Current through August 26, 2024
(1) QUALIFIED PRODUCER AGENT. A producer
agent is not a qualified producer agent under s.
126.45(3),
Stats., nor may a producer agent file a default claim under s.
126.70(1) (c), Stats., unless all the following apply:
(a) The producer agent procures producer milk
in this state solely as the agent of milk producers. Notwithstanding this
paragraph, a milk contractor who buys some milk and markets other milk as a
producer agent may file a default claim under s.
126.70(1) (c), Stats., for producer milk that the milk
contractor markets as a producer agent if the contractor complies with pars.
(b) to (f) with respect to all of the milk that the contractor procures in this
state as a producer agent.
(b) The
producer agent does not take title to the producer milk, or to any processed
dairy products made from the producer milk.
(c) The producer agent markets the producer
milk under a written contract with each milk producer. The contract shall
comply with sub. (2).
(d) The
producer agent does not process, as a producer agent, more than 5 million
pounds of producer milk in any month.
(e) The producer agent gives, to each
recipient of producer milk marketed by the producer agent, a written invoice
stating that the milk is producer milk not owned by the producer
agent.
(f) The producer agent files
a monthly producer agent report with the department, as provided under sub.
(3).
Note: Producer agents are regulated as milk
contractors under ch. 126, Stats., regardless of whether they comply with sub.
(1). But producer agents do not qualify for special treatment as "qualified
producer agents" under s.
126.45(3),
Stats., nor may they file default claims under s.
126.70(1),
Stats., unless they comply with sub. (1).
(2) CONTRACT WITH MILK PRODUCER. The contract
under sub. (1) (c) shall be signed by the milk producer and the producer agent,
and shall clearly specify the terms under which the producer agent receives,
markets and accepts payment for milk on behalf of the producer. The contract
shall clearly and conspicuously disclose all the following:
(a) That the producer agent does not take
title to the producer's milk, or any dairy products made from that
milk.
(b) That the producer agent
receives payments on behalf of the producer, and holds them in trust for the
producer.
(c) The terms and
conditions of payment to the producer.
(d) The procedure by which the producer agent
will receive payment on behalf of the producer and make payments to the
producer, including any trust fund arrangement.
(e) The producer agent's compensation for
serving as the producer's agent, and the method by which the producer agent
will receive that compensation from the producer.
(f) The appropriate milk security disclosure
statement under s.
ATCP 100.20.
(3) MONTHLY REPORT. A producer agent who
files a monthly report under sub. (1) (f) shall file the report on or before
the 25 th day of the month. The report shall include all the following:
(a) The name and address of each person to
whom the producer agent marketed, in the preceding month, producer milk that
the producer agent procured in this state as a producer agent.
(b) The total pounds of producer milk that
the producer agent marketed to each person under par. (a) in the preceding
month.
(c) The total dollar value
of producer milk that the producer agent marketed to each person under par. (a)
in the preceding month.
(d) The
producer agent's total gross payments to milk producers for producer milk that
the producer agent marketed under par. (a) in the preceding month.
(4) EXEMPT AGENT.
Chapter 126, Stats., does not apply to a person who collects a producer's milk
for delivery to a custom processor under s.
ATCP 100.14, and who receives and markets the
custom-processed dairy products for the producer, provided that all the
following apply:
(a) The person does not
handle more than 5 million pounds of producer milk in any month, does not
process milk or dairy products, and does not otherwise operate as a milk
contractor.
(b) The producer
retains title to the milk and the processed dairy products made from the
milk.
(c) The person has a written
contract with the producer. The contract shall clearly and conspicuously
disclose all the following:
1. That the
producer retains title to the milk and the dairy products made from the
milk.
2. That the producer's milk
shipments are not secured under ch. 126, Stats.
(d) The person keeps a copy of the contract
under par. (c) for at least 3 years after the contract ends, and makes it
available to the department for inspection and copying upon request.
(e) The person submits to the department, by
May 1 of each year, an affidavit certifying that the person qualifies as an
exempt agent under this subsection.
