1. (a) For each reimbursement claim submitted by a participating partnership, the amount of reimbursement under § 1146.106 shall be the product of:

   1. (1) The quantity of eligible milk donated by the eligible dairy organization to the eligible distributor member of the participating partnership;
   2. (2) The rate described in the approved Milk Donation and Distribution Plan under § 1146.102(d); and
   3. (3) The difference between the FMMO Class I price at the plant location and the lowest classified price (either Class III or Class IV), for the month in which the donation was pooled on a Federal Milk Marketing Order.
2. (b) Expenses eligible for reimbursement under § 1146.106 shall not exceed the value that an eligible dairy organization incurred by accounting to the Federal milk marketing order pool at the difference between the announced Class I milk price at the location of the plant where the milk was processed and the lower of the Class III or Class IV milk price for the applicable month.
3. (c) Claim reimbursements are subject to the limitations specified in paragraph (b) of this section.
4. (d) Total plan reimbursements are subject to the limitations specified in § 1146.104(c)(2).

[84 FR 46658, Sept. 5, 2019, as amended at 90 FR 22625, May 29, 2025]