Code of Federal Regulations (Last Updated: July 5, 2024) |
Title 7 - Agriculture |
Subtitle B - Regulations of the Department of Agriculture |
Chapter X - Agricultural Marketing Service (Marketing Agreements and Orders; Milk), Department of Agriculture |
Part 1040 - MILK IN SOUTHERN MICHIGAN MARKETING AREA |
Producer Price Differential |
§ 1040.61 - Producer price differential.
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For each month the market administrator shall compute a producer price differential per hundredweight of milk received from producers as follows:
(a) Combine into one total for all handlers:
(1) The values computed pursuant to § 1040.60 (a)(1), (a)(2), (a)(3) and (b) through (i) for all handlers who made reports pursuant to § 1040.30 for the month and who made payments pursuant to § 1040.71 for the preceding month;
(2) Add the values computed pursuant to § 1040.60 (a)(4), (a)(5), and (a)(6); and subtract the values obtained by multiplying the handlers’ total pounds of protein and total hundredweight of fluid carrier contained in such milk by their respective prices;
(3) Add an amount equal to the total value of the applicable location adjustments computed pursuant to § 1040.75(a)(1); and
(4) Add an amount equal to not less than one-half of the unobligated balance in the producer-settlement fund.
(b) Divide the aggregate value computed pursuant to paragraph (a) of this section by the sum of the following:
(1) The total hundredweight of producer milk; and
(2) The total hundredweight for which a value is computed pursuant to § 1040.60(f).
(c) Subtract not less than 6 cents nor more than 7 cents per hundredweight. The result shall be the “producer price differential.”