01-001-60 Me. Code R. § IV

Current through 2024-49, December 4, 2024

Section 001-60-IV - Calculation of Pool Share - Base Minimum Price

A. No later than the 21st day after the end of each month, the Pool Administrator shall calculate:

1. the total of all Pool payments at the base minimum price received for the month;

2. the total cost of promotion for the month, calculated using the promotion rate established according to Section X;

3. the redistribution rate for the month, which shall be used to calculate each producer's share of pool payments made at the base minimum price and which shall be calculated as follows:

a. when the plant prices paid to Boston market producers are equal to or less than the amount initially paid to any Maine market producer pursuant to III.A.I.a. including the adjustment per hundredweight made during the transition period pursuant to VII.B., the redistribution rate shall be calculated by dividing the total of all Pool payments at the base minimum price due for the month by the sum of the total hundredweight of milk received by Maine market dealers from Maine market and Northern Maine market producers, and the total hundredweight of milk received by Boston market dealers from Boston market producers; however,

b. when the plant price paid to any individual Boston market producer is greater than the amount initially paid to any Maine market producer pursuant to III.A.I.a. including the adjustment per hundredweight made during the transition period pursuant to VII.B. for Maine market producers, the redistribution rate for any such Boston market producers shall be reduced by the amount of the difference between that plant price and the lowest initial payment at the base minimum price made to a Maine market producer. The following formula shall be used to determine the redistribution rates for such Boston market producers, and for all other Maine market and Boston market producers:

P = r₁ (Q₁ ) + e₂ (Q₂)

and

r₂ = r₁ - c₁

provided that when r₁ - c₁ results in a negative value, r₂ becomes 0.

where

P = total payments due to the Pool at the base minimum price excepting promotion funds paid to the Pool pursuant to II.G

r₁ + redistribution rate for Maine market and all Boston market producers whose plant price does not exceed the initial price paid to any Maine market producer pursuant to III.a.1.a. including the adjustment made during transition period pursuant to VII.B. for Maine market producers.

r₂ = redistribution rate applicable to Boston market producers whose plant price exceeds the price initially paid to any Maine market producer including the adjustment pursuant to VII.B. as above

Q₁ = quantity of milk in hundredweight received by Maine market dealers and Boston market dealers from Maine market producers and Boston market producers whose plant price does not exceed the price initially paid to any Maine market producer, including any adjustment pursuant to VII.B. as above

Q₂ = quantity of milk in hundredweight received by Boston market dealers from Boston market producers whose plant price exceeds the price initially paid to any Maine market producer, including any adjustment pursuant to VII.B. as above.

c₁ = credit, which is the difference between the plant price received by Boston market producers and the lowest price initially paid to any Maine market producer including adjustment pursuant to VII.B. as above, if the amount received by that Maine market producer is the lessor of the two amounts. For purposes of this provision, plant price does not include deductions or additions imposed by any seasonal balancing plan adopted pursuant to Federal Market Order No. 1.

NOTE: One class of Boston market producers who receives a plant price as defined above which may be greater than the price initially paid to any Maine market producer would be those shipping directly to a plant in Zone I of Federal Order No. 1. Other classes may exist, e.g., producers shipping to Federal Order No. I by way of direct haul to a plant in some other zone or shipping to a reload station serving a plant in Zone 1. Accordingly, the above formula would be expanded to reflect that revised situation as:

P = r₁ (Q₁) + r₂ (Q₂) + r₃ (Q₃) + etc.

where r₃ would be the redistribution rate for such Boston market producers and r₃ = r₁ - C₂ where C₂ represents the credit or difference between the plant price received by those Boston market producers and the lowest price initially paid to any Maine market producer. Information provided pursuant to II.B.2.c. will identify all such producers.

4. the Pool share and the amount payable from pool payments made at the base minimum price for each Maine and Boston market producer reported as such under Section II, A. or B.; as follows:

a. the producer's Pool share, which is the product of the redistribution rate for that producer and the amount of milk 2.b. for that producer;

b. the producer's share of the cost of promotion, calculated according to Section X for this rule; C. the producer's share of the cost of administration, calculated according to Section XI of this rule; and d. the amount obtained by subtracting b. and c. from a., which amount is the amount payable from the Pool to each producer;

5. any amount due to the Pool for promotion from Boston market producers. For any Boston market producer for whom credit is calculated pursuant to 3. b., the Pool Administrator shall:

a. determine the amount per hundredweight that would be otherwise payable to that producer from the Pool without a credit, which is the redistribution rate calculated before a credit is applied, or r as calculated pursuant to 3. b., from which rate the rates payable for promotion and administrative costs are subtracted;

b. if the credit calculated pursuant to 3. b. is greater than the amount obtained in a., calculate by what amount;

c. determine the amount payable by that producer to the Pool as the lesser of:

(1) the product of the promotion rate established according to Section X and the total hundredweight of milk sold by that producer to a Boston market dealer; or

(2) the product of the amount calculated under b. and the total hundredweight of milk sold by that producer to a Boston market dealer.

The Pool Administrator may deduct the amount owed from future base minimum price pool payments to that producer or from over-order premium pool payments to that producer, may require the producer's dealer to deduct the amount owed from future payments for that producer's milk and remit that amount to the Pool Administrator or may require the producer to pay the amount owed into the Pool. No such amount shall remain outstanding for a period in excess of 90 days.

d. in the case where the amount payable is the amount calculated under c(l), the Pool Administrator shall debit the amount due from the producer against that producer's share of the cost of promotion, and shall make payment of amounts so debited to the Milk Promotion Board upon receipt of payment from the producer.

e. in the case where a producer owes to the Pool the amount calculated under (2), the Pool Administrator shall deduct from the producer's Pool share the cost of administration calculated according to Section XI, and shall pay the remainder of the Pool share to the Milk Promotion Board, as partial payment of the amount due to the Promotion Board from that producer. The amount due to the pool by the producer which is the balance of the amount due for promotion by that producer, shall be paid to the Promotion Board upon receipt of payment from the producer;

6. for each Maine market dealer reporting under II.

A. and Boston market dealer or agricultural cooperative reporting under II.

B. whose producers are due payments out of pool payments made at the base minimum price.

a. the sum of all Pool shares due those producers;

b. the sum of all those producers' shares of the cost of promotion;

c. the sum of all those producers' shares of the cost of administration; and

d. the amount obtained by subtracting b. and c. from a., which amount is the Pool allotment for those producers for the month.

B. No later than the 21st day after the end of each month, the Pool Administrator shall send

1. to each Maine market dealer reporting under 11.

A. and to each Boston market dealer and agricultural cooperative reporting under II.

B. a copy of the calculations made under A., 1.2 and 3;

2. to each Maine market dealer, a copy of calculations made under A.4. for the dealer's producers and of those made under A.6. for the dealer; and

3. to each Boston market dealer and agricultural cooperative, a copy of calculations made under A.4. and A.5. for the dealer's or cooperative's individual producers and of those made under A.6. for the dealer or cooperative.

C. No later than the 5th business day after the 20th day after the end of each month, the Pool Administrator shall send

1. to each Maine market dealer reporting under II.A. the Pool allotment for its producers as reported thereunder. Where a Maine market dealer has reported an agricultural cooperative as a producer, the Pool Administrator shall send the Pool allotment for the cooperative to the cooperative;

2. to each Boston market dealer or agricultural cooperative reporting under 11.B. the Pool allotment for the individual Boston market producers whom the dealer or cooperative has reported thereunder, and/or a statement of any amounts to be deducted from an individual producer's next payment for milk according to 4.e.IV.A.5.c.; and

3. to the Maine Dairy Promotion Board, the amount due for the month for promotion, except any amounts outstanding from Boston market producers in accordance with IV.A.5.C.

01-001 C.M.R. ch. 60, § IV