Current through Register Vol. 6, March 22, 2024
(1) Surplus milk
must be marketed and sold in a manner that is economically advantageous to pool
producers, with all gain or loss shared by all pool producers.
(2) All surplus milk sold in bulk will be
marketed and sold directly by pool handlers unless directed otherwise by the
producer committee or unless a pool handler declines to perform the service.
(a) A pool handler must provide 90 days
written notice to the producer committee prior to declining to market surplus
milk in bulk.
(b) The producer
committee retains the right to supervise, approve, control, or direct the
marketing of the surplus milk sold in bulk.
(i) After receiving approval from the board,
the producer committee must provide the affected pool handler 90 days written
notice before controlling and directing marketing of surplus milk sold in
bulk.
(ii) In the event the
producer committee directs the marketing of surplus milk sold in bulk, it may
hire agents and incur other expenses as necessary to fulfill that
function.
(3)
All proceeds received by a pool handler from the surplus milk sold in bulk:
(a) must be added to the utilization value
that the pool handler owes the pool settlement fund, less the following
deductions:
(i) the amount for which the pool
handler owes or has paid the pool settlement fund based on the class of
utilization for the sale;
(ii) an
optional administrative fee not exceeding $0.02/cwt; and
(iii) reasonable transportation expenses
incurred by the pool handler, which may not include farm pickup charges;
and
(b) includes all
valuable consideration paid in any form and must be documented by reporting
forms, invoices, contracts, and other evidence as may be requested by the
bureau.
(4) A pool
handler may request negative adjustments to the utilization value that the pool
handler owes the pool settlement fund for sales of Class I packaged products
that are surplus milk. Negative adjustments offset the costs associated with
processing and marketing surplus milk that otherwise would have been marketed
and sold in a manner that is less economically advantageous to the pool
producers.
(a) Negative adjustments may be
allocated to sales in individual states or groups of states in any manner as
long as the aggregate of the adjustments does not exceed the sum of maximum
adjustments allowed. Negative adjustments may be allocated in any manner
between pool handlers affiliated by common ownership.
(b) Adjustments are calculated on the net
export weight of Class I packaged products that are surplus milk, as determined
by the bureau.
(c) The maximum
negative adjustment for the net export weight of Class I packaged products that
are surplus milk sold to markets in states contiguous to Montana is
$2.55/cwt.
(d) The maximum negative
adjustment for the net export weight of Class I packaged products that are
surplus milk sold to markets in states not contiguous to Montana is $3.05/cwt.
(5) When the producer
committee directs the marketing of surplus milk sold in bulk, the following
will occur:
(a) All proceeds received by the
producer committee from the sale of surplus milk sold in bulk must be deposited
in the pool settlement fund.
(b)
All proceeds received include all valuable consideration paid in any form and
must be documented by reporting forms, invoices, contracts, and other evidence
as may be requested by the bureau.
(c) All expenses incurred by the producer
committee to market the surplus milk sold in bulk must be paid from the pool
settlement fund. All expenses must be documented by reporting forms, invoices,
contracts, and other evidence as may be requested by the bureau.
(d) Before the 8th day of the month after
related sales, the producer committee must communicate the following
information to the pool handler that would have otherwise marketed the surplus
milk:
(i) If unknown to the pool handler, the
identity of pool dairies whose milk was utilized for the surplus milk bulk
sales and the quantities and butterfat and skim milk content of milk utilized
from each pool dairy.
(ii) The
total quantities and butterfat and skim milk content of surplus milk sold in
bulk and the classes of utilization.
(e) The pool handler that would have
otherwise marketed the surplus milk must include the information reported in
(d) in the reports it is required to file with the bureau.
(f) For purposes of calculating the quota
price and excess price in ARM
32.24.513, all proceeds received
by the producer committee must be added to the utilization value, less the
following deductions:
(i) the amount for which
the pool handler has paid the pool settlement fund based on the class of
utilization for the sale or the amount owed by the pool handler if proceeds are
received by the producer committee in the same month as the sale;
(ii) reasonable transportation expenses
incurred by the pool handler. Farm pickup charges may not be included as
deductions. Farm pickup charges are the usual charges to the producer for
transporting milk to the pool plant; and
(iii) expenses incurred by the producer
committee to market the surplus milk sold in bulk.
(g) Following the deposit of proceeds
received by the producer committee, the amount that the pool handler owes to
the pool settlement fund for utilization of pool milk will be reduced by the
following:
(i) reasonable transportation
expenses incurred by the pool handler, which may not include farm pickup
charges; and
(ii) the amount the
pool handler:
(A) paid the pool settlement
fund based on the class of utilization for the sale; or
(B) would have owed to the pool settlement
fund based on the class of utilization for the sale, if proceeds are received
by the producer committee in the same month as the sale.