[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: 7CFR1032.13]

[Page 141-142]
 
                          TITLE 7--AGRICULTURE
 
  CHAPTER X--AGRICULTURAL MARKETING SERVICE (Marketing Agreements and 
                 Orders; Milk) DEPARTMENT OF AGRICULTURE
 
PART 1032_MILK IN THE CENTRAL MARKETING AREA--Table of Contents
 
                    Subpart_Order Regulating Handling
 
Sec. 1032.13  Producer milk.

    Producer milk means the skim milk (or the skim equivalent of 
components of skim milk), including nonfat components, and butterfat in 
milk of a producer that is:
    (a) Received by the operator of a pool plant directly from a 
producer or a handler described in Sec. 1000.9(c). All milk received 
pursuant to this paragraph shall be priced at the location of the plant 
where it is first physically received;
    (b) Received by a handler described in Sec. 1000.9(c) in excess of 
the quantity delivered to pool plants;
    (c) Diverted by a pool plant operator to another pool plant. Milk so 
diverted shall be priced at the location of the plant to which diverted; 
or
    (d) Diverted by the operator of a pool plant or a cooperative 
association described in Sec. 1000.9(c) to a nonpool plant, subject to 
the following conditions:
    (1) Milk of a dairy farmer shall not be eligible for diversion until 
at least one day's production of such dairy farmer has been physically 
received as producer milk at a pool plant and the dairy farmer has 
continuously retained producer status since that time. If a dairy farmer 
loses producer status under the order in this part (except as a result 
of a temporary loss of Grade A approval), the dairy farmer's milk shall 
not be eligible for diversion until milk of the dairy farmer has been 
physically received as producer milk at a pool plant;
    (2) Of the quantity of producer milk received during the month 
(including diversions, but excluding the quantity of producer milk 
received from a handler described in Sec. 1000.9(c)) the handler 
diverts to nonpool plants not more than 80 percent during the months of 
August through February, and not more than 85 percent during the months 
of March through July, provided that not less than 20 percent of such 
receipts in the months of August through February and 15 percent of the

[[Page 142]]

remaining months' receipts are delivered to plants described in Sec. 
1032.7(a) and (b);
    (3) Receipts used in determining qualifying percentages shall be 
milk transferred to or diverted to or physically received by a plant 
described in Sec. 1032.7(a) or (b) less any transfer or diversion of 
bulk fluid milk products from such plants.
    (4) Diverted milk shall be priced at the location of the plant to 
which diverted;
    (5) Any milk diverted in excess of the limits prescribed in 
paragraph (d)(2) of this section shall not be producer milk. If the 
diverting handler or cooperative association fails to designate the 
dairy farmers' deliveries that are not to be producer milk, no milk 
diverted by the handler or cooperative association during the month to a 
nonpool plant shall be producer milk; and
    (6) The applicable diversion limits in paragraph (d)(2) of this 
section may be increased or decreased by the market administrator if the 
market administrator finds that such revision is necessary to assure 
orderly marketing and efficient handling of milk in the marketing area. 
Before making such a finding, the market administrator shall investigate 
the need for the revision either on the market administrator's own 
initiative or at the request of interested persons if the request is 
made in writing at least 15 days prior to the month for which the 
requested revision is desired effective. If the investigation shows that 
a revision might be appropriate, the market administrator shall issue a 
notice stating that the revision is being considered and inviting 
written data, views, and arguments. Any decision to revise an applicable 
percentage must be issued in writing at least one day before the 
effective date.
    (e) Producer milk shall not include milk of a producer that is 
subject to inclusion and participation in a marketwide equalization pool 
under a milk classification and pricing program imposed under the 
authority of a State government maintaining marketwide pooling of 
returns.

[64 FR 47985, Sept. 1, 1999, as amended at 68 FR 7072, Feb. 12, 2003]