[Code of Federal Regulations]
[Title 7, Volume 9]
[Revised as of January 1, 2005]
From the U.S. Government Printing Office via GPO Access
[CITE: 7CFR1030.60]

[Page 131-132]
 
                          TITLE 7--AGRICULTURE
 
  CHAPTER X--AGRICULTURAL MARKETING SERVICE (Marketing Agreements and 
                 Orders; Milk) DEPARTMENT OF AGRICULTURE
 
PART 1030_MILK IN THE UPPER MIDWEST MARKETING AREA--Table of Contents
 
                    Subpart_Order Regulating Handling
 
Sec. 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 the handler's pool 
plants and of each handler described in Sec. 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 Sec. 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

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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 Sec. 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 Sec. 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 Sec. 1000.44(c);
    (f) Multiply the pounds of skim milk and butterfat overage assigned 
to each class pursuant to Sec. 1000.44(a)(11) and the corresponding 
step of Sec. 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 Sec. 
1000.44(a)(7) and the corresponding step of Sec. 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 
Sec. 1000.43(d) and the hundredweight of skim milk and butterfat 
subtracted from Class I pursuant to Sec. 1000.44(a)(3)(i) through (vi) 
and the corresponding step of Sec. 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 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.
    (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 Sec. 1000.43(d).
    (k) Compute the amount of credits applicable pursuant to Sec. 
1030.55.

[64 FR 47978, Sept. 1, 1999, as amended at 65 FR 82836, Dec. 28, 2000; 
68 FR 7066, Feb. 12, 2003]

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