North Dakota Administrative Code › Title 51 - Milk Marketing Board › Article 51-03 - Market Areas and Stabilization Plans › Chapter 51-03-02 - Stabilization Plans for Market Area 1 › Section 51-03-02-06 - Prices to be paid dairy farmers and others - Midpoint, differential, and multiple component pricing

Current through Supplement No. 393, July, 2024
1. Class I (market
				area 1). Commencing July 1, 2000, the minimum price to be paid by milk
				processors to dairy farmers and others coming within the scope of this plan
				f.o.b. the processor's plant for milk which is ultimately utilized in class I
				(milk products) shall be the hundredweight price as established by the formula
				below. However, the minimum price to be paid by milk processors to dairy
				farmers and others coming within the scope of this plan f.o.b. the processor's
				plant for milk which is ultimately utilized in class I (milk products) shall
				not be less than $13.76 per hundredweight.
The following formula shall be used when the federal market
				  order no. 30 class I dairy farmer hundredweight price increases or decreases to
				  the next higher or lower federal market order no. 30 class I dairy farmer
				  hundredweight trip point. Minimum North Dakota class I dairy farmer and
				  wholesale and retail prices to be adjusted by using the current federal market
				  order no. 30 class I dairy farmer price on the formula below. Move to the next
				  higher increment and utilize the North Dakota minimum class I dairy farmer
				  price as listed on the formula below. Adjustments, if required, will be
				  monthly.
Market Area 1
Federal Market Order No. 30 Class I Dairy Farmer Price
North Dakota Minimum Class I Dairy Farmer Price
Minimum Wholesale Price Per One-Half Gallon 2 Percent
							 Milk
18.59
19.22
1.541
18.38
19.01
1.531
18.17
18.80
1.521
17.96
18.59
1.511
17.75
18.38
1.501
17.54
18.17
1.491
17.33
17.96
1.481
17.12
17.75
1.471
16.91
17.54
1.461
16.70
17.33
1.451
16.49
17.12
1.441
16.28
16.91
1.431
16.07
16.70
1.421
15.86
16.49
1.411
15.65
16.28
1.401
15.44
16.07
1.391
15.23
15.86
1.381
15.02
15.65
1.371
14.81
15.44
1.361
14.60
15.23
1.351
14.39
15.02
1.341
14.18
14.81
1.331
13.97
14.60
1.321
13.76
14.39
1.311
13.55
14.18
1.301
13.34
13.97
1.291
13.13
13.76 Base
1.281
Based on $.21 per hundredweight increments and butterfat
				  differential of $.053.
Differentials above or below the midpoint of 3.5 percent will
				  be those used in federal market order no. 30.
Adjustments in wholesale and retail prices for other sized
				  containers should also increase or decrease, or both, proportionally to the
				  one-half gallon use.
2.
				Class II. Commencing July 1, 2000, the minimum price to be paid by milk
				processors to dairy farmers and others, coming within the scope of this
				stabilization plan f.o.b. the processor's plant after the effective date of
				this plan for milk which is ultimately utilized in class II, shall be the class
				II price per hundredweight for federal market order no. 30, adjusted to a 3.5
				percent butterfat basis. Butterfat differentials above or below the midpoint of
				3.5 percent will be those used in federal market order no. 30.
3. Class III. Commencing July 1, 2000, the
				minimum price to be paid by milk processors to dairy farmers and others coming
				within the scope of this stabilization plan f.o.b. the processor's plant for
				milk, which is ultimately utilized in class III, except that used in the
				manufacture of butter, shall be priced under a "multiple component pricing"
				system to include protein, other solids, and somatic cell count. The respective
				prices for these components, in a given month, and computations thereon will be
				those used by federal market order no. 30. Two additional components, butterfat
				and producer price differential, will use as a basis the class III price per
				hundredweight for federal market order no. 30 less a four percent
				administrative and transportation allowance to the nearest full cent adjusted
				to a 3.5 percent butterfat basis. Butterfat differentials above or below the
				midpoint of 3.5 percent will be those used in federal market order no. 30.
				Commencing July 1, 2000, the minimum price to be paid by milk processors to
				dairy farmers and others coming within the scope of this stabilization plan,
				f.o.b. the processor's plant for milk and cream which is ultimately used in
				class III for the manufacture of butter, shall be the monthly national
				agricultural statistical service (NASS) survey butter price less a $.05 per
				pound administrative and transportation allowance rounded to the nearest cent.
If a processing plant pays to its dairy farmers and others a
				  premium above the class III minimum raw milk price as established herein, such
				  price including the premium, shall become the minimum class III raw milk price
				  for audit purposes for said plant, and said plant shall not be entitled to
				  dilute the class I and class II raw milk prices for payment of said premiums on
				  said class III raw milk.
4. The foregoing class I, II, and III dairy
				farmer prices shall be automatically adjusted each month, without further
				amendment to this stabilization plan based upon the prices ordered for federal
				market order no. 30.
General Authority: NDCC 4-18.1-03, 4-18.1-07, 4-18.1-20, 28-32-03.1(3)
Law Implemented: NDCC 4-18.1-07