§7255 Milk Manufacturing Marketing Adjustment

Summary

States must not give a manufacturing allowance for processing milk larger than $1.65 per hundredweight for milk made into butter and nonfat dry milk, or larger than $1.80 per hundredweight for milk made into cheese. If the Secretary finds after a hearing that a State is giving more than those amounts, the Secretary must stop buying cheddar cheese, butter, and nonfat dry milk from that State until it follows the limits. manufacturing allowance — the extra amount by which the value of products made from 100 pounds of milk (using the State’s yield and product price formulas) is higher than the class price for that milk, based on milk with 3.5 pounds of butterfat and 8.7 pounds of milk solids not fat. The rule runs from the first day of the first month beginning after April 4, 1996, through December 31, 1999, and the Secretary may act under it without issuing new regulations during that time.