[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: 7CFR1131.13]

[Page 170-171]
 
                          TITLE 7--AGRICULTURE
 
  CHAPTER X--AGRICULTURAL MARKETING SERVICE (Marketing Agreements and 
                 Orders; Milk) DEPARTMENT OF AGRICULTURE
 
PART 1131_MILK IN THE ARIZONA MARKETING AREA--Table of Contents
 
                    Subpart_Order Regulating Handling
 
Sec.  1131.13  Producer milk.

    Producer milk means the skim milk (or the skim equivalent of 
components of skim milk) and butterfat 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 cooperative 
association 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 at least one day's production of such dairy farmer is physically 
received at a pool plant during the month;
    (2) The total quantity of milk diverted by a handler in any month 
shall not exceed 50 percent of the total producer milk caused by the 
handler to be received at pool plants and diverted;
    (3) Diverted milk shall be priced at the location of the plant to 
which diverted;
    (4) Any milk diverted in excess of the limits prescribed in 
paragraph (d)(2) of this section shall not be producer milk. If the 
diverting handler or cooperative association fails to designate the 
dairy farmers' deliveries that are not to be producer milk, no milk 
diverted by the handler or cooperative association during the month to a 
nonpool plant shall be producer milk. In the event some of the milk of 
any producer is determined not to be producer milk pursuant to this 
paragraph, other milk delivered by such producer as producer milk during 
the month will not be subject to Sec.  1131.12(b)(5); and
    (5) The delivery day requirement in paragraph (d)(1) of this section 
and diversion percentage in paragraph (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

[[Page 171]]

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 the diversion 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 a marketwide equalization pool under a milk classification 
and pricing plan under the authority of a State government.

[64 FR 48010, Sept. 1, 1999, as amended at 70 FR 9848, Mar. 1, 2005]