[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: 7CFR1005.13]

[Page 64-65]
 
                          TITLE 7--AGRICULTURE
 
  CHAPTER X--AGRICULTURAL MARKETING SERVICE (Marketing Agreements and 
                 Orders; Milk) DEPARTMENT OF AGRICULTURE
 
PART 1005_MILK IN THE APPALACHIAN MARKETING AREA--Table of Contents
 
                    Subpart_Order Regulating Handling
 
Sec.  1005.13  Producer milk.

    Except as provided for in paragraph (e) of this section, 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 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 handler described 
in Sec.  1000.9(c) to a nonpool plant, subject to the following 
conditions:
    (1) In any month of July through December, not less than 6 days' 
production of the producer whose milk is diverted is physically received 
at a pool plant during the month;
    (2) In any month of January through June, not less than 2 days' 
production of the producer whose milk is diverted is physically received 
at a pool plant during the month;
    (3) The total quantity of milk diverted during the month by a 
cooperative association shall not exceed 25 percent during the months of 
July through November, January, and February, and 40 percent during the 
months of December and March through June, of the producer milk that the 
cooperative association caused to be delivered to, and physically 
received at, pool plants during the month, excluding the total pounds of 
bulk milk received directly from producers meeting the conditions as 
described in Sec.  1005.82(c)(2)(ii) and (iii), and for which a 
transportation credit is requested;
    (4) The operator of a pool plant that is not a cooperative 
association may divert any milk that is not under the control of a 
cooperative association that diverts milk during the month pursuant to 
paragraph (d) of this section. The total quantity of milk so diverted 
during the month shall not exceed 25 percent during the months of July 
through November, January, and February, and 40 percent during the 
months of December and March through June, of the producer milk 
physically received at such plant(or such unit of plants in the case of 
plants that pool as a unit pursuant to Sec.  1005.7(d)) during the 
month, excluding the quantity of producer milk received from a handler 
described in Sec.  1000.9(c) and excluding the total pounds of bulk milk 
received directly from producers

[[Page 65]]

meeting the conditions as described in Sec.  1005.82(c)(2)(ii) and 
(iii), and for which a transportation credit is requested.
    (5) Any milk diverted in excess of the limits prescribed in 
paragraphs (d)(3) and (4) of this section shall not be producer milk. If 
the diverting handler or cooperative association fails to designate the 
dairy farmers' deliveries that will not be producer milk, no milk 
diverted by the handler or cooperative association shall be producer 
milk;
    (6) Diverted milk shall be priced at the location of the plant to 
which diverted; and
    (7) The delivery day requirements and the diversion percentages in 
paragraphs (d)(1) through (4) 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 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 47960, Sept. 1, 1999, as amended at 70 FR 59223, Oct. 12, 2005; 
71 FR 62378; Oct. 25, 2006]