126.40 Definitions. In this subchapter:

(1) “Contributing milk contractor" means a milk contractor who is licensed under s. 126.41 (1), who has not been disqualified from the fund under s. 126.45 (3), and who either:

(a) Has paid one or more fund assessments under s. 126.46.

(b) Is required to contribute to the fund but the first fund assessment under s. 126.46 (6) is not yet due.

(2) “Current ratio" means the ratio of the value of current assets to the value of current liabilities, calculated according to s. 126.44 (8) (c) 1.

(3) “Dairy farm" has the meaning given in s. 97.22 (1) (a).

(4) “Dairy plant" has the meaning given in s. 97.20 (1) (a).

(5) “Dairy plant operator" means a person who holds or is required to hold a dairy plant license under s. 97.20.

(6) “Debt to equity ratio" means the ratio of the value of liabilities to equity, calculated according to s. 126.44 (8) (c) 2.

(6m) “Deferred payment contract” means a contract for the procurement of producer milk under which all of the following apply to a milk contractor's payment:

(a) For producer milk received during the first 15 days of the preceding month, the milk contractor's payment is due after the 4th day of the month, based on an estimated price that is at least 80 percent of the class III price published by the regional federal milk market administrator for the month preceding the month in which the milk is received, or 80 percent of the contract price, whichever is greater.

(b) For producer milk received during the preceding month, the balance of the milk contractor's payment is due after the 19th day of the month.

(7) “Disqualified milk contractor" means a milk contractor who is disqualified from the fund under s. 126.45 (3).

(7e) “Estimated default exposure" means the sum of the following:

(a) Seventy-five percent of the following:

1. If the milk contractor reports unpaid milk payroll obligations under ss. 126.41 (6) (b) 1. and 126.47 (5m) (b) 1., the highest amount of unpaid milk payroll obligations, reported under s. 126.41 (6) (b) 1. or 126.47 (5m) (b) 1., that the milk contractor had at any time during the last 12 months.

2. If the milk contractor reports monthly milk payroll obligations under ss. 126.41 (6) (b) 2. and 126.47 (5m) (b) 2., the highest amount of milk payroll obligations, reported under s. 126.41 (6) (b) 2. or 126.47 (5m) (b) 2., that the milk contractor incurred in any month during the last 12 months.

(b) The milk contractor's highest total, at any time during the 12 preceding months, of unpaid obligations for producer milk procured in this state under a deferred payment contract, excluding any unpaid obligations under a deferred payment contract, for milk procured in this state, with a milk producer or producer agent that has, under s. 126.70 (1) (b), permanently waived eligibility to file a default claim against the milk contractor.

(7m) “License year" means the period beginning on May 1 and ending on the following April 30.

(8) “Milk contractor" means a person who buys producer milk or who markets producer milk as a producer agent. “Milk contractor" does not include any of the following:

(a) A person who merely brokers a contract between a milk producer and a milk contractor, without becoming a party to the contract, taking control of milk, or accepting payment on behalf of the milk producer.

(b) A person who merely buys or sells milk on a board of trade or commodity exchange.

(9) “Milk payroll obligation" means a milk contractor's gross obligation to a milk producer or producer agent, whether paid or unpaid, for producer milk that the milk contractor procures in this state.

(10) “Milk producer" means a person who produces milk on a dairy farm.

(11) “Procure producer milk" means to buy producer milk or acquire the right to market producer milk.

(12) “Procure producer milk in this state" means any of the following:

(a) To buy producer milk for receipt in this state.

(b) To receive producer milk directly from a dairy farm in this state.

(c) To collect producer milk from a dairy farm in another state, for direct shipment to a dairy plant that the milk contractor operates in this state.

(d) To acquire the right to market producer milk that is produced in this state.

(13) “Producer agent" means a person who acts on behalf of a milk producer to market or accept payment for producer milk without taking title to that milk, including a person who uses a producer trust fund to market or accept payment for producer milk. “Producer agent" does not include any of the following:

(a) A person who merely brokers a contract between a milk producer and a milk contractor, without becoming a party to the contract, taking control of milk, or accepting payment on behalf of the milk producer.

(b) A person who merely holds or transports milk for a milk producer without marketing or accepting payment for milk on behalf of the milk producer.

(14) “Producer milk" means milk that is owned by or held in trust for one or more milk producers. “Producer milk" includes milk that a producer agent markets for a producer, without taking title to the milk.

(15) “Qualified producer agent" means a milk contractor who does all of the following:

(a) Procures milk in this state solely as a producer agent.

(b) Complies with the rules promulgated under s. 126.51.

History: 2001 a. 16; 2009 a. 296; 2017 a. 155, ss. 20 to 22, 47 to 49.