1. (a) Class I price. The Class I price per hundredweight, rounded to the nearest cent, shall be.965 times the Class I skim milk price plus 3.5 times the Class I butterfat price.
2. (b) Class I skim milk price. The Class I skim milk price per hundredweight shall be the adjusted Class I differential specified in section 21.42 of this Part plus the higher of the advanced pricing factors computed in paragraph (q)(1) or (2) of this section.
3. (c) Class I butterfat price. The Class I butterfat price per pound shall be the adjusted Class I differential specified in section 21.42 of this Part divided by 100, plus the advanced butterfat price computed in paragraph (q)(3) of this section.
4. (d) The Class II price per hundredweight, rounded to the nearest cent, shall be.965 times the Class II skim milk price plus 3.5 times the Class II butterfat price.
5. (e) Class II skim milk price. The Class II skim milk price per hundredweight shall be the advanced Class IV skim milk price computed in paragraph (q)(2) of this section plus 70 cents.
6. (f) Class II nonfat solids price. The Class II nonfat solids price per pound, rounded to the nearest one-hundredth cent, shall be the Class II skim milk price divided by 9.
7. (g) Class II butterfat price. The Class II butterfat price per pound shall be the butterfat price plus $.007.
8. (h) Class III price. The Class III price per hundredweight, rounded to the nearest cent, shall be.965 times the Class III skim milk price plus 3.5 times the butterfat price.
9. (i) Class III skim milk price. The Class III skim milk price per hundredweight, rounded to the nearest cent, shall be the protein price per pound times 3.1 plus the other solids price per pound times 5.9.
10. (j) Class IV price. The Class IV price per hundredweight, rounded to the nearest cent, shall be.965 times the Class IV skim milk price plus 3.5 times the butterfat price.
11. (k) Class IV skim milk price. The Class IV skim milk price per hundredweight, rounded to the nearest cent, shall be the nonfat solids price per pound times 9.
12. (l) Butterfat price. The butterfat price per pound, rounded to the nearest one-hundredth cent, shall be the U.S. average NASS AA Butter survey price reported by the U.S. Department of Agriculture for the month less 11.4 cents, with the result divided by 0.82.
13. (m) Nonfat solids price. The nonfat solids price per pound, rounded to the nearest one- hundredth cent, shall be the U.S. average NASS nonfat dry milk survey price reported by the U.S. Department of Agriculture for the month less 13.7 cents, with the result divided by 1.02.

14. (n) Protein price. The protein price per pound, rounded to the nearest one-hundredth cent, shall be computed as follows:

    1. (1) compute a weighted average of the amounts described in subparagraphs (i) and (ii) of this paragraph:

       1. (i) the U.S. average NASS survey price for 40-pound block cheddar cheese reported by the U.S. Department of Agriculture for the month; and
       2. (ii) the U.S. average NASS survey price for 500-pound barrel cheddar cheese (39 percent moisture) reported by the U.S. Department of Agriculture for the month plus 3 cents;
    2. (2) subtract 17.02 cents from the price computed pursuant to paragraph (1) of this subdivision and multiply the result by 1.405;

    3. (3) add to the amount computed pursuant to paragraph (2) of this subdivision an amount computed as follows:

       1. (i) subtract 17.02 cents from the price computed pursuant to paragraph (1) of this subdivision and multiply the result by 1.582;
       2. (ii) subtract the butterfat price computed pursuant to paragraph (1) of this subdivision from the amount computed pursuant to subparagraph (i) of this paragraph; and
       3. (iii) multiply the amount computed pursuant to subparagraph (ii) of this subdivision by 1.28.
15. (o) Other solids price. The other solids price per pound, rounded to the nearest one- hundredth cent, shall be the U.S. average NASS dry whey survey price reported by the U.S. Department of Agriculture for the month minus 13.7 cents, with the result divided by 0.968.
16. (p) [Reserved]

17. (q) Advanced pricing factors. For the purpose of computing the Class I skim milk price, the Class II skim milk price, the Class II nonfat solids price, and the Class I butterfat price for the following month, the following pricing factors shall be computed using the weighted average of the two most recent NASS U.S. average weekly survey prices announced before the 24th day of the month:

    1. (1) an advanced Class III skim milk price per hundredweight, rounded to the nearest cent, shall be computed as follows:

       1. (i) following the procedure set forth in subdivisions (n) and (o) of this section, but using the weighted average of the two most recent NASS U.S. average weekly survey prices announced before the 24th day of the month, compute a protein price and an other solids price;
       2. (ii) multiply the protein price computed in subparagraph (i) of this paragraph by 3.1;
       3. (iii) multiply the other solids price per pound computed in subparagraph (i) of this paragraph by 5.9; and
       4. (iv) add the amounts computed in subparagraphs (ii) and (iii) of this paragraph.

    2. (2) An advanced Class IV skim milk price per hundredweight, rounded to the nearest cent shall be computed as follows:

       1. (i) following the procedure set forth in subdivision (m) of this section, but using the weighted average of the two most recent NASS U.S. average weekly survey prices announced before the 24th day of the month, compute a nonfatsolids price; and
       2. (ii) multiply the nonfat solids price computed in subparagraph (i) of this paragraph by 9.
    3. (3) An advanced butterfat price per pound, rounded to the nearest one-hundredth cent, shall be calculated by computing a weighted average of the two most recent U.S. average NASS AA Butter survey prices announced before the 24th day of the month, subtracting 11.4 cents from this average, and dividing the result by 0.82.

Class prices per hundredweight of milk containing 3.5 percent butterfat, component prices, and advanced pricing factors shall be as follows. The prices and pricing factors described in subdivisions (a), (b), (c), (e), (f) and (g) of this section shall be based on a weighted average of the most recent two weekly prices announced by the National Agricultural Statistical Service (NASS) before the 24th day of the month. These prices shall be announced on or before the 23rd day of the month and shall apply to milk received during the following month. The prices described in subdivisions (g)-(o) of this section shall be based on a weighted average for the preceding month of weekly prices announced by NASS on or before the fifth day of the month and shall apply to milk received during the preceding month. The price described in subdivision (d) of this section shall be derived from the Class II skim milk price announced on or before the 23rd day of the month preceding the month to which it applies and the butterfat price announced on or before the fifth day of the month following the month to which it applies.