Section 100.20. Disclosures to milk producers.

 

(1)   Disclosure required. A milk contractor shall make a disclosure under sub. (2) to every milk producer and producer agent from whom the milk contractor procures producer milk in this state. The milk contractor shall make the disclosure, in the form prescribed under sub. (2) , in a written document given to the producer or producer agent. The disclosure shall be clear and conspicuous, and shall be set apart from every other writing. The milk contractor shall make the disclosure to the producer or producer agent at all of the following times:

(a) When the milk contractor first procures producer milk from that producer or producer agent.

(b) In June of each year in which the milk contractor procures milk from that producer or producer agent.

(c) When the milk contractor first procures producer milk from that producer or producer agent following a change in circumstances that requires a different disclosure statement under sub. (2) .

(2)   Form of disclosure.

(a) Except as provided in pars. (b) to (e) , the disclosure under sub. (1) shall consist of a verbatim copy of the following statement:

IMPORTANT NOTICE

[Name of milk contractor] participates in Wisconsin's Agricultural Producer Security program. If we fail to pay you for milk when payment is due, you may file a claim under this program. The program may reimburse up to 80% of the first $60,000 of your allowed claim, and up to 75% of any additional amount. For more information, you may contact the Wisconsin Department of Agriculture, Trade and Consumer Protection, 2811 Agriculture Drive, P. O. Box 8911, Madison, WI 53708-8911 (phone [phone]).

(b) Except as provided in pars. (c) to (e) , the disclosure under sub. (1) shall consist of a verbatim copy of the following statement if the milk contractor contributes to the fund and the milk contractor's estimated default exposure is greater than the sum of the maximum fund reimbursement amount plus any security amount the milk contractor has on file with the department:

IMPORTANT NOTICE

[Name of milk contractor] participates in Wisconsin's Agricultural Producer Security Program. If we fail to pay you for milk when payment is due, you may file a claim under this program. The program may reimburse up to 80% of the first $60,000 of an allowed claim and up to 75% of any additional amount. However, our "estimated default exposure" exceeds available reimbursement funding, and we have not filed security to cover the difference, so reimbursement may cover a much smaller portion of your loss. For more information, you may contact the Wisconsin Department of Agriculture, Trade and Consumer Protection, 2811 Agriculture Drive, P. O. Box 8911, Madison, WI 53708-8911 (phone [phone]).

(c) Except as provided in par. (d) or (e) , the disclosure under sub. (1) shall consist of a verbatim copy of the following statement if the milk contractor voluntarily contributes to the fund under s. 126.45 (2) , Stats., and has an estimated default exposure greater than the sum of the maximum fund reimbursement amount plus any security amount the milk contractor has on file with the department:

IMPORTANT NOTICE

[Name of milk contractor] voluntarily participates in Wisconsin's Agricultural Producer Security Program, even though our financial statements meet or exceed program standards (positive equity, a current ratio of at least 1.25 to 1.0, and a debt-to-equity ratio of no more than 2.0 to 1.0). If we fail to pay you for milk when payment is due, you may file a claim under this program. The program may reimburse up to 80% of the first $60,000 of an allowed claim, and up to 75% of any additional amount. However, our "estimated default exposure" exceeds available reimbursement funding, so reimbursement may cover a much smaller portion of your loss. For more information, you may contact the Wisconsin Department of Agriculture, Trade and Consumer Protection, 2811 Agriculture Drive, P. O. Box 8911, Madison, WI 53708-8911 (phone [phone]).

(d) The disclosure under sub. (1) shall consist of a verbatim copy of the following statement if the milk contractor is not required to contribute to the fund or file security with the department, and has not done so voluntarily:

IMPORTANT NOTICE

[Name of milk contractor] is licensed under Wisconsin's Agricultural Producer Security Program. Because our financial statements meet or exceed minimum requirements (positive equity, a current ratio of at least 1.25 to 1.0 and a debt-to-equity ratio of no more than 2.0 to 1.0), we are not required to contribute to the program or file security. The program will provide no compensation if we fail to pay you for milk. For more information, you may contact the Wisconsin Department of Agriculture, Trade and Consumer Protection, 2811 Agriculture Drive, P. O. Box 8911, Madison, WI 53708-8911 (phone [phone]).

(e) If a disclosure under sub. (1) is made on or before April 30, 2007, by a qualified producer agent who files security under s. 126.47 (3) (a) 3. , Stats., the disclosure shall consist of a verbatim copy of the following statement:

CR 02-113 : cr. Register April 2003 No. 568 , eff. 5-1-03; CR 04-030 : r. (2) (e) 1. and 2., renum. (2) (e) 3. to 5. to be (2) (e) 1. to 3. Register September 2004 No. 585 , eff. 10-1-04; corrections in (2) (a), (c) and (f) made under s. 13.93 (2m) (b) 7., Stats., Register September 2004 No. 585 ; CR 05-068 : r. and recr. (2) Register April 2006 No. 604 , eff. 5-1-06.

Note

Section 126.47 (3) (a) 3., Stats., was repealed by 2009 Wis. Act 296 . Microsoft Windows NT 6.1.7601 Service Pack 1 IMPORTANT NOTICE Microsoft Windows NT 6.1.7601 Service Pack 1 [Name of milk contractor] participates in Wisconsin's Agricultural Producer Security Program as a producer agent. If we fail to pay you for milk when payment is due, you may file a claim under this program. The program may reimburse up to 20% of your allowed claim. For more information, you may contact the Wisconsin Department of Agriculture, Trade and Consumer Protection, 2811 Agriculture Drive, P. O. Box 8911, Madison, WI 53708-8911 (phone [phone]). Microsoft Windows NT 6.1.7601 Service Pack 1 By its terms, this provision is no longer in effect. Microsoft Windows NT 6.1.7601 Service Pack 1