Milk Contractor

(8/3/2018)  A recent law change, 2017 Wisconsin Act 155, allows for deferred payments. See the Deferred Payment Requirements for more information.

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

A list of licensed milk contractors can be found here.

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.

  • 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.

  • 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 about the Agricultural Producer Security program, call our offices at (608) 224-4998.