01-001-60 Me. Code R. § III

Current through 2024-51, December 18, 2024

Section 001-60-III - Initial Payment and Pool Payment-Base Minimum Price

A. No later than the 17th day after the end of each month, the Pool Administrator shall advise each Maine market dealer of the following, with respect to milk subject to the price control authority of the Maine Milk Commission at the producer level:

1. for such milk produced by Maine market producers;

a. the price per hundredweight payable to those producers at the base minimum price for milk at 3.5% butterfat set by the Maine Milk Commission for the month and the Federal Market Order No. 1 utilization rate for the month, from which price those producers initial payments are to be determined; and

b. the price per hundredweight that would be payable to those producers at the base minimum price for milk at 3.5% butterfat set by the Maine Milk Commission for the month and the dealer's own utilization rate for the month; and

c. the difference obtained by subtracting the price per hundredweight under a. from the price per hundredweight under b., from which difference the Pool payments to be made on those producers' behalf at the base minimum price are to be determined;

2. for such milk produced by Northern Maine market producers;

b. the price per hundredweight that would be payable to those producers at the base minimum price for milk at 3.5% butterfat set by the Maine Milk Commission for the month and dealer's own utilization rate for the month; and

c. the price per hundredweight from which the initial payments due those producers at the base minimum price for the month are to be determined, which is the price per hundredweight under a. plus one-half of the difference between the prices per hundredweight under a. and b.; and

d. the prices per hundredweight from which the Pool payments due on behalf of those producers at the base minimum price for the month are to be determined, which is one-half of the difference between the price per hundredweight under a. and b.

B. Each Maine market dealer shall pay to the Pool Administrator the Pool payment at the base minimum price due from him for the month, which is the sum of all Pool payments due on behalf of producers reported by the dealer under 11. a. Each dealer's payment must be received by the Pool Administrator no later than the 20th day after the end of each month.

C. No later than the day upon which payment to producers is required by Maine statute, each Maine market dealer shall pay to each Maine market producer reported by the dealer under II. A. the initial payment due the producer at the base minimum price. Where a producer which is an agricultural cooperative pays individual Maine market producers the initial payment, the cooperative shall pay those individual producers no later than the day specified herein. The initial payment at the base minimum price, calculated as provided in A. l.a, or A. 2.c., shall otherwise comply with title 7, Chapter 603 and rules adopted thereunder, including but not limited to adjustments for butterfat content, and shall reflect any deductible amount incurred and recouped according to D. of this Section.

D. If for any month, for any producer, the amount payable at the dealer's own utilization rate for the month is less than the amount payable at the Federal Market Order No. I utilization rate for the month, calculating both amounts by using the Class I and Class 11 prices set by the Maine Milk Commission for the month, the dealer may deduct the difference from the producer's next initial payment. When such a deductible amount is incurred, the dealer, at the time that the current initial payment is made, shall notify each producer incurring a deduction of its amount. If the business relationship between a dealer and a producer is terminated, the producer is liable to the dealer for all deductible amounts incurred under this provision which have not been recouped by way of deduction.

E. Where a Maine market dealer receives milk from individual Maine market producers through a producer which is an agricultural cooperative which buys milk from or handles milk for the individual producers, the dealer may enter into an agreement with the cooperative, subject to the approval of the Pool Administrator, which provides that the cooperative will make the payments required by B. A cooperative which is a party to such an agreement shall comply with all requirements of this rule as to form and time of payment. The existence of an agreement does not relieve the dealer of any obligation under statute or rule, but the agreement may provide for indemnification. Where such an agreement is in force, the Pool Administrator shall provide the information specified in A. to the agricultural cooperative as well as to the dealers.

F. No later than the 17th day after the end of each month, the Pool Administrator shall advise each producer-dealer and each Maine market dealer who imported milk in the month for sale within the State of the amount of the share of the cost of promotion due from each to the Pool, calculated according to Section X. of this rule.

G. No later than the 20th day after the end of each month, each producer-dealer and each Maine market dealer who imported milk in the month for sale within the State shall pay to the Pool Administrator the amount due for the costs of promotion.

H. All payments into the Pool shall be made in the form specified by the Pool Administrator.

01-001 C.M.R. ch. 60, § III