§ 62583 Producer Payment Eligibility Rules

• •If a milk producer has a contract with a handler (buyer) and gets paid by them, but the handler is later declared ineligible (not allowed) to buy milk, the producer’s milk shipments won’t be protected by the fund after 5 days of the notice.
• •The producer can’t ask the fund for money for milk shipped after those 5 days, unless the handler is allowed to buy milk again.
• •This rule only applies if the producer’s contract was already on file with the secretary before the notice.

A dairy farmer sells milk to a company that later gets in trouble and is told they can’t buy milk anymore.

If the farmer keeps sending milk to that company more than 5 days after the warning, the farmer won’t get help from the fund if something goes wrong. The farmer has to stop selling to them or find a new buyer fast.