Wisconsin Administrative Code
Department of Agriculture, Trade and Consumer Protection
ATCP 90-139 - Trade and Consumer Protection
Chapter ATCP 100 - Milk Contractors
Subchapter II - Financial Standards and Security
Section ATCP 100.20 - Disclosures to milk producers

(a) When the milk contractor first procures producer milk from that producer or producer agent.

(b) In June of each year in which the milk contractor procures milk from that producer or producer agent.

(c) When the milk contractor first procures producer milk from that producer or producer agent following a change in circumstances that requires a different disclosure statement under sub. (2).

(a) Except as provided in pars. (b) to (e), the disclosure under sub. (1) shall consist of a verbatim copy of the following statement:

IMPORTANT NOTICE

[Name of milk contractor] participates in Wisconsin's Agricultural Producer Security program. If we fail to pay you for milk when payment is due, you may file a claim under this program. The program may reimburse up to 80% of the first $60,000 of your allowed claim, and up to 75% of any additional amount. For more information, you may contact the Wisconsin Department of Agriculture, Trade and Consumer Protection, 2811 Agriculture Drive, P. O. Box 8911, Madison, WI 53708-8911 (phone 608/224-4998).

(b) Except as provided in pars. (c) to (e), the disclosure under sub. (1) shall consist of a verbatim copy of the following statement if the milk contractor contributes to the fund and the milk contractor's estimated default exposure is greater than the sum of the maximum fund reimbursement amount plus any security amount the milk contractor has on file with the department:

IMPORTANT NOTICE

[Name of milk contractor] participates in Wisconsin's Agricultural Producer Security Program. If we fail to pay you for milk when payment is due, you may file a claim under this program. The program may reimburse up to 80% of the first $60,000 of an allowed claim and up to 75% of any additional amount. However, our "estimated default exposure" exceeds available reimbursement funding, and we have not filed security to cover the difference, so reimbursement may cover a much smaller portion of your loss. For more information, you may contact the Wisconsin Department of Agriculture, Trade and Consumer Protection, 2811 Agriculture Drive, P. O. Box 8911, Madison, WI 53708-8911 (phone 608/224-4998).

(c) Except as provided in par. (d) or (e), the disclosure under sub. (1) shall consist of a verbatim copy of the following statement if the milk contractor voluntarily contributes to the fund under s. 126.45(2), Stats., and has an estimated default exposure greater than the sum of the maximum fund reimbursement amount plus any security amount the milk contractor has on file with the department:

IMPORTANT NOTICE

[Name of milk contractor] voluntarily participates in Wisconsin's Agricultural Producer Security Program, even though our financial statements meet or exceed program standards (positive equity, a current ratio of at least 1.25 to 1.0, and a debt-to-equity ratio of no more than 2.0 to 1.0 ). If we fail to pay you for milk when payment is due, you may file a claim under this program. The program may reimburse up to 80% of the first $60,000 of an allowed claim, and up to 75% of any additional amount. However, our "estimated default exposure" exceeds available reimbursement funding, so reimbursement may cover a much smaller portion of your loss. For more information, you may contact the Wisconsin Department of Agriculture, Trade and Consumer Protection, 2811 Agriculture Drive, P. O. Box 8911, Madison, WI 53708-8911 (phone 608/224-4998).

(d) The disclosure under sub. (1) shall consist of a verbatim copy of the following statement if the milk contractor is not required to contribute to the fund or file security with the department, and has not done so voluntarily:

IMPORTANT NOTICE

[Name of milk contractor] is licensed under Wisconsin's Agricultural Producer Security Program. Because our financial statements meet or exceed minimum requirements (positive equity, a current ratio of at least 1.25 to 1.0 and a debt-to-equity ratio of no more than 2.0 to 1.0), we are not required to contribute to the program or file security. The program will provide no compensation if we fail to pay you for milk. For more information, you may contact the Wisconsin Department of Agriculture, Trade and Consumer Protection, 2811 Agriculture Drive, P. O. Box 8911, Madison, WI 53708-8911 (phone 608/224-4998).

(e) If a disclosure under sub. (1) is made on or before April 30, 2007, by a qualified producer agent who files security under s. 126.47(3) (a) 3, Stats., the disclosure shall consist of a verbatim copy of the following statement:

Note: Section 126.47(3) (a) 3, Stats., was repealed by 2009 Wis. Act 296.

IMPORTANT NOTICE

[Name of milk contractor] participates in Wisconsin's Agricultural Producer Security Program as a producer agent. If we fail to pay you for milk when payment is due, you may file a claim under this program. The program may reimburse up to 20% of your allowed claim. For more information, you may contact the Wisconsin Department of Agriculture, Trade and Consumer Protection, 2811 Agriculture Drive, P. O. Box 8911, Madison, WI 53708-8911 (phone 608/224-4998).