Pooling and equalization of milk in market areas
- • money withheld from producers
- • disposition of receipts by department
- • producer-handler quota
(1) Except as provided by ORS 583.475 (Referendum in market area on establishment or termination of market pool), the State Department of Agriculture shall establish a system of pooling of all milk used in each market area established by ORS 583.470 (Market areas).
(2) Thereafter the department shall establish a system in each market area for the equalization of returns for all quota milk and all surplus over quota milk whereby all producers selling milk to milk handlers will receive the same price for all quota milk and all surplus over quota milk utilized as Class 1, Class 2 and Class 3 except that any premium paid to a producer by a handler above minimum prices established under ORS 583.505 (Orders establishing minimum prices for sale of milk by producers to handlers), because of quality of milk produced and sold shall not be considered in determining average pool prices.
(3) In providing for such pooling and equalization, the department shall determine amounts to be withheld from producers by a handler and paid to the department of not more than five cents per hundredweight for administering the market pool and amounts for the benefit of producers selling milk to other handlers in the market area in which the market pool is established in order to equalize payments between producers or producer groups. Upon the failure of any handler to withhold out of amounts due or to become due to a producer at the time a handler is notified by the department of the amounts to be withheld and upon failure of such handler to pay such amounts, the department subject to ORS 583.450 (Denial, suspension or revocation of license), may revoke the license of the handler required by ORS 583.440 (License required of handlers and producer-handlers) (1). The department may commence an action against the handler in the circuit court of the county in which the handler resides or has principal place of business to collect such amounts. If it is determined upon such action that the handler has wrongfully refused to pay the amounts the handler shall be required to pay, in addition to such amounts, all the costs and disbursements of the action, to the department as determined by the court. If the department’s contention in such action is not sustained, the department shall pay to the handler all costs and disbursements of the action as determined by the court.
(4) Replacement milk will be subject to equalization in the market area where produced and sold, without regard to the market area where processed.
(5) The amounts received by the department under this section shall be deposited in a designated account in the State Treasury in accordance with ORS 293.445 (Definition for ORS 293.445 to 293.460). Disbursements therefrom shall be made as provided by this section or orders promulgated thereunder. Notwithstanding ORS 293.140 (Disposition of interest on state funds), interest earned on cash balances invested by the State Treasurer shall be credited to this account.
(6) A producer-handler desiring to be a producer may have a quota activated in the producer equalization and pooling system in a manner prescribed by the department. Such activated quota shall remain in effect thereafter for at least 12 consecutive months. In order to establish ability and intent to assume the obligation of supplying consumers’ need for milk, a producer-handler who becomes a producer shall be ineligible to transfer such quota for two years. Also, a producer who sells cows and transfers quota shall become ineligible to become a producer-handler for a period of two years thereafter. A producer-handler who for any reason fails to meet the requirements set forth in ORS 583.007 (Definitions) (12) shall be treated as a producer with quota and as a licensed handler until such time as the producer-handler again qualifies as a producer-handler for a full month. [1963 c.442 §18; 1967 c.440 §18; 1967 c.637 §§16,16a; 1977 c.307 §2; 1981 c.523 §1]
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