32.24.301 PRICING RULES
(1) The provisions of this pricing rule and prices announced
pursuant thereto are ordered in the exercise of authority delegated to the
board of milk control by the provisions of 81-23-302, MCA.
(2) Any person, subject to this pricing rule or
any price announcement issued hereunder shall be considered in violation
thereof if he or it engages in such violation in any manner, directly or
indirectly, or through an agent, employee, trust subsidiary, or affiliated
company or corporation.
(3) It is the intent of the Montana board of milk
control that if a part of this rule, announcement of any price issued hereunder
is invalid, all valid parts that are severable from the invalid part remain in
effect. If a part of this rule or any
price announcement issued hereunder is invalid in one or more of its
applications, that part remains in effect in all valid applications that are
severable from the invalid applications.
(4) Nothing contained herein shall be construed as
prohibiting the payment of higher prices to producers.
(5) The minimum class I price per hundredweight at
3.5% butterfat which shall be paid to producers by distributors in the state of
Montana, shall be the monthly federal order price according to 7 CFR 1000.50(a) through (c) plus a Montana class I location differential of $2.55.
(a) When milk does not test 3.5% butterfat, the
price per CWT will be adjusted for each .1% the butterfat test moves up or
milk control bureau will use the federal order fat and skim prices to calculate
the producer prices. Federal order fat
and skim prices shall be announced on the Friday previous to the 23rd of each
month unless the 23rd falls on a Friday.
Montana's producer prices will be announced on or about the 5th of the
subsequent month (depending upon weekends and holidays) and will be effective
for the next following month.
(6) Prices paid producers for class II milk
will be the last spray process nonfat dry milk solids price per pound quote for
the month, Central States area, as most recently reported by the United States
department of agriculture, plus a factor of $.0125 per pound for freight,
multiplied by 8.2 (which is the amount of solids not fat in skim milk) , plus
the last Chicago area grade AA butter price quote for the month as most
recently reported by the United States department of agriculture, less an
adjustment factor of $.0895, multiplied by 4.2 (which is the amount of butter
in pounds, which can be produced from 100 pounds of 3.5% milk) , less a make
allowance of 8.5%. In the case of milk containing more or less than 3.5%
butterfat, the differential to be employed in computing prices will be
determined by multiplying the above-mentioned Chicago area butter price
by .111 and the resulting answer from this calculation shall be rounded to
nearest half cent ($0.005) .
(7) Prices paid to producers for class III
milk will be the last Chicago area grade AA butter price quote for the month as
most recently reported by the United States department of agriculture, less an
adjustment factor of $.0895, less 10% and, in addition, when skim milk is utilized
in this classification by any distributor, the last spray process nonfat milk
solids price per pound quote for the month, the Central States area, as most
recently reported by the United States department of agriculture, plus a factor
of $.0125 per pound for freight, multiplied by 8.2, less 17%.
(8) Producers who ship in excess of any
beneficial use, and that milk is shipped to a different market and classified
by statute and rule as class III, shall receive a price for that milk based on
calculations in ARM 32.24.522.
(9) The total cost to a plant for surplus
milk that is shipped to a cheese or powder plant is determined by ARM
price established by any formula set forth in this rule shall be charged if the
same be contrary to any supervening federal or state law, rule or
regulation. Should any minimum prices
published by this board under this rule exceed the limitations imposed by such
laws, rules or regulations, such prices shall be reduced to the extent of such
excess, even though such reduction may impair a uniform or complete application
of the price fixing formula, or any of the same, set out in this rule. The prices, as so modified, shall be
respected and enforced as the minimum prices established under this rule.
(11) Monthly price announcements for class I, II and
III producer milk pricing will be computed by the milk control bureau in
accordance with this pricing rule and published by the 10th of each month. The minimum producer price will be uniform
and identical throughout the state of Montana.
History: Sec. 81-23-302 MCA; IMP, Sec. 81-23-302 MCA; Eff. 12/31/72; AMD, Eff. 5/7/73; AMD, Eff. 10/1/73; AMD, Eff. 12/1/73; AMD, Eff. 4/5/74; AMD, Eff. 6/5/74; AMD, Eff. 4/4/75; AMD, Eff. 2/1/76; AMD, Eff. 5/6/76; AMD, Eff. 9/5/76; AMD, Eff. 7/5/77; AMD, 1979 MAR p. 1182, Eff. 11/1/79; AMD, 1981 MAR p. 1181, Eff. 10/16/81; AMD, 1982 MAR p. 1096, Eff. 5/28/82; AMD, 1982 MAR p. 1480, Eff. 7/30/82; AMD, 1982 MAR p. 1743, Eff. 10/1/82; AMD, 1983 MAR p. 649, Eff. 6/17/83; AMD, 1983 MAR p. 1459, Eff. 10/14/83; AMD, 1984 MAR p. 969, Eff. 6/29/84; AMD, 1986 MAR p. 1016, Eff. 6/13/86; AMD, 1986 MAR p. 1504, Eff. 9/12/86; AMD, 1987 MAR p. 881, Eff. 6/26/87; AMD, 1988 MAR p. 973, Eff. 5/27/88; AMD, 1988 MAR p. 1524, Eff. 7/15/88; AMD, 1988 MAR p. 2298, Eff. 10/28/88; AMD, 1989 MAR p. 15, Eff. 1/13/89; AMD, 1989 MAR p. 2047, Eff. 4/1/90; AMD, 1990 MAR p. 821, Eff. 6/30/90; AMD, 1990 MAR p. 2177, Eff. 12/14/90; AMD, 1991 MAR p. 296, Eff. 3/15/91; AMD, 1991 MAR p. 513, Eff. 4/26/91; AMD, 1991 MAR p. 1550, Eff. 8/30/91; AMD, 1991 MAR p. 2600, Eff. 12/27/91; AMD, 1992 MAR p. 563, Eff. 3/27/92; AMD, 1992 MAR p. 2377, Eff. 10/30/92; AMD, 1993 MAR p. 2234, Eff. 10/1/93; AMD, 1993 MAR p. 3018, Eff. 12/24/93; AMD, 1995 MAR p. 2691, Eff. 12/8/95; TRANS, from Commerce, 1996 MAR p. 456; AMD, 1996 MAR p. 2181, Eff. 8/9/92; AMD, 1996 MAR p. 2428, Eff. 10/1/96; AMD, 1997 MAR p. 434, Eff. 2/25/97; EMERG, AMD, 1998 MAR p. 2760, Eff. 10/9/98; AMD, 2000 MAR p. 1753, Eff. 9/1/00; EMERG, AMD, 2000 MAR p. 3413, Eff. 12/8/00.