N.Y. Comp. Codes R. & Regs. tit. 1 § 21.60

Current through Register Vol. 46, No. 50, December 11, 2024

Section 21.60 - Time and rate of payment to producers and cooperative associations

(a) Each pool plant operator that is not paying a cooperative association for producer milk shall pay each producer as follows:

(1) Partial payment. For each producer who has not discontinued shipments as of the 23rd day of the month, payment shall be made so that it is received by the producer on or before the 26th day of the month (except as provided in section 21.92 of this Part) for milk received during the first 15 days of the month at not less than the lowest announced class price for the preceding month, less proper deductions authorized in writing by the producer.

(2) Final payment. For milk received during the month, payment shall be made so that it is received by each producer no later than the day after the payment date required in section 21.65 of this Part in an amount computed as follows:

(i) multiply the hundredweight of producer milk received by the producer price differential for the month as adjusted pursuant to section 21.61 of this Part;

(ii) multiply the pounds of butterfat received by the butterfat price for the month;

(iii) multiply the pounds of protein received by the protein price for the month;

(iv) multiply the pounds of other solids received by the other solids price for the month; and

(v) add the amounts computed in subparagraphs (i) through (iv) of this paragraph, and from that sum;

(a) subtract the partial payment made pursuant to paragraph (1) of this subdivision;

(b) subtract the deduction for administrative expenses pursuant to section 21.80 of this Part;

(c) add or subtract for errors made in previous payments to the producer; and

(d) subtract proper deductions authorized in writing by the producer.

(b) One day before partial and final payments are due pursuant to subdivision (a) of this section, each pool plant operator shall pay a cooperative association for milk received as follows:

(1) Partial payment to a cooperative association for bulk milk received directly from producers' farms. For bulk milk (including the milk of producers who are not members of such association and who the commissioner determines have authorized the cooperative association to collect payment for their milk) received during the first 15 days of the month from a cooperative association in any capacity, except as the operator of a pool plant, the payment shall be equal to the hundredweight of milk received multiplied by the lowest announced class price for the preceding month.

(2) Partial payment to a cooperative association for milk transferred from its pool plant. For bulk/skimmed milk products received during the first 15 days of the month from a cooperative association in its capacity as the operator of a pool plant, the partial payment shall be at the pool plant operator's estimated use value of the milk using the most recent class prices available at the receiving plant's location.

(3) Final payment to a cooperative association for milk transferred from its pool plant. Following the classification of bulk fluid milk products and bulk fluid cream products received during the month from a cooperative association in its capacity as the operator of a pool plant, the final payment for such receipts shall be determined as follows:

(i) multiply the hundredweight of Class I skim milk by the Class I skim milk price for the month at the receiving plant;

(ii) multiply the pounds of Class I butterfat by the Class I butterfat price for the month at the receiving plant;

(iii) multiply the pounds of nonfat solids in Class II skim milk by the Class II nonfat solids price;

(iv) multiply the pounds of butterfat in Class II times the Class II butterfat price;

(v) multiply the pounds of nonfat solids in Class IV milk by the nonfat solids price for the month;

(vi) multiply the pounds of butterfat in Class III and IV milk by the butterfat price for the month;

(vii) multiply the pounds of protein in Class III milk by the protein price for the month;

(viii) multiply the pounds of other solids in Class III milk by the other solids price for the month; and

(ix) add together the amounts computed in subparagraphs (i) through (viii) of this paragraph and from that sum deduct any payment made pursuant to paragraph (2) of this subdivision.

(4) Final payment to a cooperative association for bulk milk received directly from producers' farms. For bulk milk received from a cooperative association during the month, including the milk of producers who are not members of such association and who the commissioner determines have authorized the cooperative association to collect payment for their milk, the final payment for such milk shall be an amount equal to the sum of the individual payments otherwise payable for such milk pursuant to paragraph (a)(2) of this section.

(c) If a marketer has not received full payment from the commissioner pursuant to section 21.65 of this Part by the payment date specified in subdivision (a) or (b) of this section, the marketer may reduce payments pursuant to subdivisions (a) and (b) of this section, but by not more than the amount of the underpayment. The payments shall be completed on the next scheduled payment date after receipt of the balance due from the commissioner.

(d) If a marketer claims that a required payment to a producer cannot be made because the producer is deceased or cannot be located, or because the cooperative association or its lawful successor or assignee is no longer in existence, the payment shall be made to the equalization fund, and in the event that the marketer subsequently locates and pays the producer or a lawful claimant, or in the event that the marketer no longer exists and a lawful claim is later established, the commissioner shall make the required payment from the equalization fund to the marketer or to the lawful claimant as the case may be.

(e) In making payments to producers pursuant to this section, each pool plant operator shall furnish each producer, except a producer whose milk was received from a collecting cooperative which has arranged to make the reports and payments with respect to the milk of producers, a supporting statement in such form that it may be retained by the recipient which shall show:

(1) the name, address, Grade A identifier assigned by a duly constituted regulatory agency, and the payroll number of the producer;

(2) the month and dates that milk was received from the producer, including the daily and total pounds of milk received;

(3) the total pounds of butterfat, protein, and other solids contained in the producer's milk;

(4) the minimum rate or rates at which payment to the producer is required pursuant to this Part;

(5) the rate used in making payment if the rate is other than the applicable minimum rate;

(6) the amount, or rate per hundredweight, or rate per pound of component, and the nature of each deduction claimed by the handler; and

(7) the net amount of payment to the producer or cooperative association.

(f) In the event that there is any underpayment by any marketer (other than an underpayment authorized pursuant to subdivision [c] of this section), the amount of such underpayment shall be remitted by such marketer promptly, upon receipt of statement therefor, to the producer, the collecting cooperative, or the fiscal agent as the case may be.

N.Y. Comp. Codes R. & Regs. Tit. 1 § 21.60