[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: 7CFR1124.13]

[Page 166-167]
 
                          TITLE 7--AGRICULTURE
 
  CHAPTER X--AGRICULTURAL MARKETING SERVICE (Marketing Agreements and 
                 Orders; Milk) DEPARTMENT OF AGRICULTURE
 
PART 1124_MILK IN THE PACIFIC NORTHWEST MARKETING AREA--Table 
of Contents
 
                    Subpart_Order Regulating Handling
 
Sec. 1124.13  Producer milk.

    Except as provided for in paragraph (f) of this section, Producer 
milk means the skim milk (or skim milk 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 cooperative reserve supply unit described in Sec. 
1124.11. All milk received pursuant to this paragraph shall be priced at 
the location of the plant where it is first physically received and 
shall not be subject to the conditions specified in paragraph (e) of 
this section;
    (c) Received by a handler described in Sec. 1000.9(c) in excess of 
the quantity delivered to pool plants;
    (d) 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
    (e) Diverted by the operator of a pool plant or a cooperative 
association described in Sec. 1000.9(c), excluding a cooperative 
reserve supply unit described in Sec. 1124.11, to a nonpool plant, 
subject to the following conditions:
    (1) Milk of a dairy farmer shall not be eligible for diversion 
unless at least 3 days' production of such dairy farmer's production is 
physically received at a pool plant during the month.
    (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.
    (3) Two or more handlers described in Sec. 1000.9(c) may have their 
allowable diversions computed on the basis of their combined deliveries 
of producer milk which they caused to be delivered to pool plants or 
diverted during the month if each has filed a request in writing with 
the market administrator before the first day of the month the

[[Page 167]]

agreement is to be effective. The request shall specify the basis for 
assigning overdiverted milk to the producer deliveries of each according 
to a method approved by the market administrator.
    (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 (e)(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. In the event some of the milk of 
any producer is determined not to be producer milk pursuant to this 
paragraph, other milk delivered by such producer as producer milk during 
the month will not be subject to Sec. 1124.12(b)(5).
    (6) The delivery day requirement in paragraph (e)(1) of this section 
and the diversion percentage in paragraph (e)(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 the 
orderly marketing and efficient handling of milk in the marketing area. 
Before making such 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 to be 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 the 
delivery day requirement or the diversion percentage must be issued in 
writing at least one day before the effective date.
    (f) 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 47998, Sept. 1, 1999, as amended at 67 FR 69669, Nov. 19, 2002; 
69 FR 1655, Jan. 12, 2004]