Agricultural Producer Security

Milk Contractor Security

Veterans: For information on how to apply for License Fee Waiver under Act 209, see Veterans License Fee Waiver Program: 2011 Wisconsin Act 209.

Milk contractors purchasing milk from Wisconsin producers or producer agents must comply with Chapter 126 Wis. Stats., and Chapter ATCP100, Wis. Adm. Code.

Milk contractor licenses expire on April 30 of each year.In order for milk contractors to obtain a license to procure producer milk in this state, they must do the following:

• If the annual hundredweight (cwt) of milk procured from producers and producer agents exceed 150,000 cwt. They must demonstrate their financial condition by filing a reviewed or an audited annual financial statement. An audited annual financial statement must be filed, if the cwt. exceeds 2,500,000 cwt of milk. For reviewed statements, file form #10 below.
• If their financial condition measured by their current ratio and debt-to-equity ratio does not meet minimum requirements, they must participate in the Wisconsin Agricultural Producer Security Fund (Fund) and pay annual assessments into the Fund. Milk Contractor Assessment Calculator (Excel file)
• A milk contractor will be required to file and maintain security with the department at 75% of the maximum milk payroll obligation, if their financial statement has negative equity when first licensed.
• Pay monthly license fees for the administration of the Fund at the rate of $.0015 cwt.
• Pay monthly procurement fees at the rate of $.01048 cwt for grade A milk, and a rate of $.0020 per cwt for grade B milk.
• In June of each year notify producers and producer agents whether the milk contractor is a participant in the Fund and the manner in which they participate (can be voluntary). The disclosure can be found in § ATCP 100.20(2), Wis. Adm. Code.
• Maintain fire and extended coverage insurance that covers the value of all milk and milk products in possession, custody or control of the milk contractor.
• Pay producers and producer agents timely and provide them with pay statements disclosing specified information relating to the period milk is delivered.
• Maintain accurate records of milk receipts, payments and amounts owed to producers for a minimum of six years.

For more information, call our offices at 608-224-4998. Please click on the following links for milk contractor license materials:

1. Milk Contractor License Application - 5 page PDF
2. Milk Contractor Fees & Surcharges - 1 page PDF
3. Milk Contractor License Application Information - 2 page PDF
4. Irrevocable Letter of Credit Milk - 1 page Word doc
5. Milk Contractor's Commercial Surety Bond - 1 page PDF
6. Exempt Custom Processor Affidavit - 1 page PDF
7. Licensed Milk Contractors 2012-2013 - Excel file
8. Monthly Fee Forms
9. Milk Waiver Form - 2 page PDF
10. Signature & Certification Form - 1 page PDF
11. Milk Contractor Disclosure - 1 page PDF