Minnesota Session Laws - 1984, Regular Session

  

                         Laws of Minnesota 1984 

                        CHAPTER 509-H.F.No. 1425
           An act relating to agriculture; providing for 
          alternative methods for establishing the value of milk 
          purchased from producers; amending Minnesota Statutes 
          1982, section 32.25, subdivision 1. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  Minnesota Statutes 1982, section 32.25, 
subdivision 1, is amended to read: 
    Subdivision 1.  [MILK FAT, AND NONFAT PROTEIN, AND SOLIDS 
NOT FAT BASES OF PAYMENT; TESTS.] All milk and cream purchased 
from producers, and all milk, cream, skim milk, and buttermilk 
purchased by one dairy plant from another dairy plant for the 
purpose of resale as such, or for manufacture into dairy 
products, shall be purchased by weight and payment shall be made 
therefor upon the basis of milk fat therein contained in the 
case of milk and cream, and on the basis of nonfat milk solids 
contained therein in the case of skim milk and buttermilk; 
provided, that in purchasing whole milk the purchase price of 
such milk shall be based upon the declared purchase price of 100 
pounds of whole milk (1) calculated at three and one-half pounds 
of milk fat per hundredweight, or (2) calculated at three and 
one-half pounds of milk fat per hundredweight and the nonfat 
solids contained therein.  The latter basis shall be used only 
after the commissioner has promulgated, as provided in this 
subdivision, rules and regulations for the testing of nonfat 
solids.  When the milk fat test of such whole milk varies from 
3.5 percent, a uniform adjustment in the declared purchase price 
shall be made for each one-tenth of one percent of milk fat 
above or below 3.5 percent.  
    The percentage of milk fat in such milk and cream shall be 
determined as follows:  (1) By the Babcock test and by employing 
a standard official method for operating this test, which method 
shall be that adopted, prescribed, and set forth, with 
specifications in detail, in the rules and regulations from time 
to time made and published by the commissioner in the manner 
provided by law; or (2) by alternative tests which not only 
determine the percentage of milk fat but also determine the 
amount of nonfat solids, when the commissioner is satisfied that 
these alternative tests are consistently as accurate as the 
Babcock test in determining the percentage of milk fat.  The 
amount of nonfat milk solids in skim milk and buttermilk shall 
be determined by methods provided for herein.  The tests shall 
be performed in the manner and with equipment prescribed by 
rules and regulations promulgated by the commissioner in the 
manner provided by law.  
    All milk and cream purchased from producers shall be 
purchased by weight and one or more of the following methods:  
    (1) payment of a standard rate with uniform differentials 
for milk testing above or below 3.5 percent milk fat;  
    (2) payment of a standard rate with uniform differentials 
for milk testing above or below 3.5 percent milk fat and above 
or below a base percent protein;  
    (3) payment of a standard rate with uniform differentials 
for milk testing above or below 3.5 percent milk fat and above 
or below a base percent solids not fat.  
    In addition, an adjustment to the milk price may be made on 
the basis of milk quality, and the component price payment may 
be subject to the milk quality.  
    Testing procedures for determining the percentages of milk 
fat, protein, and milk solids not fat shall be adopted by rule.  
    Sec. 2.  [EFFECTIVE DATE.] 
    Clauses (2) and (3) of Minnesota Statutes, section 32.25, 
subdivision 1, as amended by section 1, are effective upon 
adoption of the Upper Midwest (68), Eastern South Dakota (76), 
Chicago Area (30), and Iowa (79) Federal Milk Orders which would 
permit pricing by all purchasers from producers on a basis other 
than weight and milk fat content.  
    Approved April 25, 1984