[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: 7CFR1126.13]

[Page 157-158]
 
                          TITLE 7--AGRICULTURE
 
  CHAPTER X--AGRICULTURAL MARKETING SERVICE (Marketing Agreements and 
                 Orders; Milk) DEPARTMENT OF AGRICULTURE
 
PART 1126_MILK IN THE SOUTHWEST MARKETING AREA--Table of Contents
 
                    Subpart_Order Regulating Handling
 
Sec.  1126.13  Producer milk.

    Producer milk means the skim milk (or the skim equivalent of 
components of skim milk), including nonfat components, 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;

[[Page 158]]

    (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 for the account of the handler 
operating such plant 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) Milk of a dairy farmer shall not be eligible for diversion 
unless a delivery of at least 40,000 pounds or one day's milk 
production, whichever is less, of such dairy farmer has been physically 
received as producer milk at a pool plant and the dairy farmer has 
continuously retained producer status since that time;
    (2) The total quantity of milk diverted during the month by a 
cooperative association shall not exceed 50 percent of the total 
quantity of producer milk that the cooperative association caused to be 
received at pool plants and diverted;
    (3) 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 
this paragraph. The total quantity of milk so diverted during the month 
shall not exceed 50 percent of the total quantity 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.  1126.7(e)) and diverted;
    (4) Any milk diverted in excess of the limits prescribed in 
paragraphs (d)(2) and (3) 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;
    (5) Diverted milk shall be priced at the location of the plant to 
which diverted; and
    (6) The delivery requirement in paragraph (d)(1) and the diversion 
percentages in paragraphs (d)(2) and (3) of this section may be 
increased or decreased by the market administrator if there is a finding 
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 
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 any 
diversion percentage must be issued in writing at least one day before 
the effective date.