[Code of Federal Regulations]
[Title 7, Volume 9]
[Revised as of January 1, 2007]
From the U.S. Government Printing Office via GPO Access
[CITE: 7CFR1001.13]

[Page 53-54]
 
                          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.  1001.13  Producer milk.

    Producer milk means the skim milk (or the skim equivalent of 
components of skim milk) and butterfat contained in milk of a producer 
that is:
    (a) Received by the operator of a pool plant directly from a 
producer or from a handler described in Sec.  1000.9(c). Any milk which 
is picked up from the producer's farm in a tank truck under the control 
of the operator of a pool plant or a handler described in Sec.  
1000.9(c) but which is not received at a plant until the following month 
shall be considered as having been received by the handler during the 
month in which it is picked up at the farm. 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 the operator of a pool plant or a handler described 
in Sec.  1000.9(c) in excess of the quantity delivered to pool plants 
subject to the following conditions:
    (1) The producers whose farms are outside of the states included in 
the marketing area and outside the states of Maine or West Virginia 
shall be organized into state units and each such unit shall be reported 
separately; and
    (2) For pooling purposes, each reporting unit must satisfy the 
shipping standards specified for a supply plant pursuant to Sec.  
1001.7(c);
    (c) Diverted by a proprietary 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 by a handler 
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 
unless one day's milk production of such dairy farmer was physically 
received as producer milk 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 unless milk of the dairy farmer has been physically received 
as producer milk at a pool plant during the month;
    (2) Of the total quantity of producer milk received during the month 
(including diversion but excluding the quantity of producer milk 
received from a handler described in Sec.  1000.9(c) or which is 
diverted to another pool plant), the handler diverted to nonpool plants 
not more than 80 percent during each of the months of September through 
November and 90 percent during each of the months of January through 
August and December. In the event that a handler causes the milk of a 
producer to be over diverted, a dairy farmer will not lose producer 
status;
    (3) Diverted milk shall be priced at the location of the plant to 
which diverted.
    (4) Any milk diverted in excess of the limits set forth in paragraph 
(d)(2) of this section shall not be producer milk. The diverting handler 
shall designate the dairy farmer deliveries that shall not be producer 
milk. If the handler fails to designate the dairy farmer deliveries 
which are ineligible, producer milk status shall be forfeited with 
respect to all milk diverted to nonpool plants by such handler; and
    (5) The delivery day requirement and the diversion percentages in 
paragraphs (d)(1) and (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 
to be effective. If the investigation shows that a revision might be 
appropriate, the

[[Page 54]]

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 or delivery day requirement 
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 another government entity.

[64 FR 47954, Sept. 1, 1999, as amended at 70 FR 18962, Apr. 12, 2005]