except dairy farmers described in § 1033.12(b)) and

handlers described in § 1033.9(c), as reported in § 1033.30(a), is

not less than 30 percent of the milk received from dairy farmers,

including milk diverted pursuant to § 1033.13, subject to the

following conditions:

(1) Qualifying shipments pursuant to this paragraph may be

made to the following plants, except whenever the authority

provided in paragraph (g) of this section is applied to increase

the shipping requirements specified in this section, only

shipments to pool plants described in § 1033.7(a) and (b), shall

count as qualifying shipments for the purpose of meeting the

increased shipments:

(i) Pool plants described in § 1033.7(a) and (b); 

(ii) Plants of producer-handlers;

(iii) Partially regulated distributing plants, except that

credit for such shipments shall be limited to the amount of such

milk classified as Class I at the transferee plant; and

(iv) Distributing plants fully regulated under other Federal

orders, except that credit for transfers to such plants shall be

limited to the quantity shipped to pool distributing plants during

the month. Qualifying transfers to other order plants shall not

include transfers made on the basis of agreed-upon Class II,

Class III, or Class IV utilization.

 (2) The operator of a supply plant may include deliveries to

pool distributing plants directly from farms of producers pursuant

to § 1033.13(c) as up to 90 percent of the supply plant’s

qualifying shipments.

(3) 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

supply plant’s shipping percentage.

(4) A supply plant that meets the shipping requirements of

this paragraph during each of the immediately preceding months of
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September through February shall be a pool plant during the

following months of March through August unless the milk received

at the plant fails to meet the requirements of a duly constituted

regulatory agency, the plant fails to meet a shipping requirement

instituted pursuant to paragraph (g) of this section, or the plant

operator requests nonpool status for the plant. Such nonpool

status shall be effective on the first day of the month following

the receipt of such request and thereafter until the plant again

qualifies as a pool plant on the basis of its deliveries to a pool

distributing plant(s). The automatic pool qualification of a

plant can be waived if the handler or cooperative requests in

writing to the market administrator the nonpool status of such

plant. The request must be made prior to the beginning of any

month during the March through August period. The plant shall be

a nonpool plant for such month and thereafter until it requalifies

under paragraph (c) of this section on the basis of actual

shipments therefrom. To requalify as a pool plant under paragraph

(d), (e) or (f) of this section, such plant must first have met

the percentage shipping requirements of paragraph (c) of this

section for 6 consecutive months.

(5) A supply plant that does not meet the minimum delivery

requirements specified in this paragraph to qualify for pool

status in the current month because a distributing plant to which

the supply plant delivered its fluid milk products during such

month failed to qualify as a pool plant pursuant to paragraph (a)

or (b) of this section shall continue to be a pool plant for the

current month if such supply plant qualified as a pool plant in

the 3 immediately preceding months.

(d) A plant operated by a cooperative association if, during

the month, 30 percent or more of the producer milk of members of

the association is delivered to a distributing pool plant(s) or to

a nonpool plant(s), and classification other than Class I is not

requested. Deliveries for qualification purposes may be made

directly from the farm or by transfer from such association’s

plant, subject to the following conditions:

(1) The cooperative requests pool status for such plant;

(2) The 30-percent delivery requirement may be met for the

current month or it may be met on the basis of deliveries during

the preceding 12-month period ending with the current month;

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

authority to handle milk for fluid consumption; and

(4) The plant does not qualify as a pool plant under

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

provisions of another Federal order applicable to a distributing

plant or supply plant.
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(e) A plant located inside the marketing area which has been

a pool plant under this order or its predecessor orders for twelve

consecutive months, but is not otherwise qualified under this

paragraph, if it has a marketing agreement with a cooperative

association and it fulfills the following conditions:

(1) The aggregate monthly quantity supplied by all parties

to such an agreement as a percentage of the producer milk receipts

included in the unit during the month is not less than 35 percent;

and

(2) Shipments for qualification purposes shall include both

transfers from supply plants to plants described in paragraph

(c)(1) of this section, and deliveries made direct from the farm

to plants qualified under paragraph (a) of this section.

(f) A system of supply plants may qualify for pooling if 2

or more plants operated by one or more handlers meet the

applicable percentage requirements of paragraph (c) of this

section in the same manner as a single plant subject to the

following additional requirements:

(1) Each plant in the system is located within the marketing

area, or was a pool supply plant for each of the 3 months

immediately preceding the effective date of this paragraph so long

as it continues to maintain pool status. Cooperative associations

may not use shipments pursuant to § 1033.9(c) to qualify plants

located outside the marketing area; 

(2) A written notification to the market administrator

listing the plants to be included in the system and the handler

that is responsible for meeting the performance requirements of

this paragraph under a marketing agreement certified to the market

administrator by the designated handler and any others included in

the system, and the period during which such consideration shall

apply. Such notice, and notice of any change in designation,

shall be furnished on or before the 5th working day following the

month to which the notice applies. The listed plants included in

the system shall also be in the sequence in which they shall

qualify for pool plant status based on the minimum deliveries

required. If the deliveries made are insufficient to qualify the

entire system for pooling, the last listed plant shall be excluded

from the system, followed by the plant next-to-last on the list,

and continuing in this sequence until remaining listed plants have

met the minimum shipping requirements; and

(3) Each plant that qualifies as a pool plant within a

system shall continue each month as a plant in the system unless

the plant subsequently fails to qualify for pooling, or the

responsible handler submits a written notification to the market

administrator prior to the first day of the month that the plant
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is to be deleted from the system, or that the system is to be

discontinued. In any month of March through August, a system

shall not contain any plant which was not qualified under this

paragraph, either individually or as a member of a system, during

the previous September through February.

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

through (f) 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.

 (h) 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 that 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 that also meets the pooling requirements of another

Federal order and from which greater qualifying shipments are made
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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. 

(i) Any plant that qualifies as a pool plant in each of the

immediately preceding 3 months pursuant to paragraph (a) of this

section or the shipping percentages in paragraph (c) of this

section that is unable to meet such performance standards for the

current month because of unavoidable circumstances determined by

the market administrator to be beyond the control of the handler

operating the plant, such as a natural disaster (ice storm, wind

storm, flood), fire, breakdown of equipment, or work stoppage,

shall be considered to have met the minimum performance standards

during the period of such unavoidable circumstances, but such

relief shall not be granted for more than 2 consecutive months.

§ 1033.8 Nonpool plant.

See § 1000.8.

§ 1033.9 Handler.

See § 1000.9.

§ 1033.10 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 from own farm production or that is

fully subject to the pricing and pooling provisions of this or any

other 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; and

(e) 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)
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and the processing and packaging operations are the producerhandler’s own enterprise and at its own risk.

§ 1033.11 [Reserved]

§ 1033.12 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 is:

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

diverted by the plant operator in accordance with § 1033.13; or

(2) Received by a handler described in § 1033.9(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 § 1033.13(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; and

(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.

§ 1033.13 Producer milk.

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

components of skim milk), including nonfat components, 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 by a

cooperative association described in § 1033.9(c) to a nonpool

plant, subject to the following conditions:

(1) Milk of a dairy farmer shall not be eligible for

diversion until milk of such dairy farmer has been physically

received as producer milk at a pool plant and the dairy farmer has

continuously retained producer status since that time. If a dairy
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farmer loses producer status under this order (except as a result

of a temporary loss of Grade A approval), the dairy farmer’s milk

shall not be eligible for diversion until milk of the dairy farmer

has been physically received as producer milk at a pool plant;

(2) The equivalent of at least one day’s production is

caused by the handler to be physically received at a pool plant in

each of the months of September through November;

(3) Of the total quantity of producer milk received during

the month (including diversions but excluding the quantity of

producer milk received from a handler described in § 1000.9(c)),

the handler diverted to nonpool plants not more than 60 percent

during the months of September through February;

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

plant to which diverted;

(5) Any milk diverted in excess of the limits set forth in

paragraph (d)(3) of this section shall not be producer milk. The

diverting handler shall designate the dairy farmer deliveries that

shall not be producer milk. If the handler fails to designate the

dairy farmer deliveries which are ineligible, producer milk status

shall be forfeited with respect to all milk diverted to nonpool

plants by such handler; and

(6) The delivery day requirements and the diversion

percentages in paragraphs (d)(2) and (d)(3) 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 an applicable

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

effective date.

§ 1033.14 Other source milk.

See § 1000.14.
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§ 1033.15 Fluid milk products.

See § 1000.15.

§ 1033.16 Fluid cream product.

See § 1000.16.

§ 1033.17 [Reserved]

§ 1033.18 Cooperative association.

See § 1000.18.

§ 1033.19 Commercial food processing establishment.

See § 1000.19.

HANDLER REPORTS

§ 1033.30 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 prescribed

forms, as follows:

(a) Each handler that operates a pool plant pursuant to

§ 1033.7 shall report for each of its operations the following

information:

(1) Product pounds, pounds of butterfat, pounds of protein,

pounds of solids-not-fat other than protein (other solids), and

the value of the somatic cell adjustment pursuant to § 1000.50(p),

contained in or represented by:

(i) Receipts of producer milk, including producer milk

diverted by the reporting handler, from sources other than

handlers described in § 1000.9(c); and

(ii) Receipts of milk from handlers described in

§ 1000.9(c);

(2) Product pounds and pounds of butterfat contained in:

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

products from other pool plants;

(ii) Receipts of other source milk; and

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

fluid milk products and bulk fluid cream products;

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

products required to be reported pursuant to this paragraph; and

(4) Such other information with respect to the receipts and

utilization of skim milk, butterfat, milk protein, other nonfat

solids, and somatic cell information as the market administrator

may prescribe.

(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. The report shall show also the quantity of any
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reconstituted skim milk in route disposition in the marketing

area.

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

(1) The product pounds, pounds of butterfat, pounds of

protein, pounds of solids-not-fat other than protein (other

solids), and the value of the somatic cell adjustment pursuant to

§ 1000.50(p), contained in receipts of milk from producers; and

(2) The utilization or disposition of such receipts.

(d) Each handler not specified in paragraphs (a) through (c)

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.

§ 1033.31 Payroll reports.

(a) On or before the 22nd day after the end of each month,

each handler that operates a pool plant pursuant to § 1033.7 and

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

administrator its producer payroll for the month, in the detail

prescribed by the market administrator, showing for each producer

the information described in § 1033.73(e).

(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.

§ 1033.32 Other reports.

In addition to the reports required pursuant to §§ 1033.30

and 1033.31, 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

§ 1033.40 Classes of utilization.

See § 1000.40.

§ 1033.41 [Reserved]

§ 1033.42 Classification of transfers and diversions.

See § 1000.42.

§ 1033.43 General classification rules.

See § 1000.43.

§ 1033.44 Classification of producer milk.

See § 1000.44.

§ 1033.45 Market administrator’s reports and announcements 

 concerning classification.

See § 1000.45.

CLASS PRICES
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§ 1033.50 Class prices, component prices, and advanced pricing

factors.

See § 1000.50.

§ 1033.51 Class I differential and price.

The Class I differential shall be the differential

established for Cuyahoga County, Ohio which is reported in

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

to § 1000.50(a) for Cuyahoga County, Ohio.

§ 1033.52 Adjusted Class I differentials.

See § 1000.52.

§ 1033.53 Announcement of class prices, component prices, and

advanced pricing factors.

See § 1000.53.

§ 1033.54 Equivalent price.

See § 1000.54.

PRODUCER PRICE DIFFERENTIAL

§ 1033.60 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 (i)

of this section and subtracting from that total amount the value

computed in paragraph (j) of this section. Unless otherwise

specified, the skim milk, butterfat, and the combined pounds of

skim milk and butterfat referred to in this section shall result

from the steps set forth in § 1000.44(a), (b), and (c),

respectively, and the nonfat components of producer milk in each

class shall be based upon the proportion of such components in

producer skim milk. 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) Class I value.

(1) Multiply the pounds of skim milk in Class I by the Class

I skim milk price; and

(2) Add an amount obtained by multiplying the pounds of

butterfat in Class I by the Class I butterfat price.

(b) Class II value.

(1) Multiply the pounds of nonfat solids in Class II skim

milk by the Class II nonfat solids price; and

(2) Add an amount obtained by multiplying the pounds of

butterfat in Class II times the Class II butterfat price.
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(c) Class III value.

(1) Multiply the pounds of protein in Class III skim milk by

the protein price;

(2) Add an amount obtained by multiplying the pounds of

other solids in Class III skim milk by the other solids price; and

(3) Add an amount obtained by multiplying the pounds of

butterfat in Class III by the butterfat price.

(d) Class IV value.

(1) Multiply the pounds of nonfat solids in Class IV skim

milk by the nonfat solids price; and

(2) Add an amount obtained by multiplying the pounds of

butterfat in Class IV by the butterfat price.

(e) Compute an adjustment for the somatic cell content of

producer milk by multiplying the values reported pursuant to

§ 1033.30(a)(1) and (c)(1) by the percentage of total producer

milk allocated to Class II, Class III, and Class IV pursuant to

§ 1000.44(c);

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

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

corresponding step of § 1000.44(b) by the skim milk prices and

butterfat prices applicable to each class.

(g) 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);

(h) 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

a plant regulated under other Federal orders and bulk concentrated

fluid milk products from pool plants, plants regulated under other

Federal orders, and unregulated supply plants.

(i) Multiply the difference between the Class I price

applicable at the location of the nearest unregulated supply

plants from which an equivalent volume was received and the Class

III price 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 step 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
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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.

(j) 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).

§ 1033.61 Computation of producer price differential.

For each month the market administrator shall compute a

producer price differential per hundredweight. The report of any

handler who has not made payments required pursuant to § 1033.71

for the preceding month shall not be included in the computation

of the producer price differential, 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. Subject to the aforementioned conditions, the market

administrator shall compute the producer price differential in the

following manner:

(a) Combine into one total the values computed pursuant to

§ 1033.60 for all handlers required to file reports prescribed in

§ 1033.30;

(b) Subtract the total values obtained by multiplying each

handler's total pounds of protein, other solids, and butterfat

contained in the milk for which an obligation was computed

pursuant to § 1033.60 by the protein price, the other solids

price, and the butterfat price, respectively, and the total value

of the somatic cell adjustment pursuant to § 1033.30(a)(1) and

(c)(1);

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

adjustments computed pursuant to § 1033.75;

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

unobligated balance in the producer-settlement fund;

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

for all handlers included in these computations:

(1) The total hundredweight of producer milk; and

(2) The total hundredweight for which a value is computed

pursuant to § 1033.60(i); and

(f) Subtract not less than 4 cents nor more than 5 cents

from the price computed pursuant to paragraph (e) of this section. 
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The result shall be known as the producer price differential for

the month.

§ 1033.62 Announcement of producer prices. 

On or before the 13th day after the end of each month, the

market administrator shall announce publicly the following prices

and information:

(a) The producer price differential;

(b) The protein price;

(c) The nonfat solids price;

(d) The other solids price;

(e) The butterfat price;

(f) The somatic cell adjustment rate;

(g) The average butterfat, protein, nonfat solids, and other

solids content of producer milk; and

(h) The statistical uniform price for milk containing 3.5

percent butterfat, computed by combining the Class III price and

the producer price differential.

PAYMENTS FOR MILK

§ 1033.70 Producer-settlement fund.

See § 1000.70.

§ 1033.71 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 15th day after the end of the month

(except as provided in § 1000.90). 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 § 1033.60.

(b) The sum of:

(1) An amount obtained by multiplying the total

hundredweight of producer milk as determined pursuant to

§ 1000.44(c) by the producer price differential as adjusted

pursuant to § 1033.75;

(2) An amount obtained by multiplying the total pounds of

protein, other solids, and butterfat contained in producer milk by

the protein, other solids, and butterfat prices, respectively;

(3) The total value of the somatic cell adjustment to

producer milk; and

(4) An amount obtained by multiplying the pounds of skim

milk and butterfat for which a value was computed pursuant to

§ 1033.60(i) by the producer price differential as adjusted

pursuant to § 1033.75 for the location of the plant from which

received. 
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§ 1033.72 Payments from the producer-settlement fund.

No later than the 16th 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 § 1033.71(b) exceeds the amount computed pursuant to

§ 1033.71(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.

§ 1033.73 Payments to producers and to cooperative associations.

(a) Each handler shall pay each producer for producer milk

for which payment is not made to a cooperative association

pursuant to paragraph (b) of this section, as follows:

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

discontinued shipments as of the date of this partial payment,

payment shall be made so that it is received by each producer on

or before the 26th day of the month (except as provided in

§ 1000.90) for milk received during the first 15 days of the month

from the producer at not less than the lowest announced class

price for the preceding month, less proper deductions authorized

in writing by the producer.

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

payment shall be made so that it is received by each producer no

later than the 17th day after the end of the month (except as

provided in § 1000.90) in an amount equal to not less than the sum

of:

(i) The hundredweight of producer milk received times the

producer price differential for the month as adjusted pursuant to

§ 1033.75;

(ii) The pounds of butterfat received times the butterfat

price for the month;

(iii) The pounds of protein received times the protein price

for the month;

(iv) The pounds of other solids received times the other

solids price for the month;

(v) The hundredweight of milk received times the somatic

cell adjustment for the month;

(vi) Less any payment made pursuant to paragraph (a)(1) of

this section;

(vii) Less proper deductions authorized in writing by such

producer and plus or minus adjustments for errors in previous

payments to such producer; and

(viii) Less deductions for marketing services pursuant to

§ 1000.86.
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(b) Payments for milk received from cooperative

associations. On or before the day prior to the dates specified

in paragraphs (a)(1) and (a)(2) of this section (except as

provided in § 1000.90), each handler shall pay to a cooperative

association for milk received as follows:

(1) Partial payment to a cooperative association. For bulk

fluid milk/skimmed 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 partial payment shall be equal

to the hundredweight of milk received multiplied by the lowest

announced class price for the preceding month.

(2) Partial payment to a cooperative association for milk

transferred from its pool plant. For bulk fluid milk/skimmed milk

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 at the receiving plant’s location.

(3) Final payment to a cooperative association for milk

transferred from its pool plant. Following the classification of

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 for such receipts

shall be determined as follows:

(i) The hundredweight of Class I skim milk times the Class I

skim milk price for the month plus the pounds of Class I butterfat

times the Class I butterfat price for the month. The Class I

prices to be used shall be the prices effective at the location of

the receiving plant;

(ii) The pounds of nonfat solids in Class II skim milk by

the Class II nonfat solids price;

(iii) The pounds of butterfat in Class II times the Class II

butterfat price;

(iv) The pounds of nonfat solids in Class IV times the nonfat

solids price;

(v) The pounds of butterfat in Class III and Class IV milk

times the butterfat price;

(vi) The pounds of protein in Class III milk times the

protein price;

(vii) The pounds of other solids in Class III milk times the

other solids price;

(viii) The hundredweight of Class II, Class III, and

Class IV milk times the somatic cell adjustment; and
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(ix) Add together the amounts computed in paragraphs

(b)(3)(i) through (viii) of this section and from that sum deduct

any payment made pursuant to paragraph (b)(2) of this section; and

(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 § 1033.72 by the payment date

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

reduce payments pursuant to paragraphs (a) and (b) of this

section, but not by more than the amount of the underpayment. The

payments 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, and in the event that 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 to the lawful claimant, as the case may be.

(e) In making payments to producers pursuant to this

section, each handler shall furnish each producer, except a

producer whose milk was received from a cooperative association

handler described in § 1000.9(a) or (c), a supporting statement in

a form that may be retained by the recipient which shall show:

(1) The name, address, Grade A identifier assigned by a duly

constituted regulatory agency, and payroll number of the producer;

(2) The daily and total pounds, and the month and dates such

milk was received from that producer;

(3) The total pounds of butterfat, protein, and other solids

contained in the producer's milk;

(4) The somatic cell count of the producer's milk;

(5) The minimum rate or rates at which payment to the

producer is required pursuant to this order;

(6) The rate used in making payment if the rate is other

than the applicable minimum rate;
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(7) The amount, or rate per hundredweight, or rate per pound

of component, and the nature of each deduction claimed by the

handler; and

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

association.

§ 1033.74 [Reserved]

§ 1033.75 Plant location adjustments for producer milk 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 § 1033.51 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 §§ 1033.73 and 1000.76. 

§ 1033.76 Payments by a handler operating a partially regulated 

distributing plant.

See § 1000.76.

§ 1033.77 Adjustment of accounts.

See § 1000.77.

§ 1033.78 Charges on overdue accounts.

See § 1000.78.

ADMINISTRATIVE ASSESSMENT AND MARKETING SERVICE DEDUCTION

§ 1033.85 Assessment for order administration.

See § 1000.85.

§ 1033.86 Deduction for marketing services.

See § 1000.86.