English - Dairy Farmers of Ontario

Back to Table of Contents(j) DFO is not responsible for any fees or charges associated with a delay in the payment of milk to theproducer or designate.10. SNF/BF RatiosPayments for within-quota shipments to DFO will be made based on the butterfat composition of the milk andthe ratio cap of solids-not-fat (SNF) to butterfat content in the milk as determined appropriate by DFO.11. Explanation of the Interim Milk Cheque Statement Rev. Feb. 1, 2012(a) Payment is made on the 1st of the month, or the next business day, for milk shipments reported for thefirst fifteen days in the previous month, minus any food bank donations.(b) Payment will be based on the producer’s individual blend price from the month prior to the shipments. Ifa producer is new to the industry, the first interim payment will be based on the provincial average blendprice of the month prior to the shipments. Interim payment uses a 90 per cent factor.(c) Usual deductions based on volume will be held back from the interim payment.(d) Where a producer has assigned a fixed portion of milk proceeds to third parties, 50 per cent of the fixedamount will be held back. Assignments based on a percentage of the milk proceeds will have a weightedamount held back.(e) Producers will not receive an interim milk payment if: Rev. Oct. 1, 2013(i) using or providing shared facilities services;(ii) through a total quota transfer or total quota sale their quota holdings will be zero on the first of thenext month; or(iii) monthly assignments for milk proceeds are 100 per cent.12. Explanation of the Milk Cheque Statement(a) Monthly Quotas (also see Section E-1)Monthly quota is calculated by multiplying quota by the difference in the number of pickup days betweenthe last pickup in the previous month and the last pickup this month,e.g. Dec. 30 to Jan. 31 = 32 days (50 kg x 32 days = 1,600 kg for a 16-pickup month).If a producer stops partway through a month, resulting in calendar days minus one being greater thanthe difference in the number of days between the last pickup in the previous month and the last pickupthis month, then quota days are the difference in the number of days from the last pickup in the previousmonth to the last calendar day this month.Dec. 30 to Jan. 13 = 14 days. Calendar days 31 minus 1 = 30 days.Quota days of 32 are used in this example.(b) Incentive DaysIncentive days are multiplied by the quota, e.g. 50 kg x 1 day = 50 kg. (The 50 kg is added to the monthlyquota.) Incentive days that are not used cannot be carried forward to the next month.(c) Maximum Underproduction CreditsThe maximum number of underproduction credits that can be carried forward is quota multiplied by 30days. e.g. 50 kg x 30 days = 1,500 kg.If quota is sold, the maximum underproduction credits are also reduced on the effective date of the sale50 kg - 25 kg = 25 kg x 30 days = 750 kg. Underproduction credits greater than 750 kg would be clawedback.Quota and Milk Transportation Policies 19 July 1, 2010