[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: 7CFR1124.60]

[Page 169-170]
 
                          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. 1124.60  Handler's value of milk.

    For the purpose of computing a handler's obligation for producer 
milk, the market administrator shall determine for each month the value 
of milk of each handler with respect to each of the handler's pool 
plants and of each handler described in Sec. 1000.9(c) with respect to 
milk that was not received at a pool plant by adding the amounts 
computed in paragraphs (a) through (h) of this section and subtracting 
from that total amount the value computed in paragraph (i) of this 
section. Unless otherwise specified, the skim milk, butterfat, and the 
combined pounds of skim milk and butterfat referred to in this section 
shall result from the steps set forth in Sec. 1000.44 (a), (b), and 
(c), respectively, and the nonfat components of producer milk in each 
class shall be based upon the proportion of such components in producer 
skim milk. Receipts of nonfluid milk products that are distributed as 
labeled reconstituted milk for which payments are made to the producer-
settlement fund of another Federal order under Sec. 1000.76 (a)(4) or 
(d) shall be excluded from pricing under this section.
    (a) Class I value.
    (1) Multiply the hundredweight of skim milk in Class I by the Class 
I skim milk price; and
    (2) Add an amount obtained by multiplying the pounds of butterfat in 
Class I by the Class I butterfat price.
    (b) Class II value.
    (1) Multiply the pounds of nonfat solids in Class II skim milk by 
the Class II nonfat solids price; and
    (2) Add an amount obtained by multiplying the pounds of butterfat in 
Class II times the Class II butterfat price.
    (c) Class III value.
    (1) Multiply the pounds of protein in Class III skim milk by the 
protein price;
    (2) Add an amount obtained by multiplying the pounds of other solids 
in Class III skim milk by the other solids price; and
    (3) Add an amount obtained by multiplying the pounds of butterfat in 
Class III by the butterfat price.
    (d) Class IV value.
    (1) Multiply the pounds of nonfat solids in Class IV skim milk by 
the nonfat solids price; and
    (2) Add an amount obtained by multiplying the pounds of butterfat in 
Class IV by the butterfat price.
    (e) Multiply the pounds of skim milk and butterfat overage assigned 
to each class pursuant to Sec. 1000.44(a)(11) and the corresponding 
steps of Sec. 1000.44(b) by the skim milk prices and butterfat prices 
applicable to each class.
    (f) Multiply the difference between the current month's Class I, II, 
or III price, as the case may be, and the Class IV price for the 
preceding month by the hundredweight of skim milk and butterfat 
subtracted from Class I, II, or III, respectively, pursuant to Sec. 
1000.44(a)(7) and the corresponding step of Sec. 1000.44(b);
    (g) Multiply the difference between the Class I price applicable at 
the location of the pool plant and the Class IV price by the 
hundredweight of skim milk and butterfat assigned to Class I pursuant to 
Sec. 1000.43(d) and the hundredweight of skim milk and butterfat 
subtracted from Class I pursuant to Sec. 1000.44(a)(3) (i) through (vi) 
and the corresponding step of Sec. 1000.44(b), excluding receipts of 
bulk fluid cream products from plants regulated under other Federal 
orders and bulk concentrated fluid milk products from pool plants, 
plants regulated under other Federal orders, and unregulated supply 
plants.
    (h) Multiply the difference between the Class I price applicable at 
the location of the nearest unregulated supply plants from which an 
equivalent volume was received and the Class III price by the pounds of 
skim milk and butterfat in receipts of concentrated fluid milk products 
assigned to Class I pursuant to Sec. 1000.43(d) and Sec. 
1000.44(a)(3)(i) and the corresponding step of Sec. 1000.44(b) and the 
pounds of skim milk and butterfat subtracted from Class I pursuant to 
Sec. 1000.44(a)(8) and the corresponding step of Sec. 1000.44(b), 
excluding such skim milk and butterfat in receipts of fluid milk 
products from an unregulated supply

[[Page 170]]

plant to the extent that an equivalent amount of skim milk or butterfat 
disposed of to such plant by handlers fully regulated under any Federal 
milk order is classified and priced as Class I milk and is not used as 
an offset for any other payment obligation under any order.
    (i) For reconstituted milk made from receipts of nonfluid milk 
products, multiply $1.00 (but not more than the difference between the 
Class I price applicable at the location of the pool plant and the Class 
IV price) by the hundredweight of skim milk and butterfat contained in 
receipts of nonfluid milk products that are allocated to Class I use 
pursuant to Sec. 1000.43(d).

[64 FR 47998, Sept. 1, 1999, as amended at 65 FR 82839, Dec. 28, 2000; 
68 FR 7068, Feb. 12, 2003]