Chapter ATCP 100

ATCP 100.30(7)(b) (b) Payment based on 3.5% butterfat differential. If the milk contractor is paying the producer on a 3.5% butterfat differential basis, the pay statement shall include all the following information:

ATCP 100.30(7)(b)1. 1. The base price per hundredweight for milk containing 3.5% butterfat by weight.

ATCP 100.30(7)(b)2. 2. The price differential per hundredweight for each percentage point, plus or minus, by which the butterfat content of the producer’s milk differs from 3.5%.

ATCP 100.30(7)(b)3. 3. Price adjustments per hundredweight for other milk components such as protein or solids not fat.

ATCP 100.30(7)(b)4. 4. Price adjustments per hundredweight for milk grade or quality, including adjustments for bacteria or somatic cell counts.

ATCP 100.30(7)(b)5. 5. Price adjustments per hundredweight based on volume or other factors identified in the pay statement.

ATCP 100.30(7)(b)6. 6. The producer’s average gross pay per hundredweight of milk after adjustments under this section.

ATCP 100.30(7)(c) (c) Payment based on multiple component pricing. If the milk contractor is paying the producer on a multiple component pricing basis, the pay statement shall include all the following information:

ATCP 100.30(7)(c)1. 1. The milk volume in hundredweights under sub. (4) multiplied by the applicable producer price differential per hundredweight.

ATCP 100.30 Note Note: Federal milk marketing orders specify, for each pay period, minimum producer price differentials for grade A milk covered by those orders.

ATCP 100.30(7)(c)2. 2. The pounds of butterfat contained in the milk received from the producer on the dates specified in sub. (3), multiplied by the applicable butterfat price per pound.

ATCP 100.30 Note Note: Federal milk marketing orders specify, for each pay period, minimum butterfat prices for grade A milk covered by those orders.

ATCP 100.30(7)(c)3. 3. The pounds of protein contained in the milk received from the producer on the dates specified in sub. (3), multiplied by the applicable protein price per pound.

ATCP 100.30 Note Note: Federal milk marketing orders specify, for each pay period, minimum protein prices for grade A milk covered by those orders.

ATCP 100.30(7)(c)4. 4. The pounds of other solids contained in the milk received from the producer on the dates specified in sub. (3), multiplied by the applicable price per pound for other solids.

ATCP 100.30 Note Note: Federal milk marketing orders specify, for each pay period, minimum “other solids” prices for grade A milk covered by those orders.

ATCP 100.30(7)(c)5. 5. For each applicable price adjustment based on milk grade or quality, the milk volume in hundredweights under sub. (4) multiplied by the price adjustment per hundredweight. The pay statement shall identify the basis for each price adjustment under this subdivision.

ATCP 100.30 Note Note: This includes price adjustments for bacteria count, somatic cell count, or other measures of grade or quality. Federal milk marketing orders specify, for each pay period, minimum somatic cell adjustments for grade A milk covered by those orders.

ATCP 100.30(7)(c)6. 6. For each applicable price adjustment based on volume or other factors, the milk volume in hundredweights under sub. (4) multiplied by the price adjustment per hundredweight. The pay statement shall identify the basis for each price adjustment under this paragraph.

ATCP 100.30(7)(c)7. 7. The producer’s average gross pay per hundredweight of milk, calculated as the sum of the value used under subds. 1. to 6., divided by the milk volume in hundredweights under sub. (4).

ATCP 100.30(8) (8) Gross amount due. A pay statement shall specify the gross amount due the producer for milk delivered on the dates specified under sub. (3), prior to any deductions under sub. (11).

ATCP 100.30(9) (9) Average gross pay per hundredweight less hauling charges. A pay statement shall specify the producer’s average gross pay per hundredweight less hauling charges. This consists of the gross amount due under sub. (8) less total hauling expenses charged to the producer for the pay period under sub. (11) (a), divided by the milk volume in hundredweights under sub. (4).

ATCP 100.30(10) (10) Net amount due. A pay statement shall specify the net amount due the producer for the milk delivered on the dates specified in sub. (3). This consists of the total amount due under sub. (8) less all deductions under sub. (11).

ATCP 100.30(11) (11) Deductions. A pay statement shall specify the nature and amount of every deduction from the gross amount due the producer under sub. (8), including deductions for any of the following that apply:

ATCP 100.30(11)(a) (a) Milk hauling expenses charged to the producer.

ATCP 100.30(11)(b) (b) Deductions related to drug residue violations.

ATCP 100.30(11)(c) (c) Dairy products that the producer buys from the milk contractor.

ATCP 100.30(11)(d) (d) Supplies that the milk contractor provides to the milk producer.

ATCP 100.30(11)(e) (e) Wisconsin milk marketing board deductions.

ATCP 100.30(11)(f) (f) National dairy promotion deductions.

ATCP 100.30(11)(g) (g) Commodity credit corporation deductions.

ATCP 100.30(11)(h) (h) Insurance deductions.

ATCP 100.30(11)(i) (i) Cooperative fees or capital retained.

ATCP 100.30(11)(j) (j) Creditor assignments.

ATCP 100.30(11)(k) (k) Other deductions.

ATCP 100.30 History History: CR 02-113: cr. Register April 2003 No. 568, eff. 5-1-03.

ATCP 100.32 ATCP 100.32 Pay records.

ATCP 100.32(1) (1) Records required. A milk contractor shall keep accurate records and accounts of milk receipts, payments for milk received, and amounts owed to milk producers and producer agents. Records shall include all the following:

ATCP 100.32(1)(a) (a) A copy of every contract between the milk contractor and a milk producer or producer agent.

ATCP 100.32(1)(b) (b) A record of all milk receipts from producers and producer agents, showing the amount received from each producer or producer agent and the date of each receipt.

ATCP 100.32(1)(c) (c) A record of every milk producer pay statement required under s. ATCP 100.30.

ATCP 100.32(1)(d) (d) Records showing the nature and amount of any non-price consideration that the milk contractor furnishes to a producer in return for the producer’s sale or consignment of milk to the milk contractor, but which is not reflected in the producer’s pay statement under s. ATCP 100.30. In this subsection, “non-price consideration” has the meaning given in s. ATCP 100.98 (6).

ATCP 100.32(1)(e) (e) The result of every test on a producer milk delivery, including any test related to milk components or milk quality. Records shall specify the delivery to which each test pertains.

ATCP 100.32(1)(f) (f) A payroll summary showing, for each payroll period, the amount of milk received from producers, the gross amounts owed to producers for milk received, the amount and disposition of any payroll deductions, the net amounts owed to producers after deductions, and the amounts paid to producers.

ATCP 100.32(1)(g) (g) Other computer records, worksheets and accounting records showing how the milk contractor computed payment obligations to milk producers and producer agents.

ATCP 100.32(1)(h) (h) Records showing the milk contractor’s use and disposition of milk and dairy products received by the milk contractor. Records shall enable the milk contractor to do all the following:

ATCP 100.32(1)(h)1. 1. Account for the sale, use or disposition of all milk and dairy products received by the milk contractor.

ATCP 100.32(1)(h)2. 2. Account for the source of all milk and dairy products sold, marketed or otherwise disposed of by the milk contractor.

ATCP 100.32(2) (2) False records.

ATCP 100.32(2)(a) (a) No milk contractor may falsify any record or account, or conspire with any other person to falsify a record or account.

ATCP 100.32(2)(b) (b) No milk contractor may provide any milk producer or producer agent with any statement or accounting that is false or misleading, or that contains any false or misleading computation or arrangement of figures.

ATCP 100.32(3) (3) Records retention and inspection. A milk contractor shall retain the records required under this section for at least 3 years, and shall make the records available to the department for inspection and copying upon request.

ATCP 100.32 History History: CR 02-113: cr. Register April 2003 No. 568, eff. 5-1-03.

subch. IV of ch. ATCP 100 Subchapter IV — Discriminatory Payments to Producers

Subch. IV of ch. ATCP 100 Note Note: This subchapter is adopted under authority of ss. 93.07 (1), 97.20 (4), and 100.20 (2), Stats., and interprets ss. 93.15, 97.20, 100.20 and 100.22, Stats. Violations are subject to the sanctions provided in ss. 93.21 (4), 97.72, 97.73, 100.20, 100.22 (4) and (5), 100.24, and 100.26 (3), (5) and (6), Stats. Violations of this subchapter may also result in license sanctions under ss. 93.06 (7) and (8) and 97.20, Stats.

ATCP 100.98 ATCP 100.98 Definitions. In this subchapter:

ATCP 100.98(1) (1) “Base period” means the dairy plant operator’s most recently completed fiscal year, or another representative period approved by the department.

ATCP 100.98(2) (2) “Base period producer service cost” means a dairy plant operator’s total cost, for the operator’s base period, for all of the following:

ATCP 100.98(2)(a) (a) Dairy farm field service costs other than field service costs which are directly attributable to violations of ch. ATCP 65.

ATCP 100.98(2)(b) (b) Costs to test dairy farm milk shipments before the dairy plant operator commingles those milk shipments with other milk shipments at the dairy plant. Testing costs include lab testing, reporting and recordkeeping costs related to milk testing. Testing costs do not include costs incurred by a milk hauler to collect milk samples from dairy farms, nor do they include costs incurred because of producer’s violation of ch. ATCP 65.

ATCP 100.98(2)(c) (c) Expenses to prepare and maintain producer payroll records and process payments to producers.

ATCP 100.98(2)(d) (d) Dairy farm license fees and other routine expenses which the dairy plant operator incurs in connection with the licensing and regulation of dairy farms.

ATCP 100.98(2)(e) (e) Other costs which the department allows in writing.

ATCP 100.98(3) (3) “Base period pickup cost” means a dairy plant operator’s total cost, for the operator’s base period, to collect milk from dairy farms. “Base period pickup cost” does not include any of the following:

ATCP 100.98(3)(a) (a) Milk collection and hauling costs which the dairy plant operator charges to milk producers.

ATCP 100.98(3)(b) (b) Transportation or milk hauling costs incurred before the milk hauler arrives at the first dairy farm on the hauling route, or after the milk hauler leaves the last farm on the hauling route.

ATCP 100.98(4) (4) “Dairy plant operator” means either of the following:

ATCP 100.98(4)(a) (a) A person who holds, or is required to hold, a dairy plant license under s. 97.20, Stats., and who buys milk from producers.

ATCP 100.98(4)(b) (b) A person who operates a dairy plant outside this state, and who buys milk from Wisconsin producers for delivery to that out-of-state dairy plant.

ATCP 100.98(5) (5) “Milk price” means a producer’s average gross pay per hundredweight less hauling charges, calculated for a pay period according to s. ATCP 100.30 (9).

ATCP 100.98(6) (6) “Pay class” means a group of producers who qualify for the same volume premium.

ATCP 100.98(7) (7) “Pickup cost per hundredweight” means the cost calculated under s. ATCP 100.983 (5) for a pay class or individual producer.

ATCP 100.98(8) (8) “Producer service cost per hundredweight” means the cost calculated under s. ATCP 100.983 (4) for a pay class or individual producer.

ATCP 100.98(9) (9) “Non-price consideration” means anything of monetary value which a dairy plant operator or the operator’s agent offers or provides to a producer in return for the producer’s sale of milk to the operator, but which is not reflected in the milk price. “Non-price consideration” includes monetary payments, goods, milk hauling services, farm and household services, prizes, price and financing considerations, and other things that have direct monetary value to the producer. “Non-price consideration” includes services which a milk hauler furnishes as an agent of a dairy plant operator.

ATCP 100.98(10) (10) “Volume premium” means any form of milk price increment or non-price consideration which a dairy plant operator or the operator’s agent offers or provides to a producer based on the producer’s milk volume, or which the operator or agent offers or provides only to certain producers based on their milk volume.

ATCP 100.98 Note Note: If a dairy plant operator pays a producer a higher price per hundredweight based on the total weight of any milk component (e.g., protein or butterfat) received from that producer, that price increment is a “volume premium” as defined under sub. (9). However, a per-hundredweight price increment based solely on the percentage contents of milk components in milk is not a “volume premium.”

ATCP 100.98 History History: Cr. Register, September, 1996, No. 489, eff. 10-1-96; CR 02-113: renum. (4) to be (5) and am., cr. (4), renum. (5) to (9) to be (7) to (9), (6) and (10), am. (4) (f) Register April 2003 No. 568, eff. 5-1-03; CR 14-073: am. (2) (a), (b) Register August 2016 No. 728, eff. 9-1-16.

ATCP 100.981 ATCP 100.981 Price discrimination prohibited. Except as provided under s. ATCP 100.982, 100.983 or 100.984, no dairy plant operator may do any of the following if the operator’s action injures any producer or injures, destroys or prevents competition between competing dairy plant operators:

ATCP 100.981(1) (1) Discriminate between producers, directly or indirectly, in the milk price offered or paid to those producers.

ATCP 100.981(2) (2) Discriminate between producers, directly or indirectly, in the value of any non-price consideration offered or provided to those producers. A dairy plant operator does not discriminate under this subsection if the operator offers the same non-price consideration to all producers on equal terms, so that the same non-price consideration is effectively available to all producers who wish to receive it.

ATCP 100.981 Note Note: Section ATCP 100.981 is adopted under s. 100.20 (2), Stats., and other applicable statutes. A person who suffers a monetary loss because of a violation of s. ATCP 100.981 may therefore bring a private lawsuit against the violator under s. 100.20 (5), Stats., and may recover double damages, costs and reasonable attorney fees.

ATCP 100.981 History History: Cr. Register, September, 1996, No. 489, eff. 10-1-96.

ATCP 100.982 ATCP 100.982 Exemptions. Section ATCP 100.981 does not prohibit a dairy plant operator from doing any of the following:

ATCP 100.982(1) (1) Paying a different milk price for grade A versus grade B milk.

ATCP 100.982(2) (2) Complying with a federal milk marketing order.

ATCP 100.982(3) (3) Properly charging a producer, pursuant to ch. ATCP 65 or the procurement contract, for costs which the dairy plant operator or milk contractor incurs because of the producer’s violation of ch. ATCP 65.

ATCP 100.982(4) (4) Paying different milk prices to producers based on actual differences in the quality of their milk, or based on actual differences in the percentage content of milk components in their milk, provided that all of the following apply:

ATCP 100.982(4)(a) (a) The dairy plant operator pays for milk quality, or for the percentage content of milk components in a producer’s milk, according to a written payment schedule which the operator announces and makes available on equal terms to all producers from whom the dairy plant operator buys milk.

ATCP 100.982(4)(b) (b) The payment schedule under par. (a) clearly indicates the amounts by which payments will vary based on actual differences in milk quality, or based on actual differences in the percentage content of milk components in a producer’s milk.