Section 100.16. Producer agents.

 

(1)   Qualified producer agent. A producer agent is not a qualified producer agent under s. 126.45 (3) or 126.47 (3) (a) 2. , Stats., nor may a producer agent file a default claim under s. 126.70 (1) (c) , Stats., unless all the following apply:

(a) The producer agent procures producer milk in this state solely as the agent of milk producers. Notwithstanding this paragraph, a milk contractor who buys some milk and markets other milk as a producer agent may file a default claim under s. 126.70 (1) (c) , Stats., for producer milk that the milk contractor markets as a producer agent if the contractor complies with pars. (b) to (f) with respect to all of the milk that the contractor procures in this state as a producer agent.

(b) The producer agent does not take title to the producer milk, or to any processed dairy products made from the producer milk.

(c) The producer agent markets the producer milk under a written contract with each milk producer. The contract shall comply with sub. (2) .

(d) The producer agent does not process, as a producer agent, more than 5 million pounds of producer milk in any month.

(e) The producer agent gives, to each recipient of producer milk marketed by the producer agent, a written invoice stating that the milk is producer milk not owned by the producer agent.

(f) The producer agent files a monthly producer agent report with the department, as provided under sub. (3) .

(2)   Contract with milk producer. The contract under sub. (1) (c) shall be signed by the milk producer and the producer agent, and shall clearly specify the terms under which the producer agent receives, markets and accepts payment for milk on behalf of the producer. The contract shall clearly and conspicuously disclose all the following:

(a) That the producer agent does not take title to the producer's milk, or any dairy products made from that milk.

(b) That the producer agent receives payments on behalf of the producer, and holds them in trust for the producer.

(c) The terms and conditions of payment to the producer.

(d) The procedure by which the producer agent will receive payment on behalf of the producer and make payments to the producer, including any trust fund arrangement.

(e) The producer agent's compensation for serving as the producer's agent, and the method by which the producer agent will receive that compensation from the producer.

(f) The appropriate milk security disclosure statement under s. ATCP 100.20 .

(3)   Monthly report. A producer agent who files a monthly report under sub. (1) (f) shall file the report on or before the 25 th day of the month. The report shall include all the following:

(a) The name and address of each person to whom the producer agent marketed, in the preceding month, producer milk that the producer agent procured in this state as a producer agent.

(b) The total pounds of producer milk that the producer agent marketed to each person under par. (a) in the preceding month.

(c) The total dollar value of producer milk that the producer agent marketed to each person under par. (a) in the preceding month.

(d) The producer agent's total gross payments to milk producers for producer milk that the producer agent marketed under par. (a) in the preceding month.

(4)   Exempt agent. Chapter 126 , Stats. , does not apply to a person who collects a producer's milk for delivery to a custom processor under s. ATCP 100.14 , and who receives and markets the custom-processed dairy products for the producer, provided that all the following apply:

(a) The person does not handle more than 5 million pounds of producer milk in any month, does not process milk or dairy products, and does not otherwise operate as a milk contractor.

(b) The producer retains title to the milk and the processed dairy products made from the milk.

(c) The person has a written contract with the producer. The contract shall clearly and conspicuously disclose all the following:

1. That the producer retains title to the milk and the dairy products made from the milk.

2. That the producer's milk shipments are not secured under ch. 126 , Stats.

(d) The person keeps a copy of the contract under par. (c) for at least 3 years after the contract ends, and makes it available to the department for inspection and copying upon request.

(e) The person submits to the department, by May 1 of each year, an affidavit certifying that the person qualifies as an exempt agent under this subsection.

CR 02-113 : cr. Register April 2003 No. 568 , eff. 5-1-03; correction in (1) (intro.) made under s. 13.93 (2m) (b) 7., Stats., Register September 2004 No. 585 ; correction in (1) (intro.) made under s. 13.92 (4) (b) 7., Stats., Register June 2011 No. 666 .

Note

Producer agents are regulated as milk contractors under ch. 126 , Stats., regardless of whether they comply with sub. (1). But producer agents do not qualify for special treatment as "qualified producer agents" under s. 126.45 (3) or 126.47 (3) (a) 2. , Stats., nor may they file default claims under s. 126.70 (1) , Stats., unless they comply with sub. (1). Microsoft Windows NT 6.1.7601 Service Pack 1