ATCP 100.135(4)(a)4. 4. Divide the debt to equity ratio by 3.25.

ATCP 100.135(4)(a)5. 5. Raise the amount determined in subd. 4. to the 5th power.

ATCP 100.135(4)(a)6. 6. Add the amount determined under subd. 3. to the amount determined under subd. 5.

ATCP 100.135(4)(a)7. 7. Add 0.025 to the amount determined under subd. 6.

ATCP 100.135(4)(b) (b) If the milk contractor files an annual financial statement under s. 126.44, Stats., and that financial statement shows a debt to equity ratio of greater than 2.0 to 1.0 but less than 2.9 to 1.0, the milk contractor’s debt to equity ratio assessment rate equals the debt to equity ratio assessment factor in sub. (5) (b) multiplied by an amount determined as follows:

ATCP 100.135(4)(b)1. 1. Subtract 2 from the debt to equity ratio.

ATCP 100.135(4)(b)2. 2. Divide the amount determined under subd. 1. by 3.

ATCP 100.135(4)(b)3. 3. Raise the amount determined under subd. 2. to the 9th power.

ATCP 100.135(4)(b)4. 4. Divide the debt to equity ratio by 3.25.

ATCP 100.135(4)(b)5. 5. Raise the amount determined under subd. 4. to the 5th power.

ATCP 100.135(4)(b)6. 6. Add the amount determined under subd. 3. to the amount determined under subd. 5.

ATCP 100.135(4)(b)7. 7. Add 0.025 to the amount determined under subd. 6.

ATCP 100.135(4)(c) (c) Except as provided in par. (e), if the milk contractor has filed an annual financial statement under s. 126.44, Stats., and that financial statement shows negative equity, or a debt to equity ratio of at least 2.9 to 1.0, the milk contractor’s debt to equity ratio assessment rate equals the debt to equity ratio assessment factor in sub. (5) (b) multiplied by 0.590704.

ATCP 100.135(4)(d) (d) Except as provided in par. (e), if the milk contractor has not filed an annual financial statement s. 126.44, Stats., the milk contractor’s debt to equity ratio assessment rate equals the debt to equity ratio assessment factor in sub. (5) (b) multiplied by 0.11325375.

ATCP 100.135(4)(e) (e) If the milk contractor procures producer milk in this state solely as a producer agent and the milk contractor has not filed an annual financial statement under s. 126.44, Stats., or has filed an annual financial statement that shows negative equity or a debt to equity ratio of at least 2.9 to 1.0, the milk contractor’s debt to equity ratio assessment rate is 0.00025, except that for the milk contractor’s 5th or higher consecutive full license year of participation in the fund the milk contractor’s debt to equity ratio assessment rate is 0.000175.

ATCP 100.135(5) (5) Debt to equity ratio assessment factor.

ATCP 100.135(5)(a) (a) A milk contractor’s debt to equity ratio assessment factor under sub. (4) (a) is 0.0015, except as follows:

ATCP 100.135(5)(a)1. 1. For the milk contractor’s 3rd consecutive full license year as a contributing milk contractor, the milk contractor’s debt to equity ratio assessment factor is 0.001.

ATCP 100.135(5)(a)2. 2. For the milk contractor’s 4th consecutive full license year as a contributing milk contractor, the milk contractor’s debt to equity ratio assessment factor is 0.0005.

ATCP 100.135(5)(a)3. 3. For the milk contractor’s 5th or higher consecutive full license year as a contributing milk contractor, the milk contractor’s debt to equity ratio assessment factor is zero.

ATCP 100.135(5)(b) (b) A milk contractor’s debt to equity ratio assessment factor under sub. (4) (b) to (d) is 0.00225, except that, for the milk contractor’s 5th or higher consecutive full license year as a contributing milk contractor, the milk contractor’s debt to equity ratio assessment factor is 0.001.

ATCP 100.135(6) (6) Reduced assessments.

ATCP 100.135(6)(a) (a) If a contributing milk contractor files security under s. 126.47 (1) (b), Stats., the milk contractor’s fund assessment under sub. (1) is reduced by the amount provided in s. 126.46 (5m), Stats. This reduction is in addition to any reduction provided under par. (b).

ATCP 100.135(6)(b) (b) If a contributing milk contractor files security under par. (d) in an amount that is at least equal to the milk contractor’s estimated default exposure less the maximum fund reimbursement amount, the milk contractor’s annual fund assessment under sub. (1) for that year is reduced by an amount that is determined as follows:

ATCP 100.135(6)(b)1. 1. Subtract the maximum fund reimbursement from the milk contractor’s estimated default exposure.

ATCP 100.135(6)(b)2. 2. Divide the result in subd. 1. by the milk contractor’s estimated default exposure.

ATCP 100.135(6)(b)3. 3. Multiply the results in subd. 2. by the amount of the milk contractor’s annual fund assessment under sub. (1).

ATCP 100.135(6)(c) (c) Notwithstanding pars. (a) and (b), no contributing milk contractor may pay a fund assessment that is less than the minimum fund assessment under sub. (9).

ATCP 100.135(6)(d) (d) A milk contractor may at any time file security with the department, regardless of whether the milk contractor is required to file security. Except as provided in par. (b), a voluntary security filing under this paragraph does not relieve a milk contractor of any other obligation to file security or pay fund assessments.