[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: 7CFR1001.61]

[Page 85]
 
                          TITLE 7--AGRICULTURE
 
  CHAPTER X--AGRICULTURAL MARKETING SERVICE (Marketing Agreements and 
                 Orders; Milk) DEPARTMENT OF AGRICULTURE
 
PART 1001_MILK IN THE NORTHEAST MARKETING AREA--Table of Contents
 
                    Subpart_Order Regulating Handling
 
Sec. 1001.61  Computation of producer price differential.

    For each month, the market administrator shall compute a producer 
price differential per hundredweight. The report of any handler who has 
not made payments required pursuant to Sec. 1001.71 for the preceding 
month shall not be included in the computation of the producer price 
differential, and such handler's report shall not be included in the 
computation for succeeding months until the handler has made full 
payment of outstanding monthly obligations. Subject to the conditions in 
this paragraph, the market administrator shall compute the producer 
price differential in the following manner:
    (a) Combine into one total the values computed pursuant to Sec. 
1001.60 for all handlers required to file reports prescribed in Sec. 
1001.30;
    (b) Subtract the total of the values obtained by multiplying each 
handler's total pounds of protein, other solids, and butterfat contained 
in the milk for which an obligation was computed pursuant to Sec. 
1001.60 by the protein price, other solids price, and the butterfat 
price, respectively;
    (c) Add an amount equal to the minus location adjustments and 
subtract an amount equal to the plus location adjustments computed 
pursuant to Sec. 1001.75;
    (d) Add an amount equal to not less than one-half of the unobligated 
balance in the producer-settlement fund;
    (e) Divide the resulting amount by the sum of the following for all 
handlers included in these computations:
    (1) The total hundredweight of producer milk; and
    (2) The total hundredweight for which a value is computed pursuant 
to Sec. 1001.60(h); and
    (f) Subtract not less than 4 cents nor more than 5 cents from the 
price computed pursuant to paragraph (e) of this section. The result, 
rounded to the nearest cent, shall be known as the producer price 
differential for the month.

[68 FR 7065, Feb. 12, 2003]