§ 917.1

DEFINITIONS

Act. "Act" means Public Act No. 10, 73d Congress, as amended, and as reenacted and amended by the Agricultural Marketing Agreement Act of 1937, as amended (7 U. S. C. 601 et seq.)

§ 917.2 Secretary. "Secretary" means the Secretary of Agriculture of the United States or any other officer or employee of the United States authorized to exercise the powers or to perform the duties of the said Secretary of Agriculture.

§ 917.3 Department. "Department" means the United States Department of Agriculture or any other Federal agency authorized to perform the price reporting functions of the United States Department of Agriculture.

8917.4 Person. "Person" means any individual, partnership, corporation, association, or other business unit.

917.5 Cooperative association. "Cooperative association" means any cooperative marketing association which the Secretary determines, after application by the association:

(a) To be qualified under the provisions of the act of Congress of February 18, 1922, as amended, known as the "Capper-Volstead Act"; and

(b) To have full authority in the sale of milk of its members and to be engaged in making collective sales of or marketing milk or its products for its members.

§ 917.6 Black Hills, South Dakota, marketing area. "Black Hills, South Dakota, marketing area", called the "marketing area" in this part, means all of the territory within the boundaries of Custer, Fall River, Lawrence and Pennington Counties, the cities of Belle Fourche and Sturgis, the Ellsworth Air Base, and the Veterans' Administration Hospital at Fort Meade, all in the State of South Dakota, including territory within such boundaries which is occupied by government (Municipal, State, or Federal) reservations, installations, institutions, or establishments.

§ 917.7 Approved dairy farmer. "Approved dairy farmer" means any person, except a producer-handler, who produces milk in compliance with the Grade A inspection requirements of a duly constituted health authority, which milk is (a) received at an approved plant, or (b) diverted from an approved plant to a nonpool plant for the account of either the operator of the approved plant or a cooperative association: Provided, That milk diverted pursuant to this section shall be deemed to have been received at the location of the plant from which diverted.

§ 917.8 Producer. "Producer" means an approved dairy farmer whose milk is received at a pool plant.

§ 917.9 Distributing plant. "Distributing plant" means a plant which is approved by an appropriate health authority for the processing or packaging of Grade A milk and from which any fluid milk product is disposed of during the month on routes (including routes operated by vendors) or through plant stores to retail or wholesale outlets (except pool plants) located in the marketing area.

§ 917.10 Supply plant. "Supply plant" means a plant from which milk, skim milk or cream which is acceptable to the appropriate health authority for distribution in the marketing area under a Grade A label is shipped during the month to a pool plant qualified pursuant to § 917.12 (a).

§ 917.11 Approved plant. "Approved plant" means a pool plant or a distributing plant which is not a pool plant.

(a) A distributing plant from which a volume of Class I milk equal to not less than 20 percent of the Grade A milk received at such plant from producers and from other plants is disposed of during the month on routes (including routes operated by vendors) or through plant stores to retail or wholesale outlets (except pool plants) in the marketing area.

(b) A supply plant from which the volume of fluid milk products shipped during the month to pool plants qualified pursuant to paragraph (a) of this section is equal to not less than 50 percent of the Grade A milk received at such plant from dairy farmers during such month: Provided, That if such shipments are not less than 50 percent of the receipts of Grade A milk directly from dairy farmers at such plant during the immediately preceding period of September through November, such plant shall be a pool plant for the months of March through June, unless written application is filed with the market administrator on or before the 15th day of any of the months of March, April, May, or June to be designated a nonpool plant for such month and for each subsequent month through June of the same year.

§ 917.13 Nonpool plant. "Nonpool plant" means any milk manufacturing, processing or bottling plant other than a pool plant.

§ 917.14 Handler. "Handler" means: (a) Any person in his capacity as the operator of one or more distributing or supply plants.

(b) Any cooperative association with respect to the milk from producers diverted by the association for the account of such association from a pool plant to a nonpool plant.

§ 917.15 Producer-handler. "Producer-handler" means any person who operates a dairy farm and a distributing plant but who receives no milk from other dairy farmers.

§ 917.16 Approved milk. "Approved milk" means the skim milk and butterfat contained in milk (a) received at an approved plant directly from approved dairy farmers or (b) diverted from an approved plant to a nonpool plant in accordance with the conditions set forth in § 917.7.

§ 917.17 Producer milk. "Producer milk” means aproved milk which is received at a pool plant.

§ 917.18 Fluid milk product. "Fluid milk product" means milk, skim milk, buttermilk, milk drinks (plain or flavored), cream or any mixture in fluid form of milk, skim milk and cream (except ice cream mix, evaporated or condensed milk, and sterilized products packaged in hermetically sealed containers).

§ 917.19 Other source milk. "Other source milk" means all skim milk and buterfat contained in or represented by:

(a) Receipts during the month in the form of fluid milk products except (1) fluid milk products received from pool plants, (2) approved milk, or (3) inventory at the beginning of the month; and

(b) Products other than fluid milk products from any source (including those produced at the plant) which are reprocessed or converted to another product in the plant during the month.

§ 917.20 Base milk. "Base milk” means milk received at a pool plant from a producer during any of the months of January through June which is not in excess of the amount obtained in multiplying such producer's daily base by the number of days in such month.

§ 917.21 Excess milk. "Excess milk” means milk received at a pool plant from a producer during any of the months of January through June which is in excess of the base milk received from such producer during such month.

§ 917.22 Chicago butter price. "Chicago butter price" means the simple average as computed by the market administrator of the daily wholesale selling prices (using the midpoint of any range as one price) per pound of Grade A (92-score) bulk creamery butter at Chicago as reported during the month by the Department.

MARKET ADMINISTRATOR

§ 917.25 Designation. The agency for the administration of this part shall be a market administrator, selected by the Secretary, who shall be entitled to such compensation as may be determined by, and shall be subject to removal at the discretion of, the Secretary.

§ 917.26 Powers. The market administrator shall have the following powers with respect to this part:

(a) To administer its terms and provisions;

(b) To receive, investigate, and report to the Secretary complaints of violations; (c) To make rules and regulations to effectuate its terms and provisions; and (d) To recommend amendments to the Secretary.

§ 917.27 Duties. The market administrator shall perform all duties necessary to administer the terms and provisions of this part, including but not limited to the following:

(a) Within 30 days following the date on which he enters upon his duties, or such lesser period as may be prescribed by the Secretary, execute and deliver to the Secretary a bond, effective as of the date on which he enters upon his duties and conditioned upon the faithful performance of such duties, in an amount and with surety thereon satisfactory to the Secretary;

(b) Employ and fix the compensation of such persons as may be necessary to enable him to administer its terms and provisions;

(c) Obtain a bond in a reasonable amount, and with reasonable surety thereon, covering each employee who handles funds entrusted to the market administrator;

(d) Pay out of the funds provided by § 917.88 the cost of his bond and of the bonds of his employees, his own compensation, and all other expenses necessarily incurred by him in the maintenance and functioning of his office and in the performance of his duties;

(e) Keep such books and records as will clearly reflect the transactions provided for in this part, and upon request by the Secretary, surrender the same to such other person as the Secretary may designate;

(f) Publicly announce, unless otherwise directed by the Secretary, the name of any person who within 10 days after the date upon which he is required to perform such acts, has not made reports pursuant to §§ 917.30 and 917.31, or payments pursuant to §§ 917.62, 917.80, 917.84, 917.86, and 917.88;

(g) Submit his books and records to examination by the Secretary and furnish such information and reports as may be required by the Secretary;

(h) Verify all reports and payments of each handler by audit of such han

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Pet Milk Company, Coopersville, Mich. Borden Company, Orfordville, Wis. Borden Company, New London, Wis. Carnation Company, Richland Center, Wis. Carnation Company, Oconomowoc, Wis. Pet Milk Company, New Glarus, Wis. Pet Milk Company, Belleville, Wis. White House Milk Company, Manitowoc, Wis.

White House Milk Company, West Bend, Wis.

(b) The sum of the amounts computed pursuant to subparagraphs (1) and (2) of this paragraph.

(1) Subtract 6.5 cents from the Chicago butter price for the month and multiply the remainder by 4.2.

(2) From the simple average, as computed by the market administrator of the arithmetical average of the carlot prices per pound of nonfat dry milk solids, spray and roller process for human consumption delivered at Chicago as reported for the month by the Department, subtract 6.5 cents and multiply the remainder by 7.913: Provided, That if the Department does not publish the above stated price for nonfat dry milk solids there shall be used in lieu thereof the price of nonfat dry milk solids, spray and roller process for human consumption, f. o. b. manufacturing plants in the Chicago area as published by the Department for the period from the 26th day of the preceding month through the 25th day of the current month.

§ 917.51 Class prices. Subject to the provisions of §§ 917.52 and 917.53 the class prices per hundredweight for the month shall be as follows:

(a) Class I milk price. The Class I milk price shall be the basic formula price for the preceding month plus $2.15.

(b) Class II milk price. The Class II milk price shall be the price computed pursuant to § 917.50 (b).

§ 917.52 Butterfat differentials to handlers. For milk containing more or less than 3.5 percent butterfat, the class prices for the month calculated pursuant to 917.51 shall be increased or decreased, respectively, for each one-tenth percent butterfat at the appropriate rate, rounded to the nearest one-tenth nt, determined as follows:

a) Class I price. Add 4.3 cents to the terfat differential computed pursuant paragraph (b) of this section for the eceding month.

(b) Class II price. Subtract 6.5 cents from the Chicago butter price for the current month and multiply the remainder by 0.120.

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§ 917.53 Location differentials handlers. For that milk which is received from approved dairy farmers at an approved plant located 100 miles or more from the Post Offices of each of the cities of Rapid City, Lead, Hot Springs and Custer, South Dakota, by the shortest hard surfaced highway distance as determined by the market administrator, and which is classified as Class I milk, the price specified in § 917.11 (a) shall be reduced by 15 cents for the first 110 miles or less and by 1.5 cents for each additional 10 miles or fraction thereof that such plant is from the nearer of the Rapid City, Lead, Hot Springs and Custer Post Offices: Provided, That for the purpose of calculating the location differentials adjustment applicable pursuant to this section, fluid milk products which are transferred between approved plants shall be assigned to any remainder of Class II milk in the transferee-plant after making the calculations prescribed in § 917.46 (a) (4) and the comparable steps in § 917.46 (b) for such plant, such assignment to transferor plants to be made in sequence according to the location differential applicable to each plant, beginning with the plant having the largest differential.

§ 917.54 Use of equivalent prices. If for any reason a price quotation required by this order for computing class prices or for other purposes is not available in the manner described, the market administrator shall use a price determined by the Secretary to be equivalent to the price which is required.

APPLICATION OF PROVISIONS

§ 917.60 Producer-handler. Sections 917.40 through 917.46, 917.50 through 917.53, 917.70 through 917.77 and 917.80 through 917.83 shall not apply to a producer-handler.

§ 917.61 Plants subject to other Federal orders. The provisions of this part shall not apply to a distributing plant or a supply plant during any month in which such plant would be subject to the classification and pricing provisions of another order issued pursuant to the act unless such plant is qualified as a pool plant pursuant to § 917.12 and a greater volume of fluid milk products is disposed of from such plant to retail or wholesale