[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: 7CFR1030.55]

[Page 107-108]
 
                          TITLE 7--AGRICULTURE
 
  CHAPTER X--AGRICULTURAL MARKETING SERVICE (Marketing Agreements and 
                 Orders; Milk) DEPARTMENT OF AGRICULTURE
 
PART 1030_MILK IN THE UPPER MIDWEST MARKETING AREA--Table of Contents
 
                    Subpart_Order Regulating Handling
 
Sec.  1030.55  Transportation credits and assembly credits.

    (a) Each handler operating a pool distributing plant described in 
Sec.  1030.7(a), (b), (d), or (e) that receives bulk milk from another 
pool plant shall receive a transportation credit for such milk computed 
as follows:
    (1) Determine the hundredweight of milk eligible for the credit by 
completing the steps in paragraph (c) of this section;
    (2) Multiply the hundredweight of milk eligible for the credit by 
.28 cents times the number of miles, not to exceed 400 miles, between 
the transferor plant and the transferee plant;
    (3) Subtract the effective Class I price at the transferor plant 
from the effective Class I price at the transferee plant;
    (4) Multiply any positive amount resulting from the subtraction in 
paragraph (a)(3) of this section by the hundredweight of milk eligible 
for the credit; and
    (5) Subtract the amount computed in paragraph (a)(4) of this section 
from the amount computed in paragraph (a)(2) of this section. If the 
amount computed in paragraph (a)(4) of this section exceeds the amount 
computed in paragraph (a)(2) of this section, the transportation credit 
shall be zero.
    (b) Each handler operating a pool distributing plant described in 
Sec.  1030.7(a), (b), (d), or (e) that receives milk from dairy farmers, 
each handler that transfers or diverts bulk milk from a pool plant to a 
pool distributing plant, and each handler described in Sec.  1000.9(c) 
that delivers producer milk to a pool distributing plant shall receive 
an assembly credit on the portion of such milk eligible for the credit 
pursuant to paragraph (c) of this section. The credit shall be computed 
by multiplying the hundredweight of milk eligible for the credit by 
$0.08.
    (c) The following procedure shall be used to determine the amount of 
milk eligible for transportation and assembly credits pursuant to 
paragraphs (a) and (b) of this section:
    (1) At each pool distributing plant, determine the aggregate 
quantity of

[[Page 108]]

Class I milk, excluding beginning inventory of packaged fluid milk 
products;
    (2) Subtract the quantity of packaged fluid milk products received 
at the pool distributing plant from other pool plants and from nonpool 
plants if such receipts are assigned to Class I;
    (3) Subtract the quantity of bulk milk shipped from the pool 
distributing plant to other plants to the extent that such milk is 
classified as Class I milk;
    (4) Subtract the quantity of bulk milk received at the pool 
distributing plant from other order plants and unregulated supply plants 
that is assigned to Class I pursuant to Sec.  Sec.  1000.43(d) and 
1000.44; and
    (5) Assign the remaining quantity pro rata to physical receipts 
during the month from:
    (i) Producers;
    (ii) Handlers described in Sec.  1000.9(c); and
    (iii) Other pool plants.
    (d) For purposes of this section, the distances to be computed shall 
be determined by the market administrator using the shortest available 
state and/or Federal highway mileage. Mileage determinations are subject 
to redetermination at all times. In the event a handler requests a 
redetermination of the mileage pertaining to any plant, the market 
administrator shall notify the handler of such redetermination within 30 
days after the receipt of such request. Any financial obligations 
resulting from a change in mileage shall not be retroactive for any 
periods prior to the redetermination by the market administrator.

[64 FR 47978, Sept. 1, 1999, as amended at 70 FR 31322, June 1, 2005; 71 
FR 25499, May 1, 2006]

                       Producer Price Differential