Code of Maine Rules
01 - DEPARTMENT OF AGRICULTURE, CONSERVATION AND FORESTRY
001 - AGRICULTURE - GENERAL
Chapter 60 - MAINE MILK POOL - OPERATION
Section 001-60-IV-A - Calculation of Over-order Premium

Universal Citation: 01 ME Code Rules ยง 001-60-IV-A

Current through 2024-38, September 18, 2024

A. The Pool Administrator shall calculate the total amount of payments from the over-order premium paid into the Pool pursuant to III-A.B. for the month.

B. The Pool Administrator shall calculate an initial redistribution of the monies paid into the Milk Pool under III.A.-B. This initial redistribution shall be made only on the milk of those Maine market and Northern Maine market producers identified by a Maine market pursuant to II.A.2.b. and II.A.3.b. and c. who did not designate an eligible marketing cooperative to receive an over-order premium. In calculating the rate of this initial redistribution, the Pool Administrator shall attempt to achieve, insofar as practicable, an initial redistribution of the over-order premium which ensures that Maine producers who are not members of eligible marketing cooperatives receive an initial redistribution equivalent to that received by Maine producers who are members of eligible marketing cooperatives. The Pool Administrator shall consider the following factors:

1. The gross rate of redistribution used by eligible marketing cooperatives to calculate payment to their members;

2. Reasonable administrative and other charges deducted by eligible marketing cooperatives from the redistribution made to their members; and

3. Such other factors as may be relevant to the goal of achieving, insofar as practicable, price equity among producers.

The Pool Administrator shall multiply the redistribution rate so derived by the amount of milk reported under II.A.2.b. and II.A.3.b. and c. for each Maine market producer who did not designate an eligible marketing cooperative to receive an over-order premium and shall credit the resulting products to those producers.

C. The Pool Administrator shall redistribute the portion of the monies paid into the Milk Pool under III-A.B. which remains following calculation of the initial redistribution under B. This second redistribution shall be shared on an equal basis by all Maine market producers, Northern Maine market producers and Boston market producers identified pursuant to II.A.2.a., II.A.3.a. and II.B.2.a. The Pool Administrator shall calculate this second redistribution by dividing the remaining monies by the total number of pounds reported pursuant to II.A.2.b., II.A.3.b., c. and II.B.2.b., and shall multiply the redistribution rate so derived by the reported production for each individual Maine market producer, Northern Maine producer and Boston market producer identified pursuant to II.A.2.a., II.A.3.a. and c. and II.B.2.a. The resulting product shall be credited to each individual Maine market producer, Northern Maine market producer and Boston market producer.

D. For each Maine market dealer reporting under II.A. and each Boston market dealer or agricultural cooperative reporting under II.B. whose producers are due second redistributions from the over-order premium under C. or both initial and second redistributions from the over-order premium under both B. and C., the Pool Administrator shall calculate the sum of all redistributions from the over-order premium due each of the dealer's or cooperative's individual producers.

E. The Pool Administrator shall send to each Maine market dealer reporting under II.A and to each Boston market dealer and agricultural cooperative reporting under II.B.:

1. A copy of the calculations made under A.;

2. A copy of the calculations made under B.;

3. A copy of the calculations made under C.;

4. A copy of the calculations made under D. showing the amount of initial and second redistributions from the overorder premium credited to each of the dealer's or cooperative's individual producers;

5. A calculation showing the sum of the redistributions credited to each of the dealer's or cooperative's individual producers pursuant to 4.; and

6. The amount of money calculated pursuant to 5.

F. Subject to the balance of this subsection, the Pool Administrator shall send the items specified in E.1.-5 no later than the 21st day after the end of the month following the month in which delivery was made. The Pool Administrator may send those items at a later date if (1) such a delay will enable redistributions under this section to more closely match the redistribution schedule of an eligible marketing cooperative, (2) the Commissioner determines that the eligible marketing cooperative is attempting to make its redistributions as expeditiously as possible; and (3) the Commissioner determines that the delay in making redistributions under this section is justified by the goal of achieving, insofar as practicable, price equity among producers.

G. In the event that the Pool Administrator sends the items specified in E.1.-5. no later than the 21st day after the end of the month following the month in which delivery was made, he shall send the payment described in E.6. no later than the 5th business day after the 20th day after the end of the month following the month in which delivery was made. In the event that the Pool Administrator delays sending the items specified in E.I. - 5 for the reasons set forth in F., he shall send the payment described in E.6. no later than 4 business days after he sends the items specified in E.1. - 5.

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