s 21.62 Payments by the commissioner to cooperative associations.


Published: 2021-01-15

Subscribe to a Global-Regulation Premium Membership Today!

Key Benefits:

Subscribe Now for only USD$40 per month, or Get a Day Pass for only USD$9.99.
Any cooperative association of producers may apply to the commissioner for a determination of its qualification to receive payments pursuant to this section.

Payment shall be made only to cooperative associations, as defined in section 21.10 of this Part, which qualify as follows:

(1) At least three fourths of its members are producers under contract with and delivering milk through such cooperative association, and, with respect to any other members, the cooperative association has a satisfactory plan for either terminating the membership of such producers or requiring them to sell their milk under contract with or through such cooperative association.

(2) Agrees to use and uses its best efforts to secure utilization of the milk of all of its members in the class or classes which assure the greatest possible return to all producers.

(3) Such cooperative or, if a federation of cooperatives, each member of such federation is an active member of a duly organized cooperative milk producers' bargaining agency which performs services for the benefit of all producers supplying the market, including the following:(i) analyzing milk marketing problems and their solutions, conducting market research and maintaining current information as to market developments, preparing and assembling statistical data relative to prices and marketing conditions, and making an economic analysis of such data;(ii) determining the need for the formulation of amendments to this order and proposing such amendments to the commissioner and requesting a hearing to consider the same; and(iii) participating in proceedings with respect to amendments to this order, including the preparation and presentation of evidence at public hearings.

(i) analyzing milk marketing problems and their solutions, conducting market research and maintaining current information as to market developments, preparing and assembling statistical data relative to prices and marketing conditions, and making an economic analysis of such data;

(ii) determining the need for the formulation of amendments to this order and proposing such amendments to the commissioner and requesting a hearing to consider the same; and

(iii) participating in proceedings with respect to amendments to this order, including the preparation and presentation of evidence at public hearings.

(4) Such cooperative has a plan which it follows in keeping its members informed concerning current market conditions.

(5) Such cooperative association expresses approval, disapproval or its intention to abstain from approval or disapproval and its reasons therefor with respect to all amendments to this order as submitted by the commissioner.

(6) In the case of an operating cooperative, such cooperative meets all of the following additional qualifications:(i) Such cooperative maintains and operates a plant or plants where the milk of members or nonmembers may be received and handled as a service to the market.(ii) Such cooperative maintains facilities or has participating interest in cooperative facilities at all times where surplus milk may be handled as a service to the market.(iii) Such cooperative agrees to furnish milk for use in Class I to any marketer who requests such milk, if such cooperative has milk which is currently being used in Class II or Class III, and if the marketer who so requests does not have milk being utilized in other than Class I.

(i) Such cooperative maintains and operates a plant or plants where the milk of members or nonmembers may be received and handled as a service to the market.

(ii) Such cooperative maintains facilities or has participating interest in cooperative facilities at all times where surplus milk may be handled as a service to the market.

(iii) Such cooperative agrees to furnish milk for use in Class I to any marketer who requests such milk, if such cooperative has milk which is currently being used in Class II or Class III, and if the marketer who so requests does not have milk being utilized in other than Class I.

After the commissioner has determined that a cooperative association is qualified to receive payments pursuant to this section, such cooperative association shall be entitled to receive such payments at the rates established pursuant to subdivision (d) of this section, except as provided in section 21.68 of this Part.

The commissioner shall make payment from the equalization fund, or issue credit therefor, at the following rates:

(1) to a bargaining cooperative, $.01 per hundredweight of pool milk of its members delivered to any marketer's pool plant, except for that milk which is reported as pool milk by a collecting or an operating cooperative;

(2) to a collecting cooperative, $.02 per hundredweight of pool milk reported by such cooperative; and

(3) to an operating cooperative, $.05 per hundredweight of pool milk reported by such cooperative.