§ 1040.61 - Producer price differential.

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.”