Code of Maine Rules › 01 - DEPARTMENT OF AGRICULTURE, CONSERVATION AND FORESTRY › 001 - AGRICULTURE - GENERAL › Chapter 60 - MAINE MILK POOL - OPERATION › Section 001-60-IV - Calculation of Pool Share - Base Minimum Price

Current through 2024-29, July 17, 2024
A. No later than the 21st day after the end
				of each month, the Pool Administrator shall calculate:
1. the total of all Pool payments at the base
				minimum price received for the month;
2. the total cost of promotion for the month,
				calculated using the promotion rate established according to Section
				X;
3. the redistribution rate for
				the month, which shall be used to calculate each producer's share of pool
				payments made at the base minimum price and which shall be calculated as
				follows:
a. when the plant prices paid to
				Boston market producers are equal to or less than the amount initially paid to
				any Maine market producer pursuant to III.A.I.a. including the adjustment per
				hundredweight made during the transition period pursuant to VII.B., the
				redistribution rate shall be calculated by dividing the total of all Pool
				payments at the base minimum price due for the month by the sum of the total
				hundredweight of milk received by Maine market dealers from Maine market and
				Northern Maine market producers, and the total hundredweight of milk received
				by Boston market dealers from Boston market producers; however,
b. when the plant price paid to any
				individual Boston market producer is greater than the amount initially paid to
				any Maine market producer pursuant to III.A.I.a. including the adjustment per
				hundredweight made during the transition period pursuant to VII.B. for Maine
				market producers, the redistribution rate for any such Boston market producers
				shall be reduced by the amount of the difference between that plant price and
				the lowest initial payment at the base minimum price made to a Maine market
				producer. The following formula shall be used to determine the redistribution
				rates for such Boston market producers, and for all other Maine market and
				Boston market producers:
P = r1 (Q1 ) +
				  e2 (Q2)
and
r2 = r1 -
				  c1
provided that when r1 -
				  c1 results in a negative value,
				  r2 becomes 0.
where
P = total payments due to the Pool at the base minimum price
				  excepting promotion funds paid to the Pool pursuant to II.G
r1 + redistribution rate for Maine
				  market and all Boston market producers whose plant price does not exceed the
				  initial price paid to any Maine market producer pursuant to III.a.1.a.
				  including the adjustment made during transition period pursuant to VII.B. for
				  Maine market producers.
r2 = redistribution rate applicable to
				  Boston market producers whose plant price exceeds the price initially paid to
				  any Maine market producer including the adjustment pursuant to VII.B. as
				  above
Q1 = quantity of milk in hundredweight
				  received by Maine market dealers and Boston market dealers from Maine market
				  producers and Boston market producers whose plant price does not exceed the
				  price initially paid to any Maine market producer, including any adjustment
				  pursuant to VII.B. as above
Q2 = quantity of milk in hundredweight
				  received by Boston market dealers from Boston market producers whose plant
				  price exceeds the price initially paid to any Maine market producer, including
				  any adjustment pursuant to VII.B. as above.
c1 = credit, which is the difference
				  between the plant price received by Boston market producers and the lowest
				  price initially paid to any Maine market producer including adjustment pursuant
				  to VII.B. as above, if the amount received by that Maine market producer is the
				  lessor of the two amounts. For purposes of this provision, plant price does not
				  include deductions or additions imposed by any seasonal balancing plan adopted
				  pursuant to Federal Market Order No. 1.
NOTE: One class of Boston market producers who receives a
				  plant price as defined above which may be greater than the price initially paid
				  to any Maine market producer would be those shipping directly to a plant in
				  Zone I of Federal Order No. 1. Other classes may exist, e.g., producers
				  shipping to Federal Order No. I by way of direct haul to a plant in some other
				  zone or shipping to a reload station serving a plant in Zone 1. Accordingly,
				  the above formula would be expanded to reflect that revised situation
				  as:
P = r1 (Q1) +
				  r2 (Q2) +
				  r3 (Q3) + etc.
where r3 would be the redistribution
				  rate for such Boston market producers and r3 =
				  r1 - C2 where
				  C2 represents the credit or difference between the plant
				  price received by those Boston market producers and the lowest price initially
				  paid to any Maine market producer. Information provided pursuant to II.B.2.c.
				  will identify all such producers.
4. the Pool share and the amount payable from
				pool payments made at the base minimum price for each Maine and Boston market
				producer reported as such under Section II, A. or B.; as follows:
a. the producer's Pool share, which is the
				product of the redistribution rate for that producer and the amount of milk
				2.b. for that producer;
b. the
				producer's share of the cost of promotion, calculated according to Section X
				for this rule; C. the producer's share of the cost of administration,
				calculated according to Section XI of this rule; and d. the amount obtained by
				subtracting b. and c. from a., which amount is the amount payable from the Pool
				to each producer;
5. any
				amount due to the Pool for promotion from Boston market producers. For any
				Boston market producer for whom credit is calculated pursuant to 3. b., the
				Pool Administrator shall:
a. determine the
				amount per hundredweight that would be otherwise payable to that producer from
				the Pool without a credit, which is the redistribution rate calculated before a
				credit is applied, or r as calculated pursuant to 3. b., from which rate the
				rates payable for promotion and administrative costs are subtracted;
b. if the credit calculated pursuant to 3. b.
				is greater than the amount obtained in a., calculate by what amount;
c. determine the amount payable by that
				producer to the Pool as the lesser of:
(1) the
				product of the promotion rate established according to Section X and the total
				hundredweight of milk sold by that producer to a Boston market dealer;
				or
(2) the product of the amount
				calculated under b. and the total hundredweight of milk sold by that producer
				to a Boston market dealer.
The Pool Administrator may deduct the amount owed from future
				  base minimum price pool payments to that producer or from over-order premium
				  pool payments to that producer, may require the producer's dealer to deduct the
				  amount owed from future payments for that producer's milk and remit that amount
				  to the Pool Administrator or may require the producer to pay the amount owed
				  into the Pool. No such amount shall remain outstanding for a period in excess
				  of 90 days.
d.
				in the case where the amount payable is the amount calculated under c(l), the
				Pool Administrator shall debit the amount due from the producer against that
				producer's share of the cost of promotion, and shall make payment of amounts so
				debited to the Milk Promotion Board upon receipt of payment from the
				producer.
e. in the case where a
				producer owes to the Pool the amount calculated under (2), the Pool
				Administrator shall deduct from the producer's Pool share the cost of
				administration calculated according to Section XI, and shall pay the remainder
				of the Pool share to the Milk Promotion Board, as partial payment of the amount
				due to the Promotion Board from that producer. The amount due to the pool by
				the producer which is the balance of the amount due for promotion by that
				producer, shall be paid to the Promotion Board upon receipt of payment from the
				producer;
6. for each
				Maine market dealer reporting under II.
A.
				and Boston market dealer or agricultural cooperative reporting under
				II.
B. whose producers are due
				payments out of pool payments made at the base minimum price.
a. the sum of all Pool shares due those
				producers;
b. the sum of all those
				producers' shares of the cost of promotion;
c. the sum of all those producers' shares of
				the cost of administration; and
d.
				the amount obtained by subtracting b. and c. from a., which amount is the Pool
				allotment for those producers for the month.