Chapter ATCP 100

ATCP 100.22(3)(b) (b) The largest amount of unpaid milk payroll obligations that the milk contractor had at any time during the milk contractor’s last completed fiscal year.

ATCP 100.22 Note Note: Under s. 126.47 (5m), Stats., a milk contractor who files security under s. 126.47, Stats., must immediately notify the department if, at any time, the milk contractor’s unpaid milk payroll obligations exceed the amount last reported under sub. (3). Under s. 126.83, Stats., the department may require the milk contractor to provide additional information as necessary.

ATCP 100.22 History History: CR 02-113: cr. Register April 2003 No. 568, eff. 5-1-03; CR 07-073: r. and recr. (3) Register December 2008 No. 636, eff. 1-1-09.

subch. III of ch. ATCP 100 Subchapter III — Milk Contractor Payments to Producers; Records

Subch. III of ch. ATCP 100 Note Note: This subchapter is adopted under authority of ss. 93.07 (1), 97.20 (4), 126.49, 126.51 and 126.81, Stats., and interprets ss. 93.15 and 97.20, Stats., and ch. 126, Stats. The Wisconsin department of agriculture, trade and consumer protection may enforce this subchapter under ss. 93.06 (7) and (8) and 93.21 (4), Stats., and subch. VIII of ch. 126, Stats., as appropriate.

ATCP 100.30 ATCP 100.30 Pay statements to milk producers. On each producer pay date under s. 126.48 (1) or (2), Stats., a milk contractor who procures producer milk in this state from a milk producer shall provide that milk producer with a written pay statement that includes all the following:

ATCP 100.30(1) (1) Milk contractor identification. A pay statement shall include the name and address of the milk contractor.

ATCP 100.30(2) (2) Producer identification. A pay statement shall include the producer’s name and identification number.

ATCP 100.30(3) (3) Pay period. A pay statement shall specify the milk delivery dates for which payment is being made.

ATCP 100.30(4) (4) Milk volume. A pay statement shall specify the total weight of milk, in hundredweights, which the milk contractor received from the milk producer on the dates specified in sub. (3).

ATCP 100.30(5) (5) Grade of milk. A pay statement shall specify the grade of milk that the milk contractor received from the milk producer on the dates specified in sub. (3).

ATCP 100.30(6) (6) Milk test results. If the price paid to the milk producer is affected by test results related to milk components, milk quality or other variables, the pay statement shall indicate all the test results used to determine the pay price unless the milk contractor has already furnished those test results to the milk producer.

ATCP 100.30(7) (7) Milk price and adjustments. A pay statement shall include the following price information, as applicable:

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

ATCP 100.30(7)(a)1. 1. The butterfat content of milk received from the milk producer on the dates specified in sub. (3), expressed as a percentage by weight of milk received.

ATCP 100.30(7)(a)2. 2. The total pounds of butterfat in the milk received from the producer on the dates specified in sub. (3).

ATCP 100.30(7)(a)3. 3. The pay price per pound of butterfat.

ATCP 100.30(7)(a)4. 4. The gross amount paid for butterfat, obtained by multiplying the total pounds of butterfat under subd. 2. by the pay price under subd. 3.

ATCP 100.30(7)(a)5. 5. The pay price per hundredweight for butterfat, obtained by dividing the gross amount paid under subd. 4. by the milk volume in hundredweights under sub. (4).

ATCP 100.30(7)(a)6. 6. Price adjustments per hundredweight for other milk components such as protein or solids not fat.

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

ATCP 100.30(7)(a)8. 8. Price adjustments per hundredweight based on volume or other factors identified in the pay statement.

ATCP 100.30(7)(a)9. 9. The producer’s average gross pay per hundredweight of milk, obtained by applying the adjustments under subds. 6. to 8. to the pay price per hundredweight for butterfat under subd. 5.

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.