dler's records and of the records of any other handler or person upon whose utilization the classification of skim milk or butterfat for such handler depends, or by such investigation as the market administrator deems necessary;

(i) Prepare and disseminate to the public such statistics and such information as he deems advisable and as do not reveal confidential information;

(j) Publicly announce on or before: (1) The 5th day of each month, the minimum price for Class I milk pursuant to 917.51 (a) and the Class I butterfat differential pursuant to § 917.52 (a), both for the current month; and the minimum price for Class II milk pursuant to § 917.51 (b) and the Class II butterfat differential pursuant to § 917.52 (b), both for the preceding month;

(2) The 10th day after the end of the months of July through December, the uniform price pursuant to § 917.72 and the producer butterfat differential pursuant to § 917.81; and

(3) The 10th day after the end of the months of January through June, the uniform price for base milk pursuant to § 917.73 and the butterfat differential pusuant to § 917.81.

REPORTS, RECORDS AND FACILITIES

§ 917.30 Reports of receipts and utilization. On or before the 5th day after the end of each month, each handler, except a producer-handler, shall report to the market administrator for such month for each of his approved plants in the detail and on forms prescribed by the market administrator:

(a) The quantities of skim milk and butterfat contained in or represented by receipts of milk from approved dairy farmers and the aggregate quantities of base and excess milk;

(b) The quantities of skim milk and butterfat contained in or represented by fluid milk products received from pool plants;

(c) The quantities of skim milk and butterfat contained in or represented by other source milk;

(d) The quantities of skim milk and butterfat contained in or represented by approved milk diverted to nonpool plants pursuant to § 917.7;

(e) Inventories of fluid milk products on hand at the beginning and end of the month;

(f) The utilization of all skim milk and butterfat required to be reported pursuant to this section, including a separate statement of the disposition of Class I milk outside the marketing area; and

(g) Such other information with respect to his receipts and utilization of butterfat and skim milk as the market administrator may prescribe.

§ 917.31 Other reports. (a) Each producer-handler shall make reports to the market administrator at such time and in such manner as the market administrator may prescribe.

(b) Each handler, except a producerhandler, shall report to the market administrator in detail and on forms prescribed by the market administrator on or before the 20th day after the end of the month for each of his pool plants his producer payroll for such month which shall show for each producer:

(1) His name and address,

(2) The total pounds of milk received from such producer including for the months of January through June, the total pounds of base and excess milk,

(3) The number of days, if less than the entire month, for which milk was received from such producer,

(4) The average butterfat content of such milk, and

(5) The net amount of such handler's payment together with the price paid and the amount and nature of any deductions.

§ 917.32 Records and facilities. Each handler shall maintain and make available to the market administrator or to his representative during the usual hours of business such accounts and record£ of his operations together with such facilities as are necessary for the market administrator to verify or establish the correct data with respect to:

(a) The receipt and utilization of all skim milk and butterfat handled in any form during the month;

(b) The weights and butterfat and other content of all milk, skim milk, cream and other milk products handled during the month;

(c) The pounds of skim milk and butterfat contained in or represented by all milk products on hand at the beginning and end of each month; and

(d) Payments to approved dairy farmers and cooperative associations.

§ 917.33 Retention of records. All books and records required under this subpart to be made available to the market administrator shall be retained by the handler for a period of three years to begin at the end of the month to which such books and records pertain: Provided, That if, within such three-year period, the market administrator notifies the handler in writing that the retention of such books and records is necessary in connection with a proceeding under section 8c (15) (A) of the act or a court action specified in such notice the handler shall retain such books and records, or specified books and records, until further written notification from the market administrator. In either case, the market administrator shall give further written notification to the handler promptly upon the termination of the litigation or when the records are no longer necessary in connection therewith.

CLASSIFICATION

§ 917.40 Skim milk and butterfat to be classified. The skim milk and butterfat which are required to be reported pursuant to § 917.30 shall be classified each month by the market administrator, pursuant to the provisions of §§ 917.41 through 917.46.

§ 917.41 Classes of utilization. Subject to the conditions set forth in § 917.44 the classes of utilization shall be as follows:

(a) Class I milk. Class I milk shall be all skim milk (including concentrated and reconstituted skim milk) and butterfat (1) disposed of in the form of a fluid milk product (except as provided in paragraph (b) (2) and (3) of this section), and (2) not accounted for as Class II milk.

(b) Class II milk. Class II milk shall be all skim milk and butterfat (1) used to produce any product other than a fluid milk product, (2) disposed of and used for livestock feed, (3) contained in skim milk dumped if the market administrator has been notified in advance and afforded the opportunity of verifying such dumping, (4) contained in inventory of fluid milk products on hand at the end of the month, (5) in shrinkage allocated to receipts of approved milk (except milk diverted to a nonpool plant pursuant to § 917.7) but not in excess of 2 percent of such receipts of skim milk and butterfat, respectively, and (6) in shrinkage of other source milk.

§ 917.42 Shrinkage. The market administrator shall allocate shrinkage over a handler's receipts as follows:

(a) Compute the total shrinkage of skim milk and butterfat for each handler; and

(b) Prorate the resulting amounts between the receipts of skim milk and butterfat contained in approved milk and in other source milk.

917.43 Responsibility of handlers and reclassification of milk. All skim milk and butterfat shall be Class I milk unless the handler who first receives such skim milk or butterfat can prove to the market administrator that such skim milk or butterfat should be classified otherwise.

§ 917.44 Transfers. Skim milk or butterfat disposed of each month from an approved plant shall be classified:

(a) As Class I milk, if transferred in the form of a fluid milk product to a pool plant unless utilization as Class II milk is claimed for both plants on the reports submitted for the month to the market administrator pursuant to

917.30: Provided, That the skim milk or butterfat so assigned to Class II milk shall be limited to the amount thereof remaining in Class II milk in the plant of the transferee-handler after the subtraction of other source milk pursuant to § 917.46 and any additional amounts of such skim milk or butterfat shall be classified as Class I milk: Provided further, That if the transferor plant is a nonpool plant the skim milk or butterfat transferred shall be classified as Class I milk and as Class II milk in the same ratio as other source milk at the transferree plant is allocated to each class pursuant to § 917.46 (a) (2) and the corresponding step in paragraph (b) thereof: And provided further, That if other source milk was received at either or both plants the skim milk or butterfat so transferred shall be classified at both plants so as to allocate the greatest possible Class I utilization to the producer milk at both plants;

(b) As Class I milk, if transferred to a producer-handler in the form of a fluid milk product; and

(c) As Class I milk, if transferred or diverted in the form of a fluid milk product in bulk to a nonpool plant unless:

(1) The transferring or diverting handler claims classification in Class II milk in his report submitted to the market administrator pursuant to § 917.30 for the month within which such transaction occurred;

(2) The operator of such nonpool plant maintains books and records showing the utilization of all skim milk and butterfat received at such plant which are made available if requested by the market administrator for the purpose of verification; and

(3) An equivalent amount of skim milk and butterfat has been used at the nonpool plant during the month in the indicated utilization.

917.45 Computation of the skim milk and butterfat in each class. For each month, the market administrator shall correct for mathematical and for other obvious errors the reports of receipts and utilization for each approved plant and shall compute the pounds of butterfat and skim milk in each class at each such plant: Provided, That if any of the water contained in the milk from which a product is made is removed before the product is utilized or disposed of by a handler, the pounds of skim milk disposed of in such product shall be considered to be in an amount equivalent to the nonfat milk solids contained in such product, plus all of the water reasonably associated with such solids in the form of whole milk.

8917.46 Allocation of skim milk and butterfat classifled. After making the computations pursuant to § 917.45 the market administrator shall determine the classification of approved milk received at each approved plant each month as follows:

(a) Skim milk shall be allocated in the following manner:

(1) Subtract from the total pounds of skim milk in Class II milk the pounds of skim milk assigned to approved milk pursuant to § 917.41 (b) (5);

(2) Subtract from the remaining pounds of skim milk in each class, in series beginning with Class II milk, the pounds of skim milk in other source milk received in the form of fluid milk products which were not subject to the Class I pricing provisions of another order issued pursuant to the act;

(3) Subtract from the remaining pounds of skim milk in each class, in series beginning with Class II milk, the

pounds of skim milk in other source milk other than that received in the form of fluid milk products;

(4) Subtract from the remaining pounds of skim milk in each class in series beginning with Class II milk, the pounds of skim milk in other source milk received in the form of fluid milk products which are subject to the Class I pricing provisions of another order issued pursuant to the act;

(5) Subtract from the remaining pounds of skim milk in each class the skim milk in fluid milk products received from pool plants according to the classification of such products as determined pursuant to § 917.44 (a);

(6) Subtract from the remaining pounds of skim milk in each class, in series beginning with Class II milk, the pounds of skim milk contained in inventory of fluid milk products on hand at the beginning of the month; and

(7) Add to the pounds of skim milk remaining in Class II milk the pounds of skim milk subtracted pursuant to subparagraph (1) of this paragraph and if the remaining pounds of skim milk in both classes exceed the pounds of skim milk contained in approved milk, subtract such excess from the remaining pounds of skim milk in series beginning with Class II. Any amount of excess so subtracted shall be called "overage".

(b) Butterfat shall be allocated in accordance with the same procedure prescribed for skim milk in paragraph (a) of this section.

(c) Determine the weighted average butterfat content of approved milk remaining in each class computed pursuant to paragraphs (a) and (b) of this section.

MINIMUM PRICES

8 917.50 Basic formula price. The basic formula price shall be the higher of the prices computed pursuant to paragraphs (a) and (b) of this section.

(a) The average of the basic or field prices per hundredweight reported to have been paid or to be paid for milk of 3.5 percent butterfat content received from farmers during the month at the following milk plants for which prices have been reported to the Department.

Present Operator and Location

Borden Company, Mount Pleasant, Stich
Carnation Company, Sparta, Mich
Pet Milk Company, Wayland, Mich

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 cent, determined as follows:up

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

to

§ 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

outlets and to pool plants in the Black Hills marketing area than in the marketing area regulated pursuant to such other order: Provided, That the operator of a distributing plant or a supply plant which is exempt from the provisions of this order pursuant to this section shall, with respect to the total receipts and utilization or disposition of skim milk and butterfat at the plant, make reports to the market administrator at such time and in such manner as the market administrator may require (in lieu of the reports required pursuant to § 917.30) and allow verification of such reports by the market administrator.

§ 917.62 Handlers operating nonpool plants. Unless payment for approved milk at such plant is made pursuant to § 917.80 (b), each handler in his capacity as the operator of a nonpool plant shall, on or before the 10th day after the end of each month pay to the market administrator for deposit into the producersettlement fund an amount obtained by subtracting from the value, at the Class I price pursuant to § 917.51 (a), of the total hundredweight of butterfat and skim milk disposed of as Class I milk from such plant to retail or wholesale outlets (including sales by vendors and plant stores) in the marketing area during the month, the value of such skim milk and butterfat at the Class II price pursuant to § 917.51 (b).

§ 917.63 Rate of payment on unpriced milk. The rate of payment per hundredweight to be made by handlers on unpriced other source milk allocated to Class I milk shall be any plus amount obtained by subtracting from the Class I price adjusted by the Class I butterfat and location differentials applicable at a pool plant of the same location as the nonpool plant supplying such other source milk:

(a) During the months of April, May and June, the Class II price adjusted by the Class II butterfat differential; and

(b) During the months of July through March, the uniform price pursuant to §§ 917.72 and 917.73, adjusted by the Class I butterfat differential.

DETERMINATION OF UNIFORM PRICE

§ 917.70 Computation of value of milk at each approved plant. The value of approved milk received during each month at each approved plant shall be a sum of money computed by the market administrator as follows:

(a) Multiply the pounds of milk in each class by the applicable class price and add together the resulting amounts;

(b) Add the amounts computed by multiplying the pounds of overage deducted from each class pursuant to § 917.46 (a) (7) and the corresponding step of § 917.46 (b) by the applicable class prices;

(c) Add the amount obtained in multiplying the difference between the Class II price for the preceding month and the Class I price for the current month by the lesser of (1) the hundredweight of approved milk classified in Class II less shrinkage during the preceding month or (2) the hundredweight of milk subtracted from Class I pursuant to § 917.46 (a) (6) and the corresponding step of § 917.46 (b);

(d) Add an amount calculated by multiplying the hundredweight of skim milk and butterfat subtracted from Class I milk pursuant to § 917.46 (a) (2) and (3) and the corresponding step of § 917.46 (b) by the rate of payment on unpriced milk determined pursuant to § 917.63 at the nearest nonpool plant(s) from which an equivalent amount of other source skim milk or butterfat was received: Provided, That if the source of any such fluid milk product received at an approved plant is not clearly established, or if such skim milk and butterfat is received or used in a form other than a fluid milk product, such product shall be considered to have been received from a source at the location of the approved plant where it is classified.

§ 917.71 Computation of aggregate value used to determine uniform price. For each month the market administrator shall compute an aggregate value from which to determine uniform prices per hundredweight for producer milk of 3.5 percent butterfat content, f. o. b. plants located within 100 miles of the Post Offices of Rapid City, Lead, Hot Spring, and Custer, South Dakota, as follows:

(a) Combine into one total the value computed pursuant to § 917.70 for all pool plants for which the reports prescribed in § 917.30 for such month were made, except those in default of payments required pursuant to § 917 84 for the preceding month;

(b) Add or subtract for each one-tenth percent that the average butterfat content of producer milk represented by the