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Multiple basing points: A method of regional pricing
in milk marketing orders that would allow more
than one basing point, or "surplus area," to be
used. Surplus areas are administratively defined as areas with low Class I
utilization, meaning that a relatively small percentage of the milk produced in
an area is used in that area as Class I (fluid) milk. In a multiple
basing point system, the order used as the basing point has
the smallest Class I differential (the difference
between the Class I price and the Class III price). The Class I differential for
other orders is then based on transportation costs to the nearest basing point
plus the minimum differential.
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