§ 55640 Producer Claim Release Rules

• •If farmers get paid what they're owed by the company that buys their stuff,
• •then the company can sell, move, or get rid of the stuff they bought from the farmers.
• •This rule makes sure farmers get their money first before anything else happens with their stuff.

A dairy farmer sells milk to a cheese company.

If the cheese company pays the farmer for all the milk they bought, then the cheese company can sell or move the cheese they made from that milk. If they don’t pay the farmer, they can’t do anything with the cheese until the farmer gets their money.