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PART 1030--MILK IN THE UPPER MIDWEST MARKETING AREA

Subpart--Order Regulating Handling

GENERAL PROVISIONS

Sec.

1030.1 General provisions.

DEFINITIONS

1030.2 Upper Midwest marketing area.

1030.3 Route disposition.

1030.4 Plant.

1030.5 Distributing plant.

1030.6 Supply plant.

1030.7 Pool plant.

1030.8 Nonpool plant.

1030.9 Handler.

1030.10 Producer-handler.

1030.11 [Reserved]

1030.12 Producer.

1030.13 Producer milk.

1030.14 Other source milk.

1030.15 Fluid milk product.

1030.16 Fluid cream product.

1030.17 [Reserved]

1030.18 Cooperative association.

1030.19 Commercial food processing establishment. 

HANDLER REPORTS

1030.30 Reports of receipts and utilization.

1030.31 Payroll reports.

1030.32 Other reports. 

CLASSIFICATION OF MILK

1030.40 Classes of utilization.

1030.41 [Reserved]

1030.42 Classification of transfers and diversions.

1030.43 General classification rules.

1030.44 Classification of producer milk.

1030.45 Market administrator's reports and announcements

 concerning classification.

CLASS PRICES 

1030.50 Class prices, component prices, and advanced pricing

 factors.

1030.51 Class I differential and price.

1030.52 Adjusted Class I differentials.

1030.53 Announcement of class prices, component prices, and

 advanced pricing factors.

1030.54 Equivalent price.
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1030.55 Transportation credits and assembly credits.

PRODUCER PRICE DIFFERENTIAL

1030.60 Handler's value of milk.

1030.61 Computation of producer price differential.

1030.62 Announcement of producer prices.

PAYMENTS FOR MILK 

1030.70 Producer-settlement fund.

1030.71 Payments to the producer-settlement fund.

1030.72 Payments from the producer-settlement fund.

1030.73 Payments to producers and to cooperative associations.

1030.74 [Reserved]

1030.75 Plant location adjustments for producer milk and 

 nonpool milk.

1030.76 Payments by a handler operating a partially regulated

 distributing plant.

1030.77 Adjustment of accounts.

1030.78 Charges on overdue accounts.

ADMINISTRATIVE ASSESSMENT AND MARKETING SERVICE DEDUCTION

1030.85 Assessment for order administration.

1030.86 Deduction for marketing services. 

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

Subpart--Order Regulating Handling

GENERAL PROVISIONS

§ 1030.1 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 1030, all references to sections in part 1000 refer to

part 1000 of this chapter.

DEFINITIONS

§ 1030.2 Upper Midwest 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:

Illinois Counties

Boone, Carroll, Cook, De Kalb, Du Page, Jo Daviess, Kane,

Kendall, Lake, Lee, McHenry, Ogle, Stephenson, Will, and 

Winnebago.

Iowa Counties

Howard, Kossuth, Mitchell, Winnebago, Winneshiek, and Worth.
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Michigan Counties

Delta, Dickinson, Gogebic, Iron, Menominee, and Ontonagon.

Minnesota

All counties except Lincoln, Nobles, Pipestone, and Rock.

North Dakota Counties

Barnes, Cass, Cavalier, Dickey, Grand Forks, Griggs, La

Moure, Nelson, Pembina, Ramsey, Ransom, Richland, Sargent, Steele,

Traill, and Walsh.

South Dakota Counties

Brown, Day, Edmunds, Grant, Marshall, McPherson, Roberts, and

Walworth.
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Wisconsin Counties

All counties except Crawford and Grant. 

§ 1030.3 Route disposition.

See § 1000.3.

§ 1030.4 Plant.

See § 1000.4.

§ 1030.5 Distributing plant.

See § 1000.5.

§ 1030.6 Supply plant.

See § 1000.6.

§ 1030.7 Pool plant.

Pool plant means a plant, unit of plants, or 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) and (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

15 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 15 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 (and physically unloaded into) plants

described in paragraph (c)(1) of this section is not less than 10

percent of the Grade A milk received from dairy farmers (except

dairy farmers described in § 1030.12(b)) and handlers described in

§ 1000.9(c), including milk diverted pursuant to § 1030.13,

subject to the following conditions:

(1) Qualifying shipments may be made to plants described in

paragraphs (c)(1)(i) through (iv) of this section, except that

whenever shipping requirements are increased pursuant to paragraph

(g) of this section, only shipments to pool plants described in

paragraphs (a), (b), and (e) of this section shall count as
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qualifying shipments for the purpose of meeting the increased

shipments:

(i) Pool plants described in § 1030.7(a), (b) and (e); 

(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 shipments to such plants shall be

limited to the quantity shipped to pool distributing plants during

the month and credits for shipments to other order plants shall

not include any such shipments made on the basis of agreed-upon

Class II, Class III, or Class IV utilization.

 (2) The operator of a supply plant may include as qualifying

shipments under this paragraph milk delivered directly from

producers’ farms pursuant to §§ 1000.9(c) or 1030.13(c) to plants

described in paragraphs (a), (b), and (e) of this section.

(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.

(d) [Reserved] 

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

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

unit by meeting the total and in-area route disposition

requirements of a pool distributing plant specified in paragraph

(a) of this section and subject to 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

(3) The operator of the unit has filed a written request

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) A system of 2 or more supply plants operated by one or

more handlers may qualify for pooling by meeting the shipping

requirements of paragraph (c) of this section in the same manner
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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 pursuant to § 1030.7(c) 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

§ 1000.9(c) to qualify plants located outside the marketing area;

 (2) The handler(s) establishing the system submits a written

request to the market administrator on or before July 15

requesting that such plants qualify as a system for the period of

August through July of the following year. Such request will

contain a list of the plants participating in the system in the

order, beginning with the last plant, in which the plants will be

dropped from the system if the system fails to qualify. Each

plant that qualifies as a pool plant within a system shall

continue each month as a plant in the system through the following

July unless the handler(s) establishing the system submits a

written request to the market administrator that the plant be

deleted from the system or that the system be discontinued. Any

plant that has been so deleted from a system, or that has failed

to qualify in any month, will not be part of any system for the

remaining months through July. The handler(s) that established a

system may add a plant operated by such handler(s) to a system if

such plant has been a pool plant each of the 6 prior months and

would otherwise be eligible to be in a system, upon written

request to the market administrator no later than the 15th day of

the prior month. In the event of an ownership change or the

business failure of a handler that is a participant in a system,

the system may be reorganized to reflect such changes if a written

request to file a new marketing agreement is submitted to the

market administrator; and

(3) If a system fails to qualify under the requirements of

this paragraph, the handler responsible for qualifying the system

shall notify the market administrator which plant or plants will

be deleted from the system so that the remaining plants may be

pooled as a system. If the handler fails to do so, the market

administrator shall exclude one or more plants, beginning at the

bottom of the list of plants in the system and continuing up the

list as necessary until the deliveries are sufficient to qualify

the remaining plants in the system.

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

and (f) of this section and the diversion limits described in

§ 1030.13(d)(2) may be increased or decreased, for all or part of

the marketing area, by the market administrator if the market
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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 or

diversion 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 which meets the pooling

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

percent of its route disposition has been in the other Federal

order marketing area for 3 consecutive months; 

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

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

the pooling requirements of another Federal order and has had

greater route disposition in such other Federal order’s marketing

area for 3 consecutive months;

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

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

the pooling requirements of such other Federal order and does not

have a majority of its route distribution in this marketing area

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

regulated under such other Federal order without regard to its

route disposition in any other Federal order marketing area;

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

section which also meets the pooling requirements of another

Federal order and from which greater qualifying shipments are made

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

plants regulated under this order, or the plant has automatic

pooling status under the other Federal order; and

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

nonpool plant that is physically separate and operated separately

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

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

§ 1030.8 Nonpool plant.

See § 1000.8.

§ 1030.9 Handler.

See § 1000.9.

§ 1030.10 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 during the

month;

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

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)

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

§ 1030.11 [Reserved]

§ 1030.12 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:
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(1) Received at a pool plant directly from the producer or

diverted by the plant operator in accordance with § 1030.13; 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 § 1030.13(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.

§ 1030.13 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 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 as producer milk at a pool plant

during the first month the dairy farmer is a producer. If a dairy

farmer loses producer status under this order (except as a result

of a temporary loss of Grade A approval or as a result of the

handler of the dairy farmer’s milk failing to pool the milk under

any order), the dairy farmer’s milk shall not be eligible for

diversion unless at least one day’s production of the dairy farmer

has been physically received as producer milk at a pool plant

during the first month the dairy farmer is re-associated with the

market;
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(2) The quantity of milk diverted by a handler described in

§ 1000.9(c) may not exceed 90 percent of the producer milk

receipts reported by the handler pursuant to § 1030.30(c) provided

that not less than 10 percent of such receipts are delivered to

plants described in § 1030.7(c)(1)(i) through (iii). These

percentages are subject to any adjustments that may be made

pursuant to § 1030.7(g); and

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

plant to which diverted.

§ 1030.14 Other source milk.

See § 1000.14.

§ 1030.15 Fluid milk product.

See § 1000.15.

§ 1030.16 Fluid cream product.

See § 1000.16.

§ 1030.17 [Reserved]

§ 1030.18 Cooperative association.

See § 1000.18.

§ 1030.19 Commercial food processing establishment.

See § 1000.19.

HANDLER REPORTS

§ 1030.30 Reports of receipts and utilization.

Each handler shall report monthly so that the market

administrator’s office receives the report on or before the 9th

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 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
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(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

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.

§ 1030.31 Payroll reports.

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

each handler that operates a pool plant pursuant to § 1030.7 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 § 1030.73(f).

(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.

§ 1030.32 Other reports.

In addition to the reports required pursuant to §§ 1030.30

and 1030.31, 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

§ 1030.40 Classes of utilization.

See § 1000.40.

§ 1030.41 [Reserved]

§ 1030.42 Classification of transfers and diversions.
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See § 1000.42.

§ 1030.43 General classification rules.

See § 1000.43.

§ 1030.44 Classification of producer milk.

See § 1000.44.

§ 1030.45 Market administrator’s reports and announcements

concerning classification.

See § 1000.45.

CLASS PRICES

§ 1030.50 Class prices, component prices, and advanced pricing

factors.

See § 1000.50.

§ 1030.51 Class I differential and price.

The Class I differential shall be the differential

established for Cook County, Illinois, which is reported in

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

to § 1000.50(a) for Cook County, Illinois.

§ 1030.52 Adjusted Class I differentials.

See § 1000.52.

§ 1030.53 Announcement of class prices, component prices, and

advanced pricing factors.

See § 1000.53.

§ 1030.54 Equivalent price.

See § 1000.54.

§ 1030.55 Transportation credits and assembly credits.

(a) Each handler operating a pool distributing plant

described in § 1030.7(a), (b), or (e) that receives bulk milk from

another pool plant shall receive a transportation credit for such

milk computed as follows:

(1) Determine the hundredweight of milk eligible for the

credit by completing the steps in paragraph (c) of this section;

(2) Multiply the hundredweight of milk eligible for the

credit by .28 cents times the number of miles between the

transferor plant and the transferee plant; 

(3) Subtract the effective Class I price at the transferor

plant from the effective Class I price at the transferee plant;

(4) Multiply any positive amount resulting from the

subtraction in paragraph (a)(3) of this section by the

hundredweight of milk eligible for the credit; and

(5) Subtract the amount computed in paragraph (a)(4) of this

section from the amount computed in paragraph (a)(2) of this

section. If the amount computed in paragraph (a)(4) of this

section exceeds the amount computed in paragraph (a)(2) of this

section, the transportation credit shall be zero. 
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(b) Each handler operating a pool distributing plant

described in § 1030.7(a), (b), or (e) that receives milk from

dairy farmers, each handler that transfers or diverts bulk milk

from a pool plant to a pool distributing plant, and each handler

described in § 1000.9(c) that delivers producer milk to a pool

distributing plant shall receive an assembly credit on the portion

of such milk eligible for the credit pursuant to paragraph (c) of

this section. The credit shall be computed by multiplying the

hundredweight of milk eligible for the credit by 8 cents.

(c) The following procedure shall be used to determine the

amount of milk eligible for transportation and assembly credits

pursuant to paragraphs (a) and (b) of this section:

(1) At each pool distributing plant, determine the aggregate

quantity of Class I milk, excluding beginning inventory of

packaged fluid milk products;

(2) Subtract the quantity of packaged fluid milk products

received at the pool distributing plant from other pool plants and

from nonpool plants if such receipts are assigned to Class I;

(3) Subtract the quantity of bulk milk shipped from the pool

distributing plant to other plants to the extent that such milk is

classified as Class I milk;

(4) Subtract the quantity of bulk milk received at the pool

distributing plant from other order plants and unregulated supply

plants that is assigned to Class I pursuant to §§ 1000.43(d) and

1000.44; and

(5) Assign the remaining quantity pro rata to physical

receipts during the month from:

(i) Producers;

(ii) Handlers described in § 1000.9(c); and

(iii) Other pool plants.

(d) For purposes of this section, the distances to be

computed shall be determined by the market administrator using the

shortest available state and/or Federal highway mileage. Mileage

determinations are subject to redetermination at all times. In

the event a handler requests a redetermination of the mileage

pertaining to any plant, the market administrator shall notify the

handler of such redetermination within 30 days after the receipt

of such request. Any financial obligations resulting from a

change in mileage shall not be retroactive for any periods prior

to the redetermination by the market administrator.

PRODUCER PRICE DIFFERENTIAL

§ 1030.60 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
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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 values

computed in paragraphs (j) and (k) 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.

(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

§ 1030.30(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
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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 and 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

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.

(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

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).

(k) Compute the amount of credits applicable pursuant to

§ 1030.55.

§ 1030.61 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 § 1030.71
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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

§ 1030.60 for all handlers required to file reports prescribed in

§ 1030.30;

(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 § 1030.60 by the protein price, the other solids

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

of the somatic cell adjustment pursuant to § 1030.30(a)(1) and

(c)(1);

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

adjustments computed pursuant to § 1030.75;

(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 § 1030.60(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. 

The result shall be known as the producer price differential for

the month.

§ 1030.62 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, nonfat solids, protein 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.
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PAYMENTS FOR MILK

§ 1030.70 Producer-settlement fund.

See § 1000.70.

§ 1030.71 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 § 1030.60.

(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 § 1030.75;

(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

§ 1030.60(i) by the producer price differential as adjusted

pursuant to § 1030.75 for the location of the plant from which

received. 

§ 1030.72 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 § 1030.71(b) exceeds the amount computed pursuant to

§ 1030.71(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.

§ 1030.73 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
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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

§ 1030.75;

(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 subject to approval by the market

administrator; and

(viii) Less deductions for marketing services pursuant to

§ 1000.86.

(b) Payments for milk received from cooperative association

members. 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 from producers who market their milk through the

cooperative association and who have authorized the cooperative to

collect such payments on their behalf an amount equal to the sum

of the individual payments otherwise payable for such producer

milk pursuant to paragraphs (a)(1) and (a)(2) of this section.

(c) Payment for milk received from cooperative association

pool plants or from cooperatives as handlers pursuant to

§ 1000.9(c). 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 who receives fluid milk products at

its plant from a cooperative association in its capacity as the

operator of a pool plant or who receives milk from a cooperative
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association in its capacity as a handler pursuant to § 1000.9(c),

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, shall pay the cooperative for such milk as follows:

(1) For bulk fluid milk products and bulk fluid cream

products received from a cooperative association in its capacity

as the operator of a pool plant and for milk received from a

cooperative association in its capacity as a handler pursuant to

§ 1000.9(c) during the first 15 days of the month, at not less

than the lowest announced class prices per hundredweight for the

preceding month;

(2) For the total quantity of bulk fluid milk products and

bulk fluid cream products received from a cooperative association

in its capacity as the operator of a pool plant, at not less than

the total value of such products received from the association's

pool plants, as determined by multiplying the respective

quantities assigned to each class under § 1000.44, 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

price to be used shall be that price 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

(ix) Add together the amounts computed in paragraphs

(c)(2)(i) through (viii) of this section and from that sum deduct

any payment made pursuant to paragraph (c)(1) of this section; and

(3) For the total quantity of milk received during the month

from a cooperative association in its capacity as a handler under

§ 1000.9(c) as follows:

(i) The hundredweight of producer milk received times the

producer price differential as adjusted pursuant to § 1030.75;
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(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; and

(vi) Add together the amounts computed in paragraphs

(c)(3)(i) through (v) of this section and from that sum deduct any

payment made pursuant to paragraph (c)(1) of this section.

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

market administrator pursuant to § 1030.72 by the payment date

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

handler may reduce pro rata its payments to producers or to the

cooperative association (with respect to receipts described in

paragraph (b) of this section, prorating the underpayment to the

volume of milk received from the cooperative association in

proportion to the total milk received from producers by the

handler), 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.

(e) 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.

(f) 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;
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(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;

(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.

§ 1030.74 [Reserved]

§ 1030.75 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 § 1030.51 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 §§ 1030.73 and 1000.76. 

§ 1030.76 Payments by a handler operating a partially regulated

distributing plant.

See § 1000.76.

§ 1030.77 Adjustment of accounts.

See § 1000.77.

§ 1030.78 Charges on overdue accounts.

See § 1000.78.

ADMINISTRATIVE ASSESSMENT AND MARKETING SERVICE DEDUCTION

§ 1030.85 Assessment for order administration.

See § 1000.85.

§ 1030.86 Deduction for marketing services.

See § 1000.86.