§ 1810. Optional provisions for pricing order
Regulations establishing a compact over-order price or a Commission marketing order
may contain, but shall not be limited to, any of the following:
(1) Provisions classifying milk in accordance with the form in which or purpose for which
it is used, or creating a flat pricing program.
(2) With respect to a Commission marketing order only, provisions establishing or providing
a method for establishing separate minimum prices for each use classification prescribed
by the Commission, or a single minimum price for milk purchased from producers or
associations of producers.
(3) With respect to an over-order minimum price, provisions establishing or providing
a method for establishing such minimum price for Class I milk.
(4) Provisions for establishing either an over-order price or a Commission marketing order
may make use of any reasonable method for establishing such price or prices including
flat pricing and formula pricing. Provision may also be made for location adjustments,
zone differentials, and for competitive credits with respect to regulated handlers
who market outside the regulated area.
(5) Provisions for the payment to all producers and associations of producers delivering
milk to all handlers of uniform prices for all milk so delivered, irrespective of
the uses made of such milk by the individual handler to whom it is delivered, or for
the payment of producers delivering milk to the same handler of uniform prices for
all milk delivered by them.
(A) With respect to regulations establishing a compact over-order price, the Commission
may establish one equalization pool within the regulated area for the sole purpose
of equalizing returns to producers throughout the regulated area.
(B) With respect to any Commission marketing order, as defined in section 1802 of this
compact, subdivision (9), which replaces one or more terminated federal orders or
state dairy regulation, the marketing area of now separate state or federal orders
shall not be merged without the affirmative consent of each state, voting through
its delegation, which is partly or wholly included within any such new marketing area.
(6) Provisions requiring persons who bring Class I milk into the regulated area to make
compensatory payments with respect to all such milk to the extent necessary to equalize
the cost of milk purchased by handlers subject to a compact over-order price or Commission
marketing order. No such provisions shall discriminate against milk producers outside
the regulated area. The provisions for compensatory payments may require payment of
the difference between the Class I price required to be paid for such milk in the
state of production by a federal milk marketing order or state dairy regulation and
the Class I price established by the compact over-order price or Commission marketing
order.
(7) Provisions specially governing the pricing and pooling of milk handled by partially
regulated plants.
(8) Provisions requiring that the account of any person regulated under a compact over-order
price shall be adjusted for any payments made to or received by such persons with
respect to a producer settlement fund of any federal or state milk marketing order
or other state dairy regulation within the regulated area.
(9) Provisions requiring the payment by handlers of an assessment to cover the costs of
the administration and enforcement of such order pursuant to Article VII, subsection
1818(a) of this chapter.
(10) Provisions for reimbursement to participants of the Women, Infants and Children Special
Supplemental Food Program of the United States Child Nutrition Act of 1966.
(11) Other provisions and requirements as the Commission may find are necessary or appropriate
to effectuate the purposes of this compact and to provide for the payment of fair
and equitable minimum prices to producers. (Added 1993, No. 57, § 1, eff. June 3, 1993.)