[Federal Register Volume 65, Number 250 (Thursday, December 28, 2000)]
[Rules and Regulations]
[Pages 82832-82842]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-32930]
[[Page 82831]]
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Part III
Department of Agriculture
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Agricultural Marketing Service
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7 CFR Part 1000, et al.
Milk in the Northeast and Other Marketing Areas; Interim Amendment of
Orders; Interim Rule
Federal Register / Vol. 65, No. 250 / Thursday, December 28, 2000 /
Rules and Regulations
[[Page 82832]]
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DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Parts 1000, 1001, 1005, 1006, 1007, 1030, 1032, 1033, 1124,
1126, 1131, and 1135
[Docket No. AO-14-A69, et al.; DA-00-03]
Milk in the Northeast and Other Marketing Areas; Interim
Amendment of Orders
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7 CFR part Marketing area AO Nos.
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1001.................. Northeast............... AO-14-A69.
1005.................. Appalachian............. AO-388-A11.
1006.................. Florida................. AO-356-A34.
1007.................. Southeast............... AO-366-A40.
1030.................. Upper Midwest........... AO-361-A34.
1032.................. Central................. AO-313-A43.
1033.................. Mideast................. AO-166-A67.
1124.................. Pacific Northwest....... AO-368-A27.
1126.................. Southwest............... AO-231-A65.
1131.................. Arizona-Las Vegas....... AO-271-A35.
1135.................. Western................. AO-380-A17.
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AGENCY: Agricultural Marketing Service, USDA.
ACTION: Interim amendment of rules.
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SUMMARY: This interim rule amends, on an emergency basis, the Class III
and Class IV pricing formulas used in Federal milk orders, effective
for milk marketed on or after January 1, 2001. The rule thereby
conforms to the requirements of the Consolidated Appropriations Act,
2000, which mandated reconsideration of the Class III and Class IV
pricing formulas included in the final rule for the consolidation and
reform of Federal milk orders, with amendments to be effective January
1, 2001.
This rule reduces the cheese make allowance used in the Class III
component price calculations, increases the make allowances used in the
Class IV component price calculations, provides for separate Class III
and Class IV butterfat prices, and removes the butterfat adjustment
factor from the protein price formula.
More than the required number of producers in each of the aforesaid
marketing areas have approved the issuance of the interim amendments.
EFFECTIVE DATE: January 1, 2001.
FOR FURTHER INFORMATION CONTACT: Constance M. Brenner, Marketing
Specialist, USDA/AMS/Dairy Programs, Order Formulation Branch, Room
2971, South Building, P. O. Box 96456, Washington, DC 20090-6456, (202)
720-2357, e-mail address [email protected].
SUPPLEMENTARY INFORMATION: This administrative rule is governed by the
provisions of Sections 556 and 557 of Title 5 of the United States Code
and, therefore, is excluded from the requirements of Executive Order
12866.
This interim final rule has been reviewed under Executive Order
12988, Civil Justice Reform. This rule is not intended to have
retroactive effect. This rule will not preempt any state or local laws,
regulations, or policies, unless they present an irreconcilable
conflict with the rule.
The Agricultural Marketing Agreement Act of 1937, as amended (7
U.S.C. 601-674), provides that administrative proceedings must be
exhausted before parties may file suit in court. Under section
608c(15)(A) of the Act, any handler subject to an order may request
modification or exemption from such order by filing with the Secretary
a petition stating that the order, any provision of the order, or any
obligation imposed in connection with the order is not in accordance
with the law. A handler is afforded the opportunity for a hearing on
the petition. After a hearing, the Secretary would rule on the
petition. The Act provides that the District Court of the United States
in any district in which the handler is an inhabitant, or has its
principal place of business, has jurisdiction in equity to review the
Secretary's ruling on the petition, provided a bill in equity is filed
not later than 20 days after the date of the entry of the ruling.
Small Business Consideration
Pursuant to the requirements set forth in the Regulatory
Flexibility Act (5 U.S.C. 601 et seq.), the Agricultural Marketing
Service (AMS) considered the economic impact of the changes to the
Federal milk marketing order program implemented by this interim final
rule on small entities and prepared a regulatory flexibility analysis
that was included in the tentative decision (65 FR 76832). The analysis
indicates that the Department minimized the significant economic
impacts of the regulations on small entities to the fullest extent
reasonably possible while adhering to the stated objectives. The
Department reviewed the regulatory and financial burdens resulting from
the regulations and determined, to the fullest extent possible, the
impact on small businesses' abilities to compete in the market place.
The Department reviewed the regulations from both the small producer
and small processor perspectives, attempting to maintain a balance
between these competing interests. Neither small producers nor small
handlers should experience any particular disadvantage as a result of
the interim amendments.
No additional information collection or reporting requirements will
be necessitated by the amendments.
An analysis of the economic effects of the alternatives selected
was done and summarized in the tentative final decision. A complete
economic analysis is available upon request from Howard McDowell,
Senior Economist, USDA/AMS/Dairy Programs, Office of the Chief
Economist, Room 2753, South Building, U.S. Department of Agriculture,
Washington, DC 20250, (202) 720-7091, e-mail address
[email protected]
Civil Rights Impact Statement
Pursuant to Departmental Regulation (DR) 4300-4, a comprehensive
Civil Rights Impact Analysis (CRIA) was conducted and published with
the final decision on Federal milk order consolidation and reform. The
conclusion of that analysis disclosed no potential for affecting dairy
farmers in protected groups differently than the general population of
dairy farmers. This issue was reconsidered in the tentative decision
(65 FR 76832) with regard to the interim amendments, and the conclusion
has not changed.
Copies of the Civil Rights Impact Analysis done for the final
decision on Federal milk order consolidation and reform can be obtained
from AMS Dairy Programs at (202) 720-4392; any Milk Market
Administrator office; or via the Internet at: www.ams.usda.gov/dairy/
Prior documents in this proceeding:
Notice of Hearing: Issued April 6, 2000; published April 14, 2000
(65 FR 20094).
Tentative Final Decision: Issued November 29, 2000; published
December 7, 2000 (65 FR 76832).
Findings and Determinations
The findings and determinations hereinafter set forth supplement
those that were made when the aforesaid orders were first issued and
when they were amended. The previous findings and determinations are
hereby ratified and confirmed, except where they may conflict with
those set forth herein.
The following findings and determinations are hereby made with
respect to each of the aforesaid orders:
[[Page 82833]]
(a) Findings upon the basis of the hearing record. Pursuant to the
provisions of the Agricultural Marketing Agreement Act of 1937, as
amended (7 U.S.C. 601-674), and the applicable rules of practice and
procedure governing the formulation of marketing agreements and
marketing orders (7 CFR Part 900), a public hearing was held upon
certain proposed amendments to the tentative marketing agreements and
to the orders regulating the handling of milk in the Northeast and
other marketing areas.
Upon the basis of the evidence introduced at such hearing and the
record thereof it is found that:
(1) The said orders, as hereby amended on an interim basis, and all
of the terms and conditions thereof, will tend to effectuate the
declared policy of the Act;
(2) The parity prices of milk, as determined pursuant to section 2
of the Act, are not reasonable in view of the price of feeds, available
supplies of feeds, and other economic conditions which affect market
supply and demand for milk in the marketing areas, and the minimum
prices specified in the orders, as hereby amended, are such prices as
will reflect the aforesaid factors, insure a sufficient quantity of
pure and wholesome milk, and be in the public interest; and
(3) The said orders, as hereby amended on an interim basis,
regulate the handling of milk in the same manner as, and are applicable
only to persons in the respective classes of industrial and commercial
activity specified in, marketing agreements upon which a hearing has
been held.
(b) Additional Findings. It is necessary in the public interest to
make these interim amendments to the Northeast and other orders
effective January 1, 2001, to meet the requirements of the Consolidated
Appropriations Act, 2000 (P.L. 106-113, 115 Stat. 1501). Any delay
beyond that date would tend to disrupt the orderly marketing of milk in
the aforesaid marketing areas.
The interim amendments to these orders are known to handlers. The
tentative final decision containing the proposed amendments to these
orders was issued on November 29, 2000.
The changes that result from these interim amendments will not
require extensive preparation or substantial alteration in the method
of operation for handlers. In view of the foregoing, it is hereby found
and determined that good cause exists for making these order amendments
effective January 1, 2001. It would be contrary to the public interest
to delay the effective date of these amendments for 30 days after their
publication in the Federal Register. (Sec. 553(d), Administrative
Procedure Act, 5 U.S.C. 551-559.)
(c) Determinations. It is hereby determined that:
(1) The refusal or failure of handlers (excluding cooperative
associations specified in Sec. 8c(9) of the Act) of more than 50
percent of the milk, which is marketed within the specified marketing
areas, to sign proposed marketing agreements, tends to prevent the
effectuation of the declared policy of the Act;
(2) The issuance of this interim order amending the Northeast and
other orders is the only practical means pursuant to the declared
policy of the Act of advancing the interests of producers as defined in
the orders as hereby amended;
(3) The issuance of the interim order amending the Northeast and
other orders is favored by at least two-thirds of the producers who
were engaged in the production of milk for sale in the respective
marketing areas.
List of Subjects in 7 CFR Parts 1000, 1001, 1005, 1006, 1007, 1030,
1032, 1033, 1124, 1126, 1131, and 1135
Milk marketing orders.
Order Relative to Handling
It is therefore ordered, that on and after the effective date
hereof, the handling of milk in the Northeast and other marketing areas
shall be in conformity to and in compliance with the terms and
conditions of the orders, as amended, and as hereby further amended on
an interim basis, as follows:
The authority citation for 7 CFR Parts 1000, 1001, 1005, 1006,
1007, 1030, 1032, 1033, 1124, 1126, 1131, and 1135 continues to read as
follows:
Authority: 7 U.S.C. 601-674, 7253, P.L. 106-113, 115 Stat. 1501.
PART 1000--GENERAL PROVISIONS OF FEDERAL MILK MARKETING ORDERS
1. Section 1000.40 is amended by removing and reserving paragraph
(c)(1)(ii) and revising paragraph (d)(1)(i) to read as follows:
Sec. 1000.40 Classes of utilization.
* * * * *
(c) * * *
(1) * * *
(ii) [Reserved]
* * * * *
(d) * * *
(1) * * *
(i) Butter, plastic cream, anhydrous milkfat, and butteroil; and
* * * * *
2. Section 1000.50 is amended by revising the last sentence of the
introductory text and paragraphs (a), (b), (c), (g), (h), (j), (l),
(m), (n), (o), (p)(1), and (q)(3) and adding paragraph (q)(4) to read
as follows:
Sec. 1000.50 Class prices, component prices, and advanced pricing
factors.
* * * The price described in paragraph (d) of this section shall be
derived from the Class II skim milk price announced on or before the
23rd day of the month preceding the month to which it applies and the
Class IV butterfat price announced on or before the 5th day of the
month following the month to which it applies.
(a) Class I price. The Class I price per hundredweight shall be the
adjusted Class I differential specified in Sec. 1000.52 plus the higher
of the advanced Class III or advanced Class IV prices calculated in
paragraph (q)(4) of this section.
(b) Class I skim milk price. The Class I skim milk price per
hundredweight shall be the adjusted Class I differential specified in
Sec. 1000.52 plus the advanced Class III or advanced Class IV skim milk
price used in the calculation of the higher of the advanced Class III
or advanced Class IV prices calculated in paragraph (q)(4) of this
section.
(c) Class I butterfat price. The Class I butterfat price per pound
shall be the adjusted Class I differential specified in Sec. 1000.52
divided by 100, plus the advanced Class III or advanced Class IV
butterfat price used in the calculation of the higher of the advanced
Class III or advanced Class IV prices calculated in paragraph (q)(4) of
this section.
* * * * *
(g) Class II butterfat price. The Class II butterfat price per
pound shall be the Class IV butterfat price plus $.007.
(h) Class III price. The Class III price per hundredweight, rounded
to the nearest cent, shall be .965 times the Class III skim milk price
plus 3.5 times the Class III butterfat price.
* * * * *
(j) Class IV price. The Class IV price per hundredweight, rounded
to the nearest cent, shall be .965 times the Class IV skim milk price
plus 3.5 times the Class IV butterfat price.
* * * * *
(l) Class III and Class IV butterfat prices. (1) The Class III
butterfat price per pound, rounded to the nearest one-hundredth cent,
shall be computed as follows:
(i) Compute a weighted average of the following prices:
[[Page 82834]]
(A) The U.S. average NASS survey price for 40-lb. block cheese
reported by the Department for the month; and
(B) The U.S. average NASS survey price for 500-pound barrel cheddar
cheese (38 percent moisture) reported by the Department for the month
plus 3 cents;
(ii) Subtract 16.5 cents from the price computed pursuant to
paragraph (l)(1)(i) of this section and multiply the result by 1.582;
(2) The Class IV butterfat price per pound, rounded to the nearest
one-hundredth cent, shall be the U.S. average NASS AA butter survey
price reported by the Department for the month less 11.5 cents, with
the result divided by 0.82.
(m) Nonfat solids price. The nonfat solids price per pound, rounded
to the nearest one-hundredth cent, shall be the U.S. average NASS
nonfat dry milk survey price reported by the Department for the month
less 14 cents.
(n) Protein price. The protein price per pound, rounded to the
nearest one-hundredth cent, shall be computed by subtracting 16.5 cents
from the price computed pursuant to paragraph (l)(1)(i) of this section
and multiplying the result by 1.405;
(o) Other solids price. The other solids price per pound, rounded
to the nearest one-hundredth cent, shall be the U.S. average NASS dry
whey survey price reported by the Department for the month minus 14
cents, with the result divided by 0.968. The other solids price shall
not be less than zero.
(p) * * *
(1) Multiply .0005 by the weighted average price computed pursuant
to paragraph (l)(1)(i) of this section and round to the 5th decimal
place;
* * * * *
(q) * * *
(3) Calculate the advanced Class III and advanced Class IV
butterfat prices as follows:
(i) The advanced Class III butterfat price shall be calculated by
subtracting 16.5 cents per pound from a weighted average of the 2 most
recent U.S. average NASS survey prices for 40-lb. block cheese and for
500-pound barrel cheddar cheese (at 38 percent moisture) plus 3 cents
announced before the 24th day of the month, with the result multiplied
by 1.582;
(ii) The advanced Class IV butterfat price shall be calculated by
subtracting 11.5 cents from a weighted average of the 2 most recent
U.S. average NASS AA butter survey prices announced before the 24th day
of the month, with the result divided by 0.82.
(4) Calculate the advanced Class III and advanced Class IV prices
as follows:
(i) The advanced Class III price shall be the sum of the value
calculated pursuant to paragraph (q)(1) of this section multiplied by
.965 plus the value calculated pursuant to paragraph (q)(3)(i) of this
section multiplied by 3.5, rounded to the nearest cent.
(ii) The advanced Class IV price shall be the sum of the value
calculated pursuant to paragraph (q)(2) of this section multiplied by
.965 plus the value calculated pursuant to paragraph (q)(3)(ii) of this
section multiplied by 3.5, rounded to the nearest cent.
PART 1001--MILK IN THE NORTHEAST MARKETING AREA
1. Section 1001.60 is amended by revising paragraphs (c)(3),
(d)(2), and (h) to read as follows:
Sec. 1001.60 Handler's value of milk.
* * * * *
(c) * * *
(3) Add an amount obtained by multiplying the pounds of butterfat
in Class III by the Class III butterfat price.
(d) * * *
(2) Add an amount obtained by multiplying the pounds of butterfat
in Class IV by the Class IV butterfat price.
* * * * *
(h) Multiply the Class I skim milk and Class I butterfat prices
applicable at the location of the nearest unregulated supply plants
from which an equivalent volume was received by the pounds of skim milk
and butterfat in receipts of concentrated fluid milk products assigned
to Class I pursuant to Sec. 1000.43(d) and Sec. 1000.44(a)(3)(i) and
the corresponding step of Sec. 1000.44(b) and the pounds of skim milk
and butterfat subtracted from Class I pursuant to Sec. 1000.44(a)(8)
and the corresponding step of Sec. 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.
* * * * *
2. Section 1001.61 is revised to read as follows:
Sec. 1001.61 Computation of producer butterfat price and producer
price differential.
For each month, the market administrator shall compute a producer
butterfat price per pound of butterfat and a producer price
differential per hundredweight for producer milk receipts. The report
of any handler who has not made payments required pursuant to
Sec. 1001.71 for the preceding month shall not be included in the
computation of these prices, and such handler's report shall not be
included in the computation for succeeding months until the handler has
made full payment of outstanding monthly obligations. Subject to the
aforementioned conditions, the market administrator shall compute the
producer butterfat price and the producer price differential in the
following manner:
(a) Producer butterfat price. The producer butterfat price per
pound, rounded to the nearest one-hundredth cent, shall be computed by:
(1) Multiplying the pounds of butterfat in producer milk allocated
to each class pursuant to Sec. 1000.44(b) by the respective class
butterfat prices;
(2) Adding the butterfat value calculated in Sec. 1001.60(h) for
other source milk allocated to Class I pursuant to Sec. 1000.43(d) and
the steps of Sec. 1000.44(b) that correspond to Sec. 1000.44(a)(3)(i)
and Sec. 1000.44(a)(8) by the Class I price; and
(3) Dividing the sum of paragraphs (a)(1) and (a)(2) of this
section by the sum of the pounds of butterfat in producer milk and
other source milk used to calculate the values in paragraphs (a)(1) and
(a)(2) of this section.
(b) Producer price differential. (1) Combine into one total the
values computed pursuant to Sec. 1001.60 for all handlers required to
file reports prescribed in Sec. 1001.30;
(2) Subtract the total of the values obtained:
(i) By multiplying the total pounds of protein, other solids, and
butterfat contained in each handler's producer milk for which an
obligation was computed pursuant to Sec. 1001.60(a) through (g) and
Sec. 1001.60(i) by the protein price, other solids price, and producer
butterfat price, respectively;
(ii) By multiplying each handler's pounds of skim milk and
butterfat for which a value is computed pursuant to Sec. 1001.60(h) by
the Class III skim milk price and the producer butterfat price,
respectively;
(3) Add an amount equal to the minus location adjustments and
subtract an amount equal to the plus location adjustments computed
pursuant to Sec. 1001.75;
(4) Add an amount equal to not less than one-half of the
unobligated balance in the producer-settlement fund;
(5) Divide the resulting amount by the sum of the following for all
handlers included in these computations:
[[Page 82835]]
(i) The total hundredweight of producer milk; and
(ii) The total hundredweight for which a value is computed pursuant
to Sec. 1001.60(h); and
(6) Subtract not less than 4 cents nor more than 5 cents from the
price computed pursuant to paragraph (b)(5) of this section. The result
shall be known as the producer price differential for the month.
3. Section 1001.62 is amended by revising paragraphs (e) and (g) to
read as follows:
Sec. 1001.62 Announcement of producer prices.
* * * * *
(e) The producer butterfat price;
* * * * *
(g) The statistical uniform price computed by adding the following
values:
(1) The Class III skim milk price computed in Sec. 1000.50(i)
multiplied by .965;
(2) The producer butterfat price computed in Sec. 1001.61(a)
multiplied by 3.5; and
(3) The producer price differential computed in Sec. 1001.61(b).
4. Section 1001.71 is amended by revising paragraphs (b)(2) and (3)
to read as follows:
Sec. 1001.71 Payments to the producer-settlement fund.
* * * * *
(b) * * *
(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 producer butterfat prices respectively; and
(3) An amount obtained by multiplying the hundredweight, the pounds
of skim milk, and the pounds of butterfat for which a value was
computed pursuant to Sec. 1001.60(h) by the producer price
differential, the Class III skim milk price, and the producer butterfat
price, respectively, as adjusted pursuant to Sec. 1001.75 applicable at
the location of the plant from which received.
5. Section 1001.73 is amended by revising paragraphs (a)(2)(ii) and
(b)(3)(vi) to read as follows:
Sec. 1001.73 Payments to producers and to cooperative associations.
(a) * * *
(2) * * *
(ii) Multiply the pounds of butterfat received by the producer
butterfat price for the month;
* * * * *
(b) * * *
(3) * * *
(vi) Multiply the pounds of butterfat in Class III and Class IV
milk by the respective butterfat prices for the month;
* * * * *
PART 1005--MILK IN THE APPALACHIAN MARKETING AREA
1. Section 1005.60 is amended by revising paragraph (e) to read as
follows:
Sec. 1005.60 Handler's value of milk.
* * * * *
(e) Multiply the Class I skim milk and Class I butterfat prices
applicable at the location of the nearest unregulated supply plants
from which an equivalent volume was received by the pounds of skim milk
and butterfat in receipts of concentrated fluid milk products assigned
to Class I pursuant to Sec. 1000.43(d) and Sec. 1000.44(a)(3)(i) and
the corresponding step of Sec. 1000.44(b) and the pounds of skim milk
and butterfat subtracted from Class I pursuant to Sec. 1000.44(a)(8)
and the corresponding step of Sec. 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.
* * * * *
2. Section 1005.61 is amended by revising paragraphs (a) and (b)(4)
to read as follows:
Sec. 1005.61 Computation of uniform prices.
* * * * *
(a) Uniform butterfat price. The uniform butterfat price per pound,
rounded to the nearest one-hundredth cent, shall be computed by:
(1) Multiplying the pounds of butterfat in producer milk allocated
to each class pursuant to Sec. 1000.44(b) by the respective class
butterfat prices;
(2) Adding the butterfat value calculated in Sec. 1005.60(e) for
other source milk allocated to Class I pursuant to Sec. 1000.43(d) and
the steps of Sec. 1000.44(b) that correspond to Sec. 1000.44(a)(3)(i)
and Sec. 1000.44(a)(8) by the Class I price; and
(3) Dividing the sum of paragraphs (a)(1) and (a)(2) of this
section by the sum of the pounds of butterfat in producer milk and
other source milk used to calculate the values in paragraphs (a)(1) and
(a)(2) of this section.
(b) * * *
(4) Subtract the value of the total pounds of butterfat for all
handlers. The butterfat value shall be computed by multiplying the sum
of the pounds of butterfat in producer milk and other source milk used
to calculate the values in paragraphs (a)(1) and (a)(2) of this section
by the butterfat price computed in paragraph (a) of this section;
* * * * *
PART 1006--MILK IN THE FLORIDA MARKETING AREA
1. Section 1006.60 is amended by revising paragraph (e) to read as
follows:
Sec. 1006.60 Handler's value of milk.
* * * * *
(e) Multiply the Class I skim milk and Class I butterfat prices
applicable at the location of the nearest unregulated supply plants
from which an equivalent volume was received by the pounds of skim milk
and butterfat in receipts of concentrated fluid milk products assigned
to Class I pursuant to Sec. 1000.43(d) and Sec. 1000.44(a)(3)(i) and
the corresponding step of Sec. 1000.44(b) and the pounds of skim milk
and butterfat subtracted from Class I pursuant to Sec. 1000.44(a)(8)
and the corresponding step of Sec. 1000.44(b), excluding such skim milk
and butterfat in receipts of fluid milk products from an unregulated
supply plant to the extent that an equivalent amount of skim milk or
butterfat disposed of to such plant by handlers fully regulated under
any Federal milk order is classified and priced as Class I milk and is
not used as an offset for any other payment obligation under any order;
and
* * * * *
2. Section 1006.61 is amended by revising paragraphs (a) and (b)(4)
to read as follows:
Sec. 1006.61 Computation of uniform prices.
* * * * *
(a) Uniform butterfat price. The uniform butterfat price per pound,
rounded to the nearest one-hundredth cent, shall be computed by:
(1) Multiplying the pounds of butterfat in producer milk allocated
to each class pursuant to Sec. 1000.44(b) by the respective class
butterfat prices;
(2) Adding the butterfat value calculated in Sec. 1006.60(e) for
other source milk allocated to Class I pursuant to Sec. 1000.43(d) and
the steps of Sec. 1000.44(b) that correspond to Sec. 1000.44(a)(3)(i)
and Sec. 1000.44(a)(8) by the Class I price; and
(3) Dividing the sum of paragraphs (a)(1) and (a)(2) of this
section by the sum of the pounds of butterfat in
[[Page 82836]]
producer milk and other source milk used to calculate the values in
paragraphs (a)(1) and (a)(2) of this section.
(b) * * *
(4) Subtract the value of the total pounds of butterfat for all
handlers. The butterfat value shall be computed by multiplying the sum
of the pounds of butterfat in producer milk and other source milk used
to calculate the values in paragraphs (a)(1) and (a)(2) of this section
by the butterfat price computed in paragraph (a) of this section;
* * * * *
PART 1007--MILK IN THE SOUTHEAST MARKETING AREA
1. Section 1007.60 is amended by revising paragraph (e) to read as
follows:
Sec. 1007.60 Handler's value of milk.
* * * * *
(e) Multiply the Class I skim milk and Class I butterfat prices
applicable at the location of the nearest unregulated supply plants
from which an equivalent volume was received by the pounds of skim milk
and butterfat in receipts of concentrated fluid milk products assigned
to Class I pursuant to Sec. 1000.43(d) and Sec. 1000.44(a)(3)(i) and
the corresponding step of Sec. 1000.44(b) and the pounds of skim milk
and butterfat subtracted from Class I pursuant to Sec. 1000.44(a)(8)
and the corresponding step of Sec. 1000.44(b), excluding such skim milk
and butterfat in receipts of fluid milk products from an unregulated
supply plant to the extent that an equivalent amount of skim milk or
butterfat disposed of to such plant by handlers fully regulated under
any Federal milk order is classified and priced as Class I milk and is
not used as an offset for any other payment obligation under any order;
and
* * * * *
2. Section 1007.61 is amended by revising paragraphs (a) and (b)(4)
to read as follows:
Sec. 1007.61 Computation of uniform prices.
* * * * *
(a) Uniform butterfat price. The uniform butterfat price per pound,
rounded to the nearest one-hundredth cent, shall be computed by:
(1) Multiplying the pounds of butterfat in producer milk allocated
to each class pursuant to Sec. 1000.44(b) by the respective class
butterfat prices;
(2) Adding the butterfat value calculated in Sec. 1007.60(e) for
other source milk allocated to Class I pursuant to Sec. 1000.43(d) and
the steps of Sec. 1000.44(b) that correspond to Sec. 1000.44(a)(3)(i)
and Sec. 1000.44(a)(8) by the Class I price; and
(3) Dividing the sum of paragraphs (a)(1) and (a)(2) of this
section by the sum of the pounds of butterfat in producer milk and
other source milk used to calculate the values in paragraphs (a)(1) and
(a)(2) of this section.
(b) * * *
(4) Subtract the value of the total pounds of butterfat for all
handlers. The butterfat value shall be computed by multiplying the sum
of the pounds of butterfat in producer milk and other source milk used
to calculate the values in paragraphs (a)(1) and (a)(2) of this section
by the butterfat price computed in paragraph (a) of this section;
* * * * *
PART 1030--MILK IN THE UPPER MIDWEST MARKETING AREA
1. Section 1030.60 is amended by revising paragraphs (c)(3),
(d)(2), and (i) to read as follows:
Sec. 1030.60 Handler's value of milk.
* * * * *
(c) * * *
(3) Add an amount obtained by multiplying the pounds of butterfat
in Class III by the Class III butterfat price.
(d) * * *
(2) Add an amount obtained by multiplying the pounds of butterfat
in Class IV by the Class IV butterfat price.
(i) Multiply the Class I skim milk and Class I butterfat prices
applicable at the location of the nearest unregulated supply plants
from which an equivalent volume was received by the pounds of skim milk
and butterfat in receipts of concentrated fluid milk products assigned
to Class I pursuant to Sec. 1000.43(d) and Sec. 1000.44(a)(3)(i) and
the corresponding step of Sec. 1000.44(b) and the pounds of skim milk
and butterfat subtracted from Class I pursuant to Sec. 1000.44(a)(8)
and the corresponding step of Sec. 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.
* * * * *
2. Section 1030.61 is revised to read as follows:
Sec. 1030.61 Computation of producer butterfat price and producer
price differential.
For each month the market administrator shall compute a producer
butterfat price per pound of butterfat and a producer price
differential per hundredweight for producer milk receipts. The report
of any handler who has not made payments required pursuant to
Sec. 1030.71 for the preceding month shall not be included in the
computation of these prices, and such handler's report shall not be
included in the computation for succeeding months until the handler has
made full payment of outstanding monthly obligations. Subject to the
conditions of this paragraph, the market administrator shall compute
the producer butterfat price and the producer price differential in the
following manner:
(a) Producer butterfat price. The producer butterfat price per
pound, rounded to the nearest one-hundredth cent, shall be computed by:
(1) Multiplying the pounds of butterfat in producer milk allocated
to each class pursuant to Sec. 1000.44(b) by the respective class
butterfat prices;
(2) Adding the butterfat value calculated in Sec. 1030.60(i) for
other source milk allocated to Class I pursuant to Sec. 1000.43(d) and
the steps of Sec. 1000.44(b) that correspond to Sec. 1000.44(a)(3)(i)
and Sec. 1000.44(a)(8) by the Class I price; and
(3) Dividing the sum of paragraphs (a)(1) and (a)(2) of this
section by the sum of the pounds of butterfat in producer milk and
other source milk used to calculate the values in paragraphs (a)(1) and
(a)(2) of this section.
(b) Producer price differential. (1) Combine into one total the
values computed pursuant to Sec. 1030.60 for all handlers required to
file reports prescribed in Sec. 1030.30;
(2) Subtract the total of the values obtained:
(i) By multiplying the total pounds of protein, other solids, and
butterfat contained in each handler's producer milk for which an
obligation was computed pursuant to Sec. 1030.60(a) through (h) and
Sec. 1030.60(j) by the protein price, other solids price, and producer
butterfat price, respectively, and the total value of the somatic cell
adjustment pursuant to Sec. 1030.30(a)(1) and (c)(1);
(ii) By multiplying each handler's pounds of skim milk and
butterfat for which a value is computed pursuant to Sec. 1030.60(i) by
the Class III skim milk price and the producer butterfat price,
respectively;
[[Page 82837]]
(3) Add an amount equal to the minus location adjustments and
subtract an amount equal to the plus location adjustments computed
pursuant to Sec. 1030.75;
(4) Add an amount equal to not less than one-half of the
unobligated balance in the producer-settlement fund;
(5) Divide the resulting amount by the sum of the following for all
handlers included in these computations:
(i) The total hundredweight of producer milk; and
(ii) The total hundredweight for which a value is computed pursuant
to Sec. 1030.60(i); and
(6) Subtract not less than 4 cents nor more than 5 cents from the
price computed pursuant to paragraph (b)(5) of this section. The result
shall be known as the producer price differential for the month.
3. Section 1030.62 is amended by revising paragraphs (e) and (h) to
read as follows:
Sec. 1030.62 Announcement of producer prices.
* * * * *
(e) The producer butterfat price;
* * * * *
(h) The statistical uniform price computed by adding the following
values:
(1) The Class III skim milk price computed in Sec. 1000.50(i)
multiplied by .965;
(2) The producer butterfat price computed in Sec. 1030.61(a)
multiplied by 3.5; and
(3) The producer price differential computed in Sec. 1030.61(b).
4. Section 1030.71 is amended by revising paragraphs (b)(2) and
(b)(4) to read as follows:
Sec. 1030.71 Payments to the producer-settlement fund.
* * * * *
(b) * * *
(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 producer butterfat prices respectively;
* * * * *
(4) An amount obtained by multiplying the hundredweight, the pounds
of skim milk, and the pounds of butterfat for which a value was
computed pursuant to Sec. 1030.60(i) by the producer price
differential, the Class III skim milk price, and the producer butterfat
price, respectively, as adjusted pursuant to Sec. 1030.75 applicable at
the location of the plant from which received.
5. Section 1030.73 is amended by revising paragraphs (a)(2)(ii),
(c)(2)(v), and (c)(3)(ii) to read as follows:
Sec. 1030.73 Payments to producers and to cooperative associations.
(a) * * *
(2) * * *
(ii) The pounds of butterfat received times the producer butterfat
price for the month;
* * * * *
(c) * * *
(2) * * *
(v) The pounds of butterfat in Class III and Class IV milk by the
respective butterfat prices for the month;
* * * * *
(3) * * *
(ii) The pounds of butterfat received times the producer butterfat
price for the month;
PART 1032--MILK IN THE CENTRAL MARKETING AREA
1. Section 1032.60 is amended by revising paragraphs (c)(3),
(d)(2), and (i) to read as follows:
Sec. 1032.60 Handler's value of milk.
* * * * *
(c) * * *
(3) Add an amount obtained by multiplying the pounds of butterfat
in Class III by the Class III butterfat price.
(d) * * *
(2) Add an amount obtained by multiplying the pounds of butterfat
in Class IV by the Class IV butterfat price.
* * * * *
(i) Multiply the Class I skim milk and Class I butterfat prices
applicable at the location of the nearest unregulated supply plants
from which an equivalent volume was received by the pounds of skim milk
and butterfat in receipts of concentrated fluid milk products assigned
to Class I pursuant to Sec. 1000.43(d) and Sec. 1000.44(a)(3)(i) and
the corresponding step of Sec. 1000.44(b) and the pounds of skim milk
and butterfat subtracted from Class I pursuant to Sec. 1000.44(a)(8)
and the corresponding step of Sec. 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.
* * * * *
2. Section 1032.61 is revised to read as follows:
Sec. 1032.61 Computation of producer butterfat price and producer
price differential.
For each month the market administrator shall compute a producer
butterfat price per pound of butterfat and a producer price
differential per hundredweight for producer milk receipts. The report
of any handler who has not made payments required pursuant to
Sec. 1032.71 for the preceding month shall not be included in the
computation of these prices, and such handler's report shall not be
included in the computation for succeeding months until the handler has
made full payment of outstanding monthly obligations. Subject to the
conditions of this paragraph, the market administrator shall compute
the producer butterfat price and the producer price differential in the
following manner:
(a) Producer butterfat price. The producer butterfat price per
pound, rounded to the nearest one-hundredth cent, shall be computed by:
(1) Multiplying the pounds of butterfat in producer milk allocated
to each class pursuant to Sec. 1000.44(b) by the respective class
butterfat prices;
(2) Adding the butterfat value calculated in Sec. 1032.60(i) for
other source milk allocated to Class I pursuant to Sec. 1000.43(d) and
the steps of Sec. 1000.44(b) that correspond to Sec. 1000.44(a)(3)(i)
and Sec. 1000.44(a)(8) by the Class I price; and
(3) Dividing the sum of paragraphs (a)(1) and (a)(2) of this
section by the sum of the pounds of butterfat in producer milk and
other source milk used to calculate the values in paragraphs (a)(1) and
(a)(2) of this section.
(b) Producer price differential. (1) Combine into one total the
values computed pursuant to Sec. 1032.60 for all handlers required to
file reports prescribed in Sec. 1032.30;
(2) Subtract the total of the values obtained:
(i) By multiplying the total pounds of protein, other solids, and
butterfat contained in each handler's producer milk for which an
obligation was computed pursuant to Sec. 1032.60(a) through (h) and
Sec. 1032.60(j) by the protein price, other solids price, and producer
butterfat price, respectively, and the total value of the somatic cell
adjustment pursuant to Sec. 1032.30(a)(1) and (c)(1);
(ii) By multiplying each handler's pounds of skim milk and
butterfat for which a value is computed pursuant to Sec. 1032.60(i) by
the Class III skim milk price and the producer butterfat price,
respectively;
[[Page 82838]]
(3) Add an amount equal to the minus location adjustments and
subtract an amount equal to the plus location adjustments computed
pursuant to Sec. 1032.75;
(4) Add an amount equal to not less than one-half of the
unobligated balance in the producer-settlement fund;
(5) Divide the resulting amount by the sum of the following for all
handlers included in these computations:
(i) The total hundredweight of producer milk; and
(ii) The total hundredweight for which a value is computed pursuant
to Sec. 1032.60(i); and
(6) Subtract not less than 4 cents nor more than 5 cents from the
price computed pursuant to paragraph (b)(5) of this section. The result
shall be known as the producer price differential for the month.
3. Section 1032.62 is amended by revising paragraphs (e) and (h) to
read as follows:
Sec. 1032.62 Announcement of producer prices.
* * * * *
(e) The producer butterfat price;
* * * * *
(h) The statistical uniform price computed by adding the following
values:
(1) The Class III skim milk price computed in Sec. 1000.50(i)
multiplied by .965;
(2) The producer butterfat price computed in Sec. 1032.61(a)
multiplied by 3.5; and
(3) The producer price differential computed in Sec. 1032.61(b).
4. Section 1032.71 is amended by revising paragraphs (b)(2) and (4)
to read as follows:
Sec. 1032.71 Payments to the producer-settlement fund.
* * * * *
(b) * * *
(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 producer butterfat prices respectively;
* * * * *
(4) An amount obtained by multiplying the hundredweight, the pounds
of skim milk, and the pounds of butterfat for which a value was
computed pursuant to Sec. 1032.60(i) by the producer price
differential, the Class III skim milk price, and the producer butterfat
price, respectively, as adjusted pursuant to Sec. 1032.75 applicable at
the location of the plant from which received.
5. Section 1032.73 is amended by revising paragraphs (a)(2)(ii),
(c)(2)(v), and (c)(3)(ii) to read as follows:
Sec. 1032.73 Payments to producers and to cooperative associations.
(a) * * *
(2) * * *
(ii) The pounds of butterfat received times the producer butterfat
price for the month;
* * * * *
(c) * * *
(2) * * *
(v) The pounds of butterfat in Class III and Class IV milk by the
respective butterfat prices for the month;
* * * * *
(3) * * *
(ii) The pounds of butterfat received times the producer butterfat
price for the month;
* * * * *
PART 1033--MILK IN THE MIDEAST MARKETING AREA
1. Section 1033.60 is amended by revising paragraphs (c)(3),
(d)(2), and (i) to read as follows:
Sec. 1033.60 Handler's value of milk.
* * * * *
(c) * * *
(3) Add an amount obtained by multiplying the pounds of butterfat
in Class III by the Class III butterfat price.
(d) * * *
(2) Add an amount obtained by multiplying the pounds of butterfat
in Class IV by the Class IV butterfat price.
* * * * *
(i) Multiply the Class I skim milk and Class I butterfat prices
applicable at the location of the nearest unregulated supply plants
from which an equivalent volume was received by the pounds of skim milk
and butterfat in receipts of concentrated fluid milk products assigned
to Class I pursuant to Sec. 1000.43(d) and Sec. 1000.44(a)(3)(i) and
the corresponding step of Sec. 1000.44(b) and the pounds of skim milk
and butterfat subtracted from Class I pursuant to Sec. 1000.44(a)(8)
and the corresponding step of Sec. 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.
* * * * *
2. Section 1033.61 is revised to read as follows:
Sec. 1033.61 Computation of producer butterfat price and producer
price differential.
For each month the market administrator shall compute a producer
butterfat price per pound of butterfat and a producer price
differential per hundredweight for producer milk receipts. The report
of any handler who has not made payments required pursuant to
Sec. 1033.71 for the preceding month shall not be included in the
computation of these prices, and such handler's report shall not be
included in the computation for succeeding months until the handler has
made full payment of outstanding monthly obligations. Subject to the
conditions of this paragraph, the market administrator shall compute
the producer butterfat price and the producer price differential in the
following manner:
(a) Producer butterfat price. The producer butterfat price per
pound, rounded to the nearest one-hundredth cent, shall be computed by:
(1) Multiplying the pounds of butterfat in producer milk allocated
to each class pursuant to Sec. 1000.44(b) by the respective class
butterfat prices;
(2) Adding the butterfat value calculated in Sec. 1033.60(i) for
other source milk allocated to Class I pursuant to Sec. 1000.43(d) and
the steps of Sec. 1000.44(b) that correspond to Sec. 1000.44(a)(3)(i)
and Sec. 1000.44(a)(8) by the Class I price; and
(3) Dividing the sum of paragraphs (a)(1) and (a)(2) of this
section by the sum of the pounds of butterfat in producer milk and
other source milk used to calculate the values in paragraphs (a)(1) and
(a)(2) of this section.
(b) Producer price differential. (1) Combine into one total the
values computed pursuant to Sec. 1033.60 for all handlers required to
file reports prescribed in Sec. 1033.30;
(2) Subtract the total of the values obtained:
(i) By multiplying the total pounds of protein, other solids, and
butterfat contained in each handler's producer milk for which an
obligation was computed pursuant to Sec. 1033.60(a) through (h) and
Sec. 1033.60(j) by the protein price, other solids price, and producer
butterfat price, respectively, and the total value of the somatic cell
adjustment pursuant to Sec. 1033.30(a)(1) and (c)(1);
(ii) By multiplying each handler's pounds of skim milk and
butterfat for which a value is computed pursuant to Sec. 1033.60(i) by
the Class III skim milk price and the producer butterfat price,
respectively;
[[Page 82839]]
(3) Add an amount equal to the minus location adjustments and
subtract an amount equal to the plus location adjustments computed
pursuant to Sec. 1033.75;
(4) Add an amount equal to not less than one-half of the
unobligated balance in the producer-settlement fund;
(5) Divide the resulting amount by the sum of the following for all
handlers included in these computations:
(i) The total hundredweight of producer milk; and
(ii) The total hundredweight for which a value is computed pursuant
to Sec. 1033.60(i); and
(6) Subtract not less than 4 cents nor more than 5 cents from the
price computed pursuant to paragraph (b)(5) of this section. The result
shall be known as the producer price differential for the month.
3. Section 1033.62 is amended by revising paragraphs (e) and (h) to
read as follows:
Sec. 1033.62 Announcement of producer prices.
* * * * *
(e) The producer butterfat price;
* * * * *
(h) The statistical uniform price computed by adding the following
values:
(1) The Class III skim milk price computed in Sec. 1000.50(i)
multiplied by .965;
(2) The producer butterfat price computed in Sec. 1033.61(a)
multiplied by 3.5; and
(3) The producer price differential computed in Sec. 1033.61(b).
4. Section 1033.71 is amended by revising paragraphs (b)(2) and (4)
to read as follows:
Sec. 1033.71 Payments to the producer-settlement fund.
* * * * *
(b) * * *
(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 producer butterfat prices respectively;
* * * * *
(4) An amount obtained by multiplying the hundredweight, the pounds
of skim milk, and the pounds of butterfat for which a value was
computed pursuant to Sec. 1033.60(i) by the producer price
differential, the Class III skim milk price, and the producer butterfat
price, respectively, as adjusted pursuant to Sec. 1033.75 applicable at
the location of the plant from which received.
5. Section 1033.73 is amended by revising paragraphs (a)(2)(ii) and
(b)(3)(v) to read as follows:
Sec. 1033.73 Payments to producers and to cooperative associations.
(a) * * *
(2) * * *
(ii) The pounds of butterfat received times the producer butterfat
price for the month;
* * * * *
(b) * * *
(3) * * *
(v) The pounds of butterfat in Class III and Class IV milk by the
respective butterfat prices for the month;
* * * * *
PART 1124--MILK IN THE PACIFIC NORTHWEST MARKETING AREA
1. Section 1124.60 is amended by revising paragraphs (c)(3),
(d)(2), and (h) to read as follows:
Sec. 1124.60 Handler's value of milk.
* * * * *
(c) * * *
(3) Add an amount obtained by multiplying the pounds of butterfat
in Class III by the Class III butterfat price.
(d) * * *
(2) Add an amount obtained by multiplying the pounds of butterfat
in Class IV by the Class IV butterfat price.
* * * * *
(h) Multiply the Class I skim milk and Class I butterfat prices
applicable at the location of the nearest unregulated supply plants
from which an equivalent volume was received by the pounds of skim milk
and butterfat in receipts of concentrated fluid milk products assigned
to Class I pursuant to Sec. 1000.43(d) and Sec. 1000.44(a)(3)(i) and
the corresponding step of Sec. 1000.44(b) and the pounds of skim milk
and butterfat subtracted from Class I pursuant to Sec. 1000.44(a)(8)
and the corresponding step of Sec. 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.
* * * * *
2. Section 1124.61 is revised to read as follows:
Sec. 1124.61 Computation of producer butterfat price and producer
price differential.
For each month, the market administrator shall compute a producer
butterfat price per pound of butterfat and a producer price
differential per hundredweight. The report of any handler who has not
made payments required pursuant to Sec. 1124.71 for the preceding month
shall not be included in these computations, 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 butterfat price and the producer price
differential in the following manner:
(a) Producer butterfat price. The producer butterfat price per
pound, rounded to the nearest one-hundredth cent, shall be computed by:
(1) Multiplying the pounds of butterfat in producer milk allocated
to each class pursuant to Sec. 1000.44(b) by the respective class
butterfat prices;
(2) Adding the butterfat value calculated in Sec. 1124.60(h) for
other source milk allocated to Class I pursuant to Sec. 1000.43(d) and
the steps of Sec. 1000.44(b) that correspond to Sec. 1000.44(a)(3)(i)
and Sec. 1000.44(a)(8) by the Class I price; and
(3) Dividing the sum of paragraphs (a)(1) and (a)(2) of this
section by the sum of the pounds of butterfat in producer milk and
other source milk used to calculate the values in paragraphs (a)(1) and
(a)(2) of this section.
(b) Producer price differential. (1) Combine into one total the
values computed pursuant to Sec. 1124.60 for all handlers required to
file reports prescribed in Sec. 1124.30;
(2) Subtract the total of the values obtained:
(i) By multiplying the total pounds of protein, other solids, and
butterfat contained in each handler's producer milk for which an
obligation was computed pursuant to Sec. 1124.60(a) through (g) and
Sec. 1124.60(i) by the protein price, other solids price, and producer
butterfat price, respectively;
(ii) By multiplying each handler's pounds of skim milk and
butterfat for which a value is computed pursuant to Sec. 1124.60(h) by
the Class III skim milk price and the producer butterfat price,
respectively;
(3) Add an amount equal to the minus location adjustments and
subtract an amount equal to the plus location adjustments computed
pursuant to Sec. 1124.75;
(4) Add an amount equal to not less than one-half of the
unobligated balance in the producer-settlement fund;
[[Page 82840]]
(5) Divide the resulting amount by the sum of the following for all
handlers included in these computations:
(i) The total hundredweight of producer milk; and
(ii) The total hundredweight for which a value is computed pursuant
to Sec. 1124.60(h); and
(6) Subtract not less than 4 cents nor more than 5 cents from the
price computed pursuant to paragraph (b)(5) of this section. The result
shall be known as the producer price differential for the month.
3. Section 1124.62 is amended by revising paragraphs (e) and (g) to
read as follows:
Sec. 1124.62 Announcement of producer prices.
* * * * *
(e) The producer butterfat price;
* * * * *
(g) The statistical uniform price computed by adding the following
values:
(1) The Class III skim milk price computed in Sec. 1000.50(i)
multiplied by .965;
(2) The producer butterfat price computed in Sec. 1124.61(a)
multiplied by 3.5; and
(3) The producer price differential computed in Sec. 1124.61(b).
4. Section 1124.71 is amended by revising paragraphs (b)(2) and (3)
to read as follows:
Sec. 1124.71 Payments to the producer-settlement fund.
* * * * *
(b) * * *
(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 producer butterfat prices respectively; and
(3) An amount obtained by multiplying the hundredweight, the pounds
of skim milk, and the pounds of butterfat for which a value was
computed pursuant to Sec. 1124.60(h) by the producer price
differential, the Class III skim milk price, and the producer butterfat
price, respectively, as adjusted pursuant to Sec. 1124.75 applicable at
the location of the plant from which received.
5. Section 1124.73 is amended by revising paragraphs (a)(2)(ii),
(c)(2)(v), and (c)(3)(ii) to read as follows:
Sec. 1124.73 Payments to producers and to cooperative associations.
(a) * * *
(2) * * *
(ii) The pounds of butterfat received times the producer butterfat
price for the month;
* * * * *
(c) * * *
(2) * * *
(v) The pounds of butterfat in Class III and Class IV milk by the
respective butterfat prices for the month;
* * * * *
(3) * * *
(ii) The pounds of butterfat received times the producer butterfat
price for the month;
* * * * *
PART 1126--MILK IN THE SOUTHWEST MARKETING AREA
1. Section 1126.60 is amended by revising paragraphs (c)(3),
(d)(2), and (i) to read as follows:
Sec. 1126.60 Handler's value of milk.
* * * * *
(c) * * *
(3) Add an amount obtained by multiplying the pounds of butterfat
in Class III by the Class III butterfat price.
(d) * * *
(2) Add an amount obtained by multiplying the pounds of butterfat
in Class IV by the Class IV butterfat price.
* * * * *
(i) Multiply the Class I skim milk and Class I butterfat prices
applicable at the location of the nearest unregulated supply plants
from which an equivalent volume was received by the pounds of skim milk
and butterfat in receipts of concentrated fluid milk products assigned
to Class I pursuant to Sec. 1000.43(d) and Sec. 1000.44(a)(3)(i) and
the corresponding step of Sec. 1000.44(b) and the pounds of skim milk
and butterfat subtracted from Class I pursuant to Sec. 1000.44(a)(8)
and the corresponding step of Sec. 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.
* * * * *
2. Section 1126.61 is revised to read as follows:
Sec. 1126.61 Computation of producer butterfat price and producer
price differential.
For each month, the market administrator shall compute a producer
butterfat price per pound of butterfat and a producer price
differential per hundredweight. The report of any handler who has not
made payments required pursuant to Sec. 1126.71 for the preceding month
shall not be included in these computations, 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 butterfat price and the producer price
differential in the following manner:
(a) Producer butterfat price. The producer butterfat price per
pound, rounded to the nearest one-hundredth cent, shall be computed by:
(1) Multiplying the pounds of butterfat in producer milk allocated
to each class pursuant to Sec. 1000.44(b) by the respective class
butterfat prices;
(2) Adding the butterfat value calculated in Sec. 1126.60(i) for
other source milk allocated to Class I pursuant to Sec. 1000.43(d) and
the steps of Sec. 1000.44(b) that correspond to Sec. 1000.44(a)(3)(i)
and Sec. 1000.44(a)(8) by the Class I price; and
(3) Dividing the sum of paragraphs (a)(1) and (a)(2) of this
section by the sum of the pounds of butterfat in producer milk and
other source milk used to calculate the values in paragraphs (a)(1) and
(a)(2) of this section.
(b) Producer price differential. (1) Combine into one total the
values computed pursuant to Sec. 1126.60 for all handlers required to
file reports prescribed in Sec. 1126.30;
(2) Subtract the total of the values obtained:
(i) By multiplying the total pounds of protein, other solids, and
butterfat contained in each handler's producer milk for which an
obligation was computed pursuant to Sec. 1126.60(a) through (h) and
Sec. 1126.60(j) by the protein price, other solids price, and producer
butterfat price, respectively, and the total value of the somatic cell
adjustment pursuant to Sec. 1126.30(a)(1) and (c)(1);
(ii) By multiplying each handler's pounds of skim milk and
butterfat for which a value is computed pursuant to Sec. 1126.60(i) by
the Class III skim milk price and the producer butterfat price,
respectively;
(3) Add an amount equal to the minus location adjustments and
subtract an amount equal to the plus location adjustments computed
pursuant to Sec. 1126.75;
(4) Add an amount equal to not less than one-half of the
unobligated balance in the producer-settlement fund;
[[Page 82841]]
(5) Divide the resulting amount by the sum of the following for all
handlers included in these computations:
(i) The total hundredweight of producer milk; and
(ii) The total hundredweight for which a value is computed pursuant
to Sec. 1126.60(i); and
(6) Subtract not less than 4 cents nor more than 5 cents from the
price computed pursuant to paragraph (b)(5) of this section. The result
shall be known as the producer price differential for the month.
3. Section 1126.62 is amended by revising paragraphs (e) and (h) to
read as follows:
Sec. 1126.62 Announcement of producer prices.
* * * * *
(e) The producer butterfat price;
* * * * *
(h) The statistical uniform price computed by adding the following
values:
(1) The Class III skim milk price computed in Sec. 1000.50(i)
multiplied by .965;
(2) The producer butterfat price computed in Sec. 1126.61(a)
multiplied by 3.5; and
(3) The producer price differential computed in Sec. 1126.61(b).
4. Section 1126.71 is amended by revising paragraphs (b)(2) and (4)
to read as follows:
Sec. 1126.71 Payments to the producer-settlement fund.
* * * * *
(b) * * *
(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 producer butterfat prices respectively;
* * * * *
(4) An amount obtained by multiplying the hundredweight, the pounds
of skim milk, and the pounds of butterfat for which a value was
computed pursuant to Sec. 1126.60(i) by the producer price
differential, the Class III skim milk price, and the producer butterfat
price, respectively, as adjusted pursuant to Sec. 1126.75 applicable at
the location of the plant from which received.
5. Section 1126.73 is amended by revising paragraphs (a)(2)(ii) and
(b)(3)(v) to read as follows:
Sec. 1126.73 Payments to producers and to cooperative associations.
(a) * * *
(2) * * *
(ii) Multiply the pounds of butterfat received times the producer
butterfat price for the month;
* * * * *
(b) * * *
(3) * * *
(v) The pounds of butterfat in Class III and Class IV milk by the
respective butterfat prices for the month;
* * * * *
PART 1131--MILK IN THE ARIZONA-LAS VEGAS MARKETING AREA
1. Section 1131.60 is amended by revising paragraph (e) to read as
follows:
Sec. 1131.60 Handler's value of milk.
* * * * *
(e) Multiply the Class I skim milk and Class I butterfat prices
applicable at the location of the nearest unregulated supply plants
from which an equivalent volume was received by the pounds of skim milk
and butterfat in receipts of concentrated fluid milk products assigned
to Class I pursuant to Sec. 1000.43(d) and Sec. 1000.44(a)(3)(i) and
the corresponding step of Sec. 1000.44(b) and the pounds of skim milk
and butterfat subtracted from Class I pursuant to Sec. 1000.44(a)(8)
and the corresponding step of Sec. 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.
* * * * *
2. Section 1131.61 is amended by revising paragraphs (a) and (b)(4)
to read as follows:
Sec. 1131.61 Computation of uniform prices.
* * * * *
(a) Uniform butterfat price. The uniform butterfat price per pound,
rounded to the nearest one-hundredth cent, shall be computed by:
(1) Multiplying the pounds of butterfat in producer milk allocated
to each class pursuant to Sec. 1000.44(b) by the respective class
butterfat prices;
(2) Adding the butterfat value calculated in Sec. 1131.60(e) for
other source milk allocated to Class I pursuant to Sec. 1000.43(d) and
the steps of Sec. 1000.44(b) that correspond to Sec. 1000.44(a)(3)(i)
and Sec. 1000.44(a)(8) by the Class I price; and
(3) Dividing the sum of paragraphs (a)(1) and (a)(2) of this
section by the sum of the pounds of butterfat in producer milk and
other source milk used to calculate the values in paragraphs (a)(1) and
(a)(2) of this section.
(b) * * *
(4) Subtract the value of the total pounds of butterfat for all
handlers. The butterfat value shall be computed by multiplying the sum
of the pounds of butterfat in producer milk and other source milk used
to calculate the values in paragraphs (a)(1) and (a)(2) of this section
by the butterfat price computed in paragraph (a) of this section;
* * * * *
PART 1135--MILK IN THE WESTERN MARKETING AREA
1. Section 1135.60 is amended by revising paragraphs (c)(3), (d)(2)
and (h) to read as follows:
Sec. 1135.60 Handler's value of milk.
* * * * *
(c) * * *
(3) Add an amount obtained by multiplying the pounds of butterfat
in Class III by the Class III butterfat price.
(d) * * *
(2) Add an amount obtained by multiplying the pounds of butterfat
in Class IV by the Class IV butterfat price.
* * * * *
(h) Multiply the Class I skim milk and Class I butterfat prices
applicable at the location of the nearest unregulated supply plants
from which an equivalent volume was received by the pounds of skim milk
and butterfat in receipts of concentrated fluid milk products assigned
to Class I pursuant to Sec. 1000.43(d) and Sec. 1000.44(a)(3)(i) and
the corresponding step of Sec. 1000.44(b) and the pounds of skim milk
and butterfat subtracted from Class I pursuant to Sec. 1000.44(a)(8)
and the corresponding step of Sec. 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.
* * * * *
2. Section 1135.61 is revised to read as follows:
Sec. 1135.61 Computation of producer butterfat price and producer
price differential.
For each month, the market administrator shall compute a producer
butterfat price per pound of butterfat and a producer price
differential per hundredweight. The report of any
[[Page 82842]]
handler who has not made payments required pursuant to Sec. 1135.71 for
the preceding month shall not be included in these computations, 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 conditions of this
paragraph, the market administrator shall compute the producer
butterfat price and the producer price differential in the following
manner:
(a) Producer butterfat price. The producer butterfat price per
pound, rounded to the nearest one-hundredth cent, shall be computed by:
(1) Multiplying the pounds of butterfat in producer milk allocated
to each class pursuant to Sec. 1000.44(b) by the respective class
butterfat prices;
(2) Adding the butterfat value calculated in Sec. 1135.60(h) for
other source milk allocated to Class I pursuant to Sec. 1000.43(d) and
the steps of Sec. 1000.44(b) that correspond to Sec. 1000.44(a)(3)(i)
and Sec. 1000.44(a)(8) by the Class I price; and
(3) Dividing the sum of paragraphs (a)(1) and (a)(2) of this
section by the sum of the pounds of butterfat in producer milk and
other source milk used to calculate the values in paragraphs (a)(1) and
(a)(2) of this section.
(b) Producer price differential. (1) Combine into one total the
values computed pursuant to Sec. 1135.60 for all handlers required to
file reports prescribed in Sec. 1135.30;
(2) Subtract the total of the values obtained:
(i) By multiplying the total pounds of protein, other solids, and
butterfat contained in each handler's producer milk for which an
obligation was computed pursuant to Sec. 1135.60(a) through (g) and
Sec. 1135.60(i) by the protein price, other solids price, and producer
butterfat price, respectively;
(ii) By multiplying each handler's pounds of skim milk and
butterfat for which a value is computed pursuant to Sec. 1135.60(h) by
the Class III skim milk price and the producer butterfat price,
respectively;
(3) Add an amount equal to the minus location adjustments and
subtract an amount equal to the plus location adjustments computed
pursuant to Sec. 1135.75;
(4) Add an amount equal to not less than one-half of the
unobligated balance in the producer-settlement fund;
(5) Divide the resulting amount by the sum of the following for all
handlers included in these computations:
(i) The total hundredweight of producer milk; and
(ii) The total hundredweight for which a value is computed pursuant
to Sec. 1135.60(h); and
(6) Subtract not less than 4 cents nor more than 5 cents from the
price computed pursuant to paragraph (b)(5) of this section. The result
shall be known as the producer price differential for the month.
3. Section 1135.62 is amended by revising paragraphs (e) and (g) to
read as follows:
Sec. 1135.62 Announcement of producer prices.
* * * * *
(e) The producer butterfat price;
* * * * *
(g) The statistical uniform price computed by adding the following
values:
(1) The Class III skim milk price computed in Sec. 1000.50(i)
multiplied by .965;
(2) The producer butterfat price computed in Sec. 1135.61(a)
multiplied by 3.5; and
(3) The producer price differential computed in Sec. 1135.61(b).
* * * * *
4. Section 1135.71 is amended by revising paragraph (b)(2) and
adding paragraph (b)(3) to read as follows:
Sec. 1135.71 Payments to the producer-settlement fund.
* * * * *
(b) * * *
(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 producer butterfat prices respectively;
(3) An amount obtained by multiplying the hundredweight, the pounds
of skim milk, and the pounds of butterfat for which a value was
computed pursuant to Sec. 1135.60(h) by the producer price
differential, the Class III skim milk price, and the producer butterfat
price, respectively, as adjusted pursuant to Sec. 1135.75 applicable at
the location of the plant from which received; and
* * * * *
5. Section 1135.73 is amended by revising paragraphs (a)(2)(ii) and
(b)(3)(v) to read as follows:
Sec. 1135.73 Payments to producers and to cooperative associations.
(a) * * *
(2) * * *
(ii) The pounds of butterfat received times the producer butterfat
price for the month;
* * * * *
(b) * * *
(3) * * *
(v) The pounds of butterfat in Class III and Class IV milk times
the respective butterfat prices for the month;
Dated: December 21, 2000.
Enrique E. Figueroa,
Deputy Under Secretary, Marketing and Regulatory Programs.
[FR Doc. 00-32930 Filed 12-27-00; 8:45 am]
BILLING CODE 3410-02-P